What's driving the Synthetic Food Market Trends ? Chr. Hansen Holding A/S, DSM, BASF, Frutarom, Flavorchem Corporation, Sensient Technologies Corporation, FMC Corporation, Symrise AG, DöhlerGroup
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1. Chr. Hansen Holding A/S
4. Archer Daniels Midland Company
5. Sensient Technologies Corporation
6. FMC Corporation
7. Symrise AG
10. Allied Biotech Corporation
12. Flavorchem Corporation
13. Aarkay Food Products Ltd. – India
14. D.D. Williamson & Co., Inc.
15. FIORIO COLORI SPA
16. Falcon Essential Oils
17. NATUREX S.P.A.
Busy lifestyle and changing demographic trends are resulting into preference for ready to eat and processed food consumption, thus enhancing synthetic food market growth. Increasing penetration of artificially engineered ingredients among manufacturers for their improved flavor & fragrances properties will support industry growth of synthetic food market. Key aspects such as texture enhancement, enhanced shelf life and visual appeal will propel artificial additive demand.
Expansion of the processed food industry along with increasing demand for soft drinks, confectionery, meat, fruits and dairy will provide a strong application outlook for artificial additive industry growth. Increasing supply chain complexities of food manufacturers including spoilage and loss of nutritive value will further propel product penetration rate. Some ingredients are added directly as seasonings and indirectly as vinegar and salt to enhance product shelf life and deliver better taste.
Artificial colors are extensively used in several products to enhance the appearance and make it more attractive or lucrative. Increasing utilization of these colorants in meals, carbonated soft drinks, non-alcoholic beverages and alcoholic beverages is projected to propel artificial additives market size. The rising number of regulations by FDA and EU to produce low sugar content products will further boost industry growth.
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Speaking along similar lines, a change in lifestyle that has given rise to dual-income-families, numerous food delivery apps, and diminishing culinary skills has triggered the rising adoption of RTE, RTC, canned, packaged, and processed food items. These products have become popular among the urban consumers in no time mainly because of the convenience they offer. In fact, facts state that the global processed food industry generated over USD 4.6 trillion business in 2016. The statistics further affirm ultra-processed food types such as cereals, ice-creams, cakes, and breads to have contributed to 55% of the daily consumption products. The data goes on to signify that the rising demand for artificial additives that imitates natural foods by recreation of flavor, color, appearance, and palatability is on a significant high – a factor rapidly propelling synthetic food industry share.
Synthetic food market growth sounds very promising until the realities behind the rhetoric are considered. The consumer shift toward packaged and ready-to-eat food is proving to be highly beneficial to the global synthetic food industry participants. However, the rising popularity of organic food & their potential health benefits is a key challenge for this market. Consumer’s growing health consciousness regarding artificial components has, in turn, fortified demand for natural products over the synthetic alternatives. Another trend that is categorized as a major threat for synthetic food industry growth in terms of product value is the rising trend of synthesizing popular products like milk. Synthetic milk is an artificial imitation of natural milk with high degree of adulteration that is produced chemically by mixing calculated amount of caustic soda, urea, common detergents, and refined oil. These synthetic milk components have harmful effects on human health and this practice unfortunately has gained momentum in myriad regions.
Global synthetic food market share is highly fragmented due to the presence of both large number of multinational as well as regional companies. Increasing competition among existing organizations and new entrants is anticipated to encourage product development. Archer Daniels Midland Company, Flavorchem, Sensient Technologies, FMC, DSM, BASF, Chr. Hansen, Döhler Group and Allied Biotech are key players in synthetic food market. Other prominent players include Frutarom, Symrise, Young Living Essential Oils, Falcon Essential Oils, Biolandes, Naturex, Fiorio Colori and D.D. Williamson & Co. Inc.
Nonetheless, stringent government regulations to keep in check the usage of food ingredients that have adverse effect on health is likely to boost the growth scenario of synthetic food market. The companies, in a bid to cope up with these challenges, are strictly abiding by FDA guidelines, in terms of ingredient usage. All in all, with anticipated trends of new products in sync with the health quotients of the consumers, food market is anticipated to expand at a promising pace in the coming years. For the record, in terms of commercialization, synthetic food market is forecast to register a y-o-y growth of 5% over 2017-2024.
Asia Pacific synthetic food market is projected to account over 30% of the share by 2024. Increasing the application of artificial additives among key manufacturers to enhance shelf-life, texture and appearance of consumable products driving regional demand. Furthermore, major companies such as BASF, Symrise and Sensient are anticipated to invest in formulation of new flavors & tastes obtained through enhanced ingredient engineering. The rising consumption of bakery & confectionery products in China, India, Japan, and Australia owing to increasing double income trend is supporting industry expansion.
North America synthetic food market is anticipated to witness growth over 4.5% up to 2024. Increasing demand for ready to eat and processed meals owing to busy lifestyle will support regional growth. Rising consumer awareness regarding key benefits associated with artificial ingredients including low sugar content is expected to propel artificial additives market size.
Browse key industry insights spread across 550 pages with 1165 market data tables & 10 figures & charts from the report, “Synthetic Food Market”, Industry Analysis Report, Regional Outlook, Growth Potential, Price Trend, Competitive Market Share & Forecast, 2017 – 2024” in detail along with the table of contents:
Flavor & fragrances dominated the overall artificial additives market in 2016. Factors such as changing taste preferences, rising disposable income along with gourmet food chain expansion is expected to propel artificial additives market share. These are widely used in savories and snacks to enhance overall product appeal and deliver aroma for a prolong time.
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