The Asia-Pacific food fortifying agents market is growing at a CAGR of 5.8% during the forecast period 2020 - 2025.
- The market is mainly driven by the increasing health-consciousness among the consumers and the multi-benefits of food fortifying agents. In addition, the rise in aging populations and the growing health concerns have led to large-scale adoption of food fortifying agents for various applications.
- Furthermore, the support of government organizations has also fueled market growth. For instance, the Food and Agricultural Organization (FAO) and the World Health Organization (WHO) has also recognized food fortification as one of the key strategies to reduce the widespread malnutrition, particularly in underdeveloped countries.
- However, increasing raw material cost and competition among raw material suppliers along with regulations regulating the production of use of food fortifying agents are one of the factor that is restraining the growth of the market.
Key Market Trends
Acquisitive Demand of Protein for Food Fortification
The protein-fortified foods market is driven by factors such as the increasing demand for protein functionalities, awareness about healthy diet & nutritional food, and new technological development in the protein ingredients industry, which are in turn supported by the economic growth, and consumer preference for functional and fortified products. The plant source of the protein ingredients market is projected to be the fastest-growing segment, in terms of value, due to changing consumer preferences from meat to plant-based protein, its high nutritional profile, low carbon footprint, and low price of plant-sourced protein.
Also, the country witnesses a huge lactose intolerant population that drives demand for dairy substitutes, such as soy protein. In the animal protein segment, the whey protein market has the highest opportunities, with the increasing prescription of supplements by doctors and higher scope for application in functional food and beverages among the health-conscious population. Other protein agents used for food fortification include rice protein and wheat protein which are considered to grow, but at a slower pace
China to have the Fastest Growing Market
The China food fortifying agent market is expected to grow at a faster pace due to the frequent launch of new functional food and beverage products by the domestic and international companies, in order to occupy more market share in a fiercely disputed market. For instance, Danone launched a new vitamin beverage called Mi-PRD to traders in China, which is made up of taurine plant-extracted ingredients. Similarly, in 2018, Hangzhou Wahaha Group launched three new probiotic-based products that are targeted at women, children, and elderly consumers.
However, technological innovation and up-gradation is another key driving factor for market growth in the rest of the Asia Pacific region. For instance, Danone-Strauss launched a new dairy-based meal replacement for breakfast in Israel supported by Biodar's proprietary technology for fortification solutions. Biodar developed a custom-made vitamin and mineral premix, including novel mineral formulations for the fortification of fluid-milk and drinkable yogurt.
The Asia-Pacific food fortifying agent market is competitive in nature having a large number of domestic and multinational players competing for market share. 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 regional market include Cargill, Incorporated, Archer Daniels Midland Company, BASF SE, Kerry Group plc., Tate & Lyle PLC, Glanbia PLC, Ingredion Incorporated, and Chr. Hansen Holding AS, among others.
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