Economics & Sustainable Growth of Natural Food Additives – Part 1

Posted by on Oct 4, 2012 in Brand, Sustainability

Natural flavors and ingredients are some of the fastest growing food and drink trends. Consumer desire for natural ingredients, an overhaul in the FDA regulations, and increasing pressure for more understandable product labels have fueled the acceleration in naturally flavored products.

The supply chain for natural and organic ingredients, however, can be rife with landmines for food and beverage companies. Launched and failed products litter the product launch roadside as casualties of consumer desire without purchase. The natural flavors global market alone is worth $3.3 billion though it is unlikely that synthetic additives will be entirely replaced by natural or organic alternatives. It is expected to grow at a rate of 9.1% per year as products steadily move toward natural ingredient replacements. Food additive sales as a whole are estimated at $24.5 billion with a forecasted growth of 2.5% annually.

Consumer Demand Versus Actual Purchase

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