23 Feb The future for natural and health ingredients
Flavours, seasonings, herbs and spices, colours, flavours, hydrocolloids, sweeteners, fat replacers and vitamins are some of the ingredient markets analysed in this new RTS report, The Future for Natural and Health Ingredients. It’s yours for FREE!
In global terms, the industrial food and drink market is growing slightly ahead of population growth. As the world becomes increasingly urban and relatively affluent, food production needs to become more industrial and sophisticated in order to supply these changing demographics, presenting opportunities for suppliers of ingredients.
In Europe food consumption is growing slowly, by less than 0.5% per year in volume, although value growth is higher, mainly due to inflation and rising raw material costs. Although this total figure disguises many different consumption trends, it does mean that most companies looking to achieve annual sales growth of 5% or more are going to be disappointed!
So, each food manufacturer is looking for the competitive edge that will take them into growth sectors and markets and trends and ingredients are key to making this happen.
For the food industry – and suppliers of ingredients in particular – the message is clear. Identifying and and exploiting trends will provide some of the major ways to achieve profitability and growth.
Growth markets
While demand for food and drink in Western Europea is now relatively static at around €1.3trillion, the market for ingredients is both dynamic and complex.
Rising raw material costs and the shift to natural ingredients has resulted in rapid growth in the value of the market for flavours, colours and sweeteners. In particular, our forecasts show significant growth opportunities for natural flavours, colouring foodstuffs and fat replacers.
Meanwhile the less dynamic, but nonetheless significant markets for hydrocolloids, synthetic flavours and industrial seasonings will still deliver significant sales value. Over the next five years cost pressures, limited product life cycles and sustainability are all critical factors for the food ingredients industry.
Trends adding value
Everyone seems to be talking about trends in the food industry: consumer trends, market trends and flavour trends. Is this simply the new buzzword or are trends critical for growth, asks RTS?
“How can ingredient suppliers use trend-led information to drive NPD?
“In today’s highly competitive market, producing effective ingredients is no longer enough for continued success. You must also clearly communicate the benefits of your products – both to manufacturers and consumers. Knowing which trends are driving the market, how they interact and, crucially, how to make them work for you is the key to delivering business growth.
“Analysing past product launches without considering trends is a poor guide to future success. Our extensive global food industry research allows us to determine the importance and significance of trends for the food and ingredients industry.”
Download your FREE copy of this valuable 66-page report here!