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Fat Replacers Market Booming in US

06 April 2012

Increasing health concerns, ageing population, mounting demand from end-use markets and alarming rise in obesity levels are triggering growth in thethe US fat replacers market.

A new report from Global Industry Analysts shows that the surge in popularity for low-calorie, low-fat, healthy and functional foods in developed markets such as the US is providing an added impetus steering the market towards a volume figure of 394,900 tonnes by 2017.

The report says that the US fat replacers market is highly mature and corners a reasonably stable niche in the global low-fat food trade.

Consumer trends continue to influence the industry, with low-fat and fat-free products being the current craze.

The fat replacers market is poised to exhibit healthy growth over the ensuing years, with majority of the sales to be sourced from mature markets for carbohydrate and protein-based fat replacers, GIA says.

In particular, functional fat replacers have been growing at a healthy pace over the years, triggered by increasing health concerns and demand for food ingredients with enhanced flavor and texture. Potential opportunities for fat substitutes exist based on hasty commercialisation of olestra, the largest selling fat-based fat replacer.

The market research report says that carbohydrate-based fat replacers continue to lead the market for fat replacers because of their status as US FDA recognized GRAS substances.

Fat replacer ingredients that offer dietary and processing advantages are likely to witness a healthy growth, with carbohydrate-based fat replacers poised to display a healthy CAGR of 5.7 per cent up to 2017.

Lately, the US market for hydrocolloid-based fat replacers have been growing robustly over the last few years, driven by the consumers increased awareness and quest to stay fit and healthy.

Burgeoning consumer and industry concerns over non-metabolized fat replacers have slowed down further improvements in the fat-based fat substitutes market.

Fat replacers are anticipated to log significant growth in the meat and dairy sector, as low calorie and reduced-fat foods such as low-fat ice creams, spreads and meat products are gaining huge popularity in these markets.

The declining demand for zero-fat food products is negatively influencing the overall demand for protein-based fat replacers, expected to grow over the years at a tepid pace.

Manufacturers of protein-based substances are more focused on dietary applications of protein ingredients such as dietary beverages and sports nutritional products instead of fat substitute applications, mainly due to the extremely profitable market for dietary and nutritional products.

The fat-free and low-fat foods market is facing stiff competition from alternative sweeteners and other products containing sugar alcohols.

The impact of rising competition is evident from the heightened levels of product development and burgeoning promotional expenditure.

Falling volumes was a major issue for manufacturers, despite surging values.

Fat replacer manufacturers are increasingly resorting to investments in improved process technologies and newer product developments to withstand the competition.

The manufacturers are all geared up to enhance the quality of functional fat replacers to provide improved taste in low-fat foods.

Major players profiled in the report include Advanced Food Systems Inc., Ashland Specialty Ingredients, CP Kelco, California Natural Products, Carrageenan Company, FMC BioPolymer, Grain Processing Corporation, Gum Technology Corporation, Kraft Food Ingredients Corporation, National Starch Food Innovation Group, P&G Food Ingredients, PGP International Inc, TIC Gums Inc., and Z-Trim Holdings Inc.

The research report “Fat Replacers: A US Market Report” reviews the fat replacers markets, the impact of recession, current market trends, key growth drivers, recent product introductions, recent industry activity, and profiles of major/niche global as well as regional market participants.

More details about the report, can be found on http://www.strategyr.com/Fat_Replacers_Market_Report.asp.


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