Thursday, November 14, 2013

BWI: Changing Consumer Preferences - A Boon for the Indian Food Additives Market, Says Frost & Sullivan

Press release from Business Wire India
Source: Frost & Sullivan
Thursday, November 14, 2013 04:47 PM IST (11:17 AM GMT)
Editors: General: Consumer interest, Food & drink; Business: Business services
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Changing Consumer Preferences - A Boon for the Indian Food Additives Market, Says Frost & Sullivan
Natural additives anticipated to be the fastest growing segment

Mumbai, Maharashtra, India, Thursday, November 14, 2013 -- (Business Wire India) -- Changing lifestyles and hectic work schedules have spawned a large market for processed and packaged convenience foods. The booming organized retail sector further extends the reach of processed foods. Change in eating habits and the frequent introduction of new products and product lines, particularly in the functional food and beverage market for low-fat, low-calorie products, spells growing opportunities for the food additives market. The market also finds encouragement in supportive government measures, such as policies to promote easy access to loans for small-scale food processing industries.

New study from Frost & Sullivan (http://www.food.frost.com), Analysis of Indian Food Additives Market, finds that market revenues, which stood at $484.2 million in 2012, are expected to reach $897.7 million in 2017. The study covers the food additive classes of flavours, colours, preservatives, emulsifiers, stabilizers and sweeteners. Among these segments, flavours account for 47 percent of the market; sweeteners contribute the least, by growing at the rate of 25 percent, however, expected to become increasingly popular in the coming years. Flavours are expected to grow at 13.9 percent, synthetic colours at 7.4 percent, natural colours at 12 percent, preservatives at 15 percent and food emulsifiers at 10.1 percent.

"The additives industry in India is veering towards natural emulsifiers and nature-derived colours," said Frost & Sullivan's Chemicals, Materials & Foods Research Analyst. "This change in preferences emanates from the increasing health consciousness among Indians."

However, natural food additive manufacturers find it difficult to source raw materials due to the lack of centralized supply chain system and presence of multiple sourcing points. The study finds that participants can forge partnerships with cooperatives and invest in contract farming to counter this issue. Such strategic alliances and joint R&D could also lower the prices of nature-derived products and lead to customized pre-mixes with application specific combination of flavours, colours and other additives for clients.

Some of market restraints include lack of cold storage infrastructure, an advanced logistics and transportation system for perishable goods, which leads to substantial wastage of agro-produce, adversely affecting farmers and natural food additive manufacturers. In response, the Indian government has allowed 100 percent foreign direct investment to attract large industry groups to invest in developing cold chain logistics.

"Ironically, certain government policies could stifle innovation," noted the analyst. "For instance, the Prevention of Food Adulteration Act (PFA), which governs the food additives segment, permits only certain colours that are certified by the Bureau of Indian Standards (BIS)." Nevertheless, continuing product and process innovations in the food and beverage sector will motivate the additives market to expand its product portfolio, along with the entry of global participants will serve as market drivers and can lead to an increase in market consolidation. As smaller retailers from the unorganized sector are acquired, the margins of larger manufacturers will improve.

If you are interested in more information on this study, please send an e-mail to Ravinder Kaur/Priya George, Corporate Communications, at ravinder.kaur@frost.com/priyag@frost.com, with your full name, company name, job title, telephone number, company e-mail address, company website, city, state and country.

Analysis of Indian Food Additives Market is part of the Food and Beverage Ingredients Growth Partnership Service program. Frost & Sullivan's related studies include: Strategic Analysis of the Global Food and Beverage Processing Support Market, Strategic Analysis of the Edible Oils Markets in UAE and KSA, Finding Value Beyond Compliance: The New Dimension to Traceability and Analysis of the Global Dairy Ingredients Market. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

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Analysis of Indian Food Additives Market
P54B-88


CONTACT DETAILS
Priya George, Corporate Communications - South Asia, Frost & Sullivan, +91 98403 55432/ +91 (44) 66814414, priyag@frost.com
Ravinder Kaur, Corporate Communications - South Asia, Frost & Sullivan, +91 9940141714/ +91 (44) 66814413, ravinder.kaur@frost.com
Nimisha Iyer, Corporate Communications - South Asia, Middle East & North Africa, Frost & Sullivan, +91 9820050519, P/ +91 (22) 66072007, niyer@frost.com

KEYWORDS
CONSUMER, FOOD, BUSINESS SERVICES

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