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South African Market for Food Additives
Frost & Sullivan, Oct 2009, Pages: 128
Technological Advancements in Food Processing to Boost the South African Market for Food Additives
Nanotech advancements in food processing are now more widely accepted due to which, new product development is expected to increase with greater efficiency and quality. These novel products are set to offer greater flavour, colour and nutrient delivery. New product developments will pave the way for several opportunities in the long term. In addition to technology, key accounts and an emerging middle income population will sustain market expansion. 'Convenience, health and wellbeing along with the emerging middle income market are anticipated to drive growth in the South African market for food additives,' notes the research analyst. 'Technology advancements are likely to boost product line developments with improvements in product quality and performance delivery.' The food and beverage industry is the key end user of food additives in the South African market. This industry is expected to experience increasing consumer demand as a result of the emerging middle income market and overall population growth. Short-term food cosmetic practices will boost the demand for food additives in the South African market, even as legislative developments are set to direct the future developments in industry practices.
Among the challenges in this industry, economies of scale present a significant barrier to entry, restraining local infrastructural growth. The high cost of equipment, together with the small market size, does not justify this investment. 'This makes it particularly challenging for smaller market participants to compete at the level of the already established foreign multinational producers,' explains the analyst. 'Additionally, South Africa’s low levels of technical expertise and production capacity restrain the infrastructural developments and investment required to establish the local market as an export base.'
While the South African food additives market size will offer opportunities for growth in the long term, significant progress has been made in key sub-Saharan African countries. 'Suppliers should focus on emerging sub-Saharan African countries with expansion plans into these markets,' concludes the analyst. 'New markets represent increasing nutritional requirements paving the way for food additive market growth and potentially lucrative opportunities.'
Market Sectors
Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research:
By Additive Type:
- Preservatives - Flavourings - Texturisers - Colourings - Nutrition
By End-user Industry:
- Dairy - Bakery - Confectionary - Culinary - Spice - Technologies
The following technologies are covered in this research:
- Encapsulation and controlled release - Edible films - Nanotechnology
This Frost & Sullivan research service titled South African Market for Food Additives provides an analysis of the flavourings, colorants, preservatives, texturisers and nutritional additive markets with an opportunity analysis across various end-user industries. In this research, Frost & Sullivan's expert analysts thoroughly examine the following markets by additive type: preservatives, flavourings, texturisers, colourings and nutrition. The end-user industries covered in this research service are dairy, bakery, confectionary, culinary and spice. The technologies covered are encapsulation and controlled release, edible films and nanotechnology.
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