Product innovation is the key to cater to the demand for emulsifier in Southeast Asia. Consequently, leading companies operating in the Southeast Asia emulsifier market are investing in research and development of novel products as their key strategy to gain competitive advantage, finds Transparency Market Research (TMR) in a new study. The study has identified E.I. du Pont de Nemours and Company, Archer Daniels Midland Company, Associated British Foods Plc., BASF SE, Koninklijke DSM N.V., among others as key companies operating in the Southeast Asia emulsifier market. A majority of the key market players are also focusing on upgrading the functional attributes of products they offer. Besides this, investment towards expanding product portfolio has also risen in the past couple of years. “Leading market players are keen to ensure their products have better taste, texture, nutritional value, and improved shelf life. Their focus on improving product quality is expected to boost the Southeast Asia emulsifier market,” said a lead TMR analyst.
The reports has pegged the Southeast Asia food emulsifier market at US$173.3 mn in 2014. Exhibiting a steady 5.1% CAGR between 2015 and 2021, the market is forecast to reach US$248.3 mn by the end of 2021. Based on application, the demand for emulsifier in Southeast Asia is likely to be the highest in the bakery and confectionary segment. Besides this, the market is expected to witness demand from meat products, dairy products, convenience foods, and other segments. In terms of country, the emulsifier market in Thailand, Indonesia, Vietnam, Malaysia, and Rest of Southeast Asia is expected to lucrative prospects in the coming years. Among these countries, Indonesia and Malaysia is projected to emerge dominant, holding 38.2% and 25.2% of the overall market, respectively by 2021.
Changing Consumer Preference and Lifestyle to Fuel Demand for Food Emulsifier in Southeast Asia
The rising urban population in emerging countries across Southeast Asia has fuelled the demand for food emulsifier. Urban living can get hectic as a result of which the demand for convenient and packaged food has greatly escalated in the past few years. This incrementally rising demand for packaged foods is a chief driver of the food emulsifier market in Southeast Asia. In addition, the market is expected to gain significantly from the expansion of the bakery and confectionary and functional foods industries in the region.
Stringent Regulations May Restrain Growth in Coming Years
On the downside, stringent regulations implemented on countries such as Singapore and Thailand can curtain the use of food emulsifiers, thus negatively impacting the overall Southeast Asia food emulsifier market. Furthermore, organizations such as FDA maintain a strict safety standards to ensure that preservatives are safe for their intended use. Such stringent regulations can restrain the market to an extent.
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Nonetheless, the use of food emulsifiers as additives while processing victuals is forecast to rise at an accelerated pace. Because they have a broad application spectrum from meat processing to bakery, the demand for food emulsifiers will rise progressively during the course of the forecast period. Furthermore, rapid industrialization and expansion of the food and beverages industry in Asia Pacific will pave the way for the market’s steady growth in the coming years. Also, changing consumer preference with regards to texture, quality, nutritional value, and taste of victuals is likely to boost the Southeast Asia food emulsifier market in the coming years.