Freedonia Market Research Analyzes Food and Beverage Additives Industry

US demand for food and beverage additives is projected to increase 4.4 percent annually to $8.6 billion in 2012.  Although the US food and beverage industry is relatively mature, additive producers continue to build market value through the introduction of new additives and improved versions of extant products.  Food and beverage processors turn to these additives to improve finished product quality and control costs.  Additives in dairy products are expected to post above average growth as a result of the increasing use of probiotic ingredients in yogurt and other products.  These and other trends, including market share and company profiles, are presented in Food & Beverage Additives, a new study from The Freedonia Group, Inc., a Cleveland-based industry research firm.

China has become an increasingly popular source for food and beverage additives, accounting for a large share of many products, including acidulants, enzymes, and vitamins and minerals.  This has put downward pressure on pricing, and driven some competitors out of the business.  Concerns about the safety of these products -- following incidents involving tainted pet food additives and pharmaceutical products -- will also influence consumer behavior. 

Nutraceuticals, including vitamins, minerals, herbal extracts and probiotics, will register strong gains as they expand their presence beyond traditional applications like breakfast cereals, milk, bread and juices.  Recent introductions include soft drinks, snack foods, desserts and candy fortified with vitamins and minerals, water containing vitamins and herbal extracts, and a variety of foods containing probiotics. 

Flavor products and alternative sweeteners will remain the largest products.  Flavor suppliers are constantly introducing compounds to keep up with preferences for new flavor profiles, often drawing upon ethnic influences.  Alternative sweeteners are finding greater use in many food and beverage products.  The quest for the elusive “perfect sweetener” -- a clean sweet taste, no caloric value and no negative health effects -- continues unabated, as exhibited by efforts to commercialize stevia and other alternatives to traditional sweeteners.  The sluggishness of the soft drink market will suppress overall gains for alternative sweeteners, as will medical studies suggesting that diet soft drink consumption may contribute to obesity.

The Freedonia Group is a leading international business research company, founded in 1985, that publishes more than 100 industry research studies annually. This industry analysis provides an unbiased outlook and a reliable assessment of an industry and includes product segmentation and demand forecasts, industry trends, demand history, threats and opportunities, competitive strategies, market share determinations and company profiles.