Plant-sourced Food Emulsifiers Market - Size, Share, Outlook, 2018-2026

Food emulsifier forms a boundary between immiscible liquids such as water and oil, and creates stable emulsion. Ice-cream, margarine, salad dressings, bread, and desserts are some common examples of food that contain emulsifiers. Food emulsifiers can control crystallization, reduce stickiness and prevent separation of an ingredients. These properties and adverse health effects of synthetic food emulsifiers have led to an increasing demand for plant-sourced food emulsifiers in food and beverages industry. According to the European Union, brominated vegetable oil (BVO), one of the food additives that act as an emulsifier, is banned in Europe, as it can cause damage to the nervous system, skin cancer, and other problems related to memory loss.

Drivers and Restraints

Increasing number of people adopting veganism is propelling growth of plant-sourced food emulsifiers market. According to the Vegetarian Society, a British registered charity that promotes vegetarianism in U.K., the number of vegetarians increased from around 5% of the population to around 10% in 2015. This increasing trend of veganism and vegetarianism is influencing most of the manufacturers to adopt plant-sourced food emulsifiers. For instance, in May 2017, Hydrosol GmbH & Co. KG launched a vegan emulsifier stabilizer, HydroTop, which is produced with a blend of hydrocolloids derived from cellulose and vegetable-based fiber with high water binding capacity.

However, stringent government regulations related to food emulsifiers is negatively impacting growth of plant-sourced food emulsifiers market. According to the European Commission, Directive 95/2/EC was the regulation on food additives other than sweeteners and colors.

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Market Trends

Bakery products application segment is expected to witness significant growth in the plant-sourced food emulsifiers market size over the forecast period, owing to increasing demand for cakes and pastries globally. According to the Agriculture and Agri-Food Canada, the sales value of cakes in the U.K. increased at an average of around 2% each year between 2012 and 2017, with a 1.5% increase in CAGR during 2007-2012.

Market Outlook

North America is projected to witness significant growth in the global plant-sourced food emulsifiers market over the forecast period. This is attributed to increasing disposable income and increasing demand for food emulsifiers in variety of dishes. According to the World Bank Group, the GDP per capita in the U.S. was US$ 56,469 in 2015 and increased up to US$ 57,638.16 in 2016. Furthermore, large number of key players are focusing on expanding their presence in this region, owing to high consumer base. For instance, companies are focusing on new product launches, in order to expand their product portfolio in the region. For instance, in December 2016, Cargill Inc., launched three plant-based lecithin, which includes sunflower, soy, and canola in the U.S. and Canada that can be used in a wide variety of food applications such as bakery, convenience foods, chocolates, and confectionery.

Asia Pacific is expected to be the fastest growing region in the global plant-sourced food emulsifiers market over the forecast period. This is owing to the rapidly increasing number of processed food industries and shifting consumer preference towards plant-based food. According to the India Brand Equity Foundation (IBEF), in 2016, the food processing industry in India was ranked fifth in terms of consumption, production, and exports, and increased at a CAGR of 11.74 % during 2011-2016.

Key Trends

Key players are focusing on adopting various organic and inorganic growth strategies such as mergers and acquisitions, joint ventures and partnerships, and product or technological innovations to retain their position in the global plant-sourced food emulsifiers market. For instance, in 2017, Groupe Avril acquired Novastell to accelerate growth activities such as product development and natural emulsifier plant expansion in France and internationally.

Market players

Some of the leading players operating in the global plant-sourced food emulsifiers market include Lonza Group, Palsgaard A/S, Riken Vitamin Co., Ltd., Beldem S.A., and DowDuPont Inc. among others.

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