Market Trends of Africa Food Flavor and Enhancer Industry
This section covers the major market trends shaping the Africa Food Flavor & Enhancer Market according to our research experts:
Increasing Demand for Processed Food Ingredients
Rapid development, high population growth, and rural-urban migration are leading to swelling cities and a new set of issues in many of the African countries. Urban food demand is different from that in rural areas in Africna, as consumers in the Urban African regions seek more convenient foods, many of them processed, resulting in a quickly evolving food system, and large and quick processing of the ingredients such food flavors and enhancers. Moreover, From January to June 2018, Egypt imported USD 2.6 billion (as per USDA) worth of food ingredients. Also, Egypt's hotel, restaurant and retail food sectors were growing in 2018, owing to a budding recovery in tourism and consumer spending. Therefore this factor will increase the demand for the processed food and beverage ingredients in Africa further during the forecast period too, as the demand for food and beverage products will increase in the African hospitailty sector.
Strategic Initiatives By The Global Manufacturers
Companies have been expanding their food flavor and enhancer production facilities in the African countries, leveraging on the fact that there has been increasing demand for processed food. Therefore more production of ingredients are necessary so as to support the increase in the manufacturing of processed food. Also, these expanded production sites will bring an even greater level of resources to this fast-growing and dynamic market.
In 2015, International Flavors & Fragrances Inc. expanded its production facility, located near Johannesburg and adjacent to IFF's existing manufacturing plant, more than doubles IFF's creative capabilities in South Africa. The new cutting-edge facility includes flavor creation, application and sensory laboratories, and a pilot plant that will cater to the Company's expanded customer base in the rapidly growing Sub-Saharan Africa region. IFF's total footprint in South Africa is approximately 30,000 square meters.
Also, for the first time Symrise had set up its own application labs in Nigeria. The global fragrance and flavoring manufacturer based in Germany opened the new facilities in Lagos, the largest city in Nigeria, on September 4, 2019. Therefore, this expansion of production facilties will strengthen the global companies presence and underpin their growth goals in the African region.
