Food stabilizers are additive materials that are applied or sprayed in food to preserve its texture. It is used to protect water emulsion, oil from separating in foods which includes salad dressing, preventing frozen food from forming ice crystals and settling of fruits in jam, jelly and yoghurt among others. Gelatin, gaur gum, starch, xanthan gum, cellulose, agar, alginate and carrageen are among the most widely used food stabilizers. Growing demand for convenience and organic food in North America and Europe is expected to fuel the market of food stabilizers. Moreover, increasing awareness of food borne diseases and health consciousness in Europe and North America is expected to boost the market. Growing economy, changing lifestyles in Asia Pacific and rapid adoption of western culture is fueling demand for convenience food across the region.
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Burgeoning growth of the food industry across the globe, is driving growth of the global food stabilizer market. For instance, according to Indian Brand Equity Foundation (IBEF), India Brand Equity Foundation is a trust established by the Department of Commerce, Ministry of Commerce and Industry, Government of India, the Indian food industry is growing at a CAGR of 11%, and is expected to reach US$ 65.4 billion by 2018. Moreover, the food stabilizers provides various competitive advantages to the food industry such as maintaining the quality, and increasing the life span of a particular food. Increasing disposable income, growing urbanization, hectic lifestyle and women workforce tends to incline towards convenience food. For instance, in 2013, The U.S. Department of Labor conducted a study that reported 127.1 million of women working in U.S. and is expected to grow at 5.4 % by 2022
Wide Application of Food Stabilizers in Dairy Products
Dairy is a highly lucrative industry, due to myriad product variations which includes milk, cream, cheese, butter, yoghurt, ice cream, among others. High amount of nutrients and proteins which act as supplementary food to a regular diet, is expected to fuel the demand for food stabilizers market. Asia Pacific is dominating the global dairy market in terms of revenue, due to growing demand for cheese, yoghurt and functional dairy products. Moreover, Gujarat Cooperative Milk Marketing Federation (GCMMF), known as ‘Amul’ plans to invest US$ 733.6 million in India, to establish ten new processing plants by 2020, with a capacity of 32 million liters per day. Furthermore, various food stabilizer are used in dairy products to improve shelf life, mouth feel, water retention, texture and protein stability, includes potassium alginate, ammonium alginate, sodium alginate, hydroxypropyl cellulose and hydroxyl propyl methyl cellulose among others and is expected to boost the global food stabilizers market during 2017-2025.
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The growing demand for food stabilizers from confectionary and dairy industry is expected to be a key factor driving growth of the global market. For instance, to increase the self-life, enhance water holding capacity, protein stability, and artificial sweetener in dairy products, various stabilizers and emulsifiers such as ammonium alginate and potassium alginate are used. Increasing demand for convenience food, growing public awareness against foodborne diseases and the combat of food stabilizers against the bacteria is expected to propel growth of the food stabilizers market during 2017-2025. Moreover, the Indian food processing industry is one of the largest industries in India, which contributed 14% to India’s GDP in 2016. For instance, in Union Budget 2017-2018, the Government of India announced investment of US$ 1.2 billion, to set up dairy processing infra fund. This would in turn fuel growth of the food stabilizer market, propelled by burgeoning growth of the dairy end-use segment.
Asia Pacific and Europe are the largest markets for food stabilizer, mainly due to increasing demand for convenience and organic food. The market in Asia Pacific is expected to expand at a CAGR of 6.54% during 2017-2025, as per Coherent Market Insights analysis. Growing economy, increasing urbanization and disposable income, especially in economies of China, India, Japan and Brazil is projected to provide major growth impetus for the global food stabilizers market during the forecast period.
Multinational players need to tap potential addressable market in the emerging regions with the help of geographical expansion
Major players in the global food stabilizers market include BASF SE, Cargill Inc., Celanese Corporation, Chr. Hansen A/S, DuPont, JEY'S F.I. INC, Kerry Group, Koninklijke DSM N.V., and The Archer Daniels Midland Company, among others.
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