Market Trends of India Food Additives Industry
Natural Flavors Has an Increased Demand in the Market
- India boasts one of the largest food processing industries globally, and its market for processed foods is rapidly growing, making it a promising area for food additives. As consumers become more health-conscious and aware of food safety concerns, the demand for natural food additives has increased. This shift in consumer preferences has led to a greater interest in products derived from natural sources, such as fruits and vegetables.
- The country's vegetable production has also increased, creating a fertile ground for manufacturers to derive natural food additives like colorants from them. For instance, in 2021, the total vegetable production in India accounted for around 200.45 million metric tons. With the increase in clean-label flavor demand, particularly in developing countries such as India, the market for natural food flavors is expected to expand further. Consumers prefer simple and clean labels, pushing food companies to incorporate natural additives.
- Many superfoods, such as black rice, acai berries, and maqui berry powder, contain anthocyanins that act as a natural food dye. The positive perception of the term "natural" and the high functionality of superfoods have been the driving force behind the increasing demand for natural food additives in the country.
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Beverage Applications Held A Prominent Share
- The beverage industry in India has experienced significant growth in recent years, primarily due to the increasing demand for convenience and the preference of the millennial population. The rising demand for tropical flavors in non-alcoholic beverages like carbonated drinks, juices, and flavored water has led to an upsurge in the use of food additives in the country. The presence of major players in the market, especially in the carbonates segment, has contributed to the growth of the industry. Carbonates accounted for about 19% of the soft drink market share in India in 2021, according to Varun Beverages.
- Food additives such as flavors, colors, sweeteners, and enzymes are commonly added to the beverage industry in India. Enzymes like cellulase, alpha-amylase, and beta-glucanase are used in the brewing industry to enhance malt separation, extraction yield, beer filtration, and stabilization. The use of additives has improved the application of these products in the beverage industry, thus driving their sales.
- Consumers in India are becoming increasingly health-conscious, leading to a rise in the demand for natural ingredients and clean-label products. Players in the beverage industry are responding by incorporating additives with fewer chemical traces, leading to the growth of natural ingredients and clean-label products. For instance, Stevia, a natural sweetener, is widely used in beverages like teas, coffees, soft drinks, flavored waters, and alcoholic beverages. Stevia is an excellent alternative to sugar, providing a sugar-like taste with no calories, 100% natural origin, and being tooth-friendly, non-fermenting, highly soluble, pH, heat, photo (light), and shelf-stable.
- Moreover, manufacturers of color ingredients are expanding their product portfolios by adding new natural color products to meet the growing demand for natural food colors and clean-label food in beverage products. Carotenoids are also extensively used as natural colors in manufacturing beverages like cider, malt beverages, and water-based flavored drinks. Overall, the beverage industry in India is growing, driven by the demand for convenience, health consciousness, and natural ingredients.
