Nutraceuticals to record robust growth
Nutraceuticals, including minerals, vitamins, herbal extracts and probiotics, will register strong gains as they expand their presence beyond traditional applications like breakfast cereals, bread and juices into a wide variety of other foods and beverages. Recent introductions include candy, soft drinks, desserts and snack foods fortified with vitamins and minerals, water containing vitamins and herbal extracts and a variety of foods containing probiotics. Not only does the incorporation of nutraceuticals provide a strong marketing advantage, but it also helps increase sales as consumers feel better about the products they purchase.
Grain mill, dairy products to fortify food additive gains
Grain mill products will present strong opportunities for growth, especially as the popularity of low-carb diets continues to wane. Fortified breakfast cereals have long been a mainstay of the industry, but other products -- such as dessert mixes and beverages -- are expected to become more substantial markets for nutraceutical additives. In addition, dog and cat foods will remain a major outlet for functional and nutritional additives. The dairy market for additives will also offer growth potential, as probiotic ingredients expand beyond their traditional application in yogurt products and alternative sweeteners such as polyols continue to expand their market presence.
Soft drinks slump; sports drinks, bottled water soar
Carbonated soft drinks have long been the largest market for beverage additives, and will remain so. However, a slumping soft drink market offers less upside for additive producers than faster growing segments of the beverage market. Sports drinks and energy drinks are expected to offer greater opportunity for growth, although they will remain much smaller than the traditional soft drink segment. Bottled water, more specifically flavored and enhanced waters, is expected to offer among the most stellar opportunities for growth. Although these products typically feature lower loadings of flavors, colors and sweeteners, flavored and enhanced waters constitute one of the fastest growing segments of the beverage market, as consumers seek a more healthful alternative to soft drinks.
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