Food additives market to grow 12 pc CAGR

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SME Times News Bureau | 28 Mar, 2015
The growing demand for ready-to-eat food products coupled with rising preference for natural or organic food ingredients will grow at a compounded rate of 12 percent and drive the food additives market in India over the next five years, a research firm said on Friday.

According to a report from TechSci Research, the growth in per capita disposable income and rising urban middle class population are among the key market contributors which will drive the growth.

"India has been witnessing significant rise in food consumption level, prevalence of processed and packaged food, convenience food, alcoholic and non-alcoholic beverages, bakery items, ready-to-eat food products and cereals. These trends are expected to drive remarkable growth in the demand for food additives in the country over the coming years," the report said.

According to the report, due to cultural and regional diversities, the pattern of food consumption is not uniform in India resulting in the western region generating the highest demand for food additives.

"The region is expected to continue spearheading the market due to the presence of a large number of food and beverage manufacturing companies in the states of Gujarat and Maharashtra," it said.

"Indian food additives market is dominated by the flavours segment due to their substantial use in beverages, savory items and cereals. With rising incidences of health problems like diabetes, consumers are also shifting towards all-natural, low calorie sweeteners such as Stevia. As a result, sweeteners are most likely to witness faster growth over the next five years and emerge as the leading segment in India food additives market through 2020," said research director at the firm Karan Chechi.