The South African food emulsifier market is projected to register a CAGR of 3.6% during the forecast period (2020-2025).
- The market is driven by its functional properties, such as moisture absorption functionality, which aids food products in maintaining its organoleptic properties and enhances the shelf-life in food manufacturing and processing. Thus, the high versatility of anti-caking agents is anticipated to strengthen its demand during the forecast period. These food emulsifiers have applications in various food industries, such as bakery, dairy products, soups and sauces, seasoning and condiments, and other applications. In addition, increasing demand for convenience food is contributing to the growth of market growth.
- However, several health hazards and side-effects associated with synthetic food emulsifiers are anticipated to impact the growth of the market negatively.
Key Market Trends
Increasing Demand for Clean Label Ingredients
The demand for the clean label has been reported to increase significantly over the last decade, as the clean label is no longer a trend and has now become the part of the mainstream across categories, as consumers prefer food, which is recognized as 'healthier'. Thus, the main consumers of the segment include the health-conscious people, who tend to pay more for natural food with natural ingredients and the food products that provide a higher value proposition for the product and brand. Furthermore, regulatory and industry initiatives drive the transparency of the segment.
Rising Demand For Lecithin
The lecithin market in South Africa has witnessed a significant demand in recent years, owing to the rising incidences of lifestyle-based health issues, such as cardiovascular diseases, obesity, osteoporosis, and diabetes, which have fuelled the consumers’ need for food ingredients, like lecithin. The major demand for lecithin is from the food industry, as it is used as a food additive due to the functional property of anti-spatter and emulsifier. Liquid lecithin is used majorly in bakery and confectionery and industrial applications. Whereas powder lecithin is used in instant dry mixes, beverage premixes, etc. On the other side, in the pharmaceutical industry, it is used as a dispersing agent and helps in encapsulation. It also has an application in the form of nutritional supplements.
The South African food emulsifier market is 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. For instance, in February 2017, Brenntag acquired Lionheart Chemical Enterprises (Pty) Ltd (South Africa), Brenntag, to strengthen its position in the South African chemical distribution market. The company's product portfolio also supported the other activities of Brenntag in South Africa for Multisol and Crest Industrial Chemical businesses, which further helped the company's potential to increase its sales. Key players dominating the country's market include DuPont de Nemours Inc., The Dow Chemical Company, Palsgaard, ChemSystems, and Fourchem, among others.
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Table of Contents
1.2 Study Assumptions
1.3 Scope of the Study
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5.1.2 Monoglyceride, Diglyceride, and Derivatives
5.1.3 Sorbitan Ester
5.1.4 Polyglycerol Ester
5.1.5 Other Types
5.2 By Application
5.2.3 Meat, Poltry, and Seafood
5.2.6 Other Applications
6.2 Market Position Analysis
6.3 Company Profiles
6.3.1 DuPont de Nemours Inc.
6.3.2 The Dow Chemical Company
6.3.6 South Bakels Pty Ltd
6.3.7 Protea Chemicals