The South African acidulants market is projected to witness a CAGR of 7.8% during the forecast period (2020-2025).
Key Highlights
- Food retail is a highly competitive industry in South Africa. Increased number of retailers, retail channels, and formats are increasing consumers' access to process and convenience foods. This is further increasing the demand for food acidulants by the food and beverage industry in South Africa. While providing consumers with competitive prices, quality, and services, the organized retail sector exposes the consumer to label information, and quality comparison with both private labels and branded products is boosting the retail food market in South Africa.
- The South African market is a growing market, as it is also one of the emerging countries which are very conscious of health and wellness. Its thirst for convenience foods is high, which ultimately gives a boost to the food acidulants market. In processed and packaged foods, ensuring food safety and quality, starting from transportation to farm to fork and storage facilities, is a significant concern.
Key Market Trends
Increasing Demand for Food Acidulants in the Confectionery Market
Confectionery remains one of the most popular product categories in South Africa. According to the significant chocolate and confectionery manufacturers, the demand for sugar confectioneries across the South African region is growing at the fastest pace. This growth has intensified the demand for food acidulants in the confectionery segment. Food acidulants, including malic acid, fumaric acid, lactic acid, and citric acid, are primarily used in the confectionery industry. For instance, acidulants, such as lactic acids and lactates, have distinct roles in producing candies. It not only helps in countering the sweet taste of sugar and sugar replacers but also enhances the impact of flavors on the taste. The benefits of food acidulants and its increasing awareness among end-user industries resulted in the acidulants having a prime role in the confectionery market of the region. This factor is contributing to the overall growth of the market.
Growing Demand for Retail Food
South Africa has a well-developed retail sector expanding into other African countries. The country is the biggest market for food and beverage products in Southern Africa and serves as a gateway to other Sub-Saharan African countries. According to USDA, there are over 1,800 food production companies in South Africa, which provides an excellent platform for the food acidulants manufacturers to expand their product offerings and gain competitive advantage. South African food retail sales totaled USD 52.2 billion in 2018. The sector is well developed and aggressively developing into other African countries, which in turn is expected to boost the market of food acidulants during the forecast period.
Competitive Landscape
The South Africa food acidulants market faces high competition, with the presence of both global and local players. Some of the companies operating in this market are Tate & Lyle, Cargill, ADM, and Corbion NV Acquisitions, and partnerships remain the most common strategy adopted by key players in the South African food acidulants market. The global giants, like Corbion, have been continuously increasing their presence and expanding their food acidulants businesses through acquisitions. Additionally, the companies are active with new product launches and sustainable procurement for raw material. The major manufacturers are focusing on utilizing fermentation technology, both an aerobic and anaerobic method, for the production of significant food acidulants.
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Table of Contents
Methodology
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