South Africa Food Additives Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The South African Food Additives Market is segmented by Type (Preservatives, Sweeteners, Hydrocolloids, Food Flavors and Enhancers, Food Colorants, Emulsifiers, Anti-caking Agents, Enzymes, and Acidulants) and Application (Bakery and Confectionery, Dairy and Desserts, Beverages, Meat and Meat Products, Soups, Sauces, and Dressings, and Other Applications). The report offers market size and forecasts for food additives in value (USD million) for all the above segments.

Market Snapshot

South Africa Food Additives Market Summary
Study Period: 2016-2027
Base Year: 2021
CAGR: 5.4 %

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Market Overview

The South African food additives market is projected to register a CAGR of 5.4% during the forecast period (2022-2027).

The COVID-19 pandemic disrupted the supply chain and also brought a halt to the production processes due to lockdown and government restrictions. Various studies have depicted that due to export restrictions, the export of food ingredients, including food additives, faced a negative impact of around 40%. However, the overall processed food market showed a positive trend because of the higher dependency on convenience food during the pandemic.

The market is driven by the extensive use of additives in the F&B sector for different functions, including preservatives, flavor enhancers, emulsifiers, sweeteners, and colorants. Also, the rising demand for convenience and packaged foods where additives are used in a higher quantity is further fueling the market growth.

The South African market is growing as it is one of the emerging countries, which is very conscious of health and wellness. The thirst for convenience food is high, which ultimately gives a boost to the food additive market. In processed and packaged foods, ensuring food safety and quality starting from transportation to farm to fork and storage facilities is a major concern. The South African Food Additives Market is expected to witness a CAGR of 6.19% during the forecast period (2020-2025). 

Scope of the Report

Food additives are ingredients used to enhance the taste, texture, consistency, and other properties of processed and packaged foods. The South African food additives market is segmented by type and application. On the basis of type, the market is segmented into preservatives, sweeteners, emulsifiers, anti-caking agents, hydrocolloids, food colorants, acidulants, food flavor and enhancers, and enzymes. On the basis of application, the market is segmented into bakery and confectionery, dairy and desserts, beverages, meat and meat products, soups, sauces and dressings, and other applications. The report offers market size and forecasts for food additives in value (USD million) for all the above segments.

By Type
Preservatives
Sweeteners
Hydrocolloids
Food Flavors and Enhancers
Food Colorants
Emulsifiers
Anti-caking Agents
Enzymes
Acidulants
By Application
Bakery and Confectionery
Dairy and Desserts
Beverages
Meat and Meat Products
Soups, Sauces, and Dressings
Other Applications

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Key Market Trends

Increasing Consumer Demand for Clean Label Ingredients

Clean labeling has become an important aspect of high-rated consumer demand, emphasizing processed food products. With the increase in health awareness, a majority of the population check for clean labels before buying a product. This rise in demand for clean labels has shifted the focus of manufacturers from synthetic food additives to natural ones. Companies like DuPont and Cargill are focusing on research and development to innovate new products to suit consumer demand. Moreover, the South African beverage and bakery industry are focused on using traditional coloring and flavoring methods, for which the companies have come up with natural alternatives in clean labels.

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Beverages Dominates the Food Additive Market

Beverage companies in South Africa are increasingly focusing on making product lines based on tropical fruits and super fruits. This is driving the growth of the flavored beverage market. Coca-Cola is offering various soft and carbonated drinks in different tropical flavors, such as Fanta Mango. Toni Glass is offering beverages in different berries, ginger, and other exotic flavors. The beverage segment is the largest application segment for stevia. The rise in health concerns related to sugar consumption and a surge in the production cost due to the sugar tax imposed by the South African government are leading to the market penetration of stevia in various soft drinks, juices, teas, and nectars. Companies, such as PepsiCo Inc. and the Coca-Cola Company, started incorporating products in their diet soft drinks and marketed them as drinks with no side effects on consumer health. Coca-Cola offers the only stevia-sweetened Coke under the brand name, Coke Life, and it is considered as Coca-Cola’s response to the rapidly growing natural sweetener trend.

south-africa-food-additives-market-industry

Competitive Landscape

The South African food additives market is fragmented, with fierce competition between global and local players. Acceptance of convenience and package foods in the African region is leading to the demand for food and beverage additives. The major players in the market are Cargill Inc., Tate & Lyle, Archer Daniels Midland Company, DuPont- Danisco, Kerry Inc., etc. The strategies adopted in the food additives industry are in the innovation category under the development of natural food additives and functional food ingredients to meet the changing customer demands.

Recent Developments

In 2022, ADM completed its acquisition of South Africa-based flavor distributor, Comhan. This acquisition will strengthen ADM's reach in the regional market.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Type

      1. 5.1.1 Preservatives

      2. 5.1.2 Sweeteners

      3. 5.1.3 Hydrocolloids

      4. 5.1.4 Food Flavors and Enhancers

      5. 5.1.5 Food Colorants

      6. 5.1.6 Emulsifiers

      7. 5.1.7 Anti-caking Agents

      8. 5.1.8 Enzymes

      9. 5.1.9 Acidulants

    2. 5.2 By Application

      1. 5.2.1 Bakery and Confectionery

      2. 5.2.2 Dairy and Desserts

      3. 5.2.3 Beverages

      4. 5.2.4 Meat and Meat Products

      5. 5.2.5 Soups, Sauces, and Dressings

      6. 5.2.6 Other Applications

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Active Companies

    2. 6.2 Market Share Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Cargill Incorporated

      2. 6.4.2 Kerry Inc.

      3. 6.4.3 Corbion NV

      4. 6.4.4 Tate & Lyle PLC

      5. 6.4.5 Ingredion Incorporated

      6. 6.4.6 Dupont de Nemours Inc.

      7. 6.4.7 Novozymes

      8. 6.4.8 Firmenich SA

      9. 6.4.9 Nicola-J Flavors and Fragrances (Pty) Ltd

      10. 6.4.10 ILLOVO SUGAR AFRICA (PTY) LTD ​

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. IMPACT OF COVID-19 ON THE MARKET

**Subject to Availability

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Frequently Asked Questions

The South Africa Food Additives Market market is studied from 2016 - 2027.

The South Africa Food Additives Market is growing at a CAGR of 5.4% over the next 5 years.

Cargill, Incorporated, Kerry Inc., Corbion NV, Tate & Lyle, Ingredion Inc. are the major companies operating in South Africa Food Additives Market.

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