Market Trends of South Africa Food Additives Industry
This section covers the major market trends shaping the South Africa Food Additives Market according to our research experts:
Increasing Consumer Demand for Clean Label Ingredients
Clean labeling has become an important aspect of high-rated consumer demand, emphasizing processed food products. With the increase in health awareness, a majority of the population check for clean labels before buying a product. This rise in demand for clean labels has shifted the focus of manufacturers from synthetic food additives to natural ones. Companies like DuPont and Cargill are focusing on research and development to innovate new products to suit consumer demand. Moreover, the South African beverage and bakery industry are focused on using traditional coloring and flavoring methods, for which the companies have come up with natural alternatives in clean labels.
Beverages Dominates the Food Additive Market
Beverage companies in South Africa are increasingly focusing on making product lines based on tropical fruits and super fruits. This is driving the growth of the flavored beverage market. Coca-Cola is offering various soft and carbonated drinks in different tropical flavors, such as Fanta Mango. Toni Glass is offering beverages in different berries, ginger, and other exotic flavors. The beverage segment is the largest application segment for stevia. The rise in health concerns related to sugar consumption and a surge in the production cost due to the sugar tax imposed by the South African government are leading to the market penetration of stevia in various soft drinks, juices, teas, and nectars. Companies, such as PepsiCo Inc. and the Coca-Cola Company, started incorporating products in their diet soft drinks and marketed them as drinks with no side effects on consumer health. Coca-Cola offers the only stevia-sweetened Coke under the brand name, Coke Life, and it is considered as Coca-Cola's response to the rapidly growing natural sweetener trend.
