Market Trends of India Food Additives Industry
Sweeteners Dominate India's Food Manufacturing Landscape
Key sweeteners, including sucrose, lactose, high-fructose corn syrup (HFCS), and fructose, find extensive applications across various sectors. In India, where sugar consumption is on the rise, sucrose stands out as the dominant sweetener. Its widespread availability provides a significant boost to the market. The growing affinity for Western desserts, like cakes, pastries, and ice cream, that rely heavily on sweeteners, directly influences the demand for the variety of sweeteners used. Furthermore, the expanding soft drink industry highlights the vast potential for sweeteners in India. According to a report from the Economic Times, bottled soft drink consumption in India achieved over 50% annual penetration in FY24. This trend, a reflection of increasing disposable incomes and changing lifestyles, emphasizes the strong demand for sweeteners in India, especially since sweeteners like sugar and HFCS are predominant in soft drinks. India's substantial reserves of HFCS, coupled with its corn production, a vital ingredient for many bulk sweeteners, fuel the industry growth. Reinforcing this narrative, the FAO reported India as the world's 5th largest maize producer in 2023-24, with an output of 35.67 million tonnes, underscoring the nation's pivotal role in the global sweetener supply chain. These abundant resources enable manufacturers to ramp up production, reduce costs, and meet the escalating global demand for sweeteners. As consumer awareness grows, the demand for health-oriented, low-calorie sweeteners is rising. In response, companies are innovating and developing low-calorie sweetener solutions. For instance, in October 2024, 1-2-Taste, a leading digital B2B food ingredients marketplace, proudly announced its milestone as the first in India to obtain FSSAI approval for the sale of allulose, a natural low-calorie sweetener. This strategic initiative positions them favorably in the expanding market for healthier and flavorful sugar alternatives.
Food Additives Play a Pivotal Role in India's Dairy and Frozen Food Sector
As the dairy industry in India expands, manufacturers are increasingly turning to food additives. These additives not only boost product quality and nutritional value but also prolong shelf life, catering to rising consumer demands. Additionally, regulatory shifts permitting new food additives in dairy could further accelerate market growth. For instance, in September 2024, the FSSAI introduced a draft notification to amend the Food Safety and Standards (Food Products Standards and Food Additives) Regulations. This amendment proposed the inclusion of Natamycin as a preservative for select items, including unheated fermented plain milk and select dairy-based desserts. Furthermore, events like the Indian Ice Cream Expo are pivotal in promoting food additives within India's dairy landscape. The 12th Edition of IICE, held in September 2024 at the Helipad Exhibition Centre in Gandhinagar, Gujarat, boasted over 300 stalls and attracted 20,000 visitors from 21 countries. The expo showcased a diverse range, from ice cream manufacturers and branding solutions to cold chain suppliers and insurance services. Such expos serve as platforms for companies to introduce innovations, like stabilizer-emulsifier systems and other dairy additives. By connecting industry leaders, manufacturers, and consumers, these events promote collaboration and the exchange of ideas. This collaboration not only enriches the quality and variety of dairy products but also resonates with the consumer trend towards healthier options, fueling the overall growth of the food additives market in India.
