Food Emulsifiers Market - Forecast(2024 - 2030)

Food Emulsifiers Market Overview

The Food Emulsifiers Market size is estimated to reach $4.6 billion by 2030. Furthermore, it is poised to grow at a CAGR of 4.9% over the forecast period of 2024-2030. Food emulsifiers contain a large number of chemical additives that motivate the suspension of one liquid in another. Lecithins are also used as emulsifying agents as it is found in egg yolk. Emulsifiers is largely used in food production processes. It is used in many applications including bakery, confectionery, dairy & frozen desserts to meal solutions, snacks and oils & fats. In the food industry, the process of creating new products involves combining all the important ingredients. So, big restaurants like Dominos, Pizza Hut, Subway etc. make their own sauces with the help of emulsification process. Emulsifier helps to reduce the water spattering in food preparation and cooking. In baking industry, lecithin is widely used as it helps to prevent high cholesterol levels and improves nerve, brain, and muscle function. The demand of emulsion technology increases in food industry as many food products involved in an emulsified form, such as dressings, sauces, spreads, dips, creams, and beverages. Recently, there has been an interest in improving the health of consumers, sustainability, and safety of foods in an attempt to address some of the bad effects associated with the modern food supply, such as rising chronic diseases, environmental damage, and food safety concerns so, the use of advanced emulsion technologies increases in order to address these concerns. Tripotassium phosphate and datem is also a kind of food emulsifiers that are used in food industry as it is found in various commercially prepared products.

One unique trend driving the Food Emulsifiers Market is the increasing demand for natural and clean label Emulsifiers. As consumers become more health-conscious, they are seeking products with natural ingredients and fewer additives. This trend is compelling manufacturers to shift towards natural Emulsifiers derived from sources such as plants and animals, instead of synthetic ones. Natural Emulsifiers not only meet the clean label requirements but also offer functional benefits like improved stability and texture. This trend is in line with the broader shift towards clean label products in the food and beverage industry, leading to a higher adoption of natural Emulsifiers. Consequently, companies are investing heavily in research and development to innovate and introduce new natural Emulsifiers to meet this growing consumer demand.

Report Coverage

The: “Food Emulsifiers Market Report – Forecast (2024-2030)”, by IndustryARC, covers an in-depth analysis of the following segments of the Food Emulsifiers Market.
 

By Product Type- Lecithin, Mono-Di-Glycerides & Derivatives, Sorbitan Esters, Stearoyl Lactylates, and Others. 
By Application- Dairy & Frozen Products, Bakery & Confectionery, Convenience Food, Beverages, Meat and Others.
By Geography: North America (USA, Canada, and Mexico), Europe (UK, Germany, Italy, France, Spain, Netherlands, Russia, Belgium, and Rest of Europe), Asia Pacific (China, Japan, India, South Korea, Australia & New Zealand, Taiwan, Indonesia, Malaysia, and Rest of Asia Pacific),South America (Brazil, Argentina, Colombia, Chile, and Rest of South America), and RoW (Middle East and Africa).

Key Takeaways

• The Asia Pacific region dominated the Food Emulsifiers Market due to the rising usage of Emulsifiers in the production of pharmaceutical, food and beverage, cosmetics, and personal care products in emerging economies such as China, Japan, India, and others.

• The food and beverage sector is always on the lookout for additives and ingredient solutions that help food items retain their nutritional value while also providing a longer shelf life, improved structure, and high stability. Thus, increasing usage of Emulsifiers in the food and beverage industry will drive the growth of the market.

• Also, clearly shifting of food consumption patterns from unprocessed to processed food and ultra-processed foods are driving the growth of the Food Emulsifiers Market.

• Strict government regulations towards the production and supply of Emulsifiers would further hamper the growth of the market over the projected period.

                                                   
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Food Emulsifiers Market Segmentation Analysis- By Product Type

The Food Emulsifiers Market based on type can be further segmented into Lecithin, Mono-Di-Glycerides & Derivatives, Sorbitan Esters, Stearoyl Lactylates, and Others. Mono-Di-Glycerides & Derivatives held a dominant market share in the year 2023. Mono-Di-Glycerides & Derivatives are used in wide variety of food categories, primarily as emulsifiers. In baking industry, Mono-Di-Glycerides & Derivatives is mostly used as it helps to make a smooth texture when baked as well as provides more stable frosting. Recently, the sales of baked goods in United Stated increased at a rate of 8% in 2023 which further surging the use of monodiglycerides in the bakery industry.

However, Lecithin is estimated to be the fastest-growing, with a CAGR of 5.7% over the forecast period of 2024-2030. In bakery industry, lecithin is a widely used emulsifier which is added to bakery products, margarine, cakes, cookies and chocolate. Lecithin reduce the use of eggs and fat in cookies, biscuits and helps in reducing high cholesterol level. In bread, lecithin improves the extensibility of the gluten network, thus forming doughs more stable during fermentation and easy to process. Recently, about 130 million are consciousness about health and prefer food that contains less cholesterol level. So, manufacturers are using more lecithin for making baked goods, thus the consumption of bakery products also increases which further enhancing the use of food emulsifiers.

Food Emulsifiers Market Segmentation Analysis- By Application

The Food Emulsifiers Market based on Application can be further segmented into Dairy & Frozen Products, Bakery & Confectionery, Convenience food, and Others. Bakery & Confectionery held a dominant market share in the year 2023. The demand of food emulsifiers increases in bakery industry owing to growing consumption of baked goods among population. In the food industry, 400 million pounds of emulsifiers were used as of 2023. Also, 50% of the total food emulsifier market accounts for bakery industry where the growth of emulsifiers involved in baking industry increased by 4% a year. In bakery industry, the demand of food additives increases in order to maintain the quality, taste and freshness of products which further surging the use of Food Emulsifiers Market.

However, Convenience food is estimated to be the fastest-growing, with a CAGR of 6.0% over the forecast period of 2024-2030. Recently, the consumption of ready to eat products rising as individuals are increasingly lacking time to cook in the home so consumers spend more on convenience foods as it is ready to serve and time consuming. In America, 90% of consumers intake convenience foods so, manufacturers are focusing on investing technologies to increase the production of convenience foods therefore, rising the demand of food emulsifiers to make convenience foods.

Food Emulsifiers Market Segmentation Analysis- By Geography

The Food Emulsifiers Market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. North America held a dominant Food Emulsifiers Market share of 48% in the year 2023 as compared to the other counterparts. It is owing to the robust demand of bakery products, convenience foods and frozen foods. The demand for convenience foods is growing rapidly owing to the changes in social and economical patterns, changes in meal pattern and existing food habit, desire to taste new products. So, the consumption of processed food increased by 53% in U.S. as the intake of ready-to-eat or heat meals, like frozen dinners, increased the most. This factor rising the usage of food additives in order to enhance the taste, structure and quality of foods. In U.S., more than 50,000 metric tons of emulsifiers are produced and sold that growing the use of emulsifiers in food industry. Sales in the United States are estimated to be 250–300 million USD in 2023.

Food Emulsifiers Market Drivers

Growing consumption of processed foods and convenience foods have readily aided the market growth

Recently, the availability of processed foods increases through various retail channels that increases the consumption of processed foods. Food emulsifiers play a vital role in food & beverage production processes as it helps to improve smoothness and stabilize emulsions. For manufacturing, instant noodles, macaroni, fresh noodles, spaghetti etc, the usage of food emulsifiers increases. Food manufacturers are increasingly focused with implementing greater automation in the manufacturing process. Increasing use of automation and technology advancement are increasing productivity in the food manufacturing industry that resulting the rise consuming processed food. The growing demand of convenience foods forced global manufacturers to increase capacity at the plant. In 2023, the value of U.S. processed food exports to the world was $7.4 billion where Canada and Mexico remain the top two markets, accounting for 40% of total exports. 

Rising growth in bakery Sector have readily aided the market growth

The coronavirus pandemic has led to rise cravings among consumers so, the consumption of baked goods increases. About 28% of Americans are eating more baked goods during and post the pandemic. During pandemic, the consumption of biscuits and cookies increases at a rate of 86%, while this has levelled off post the pandemic, even though the market from 2019 has significantly risen. During the lockdown, the consumption rate has been on an all-time hike which has proven to be a relief for the bakery industry. Post-pandemic demand for bakery products consumed did not reduced as manufacturers continued to witness a significant rise in demand. Among the bakery products, about 33% of total processed products are comprised of biscuits in 2023. Recently, 79% of the biscuits are manufactured by small scale sector consisting of both factory and non-factory units. So, the rising growth in bakery sector surge the demand of food emulsifiers.

Food Emulsifiers Market Challenges

Stringent Regulations Regarding Manufacturing and Supply of Certain Emulsifiers

According to the Food and Agriculture Organization of United Nation, any Emulsifiers or stabilizer for use as an ingredient in food preparation that is not an approved Emulsifiers or stabilizer is prohibited from being manufactured, imported, distributed, sold, or advertised for sale under the regulations. The regulations also, establish labeling requirements for permitted Emulsifiers and stabilizers sold as ingredients in food preparation, as well as prohibit labeling. Additionally, the 2011 Food Safety and Standards (Food Products Standards and Food Additives) Regulations define "emulsifying agents" and "stabilizing agents" as "substances that, when added to food, are capable of facilitating a uniform dispersion of oils and fats in aqueous media or vice versa, and/or stabilizing such emulsions, and include the agents specified." The use of emulsifying and stabilizing chemicals is likewise restricted according to FSSAI standards. Foods cannot contain emulsifying or stabilizing agents unless the emulsifying or stabilizing agent is specifically approved. Hence, rising strict regulations regarding manufacturing and supply of certain Emulsifiers will further create hurdles for the Emulsifiers’s market growth in the forecast period.

Emulsifiers Industry Outlook

Product launches, acquisitions and R&D activities are key strategies adopted by players in the Food Emulsifiers Market. The key players in the Food Emulsifiers Market include

1. Kerry Group,
2. Archer Daniels Midland Company,
3. BASF SE,
4. Belde,
5. Cargill Inc.,
6. Danisco A/S,
7. Lonza Group,
8. Lubrizol Corporation,
9. Solvay SA,
10. Stepan Company

Recent Developments

• In Aug 2023, Vantage Food has launched SIMPLY KAKE, an Emulsifiers designed to enhance cakes and sweet goods. It offers the benefits of traditional Emulsifiers without the challenges of enzymes, providing superior operational tolerance and consistent crumb structure. SIMPLY KAKE aligns with clean labeling standards and joins Vantage Food's family of hydrated Emulsifiers, including KAKE MATE™ and PROFORM™.

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