Innovation still driving force for additives, says Freedonia

The US food additives market is relatively mature. A new report from Freedonia published this month called Food and Beverage Additives​ values the market at $6,945m in 2007. The market is expected to continue growing at a rate of 4.4 percent per year to 2012, to be worth some $8.6bn, as ingredients companies seek to deliver on current market trends. They also look to address some of the big factors affecting their customers' margins, like the cost of raw materials used to provide texture and taste. Although this anticipated growth shows that there is still a high level of momentum, the rate is, however, somewhat slower than that seen in the last five years. Since 2002 the US additives market has seen growth of five per cent per annum. Alternative sweeteners ​ Amongst the areas of hot interest at the moment, according to Freedonia, are alternative sweeteners, which are valued at $891m. "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,"​ it said. Cargill and Coca Cola are two heavyweights that have teamed up launch their own stevia ingredient, called Rebiana. Although stevia is not yet approved as sweetener in major markets, the companies have said they will launch first in markets with no regulatory barriers. One factor that could stymie the development of alternative sweeteners, expected to reach a value of $1085m by 2012, is the "sluggishness of the soft drinks market"​, however. Moreover, the publication of recent scientific studies suggesting that diet soft drinks could contribute to obesity could impact both the beverage sector and ingredients used in them. Flavors ​ Flavors and flavor enhancers make up the largest category of food additives, according to the new report, with a value of $2340. Growth here is expected to be at a rate of 3.5 per cent through to 2012, reaching $2275. A major feature of this category is the constant need to keep up with the latest consumer tastes - and that means flavor companies have to be on the ball with their research. One of the key trends identified in the report is ethnic tastes. In addition, increasingly exotic superfruits, which combine both a healthy and a tasty appeal, are titillating consumers' palates. Some flavor firms are branching out their consumer research into regional centers in order to better cater to regional taste. For instance Symrise recently expanded its Sensory and Consumer Science Center in Singapore. Probiotics and nutraceuticals ​ Freedonia has identified probiotics in dairy products as being an additive sub-category likely to post above-average growth, since the beneficial bacteria are being used more and more in yogurts and other products. There is also some evidence of probiotics breaking out of the traditional yogurt delivery category and into foods like cheese, chocolate, and coatings for breakfast cereals. Last year Barry Callebaut launched Acticoa, claimed to be the first probiotic-containing chocolate on the consumer market, which uses encapsulation to protect the live bacteria. Danisco is also known to have been involved in developing probiotic cheese. Nor is it just probiotics that are extending beyond traditional uses. Freedonia says that other nutraceuticals like vitamins, minerals and herbal extracts. Examples it cites are soft drinks, fruit juices, desserts and candy with added vitamins and minerals, and waters with vitamins and herbal extracts. More information on Food & Beverage Additives is available from www.freedoniagroup.com​.