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Food additives industry to experience major growth of $700 million through 1996.

The food additives industry will experience major growth through 1996 and approach a total market size of $5 billion, according to a new Pathfinder report from TPC Business Research Group.

Food Additives in the United States (#PF104) forecasts a dynamic, promising food additives industry through mid-decade with overall compounded growth of 3.5 percent by 1996.

According to the Pathfinder study, consumer demand for healthy, tasty and convenient foods will drive the market to develop new and more sophisticated additives. Flavors, for example, must be more natural, to meet consumer desires for natural products, yet must also be stronger and faster acting to allow cooking in microwave ovens.

The industry will also respond to the Nutrition Labeling & Education Act of 1990 (NLEA), as food processing companies search for ingredients and additives which meet NLEA requirements, and which can make legal claims for health benefits, the study says.

Changing demographics and eating habits will continue to motivate development of new food products. Microwave ovens, an aging population, two worker families, increasing ethnic population and pride, and other factors will increase the diversity of available foods.

Various segments of the industry will surge in growth. The most promising segment, calorie and fat reduction/replacement, will grow at a rate of 20 percent through 1996 to an estimated $300 million. Competition will remain high, and some products may not succeed.

The nonnutritive sweeteners segment will experience major changes as Monsanto/Nutrasweet's aspartame patent expires in December 1992. Other nonnutritive sweeteners will enter the market and lead to greatly increased competition in this billion dollar market and a predicted $275 million price drop on aspartame i 1993, the study says.

This new Pathfinder study provides primary market data for: acidulants, colors, calorie-replacement agents, preservatives, formulation aids, and processing agent.s Markets analyzed and forecast by the study include: bakery goods, beverages, confectionery, dairy products, meats/seafood, snack foods, and others. The detailed report represents new information on: products and markets; applications markets; marketing; competitive intelligence; technology; environmental, legislative and regulatory trends; ad food additive producers.
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Publication:Frozen Food Digest
Article Type:Industry Overview
Date:Oct 1, 1992
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