Africa Food Stabilizers Market - Growth, Trends and Forecasts (2020 - 2025)

The Africa food stabilizers market is projected to register a CAGR of 2.1% over the forecast period (2020-2025).

• The growing demand for naturally sourced ingredients, coupled with the increasing need for customized blends, fuels the growth of the food stabilizers market. By source, the plant segment is projected to grow at the highest CAGR owing to the growing trend of clean label, health-conscious, and veganism. Furthermore, frequent product launches, agreements were the dominant strategies adopted by the key players to capitalize on the strong market potential.
• However, limitations over usage of certain stabilizer blends, stringent government regulations on usage and quantity, and consumer preference for fresh food have become a hurdle in the growth of the food stabilizer market.

Key Market Trends

Acquisitive Demand of Food Stabilizers in Bakery & Confectionery

The demand for stabilizers in the bakery and confectionery industries has witnessed a significant increase in the market as stabilizers make up a very small part of the final product, but have a significant impact on the final packaged product. The stabilizers in baking products maintain the structure of the baked product and also helps in the retention of water, therefore increases the shelf life of the food. Therefore the rising demand for bakery and confectionery products in the region is expected to propel the stabilizer market growth in the country. According to the South African Chamber of Baking, total bread production increased in 2016 from 171 million loaves baked in January 2016 to 182 million loaves in December 2016. This was as a result of consumers replacing maize meal with bread because of the higher price of maize products brought about by severe drought and the weaker South African rand. However, the current drought in the Western Cape where more than 60% of South Africa's wheat is planted has also meant that approximately 51% of the country's wheat is imported at import parity prices.

South Africa to Hold the Major Share in the Africa Market

South Africa is expected to drive the African market for the stabilizers, owing to the rising demand for convenience and packaged foods in the country, along with increasing population and economic development. In addition, the growing market for food products such as bakery, meat products, beverages, convenience food, and beverages, in which stabilizers are used for manufacturing is expected to offer potential growth opportunities for the stabilizer blends and systems market. Furthermore, the demand for natural ingredients in the packaged food has influenced the ingredient buying behavior and it is expected to drive the demand of natural stabilizers in the country. Local players along with the international players are extensively involved in the production of food stabilizers, among which international companies dominate its priduction within the country.

Competitive Landscape

The Africa food stabilizers market is competitive and fragmented in nature owing to the presence of many regional and domestic players. Emphasis is given on the merger, expansion, acquisition, and partnership of the companies along with new product development as strategic approaches adopted by the leading companies to boost their brand presence among consumers. Key players dominating the market include BASF SE, Barentz International BV, Palsgaard A/S, Tate & Lyle PLC, Kayo Fine Chemicals, and Hydrosol GmbH & Co. KG, among others.

Reasons to Purchase this report:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support