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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Table of Contents
page | ||
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.
LIST OF TABLES
page | ||
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 |
Details of reports from Leatherhead Food RA click here