Emerging markets with growing population and higher disposable incomes present untapped potential, finds Frost & Sullivan’s Visionary Science Practice team
The global antioxidants market is witnessing steady growth. A shift in consumer preference toward ready-to-eat foods and strong desire for natural antioxidants and food products with clean labels are factors propelling demand. New product innovations and capacity expansions innovations by industry participants, such as DSM, BASF, Kalsec, and ADM, are factors augmenting market growth.
“Consumer preference for natural antioxidants, supported by an increasing number of products with proven health claims being offered by manufacturers, will help the natural antioxidants market rapidly expand,” said Frost & Sullivan Visionary Science Practice Industry Analyst Arun Ramesh. “However, lower prices, higher heat-withstanding capability during food processing, larger number of scientific claims, and greater ease of availability are factors favouring synthetic antioxidants.”
Global Antioxidants Market, Forecast to 2021, part of Frost & Sullivan’s Visionary Science Growth Partnership Service programme, finds that products derived from plant-based sources such as tea extracts, fruits, and vegetable extracts are on the rise. The use of combination products, for example natural and synthetic antioxidants and antioxidants with omega-3, are also gaining momentum. The global antioxidant market is forecast to grow at a compound annual growth rate (CAGR) of 5.2 percent during 2016-2021, to reach revenues of $485.17 million.
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Factors driving demand for global antioxidants include:
- A growing demand for meat and milk products globally is expected to drive food segments such as meat and poultry, and oils and fats in Europe, and dairy in Asia-Pacific;
- Due to the upcoming June 2018 ban on partially hydrogenated oils (PHOs), antioxidants are expected to increase in demand with a CAGR of 5.1 percent forecast in the next five years;
- Requirement for an extended shelf life, and retention of taste, colour, stability, and freshness, will boost the use of antioxidants in food products;
- There will be growing prominence of natural antioxidants, such as rosemary and mixed tocopherols, over synthetic ingredients like BHA (Butylated Hydroxyanisole), BHT (Butylated Hydroxytoluene), TBHQ (Tert-Butylhydroquinone), ascorbyl palmitate, and propyl gallate.
“Antioxidant manufacturers should look toward market penetration strategies in untapped emerging regions that have an expanding population with growing disposable income and high demand for ready-to-eat and frozen food products,” observed Ramesh.