Food additives represent a major supply sector for the $2,000 billion international processed foods market, with total sales of additives estimated at around $20 billion a year. The largest single sectors within the additives market are flavours, worth $5 billion a year, hydrocolloids, worth $2.82 billion, flavour enhancers, worth around $2.5 billion, and acidulants, worth $2.16 billion.

Perhaps the most significant trend driving growth in additives is a general increase in processed foods consumption across the world. The emerging markets of Asia and Latin America are becoming increasingly important for food additive suppliers as demand for further processed foods in these regions is growing rapidly.


However, there are a number of other key trends currently influencing development of the food and drinks market across the world, all of which have implications for the food additives market. These include the increase in healthy eating, which has boosted demand for sweeteners and fat replacers; the increased demand for natural and organic foods, which has held back many additive categories but prompted growth in natural flavours and colours; and the snacking and convenience revolution, which has implications for a number of additive categories, ranging from preservatives, which are required to maintain freshness in products that are likely to be eaten on the move, to flavours, with many modern snack foods featuring novel and unusual flavours and tastes.


The health issue is of particular interest, as the consumer’s interest in improving health through the diet has led to the development of several entirely new additive categories over the past 30 or 40 years. Healthy eating has traditionally centred on fat and sugar reduction in the diet, trends that have influenced development of the fat replacers and sweeteners categories. Other additives, such as hydrocolloids, many of which can be used as fat replacers, have also benefited from consumer concerns about fat and sugar intake. However, the boom sector within the health market at present is that of functional foods and an entirely new sector of functional food ingredients has developed, including products such as omega-3 fatty acids and phytosterols for cholesterol control, and probiotics and prebiotics for gut health. The established vitamins and minerals sector has also benefited from the functional foods craze, with more and more products being fortified with beneficial vitamins and minerals. Other established food additives are also finding more widespread use as functional food ingredients. For example, amino acids and proteins have become key ingredients in sports and energy foods and drinks, while antioxidants are also being promoted for their health benefits. Some lecithin products are also being marketed on a health platform, such as Lucas Meyer’s Leci-PS for brain and memory function, Leci-PC for liver support, and Leci-PL for cholesterol control.


Traditionally, the international food additives market has been dominated by major western firms, either chemical companies that include the food industry as one of many supply sectors, or specialist additive firms that focus specifically on the food and drinks market. However, with the development of emerging markets in Asia and Latin America, several sectors are now hotly contested by local firms, with the Chinese having built up a particularly strong chemical and additive supply industry in recent years. This has led to price pressure, with production in these regions being cheaper than in Europe and the US, and some of the established additive firms have now begun to invest in developing their own production sites in these countries so they can compete more effectively. For the time being, however, real innovation in the additive industry, and particularly in areas such as functional food ingredients, is likely to come primarily from European and US firms.


The information given here is taken from Leatherhead Food RA’s new market report, entitled “The Food Additives Market – Global Trends and Developments”. The report discusses market and industry trends in 13 additive categories, reporting on market sizes and discussing the leading companies.


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FOREWORD
LIST OF TABLES
INTRODUCTION 1
EXECUTIVE SUMMARY 2
1. OVERVIEW 5
1.1 The Market 5
1.2 Market Forces 8
1.3 The Industry 10
2. FLAVOURS 16
2.1 Introduction 16
2.2 The Market 16
2.3 The Industry 18
3. HYDROCOLLOIDS 22
3.1 Introduction 22
3.2 The Market 22
3.2.1 Starches 23
3.2.2 Gelatin 23
3.2.3 Carrageenan 25
3.2.4 Pectin 25
3.2.5 Xanthan gum 26
3.2.6 Gum arabic 26
3.2.7 Agar 26
3.2.8 Locust bean gum 27
3.2.9 Guar gum 27
3.2.10 Alginates 27
3.2.11 Cellulose derivatives 27
3.2.12 Others 28
3.3 The Industry 28
3.3.1 Starches 29
3.3.2 Gelatin 31
3.3.3 Carrageenan 32
3.3.4 Pectin 33
3.3.5 Xanthan gum 33
3.3.6 Gum arabic 34
3.3.7 Agar 35
3.3.8 Locust bean gum 35
3.3.9 Guar gum 36
3.3.10 Alginates 37
3.3.11 Cellulose derivatives 38
3.3.12 Others 38
4. FLAVOUR ENHANCERS 41
4.1 Introduction 41
4.2 The Market 41
4.2.1 MSG 41
4.2.2 Hydrolysed vegetable protein 42
4.2.3 Yeast extract 42
4.2.4 Nucleotides 43
4.2.5 Maltol/ethyl maltol 43
4.3 The Industry 43
4.3.1 MSG 44
4.3.2 Hydrolysed vegetable protein 44
4.3.3 Yeast extract 44
4.3.4 Nucleotides 45
4.3.5 Maltol/ethyl maltol 45
5. ACIDULANT 47
5.1 Introduction 47
5.2 The Market 47
5.2.1 Citric acid 48
5.2.2 Acetic acid 50
5.2.3 Lactic acid 50
5.2.4 Ascorbic acid 50
5.2.5 Phosphoric acid 51
5.2.6 Malic acid 51
5.2.7 Benzoic acid 52
5.2.8 Propionic acid 52
5.2.9 Tartaric acid 52
5.2.10 Sorbic acid 52
5.2.11 Adipic acid 52
5.2.12 Glucono-delta-lactone 53
5.2.13 Fumaric acid 53
5.3 The Industry 54
5.3.1 Citric acid 54
5.3.2 Acetic acid 56
5.3.3 Lactic acid 56
5.3.4 Ascorbic acid 56
5.3.5 Phosphoric acid 57
5.3.6 Malic acid 58
5.3.7 Benzoic acid 58
5.3.8 Propionic acid 58
5.3.9 Tartaric acid 59
5.3.10 Sorbic acid 59
5.3.11 Adipic acid 59
5.3.12 Glucono-delta-lactone 59
5.3.13 Fumaric acid 59
6. SWEETENERS 61
6.1 Introduction 61
6.2 The Market 61
6.2.1 Bulk Sweetners 61
Erythritol 62
Isomalt 62
Lactitol 63
Maltitol 63
Mannitol 64
Sorbitol 64
Xylitol 64
6.2.2 Intense sweeteners 65
Acesulfam K 67
Alitame 67
Aspartame 67
Cyclamate 68
Glycyrrhizin 68
Neohesperidine dihydrochalcone 68
Saccharin 69
Stevioside 69
Sucralose 69
Thaumatin 69
6.3 The Industry 70
6.3.1 Bulk Sweeteners 70
Erythritol 70
Isomalt 70
Lactitol 71
Maltitol 71
Mannitol 71
Sorbitol 71
Xylitol 72
6.3.2 Intense Sweeteners 73
Acesulfam K 73
Alitame 74
Aspartame 74
Cyclamate 74
Glycyrrhizin 75
Neohesperidine dihydrochalcone 75
Saccharin 75
Stevioside 75
Sucralose 75
Thaumatin 75
7. ENZYMES 77
Introduction 77
The Market 77
The Industry 79
8. COLOURS 84
8.1 Introduction 84
8.2 The Market 85
8.2.1 Natural colours 85
8.2.2 Synthetic colours 86
8.3 The Industry 87
9. EMULSIFIERS 91
9.1 Introduction 91
9.2 The Market 91
9.3 The Industry 93
Lecithin 93
Other emulsifiers 94
10. VITAMINS AND MINERALS 96
10.1 Introduction 96
10.2 The Market 96
10.2.1 Vitamins 96
Vitamin C 97
Vitamin E 97
B Vitamins 97
Others 98
10.2.2 Minerals 98
10.3 The Industry 99
10.3.1 Vitamins 99
Vitamin C 100
Vitamin E 100
B Vitamins 101
Others 102
10.3.2 Minerals 103
11. CHEMICAL PRESERVATIVES 104
11.1 Introduction 104
11.2 The Market 104
11.3 The Industry 106
11.3.1 Sorbic acid/sorbates 107
11.3.2 Benzoic acid/benzoates 108
11.3.3 Propionic acid/propionates 108
11.3.4 Nisin/natamycin 108
12. ANTIOXIDANTS 110
12.1 Introduction 110
12.2 The Market 110
12.3 The Industry 112
13. FAT REPLACERS 115
13.1 Introduction 115
13.2 The Market 115
13.3 The Industry 116
13.3.1 Fat substitutes – synthetic/fat-based 116
13.3.2 Fat mimetics – carbohydrate-based 117
13.3.3 Fat mimetics – protein-based 118
14. FUNCTIONAL FOOD INGREDIENTS 120
14.1 Introduction 120
14.2 The Market 120
14.2.1 Omega-3 fatty acids 120
14.2.2 Phytosterols 121
14.2.3 Probiotics 121
14.2.4 Prebiotics 122
14.2.5 Vitamins and minerals 123
14.2.6 Others 123
14.3 The Industry 123
Omega-3 fatty acids 123
Phytosterols 123
Probiotics 124
Prebiotics 124
Vitamins and minerals 124
APPENDIX I Selected Additive Company Web Addresses 125

FOREWORD


The information presented in this report is compiled from non-confidential published material. Whilst every possible care is taken in compiling, preparing and issuing the information herein given, no liability whatsoever can be accepted for the contents or their accuracy.


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Table 1.I International food additives market by category, 1998 5
Table 1.II Food additive market trends by category, 1999 6
Table 1.III Merger and acquisition activity in the additives industry, 1998-99 11
Table 1.IV Major companies in each of the individual additives categories 15
Table 2.I World market for flavours and fragrances by type, 1998 16
Table 2.II World market for food and drink flavours by end-use category, 1997 17
Table 2.III World market for food and drink flavours by region, 1998 17
Table 2.IV Top ten flavour and fragrance companies in the world, 1998 18
Table 3.I World market for hydrocolloids by type, 1998 22
Table 3.II World gelatin production by region, 1998 24
Table 3.III European gelatin use by type of industry, 1998 25
Table 3.IV French pectin usage by major application, 1998 26
Table 3.V World sales of cellulose derivative hydrocolloids by value, 1998 28
Table 3.VI Major corn starch manufacturers in the US, 1999 30
Table 3.VII World’s leading pectin producers, 1999 33
Table 3.VIII World’s leading xanthan gum producers, 1999 34
Table 3.IX Selected suppliers of locust bean gum and their brands, 1999 36
Table 3.X Selected suppliers of guar gum and their brands, 1999 37
Table 3.XI World’s leading alginate producers, 1999 38
Table 3.XII World’s leading suppliers of starch, 1999 39
Table 3.XIII World’s leading suppliers of gelatin, 1999 39
Table 3.XIV Selected suppliers of hydrocolloids by type, 1999 40
Table 4.I World market for flavour enhancers by type, 1998 41
Table 4.II Production capacity for MSG by country, 1998 42
Table 4.III Selected suppliers of flavour enhancers, 1999 46
Table 5.I World acidulants market by volume and value and by type, 1998 48
Table 5.II World citric acid market by type of industry, 1998 49
Table 5.III Major applications for citric acid 49
Table 5.IV World lactic acid market by application, 1998 50
Table 5.V Major applications for malic acid 51
Table 5.VI Major applications for fumaric acid 53
Table 5.VII Market shares in the global citric acid sector, 1996 55
Table 5.VIII Market shares in the global phosphates derivatives sector, 1998 57
Table 5.IX World’s leading producers of malic acid, 1998 58
Table 5.X Selected suppliers of acidulants by type, 1999 60
Table 6.I Relative sweetness of polyol or bulk sweeteners compared with sucrose 62
Table 6.II German sugar-free boiled confectionery market by sweetener, 1996-98 63
Table 6.III Relative sweetness of intense sweeteners compared with sucrose 65
Table 6.IV World market for intense sweeteners by volume and value, 1998 66
Table 6.V World market for intense sweeteners by equivalent volume of sugar, 1998 66
Table 6.VI World aspartame market by country, 1998 68
Table 6.VII Major sorbitol manufacturers – US production capacities, 1998 72
Table 6.VIII Selected suppliers of bulk sweeteners by type, 1999 73
Table 6.IX Selected suppliers of intense sweeteners by type, 1999 76
Table 7.I World market for enzymes, 1995-2005 77
Table 7.II World enzymes market by major application, 1996-98 78
Table 7.III Selected food uses of enzymes by type 78
Table 7.IV Novo Nordisk – major food enzyme brands, 1999 79
Table 7.V Genencor – major food enzyme brands, 1999 80
Table 7.VI DSM Food Specialities (Gist-brocades) – major food enzyme brands, 1999 81
Table 7.VII Selected suppliers of food enzymes by application, 1999 82
Table 7.VIII Selected suppliers of food enzymes by type, 1999 83
Table 8.I Major types of natural colour 85
Table 8.II World market for natural colours by type, 1998 86
Table 8.III Major types of synthetic colour 87
Table 8.IV Major suppliers of natural colours for the food and drinks industry, 1999 89
Table 8.V Major suppliers of synthetic colours for the food and drinks industry, 1999 90
Table 9.I Major emulsifiers and their key applications 92
Table 9.II European usage of emulsifiers by end-use category, 1997 93
Table 9.III Selected suppliers of emulsifiers, 1999 95
Table 10.I World vitamins market by end-use industry, 1998 96
Table 10.II World vitamin market shares, 1998 99
Table 10.III Selected suppliers of bulk vitamins for the food industry, 1999 103
Table 11.I Major applications for main preservatives 105
Table 11.II World preservatives market by volume and value and by type, 1997 106
Table 11.III US preservatives market by volume and value and by type, 1995-97 106
Table 11.IV World’s leading sorbate suppliers, 1998 107
Table 11.V Major manufacturers of preservatives by type of product, 1999 109
Table 12.I World antioxidants market by value, 1998 110
Table 12.II US antioxidants market by type, 1998 111
Table 12.III World erythorbates market by volume, 1998 112
Table 12.IV Selected suppliers of antioxidants by type, 1999 114
Table 13.I US market for fat replacers, 1995-98 115
Table 13.II Selected suppliers of fat replacers by type, 1999 119
Table 14.I Selected omega-3-enriched foods launched worldwide, 1998-99 121
Table 14.II Penetration levels of probiotic yoghurts by country, 1998 122

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