Market Trends of India Food Preservatives Industry
Growing Demand for Processed Food
- As urbanization, disposable income, and the working population is increasing in India, demand for convenience and processed food is increasing among consumers. According to World Bank data from 2021, the per capita income in India was USD 1,053.77.
- The demand for on-the-go food is increasing due to busy work schedules, resulting in an increase in the production of convenience foods and beverages. Furthermore, consumer awareness about clean-label and natural ingredients in food is growing, leading to an increase in demand for natural, organic, and plant-based additives and preservatives in the country.
- Butylated hydroxyanisole (BHA) and butylated hydroxytoluene (BHT) are synthetic antioxidants commonly used as preservatives in food, cosmetics, and personal care products. They are effective at preventing the oxidation and rancidity of fats and oils in foods, thereby extending their shelf life.
- BHA and BHT have been approved as food additives by regulatory agencies worldwide, including the United States Food and Drug Administration (FDA). However, their safety and potential health effects are still a topic of debate and research, and some countries have placed restrictions on their use in food. Hence, market players are demanding the use of natural preservatives, such as citric acid and other plant-based sources, to replace synthetic antioxidants like BHA and BHT.
- In September 2020, Manali Petrochemical announced its plans to triple its annual production capacity for propylene glycol (PG) from 22,000 MT to 70,000 MT in two phases at an investment of about Rs 150 crore. It is also used as a carrier for food colors, flavors, and nutrients. PG is a clear, odorless liquid with a slightly sweet taste. It is a chemical compound that is used as a solvent, humectant, and preservative in various industries, including food, cosmetics, and pharmaceuticals. In the food industry, PG is used as a food additive to keep food moist, prevent caking, and enhance flavors.
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Growing Demand for Organic Preservatives
- A growing number of consumers are increasingly becoming aware of artificial preservatives and are avoiding additives like BHA and BHT, sorbates, benzoates, and other preservatives. The rising aging population and calorie-conscious consumers are looking for healthy alternatives in the form of 'organic food.
- According to data from the Ministry of Statistics and Programme Implementation, in 2021, in Kerala, India, 16.5% of the population was aged. This has led market players to invest in research and development to launch organic food additives and preservatives, such as natural color additives, flavor enhancers, and protein-based fat replacers that enhance the quality of organic food.
- Furthermore, increased consumer awareness about the potential side effects of synthetic preservatives is driving the market for organic food preservatives.
