Non-PHO Ingredients Market Report on Key Players, Channel Strategy, Key Indicators and Forecast to 2028

As the food industry is witnessing a significant transition from synthetic to organic and harmful to healthy, the non-PHO ingredients market is expected to witness an upward trend in the coming decade.

Initially used by manufacturers for expanding product shelf-life, PHO ingredients were banned by FDA as the trans-fatty acids present in PHO ingredients can be hazardous to human health. Non-PHO ingredients available in the non-PHO ingredients market sourced from corn, canola, coconut, sunflower and flax are in huge demand.

Manufacturers in the non-PHO ingredients market are engaged in introducing non-PHO ingredients and coating materials to replace the highly sought after PHO ingredients in the food and beverage sector.

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Following the recently retracted GRAS tag of PHO ingredients, manufacturers in the non-PHO ingredients market are introducing non-PHO ingredients that are organic, non-GMO, with low saturated fat content and without trans-fatty acids. AAK USA Inc., a leading player in the non-PHO ingredients market has recently opened its new innovation center in California to increase the production of plant-based non-PHO ingredients to be used in the bakery sector.

Croklaan Oils B.V., another leading player in the non-PHO ingredients market has also introduced non-PHO ingredients range - SansTrans Roll-Rite Puff for puff pastry applications.

Non-PHO Ingredients Market Outlook

Over the last few decades, PHOs (partially hydrogenated oils) have been used as functional replacements for lard and cocoa butter and as coating modifiers for the encapsulation of food ingredients that have required properties, such as flexibility in the formulation of baked goods and confections, and other applications.

Though PHOs are perfectly functional ingredients, they are the primary dietary source of artificial trans-fatty acids in processed food, which are directly linked to coronary heart diseases.

In 2015, the FDA (Food and Drug Administration) declared that PHO ingredients that produce trans-fatty acids in foods are no longer GRAS (generally recognized as safe) for use in human food. Also, it set a compliance period of three years for food companies to replace all PHOs from their food products and switch to non-PHO ingredients that provide all the characteristics to maintain the quality consumers expect from products.

Therefore, to comply with this government mandate as well as growing consumers demand, companies are developing innovative non-PHO ingredients with full functionality, eating characteristics, and machinability without trans-fat, which are easy to use. Non-PHO ingredients provide additional benefits; they are organic, low in saturated fat, non-GMO, and can enhance the shelf life of food products. Moreover, in 2017, FDA approved soybean oil as a qualified health claim.

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Additionally, there are some key factors that are adding pressure on manufacturers in the food industry to switch to non-PHO ingredients, such as decline in PHO supply and the validation of non-PHO ingredient alternatives, which can be time-consuming and lengthy, and various countries are currently revising their regulations regarding PHOs.

Reasons for Covering This Title

A wide range of technologies are now available for the encapsulation of active agents in the food industry. As the FDA has mandated the removal of partially hydrogenated oils (PHO) from food ingredients, companies are currently focusing on developing non-PHO ingredient encapsulation technologies and delivery systems to improve their product quality and comply with government standards. Moreover, increasing demand for clean label, expanding health and wellness trend and rise in the need for dietary supplements as well as functional foods among consumers for various health benefits are expected to boost the non-PHO ingredients market in the near future. Moreover, the low cost associated with non-PHO ingredients coating technology, along with enhanced coating flexibility and barrier properties that enable a minimum percentage of coating, will also surge the demand for non-PHO ingredients during the forecast period.

However, manufacturers are facing some challenges in switching away from PHO coating modifiers.

For instance, specific bakery products that rely heavily on PHOs for functionality, such as coated dough as well as icing, have not found a worthy alternative, which may hamper the growth of the non-PHO ingredients market in the near future.

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Market Share for Non-PHO Ingredients Market by Application, 2017

Global Non-PHO Ingredients Market: Key Players

Some of the key players operating in the global non-PHO ingredients market are Innovative Food Processors, Inc., Stratas Foods, LLC, IOI-Loders Croklaan Oils B.V., The Archer Daniels Midland Company, Bunge Limited, Cargill Inc., Corbion NV, Dow AgroSciences LLC, Bunge Limited, AAK USA Inc., Ingredion Inc., Kerry Group PLC, Palsgaard A/S, Lasenor Emul, S.L., and others

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Future Market Insights (ESOMAR certified market research organization and a member of Greater New York Chamber of Commerce) provides in-depth insights into governing factors elevating the demand in the market. It discloses opportunities that will favor the market growth in various segments on the basis of Source, Application, Sales Channel and End Use over the next 6-years

This release was published on openPR.