Baby Boomers and the increasingly diverse population of America are demanding rich and robustly seasoned food.

That along with Americans' preference for convenience is helping spur growth in the food additive and preservative industry.

New strategic research from Frost & Sullivan (www.frost.com), "U.S. Food Additive and Preservative Markets," shows the industry had more than $3 billion in revenue in 1999. Frost & Sullivan projects revenues to top $5 billion by the year 2006.

Baby boomers are looking for healthier, more flavorful foods. They are having a strong positive impact on the demand for food additives that enhance flavor.

"In addition to more flavorful meals, Baby Boomers are also looking for healthy cuisine as they age," says Frost & Sullivan analyst Dr. Bradley Watkins. "Instead of sprinkling salt, Americans are increasingly using spice or spice blends to season their food."

With the U.S. being such a diverse country, there are many recipes to choose from. People who travel abroad are also expanding their tastes; spicier, more flavorful foods are gaining popularity. This Frost & Sullivan report aims to keep businesses updated on important market and technology trends including changes in the additive and preservative market.

"Consumers are increasingly substituting non-nutritive sweeteners such as Sweet `N Low or NutraSweet for sugar in an effort to reduce their caloric intake and reduce or maintain their body weight," says Watkins.

Aspartame and saccharin are more popular than ever and the list of artificial sweeteners may continue to grow pending Food and Drug Administration (FDA) approval. This will provide a boost to the artificial sweetener industry.

Growing concerns about synthetic chemicals in foods is also impacting the food additives and preservatives market. The use of too many chemicals in food is scaring many customers and forcing them to search for products that are minimally processed or claim to contain no artificial additives or preservatives. Worries about the safety of synthetic chemicals are increasing the demand for all-natural additives and preservatives in foods.

Market contenders need to keep a close watch on the competitive environment. They must have a dependable source of information to turn to when making their next move.

Frost & Sullivan presents the 2000 Marketing Engineering Awards to companies that have worked hard to make a positive contribution to the U.S. food additive and preservative industry. The Market Engineering Leadership Award is presented to McCormick & Company (NYSE:MKC). The Merger & Acquisition Strategy Award is given to Warner Jenkinson. Adams Extract Company receives the Distribution Strategy Award. Ashland Chemical Company, a division of Ashland Incorporated (NYSE:ASH) is given the Customer Service Innovation Award, and Velsicol Chemical Corporation receives the Vertical Integration Award.

Frost & Sullivan, which is headquartered in San Jose, Calif., is a global leader in international strategic market consulting and training. Frost & Sullivan's industry experts monitor the food chemicals industry for market trends, market measurements and strategies. This ongoing research is used to complement the Food and Beverage Custom Subscription, which includes studies on the U.S. Proteins Ingredients Market and the European Enzymes for Food Applications Markets. Executive summaries and interviews are available to the press.

Along with publishing in-depth strategic market consulting research, Frost & Sullivan also provides custom consulting needs to a variety of national and international companies.

U.S. Food Additive and Preservative Markets

Report: 7438-88 Date: October 2000