Food emulsifiers are the primary ingredients used in various processed food products and are of substantial importance when it comes to the quality, texture, and taste of the final products. Despite their high integration in processed foods, the level of fat contents added in food through emulsifiers is a major concern among many food manufacturers. However, with increasing research and development, innovative emulsifiers have substituted traditional emulsifiers, in order to lower the harmful effects of trans-fats in foods. With the help of innovative emulsifiers, food manufacturers are now able to make low-fat spreads with 10% to 40% fat. However, high restrictions on the usage of certain emulsifiers and lower acceptance of synthetic emulsifiers with E-numbers are restraining the growth, where global players are migrating towards the high-growth markets of the Asia-Pacific region.
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The global food emulsifier market was valued at USD 2.2 billion in 2014, and is expected to grow at a CAGR of 5.5%, to peg USD 3 billion by 2020. However, there are challenges to the industry, as manufacturers in North America and the European Union were hit by raw material availability, high prices, and lack of sustainable power supply for manufacturing during the review period. Rapidly increasing costs of the raw materials such as palm oil, stearic acid, and soy bean oil are pressurizing the manufacturers to increase the prices of food products. Crude palm oil prices are expected to increase in 2016, due to the prolonged El Nino drought and increasing usage of palm oil-based biodiesel in Indonesia. Also, the demand for food emulsifiers slumped lately, as customers started looking out for low cost foods. These factors resulted in manufacturers selling the product at lower prices to off-load production quantities.
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In the Asia-Pacific region, food & beverage products with emulsifiers are making foray in a big way with the growing food-processing industry. Emerging economies of India, China, Japan, and fast-growing economies of Malaysia, Singapore, and Thailand offer a lucrative market for food emulsifier players, where bakery, confectionery, meat, and dairy industries would drive the market in coming years.
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