SCUP Report

Table of Contents

Abstract

The term food additive applies broadly to chemicals that are added to food, either intentionally or indirectly, to facilitate processing, maintain product consistency, extend shelf life, ensure microbiological safety, improve or maintain nutritional value, or enhance the organoleptic qualities (flavor, color and texture) of the finished products. This report covers six major food additive product categories including thickeners and stabilizers, alternative sweeteners, colors, enzymes, shelf life extenders (including antioxidants and preservatives) and emulsifiers.

The food additive industry as a whole is highly fragmented, with a plethora of products and participants serving a common end-use market—the food industry. Additives manufacturers vary greatly in size and product/market focus. However, with a few exceptions (the most notable being Danisco), producers typically supply additives in a limited number of product categories (e.g., colors, enzymes, vitamins) or service selected food sectors (e.g., dairy-based products, meats, bakery products). Downsizing and consolidation in the food industry have over the last fifteen or so years had considerable impact on traditional customer-supplier relations. Food additive manufacturers are required to provide more technical service and formulations expertise and to compete more aggressively for a smaller number of large accounts. Distribution is typically direct from additive producer to food processor for large-volume sales, with distributors playing an important role in servicing/supplying regional and/or smaller accounts.

The following pie chart shows world consumption of food additives by type:

While there are many differences in food tastes and preferences among the world regions, the major trends driving the food additives industry appear to be very similar in all regions—concern over health and nutrition (particularly the need to control widespread obesity and diabetes and recognition of food allergies), food safety, desire for convenience, the concept of value-added products, the ever-increasing costs of energy and raw materials and high costs associated with R&D and regulatory compliance, and new product commercialization. Growing concern regarding the connection between diet and major diseases such as cancer and heart disease has caused consumers to reexamine their diets and lifestyles and seek healthier alternatives. Consumers' desire for healthier, more nutritious and allergy-free foods will favor natural additives and ingredients as well as those that reduce calories, sodium, and cholesterol. Fortification with the "right" level of vitamins, amino acids, and minerals will be important, and additives that sound natural (e.g., pectin, vitamin C, enzymes) versus chemical (e.g., potassium benzoate, butylated hydroxyanisole) will have a more favorable consumer image. Bioactive additives and ingredients—like omega-3 fatty acids, plant sterols, fibers, pre- and probiotics—will also receive increasing attention from both consumers and food manufacturers.

The safety of the food supply continues to receive a great deal of attention from the press, public and government. The outbreak of E-coli food poisoning in the United States, eventually traced to undercooked beef, caused fundamental changes in regulatory policies and demonstrated to food processors the need for increased caution against food pathogens. Following the terrorist attacks of September 11, 2001, the U.S. Congress passed legislation directing the FDA to register facilities that manufacture and process food and to engage in more active monitoring of food imports into the United States.

Fast-paced lifestyles will continue to drive the demand for savory, high-quality convenience foods. Microwavable and shelf-stable products that are tasty and healthy require additives such as specialized flavors, colors and stabilizers to enhance and maintain quality, which will result in continuing growth for these additives.