Adding up: The booming business of food additives
Adding ingredients to food and drink can help boost sales or draw consumer scrutiny, but such additives represent a huge business in their own right, writes Adam Maguire.
Food and drink additives have a long history, with civilizations adding preservatives and flavor enhancement for centuries. The additives business has grown significantly as food production became industrialized. The global market for additives is now estimated at around €75 billion, and it could increase to over €120 billion in the next decade.
The fortification and enrichment business, which adds nutrients to foods for health benefits, is even larger, worth between €130 billion and €175 billion this year, with an expected nearly doubling to €350 billion in the next decade.
The additives market often focuses on basic practical reasons, such as adding salt for shelf-life and flavorings for taste. However, the fortification and enrichment side aims to add nutrients with health benefits, commanding a premium price. There is a growing trend towards functional foods, which focus on health and wellness, such as healthy snacks, energy drinks, and protein bars. These products rely on various additives to function properly.
A significant driver in the market is the rise of GLP-1 weight-loss drugs, which have gained popularity in recent years, particularly in the US. While the use of these drugs may negatively impact some parts of the food and drink industry, it is a good time for the additives business. As users of these drugs eat less, they seek nutritionally rich products, particularly in protein and fibre, to maintain muscle and support gut health.
Irish companies, including Glanbia and Kerry Group, are well-positioned in this market, with Glanbia focusing on performance nutrition, health and nutrition, and dairy nutrition businesses, which include protein and other fitness supplements, as well as vitamins, minerals, and flavourings.
Written by urgent.news from RTE News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.