FOOD PRESERVATIVE MARKET BY TYPE (Natural, Chemical), FUNCTION (Antimicrobial, Antioxidant), APPLICATION (Oil & Fat, Bakery, Dairy, Snack, Meat, Poultry & Seafood, Confectionery, Beverage), & GEOGRAPHY — Global Trend & Forecast to 2018 MarketsandMarkets [email protected] www.marketsandmarkets.com Food Preservative Market – By Type, Function, Application & Geography — Global Trend & Forecast to 2018 MarketsandMarkets is a global market research and consulting company based in the U.S. We publish strategically analyzed market research reports and serve as a business intelligence partner to Fortune 500 companies across the world. MarketsandMarkets also provides multi-client reports, company profiles, databases, and custom research services. 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MarketsandMarkets Sample Pages | 2 Food Preservative Market – By Type, Function, Application & Geography — Global Trend & Forecast to 2018 1 EXECUTIVE SUMMARY Preservatives are used in wide ranges of products that include bakery, snacks, confectionery, meat, poultry, seafood, etc. The food preservative market includes natural and chemical preservatives that are used to prevent food spoilage, reduce product oxidation, inhibit microbial growth, etc. The market is driven by changing consumer trends and food preferences. The food & beverage (F&B) processing industry also influences the food preservative market. F&B manufacturers widely use chemical preservatives as antimicrobial, antioxidant, and chelating agents, etc. However, chemical preservatives may result in adverse reactions when exposed to the sensitive consumers. FDA regulates the concentration range of chemical preservatives in food products and has banned chemicals that are harmful upon consumption. The awareness among the consumers related to these risks of food additives impacts the food preservative market. The market is characterized by the growing demand for natural food preservatives. The trend of natural preservatives has been originated from the appeal of European nations to market the clean label food products that are free of additives, especially synthetic variants. And, hence, the changing lifestyle and the booming food and beverage industry have driven the demand for natural preservatives. Consumers have also shifted their focus to natural variants and preservative-free food products. The leading F&B manufacturers demand natural preservatives to extend their product shelf life. Hence, various food preservation technologies are employed in combination with the natural food preservatives to extend the product shelf life. MarketsandMarkets Sample Pages | 3 Food Preservative Market – By Type, Function, Application & Geography — Global Trend & Forecast to 2018 2 PREMIUM INSIGHTS FIGURE 1 FOOD PRESERVATIVE MARKET SEGMENTATION Food Preservative Market Type Function Application Geography Natural Antimicrobial Oil & Fat North America Chemical Antioxidant Bakery Product Europe Others* Dairy & Frozen Asia-Pacif ic Product ROW Snack * Chelating Agents, Enzyme Inhibitors, etc. ** Perishable Fruits & Vegetables, Dry Fruits, etc. Meat, Poultry & Seaf ood Product Conf ectionery Beverage Others** Source: MarketsandMarkets Analysis The global food preservative market is segmented in terms of geography, types, functions, and applications. In terms of geography, the market is divided into North America, Europe, AsiaPacific, and Rest of the World (ROW), where North America emerges as the global leader, followed by Asia-Pacific and Europe. Key food preservative types include natural and chemical. Food preservatives find wide applications in the food and beverage industry such as bakery and confectionary, dairy and frozen food, meat products, oils/fats, etc. MarketsandMarkets Sample Pages | 4 Food Preservative Market – By Type, Function, Application & Geography — Global Trend & Forecast to 2018 FIGURE 2 LIFE CYCLE OF FOOD PRESERVATIVE MARKET, BY GEOGRAPHY, 2012 VS. 2018 2018-p Market Value ($Million) 2012 Market Phase Development XXXX Growth XXXX Maturity XXXX Decline XXXX Source: MarketsandMarkets Analysis North American food preservative market life cycle is in the high growth stage, nearing the maturity period. Hence, the total growth of food preservative market in North America is estimated to be slow. On the contrary, market growth of food preservative in Asia-Pacific region is anticipated to be very high. MarketsandMarkets Sample Pages | 5 Food Preservative Market – By Type, Function, Application & Geography — Global Trend & Forecast to 2018 3 3.1 INDUSTRY ANALYSIS INTRODUCTION Food industry spans different sub segment of food ingredients and additives industry that add value to the products. Food additives include preservatives, flavors & sweeteners, texturants, etc. The food preservative market accounted for a value share of about XX%, in the food additives market, in 2012. The additives market is estimated to grow proportionately with the processed food market. TABLE 1 FOOD ADDITIVES MARKET VALUE SHARE, BY TYPE, 2012 Food additive type Share Flavors & sweeteners XX% Texturizing agents XX% Emulsifiers, oxidizing agents, reducing agents XX% Preservatives XX% Colors XX% Others XX% Source: Related Research Publications and MarketsandMarkets Analysis MarketsandMarkets Sample Pages | 6 Food Preservative Market – By Type, Function, Application & Geography — Global Trend & Forecast to 2018 FIGURE 3 FOOD ADDITIVES MARKET VALUE SHARE, 2012 Flavo XX% XX% Textu XX% Emul XX% Prese Color XX% XX% Other Source: Related Research Publications and MarketsandMarkets Analysis Within the food additives market, flavors & sweeteners and texturizing agents markets generated the largest share of total sales in 2012. Nutritional ingredients exhibit the fastest growth and are expected to further accelerate that growth over the years to come. Coloring is a smaller submarket. 3.2 REGULATING SAFETY OF FOOD PRESERVATIVES Based on the 1958 Food Additives Amendment to the Federal Food, Drug, and Cosmetic (FD&C) Act of 1938, the FDA must approve of the use of all preservatives. The manufacturer bears the responsibility of proving that the additive is safe for its intended use. The Food Additives Amendment excluded preservatives deemed safe for consumption prior to 1958, such as salt, sugar, spices, vitamins, and vinegar. These substances are considered "generally recognized as safe" (GRAS) and may be used in any food. 3.2.1 THE DELANEY CLAUSE The Delaney Clause which was included in both the Food Additives Amendment and Color Additives Amendment, prohibited approval of any additives that had been found to cause cancer in humans or animals. However, the Secretary of the FDA was given the responsibility MarketsandMarkets Sample Pages | 7 Food Preservative Market – By Type, Function, Application & Geography — Global Trend & Forecast to 2018 of assessing the risk from consumption of preservatives that may cause cancer. The FDA continually monitors the safety of all food preservatives as and when new scientific evidence becomes available. 3.2.2 FOOD PRESERVATIVES REGULATION BY THE FOOD AND AGRICULTURAL ORGA NIZA TION IN THE U.S. In the U.S., food preservatives play an important role to ensure that the food marketed remains the safe and can be stored for longer period. A pivotal task of the FDA is to regulate the use and approval of thousands of approved food preservatives, and to evaluate their safety. Despite consumer concern about use of food additives and preservatives, there is very little scientific evidence that they are harmful in the levels at which they are used. MarketsandMarkets Sample Pages | 8 Food Preservative Market – By Type, Function, Application & Geography — Global Trend & Forecast to 2018 4 4.1 MARKET OVERVIEW INTRODUCTION Following are some of the preservatives used in foods: TABLE 2 FOOD PRESERVATIVES, THEIR SOURCES & THEIR FUNCTIONS Classification Chemical name Natural source Function Cruciferous vegetables, Sulfites (sulfur dioxide) grass-fed milk, pasteurized eggs Sorbic acid Sorbus aucuparia Antimicrobial They inhibit the growth of bacteria, molds and yeasts. Calcium propionate Calcium propionate Benzonates (sodium benzoate) is used Butter, strawberries, extensively in apples, & some cheeses commercial baked goods. Cranberries Cruciferous vegetables, Sulfites grass-fed milk, pasteurized eggs Antioxidant BHA Petroleum derivative BHT Petroleum derivative TBHQ Petroleum derivative Synthetic vitamin C Ascorbic acid They by inhibit air, oxidation which fats, makes especially unsaturated fats, turn rancid. which naturally occurs in citrus fruits and many vegetables MarketsandMarkets Sample Pages | 9 Food Preservative Market – By Type, Function, Application & Geography — Global Trend & Forecast to 2018 Classification Chemical name Natural source Propyl gallate Not found in nature EDTA Not found in nature Function They agents” Ubiquitous in nature in Sequestrant Polyphosphate “Chelating which absorb atoms of trace metals small concentrations such as iron and copper found in every cell Citric acid are that catalyze oxidation reactions. Citrus fruit Source: FDA, Euromonitor, Related Research Publications, and MarketsandMarkets Analysis TABLE 3 E NUMBER FOR FOOD PRESERVATIVES & THEIR APPLICATIONS E number E 200-203 Substance/class Foods in which they are used Sorbic acid and sorbate Cheese, wine, dried fruits, compounds fruit sauces, and toppings Pickled vegetables, low sugar E 210-213 Benzoic acid and benzoate jams fruits, and jellies, candied semi-preserved fish products, and sauces E 220-228 E 235 Sulfur dioxide and Sulfite Dried fruits, fruit preserves, compounds potato products, and wine Natamycin Surface treatment of cheese and sausages Sausage, E 249-252 Nitrite and nitrate compounds gras, bacon, cheese, ham, and foie pickled herring Source: FDA, EUROPA, Related Research Publications, and MarketsandMarkets Analysis MarketsandMarkets Sample Pages | 10 Food Preservative Market – By Type, Function, Application & Geography — Global Trend & Forecast to 2018 5 5.1 MARKET ANALYSIS INTRODUCTION There are significant increases in the quality and the quantity of the food available to man in the last 2000 years. Early inventions enabled the cultivation of lands, and crop rotation practices, which allowed soil to become refreshed between plantings, thereby increasing food production. This enhanced production led to the development of innovative storage and transport facilities to avoid the spoilage. Finally, the invention of refrigerated transportation made fresh foods available to consumers around the globe. FIGURE 4 NEED FOR FOOD PRESERVATION Increase the shelf life, making storage more convenient Benefits of Food Preservation Preserve the organoleptic properties, keeping the food presentable and palatable Preserve the nutritional quality, maintaining the nutritive value Source: FDA, Food Magazines, and MarketsandMarkets Analysis MarketsandMarkets Sample Pages | 11 Food Preservative Market – By Type, Function, Application & Geography — Global Trend & Forecast to 2018 5.2 WINNING IMPERATIVES 5.2.1 COMBINED APPLICA TION OF PRESERVATIVES A driving trend also seen in food preservation is the combined application of chemical preservatives. Most commonly, sorbates are used with benzoates in a variety of applications, particularly in freshly prepared salads and similar products, in which both provide longer shelf life. Nitrites are being used in combination with starter cultures in some of the European countries. This combination was successful in salamis in Italy. The use of starter cultures and nitrites together allowed the control of the proliferation of certain bacteria. Combined use of adequate preservatives and starter cultures allows the production of safer products with improved features. Meat is cured with salt or sugar, or a combination of the two. Nitrates and nitrites are also often used to cure meat and contribute the characteristic pink color. The use of sugar is often combined with alcohol for preservation such as the use of fruit in brandy or other spirits. Many preservatives today are actually fungistatic in their action. They prevent the growth of fungi, molds, and yeasts. They have little effect on bacteria, but when used in a combination of preservatives, with antibacterial properties, they can give all-round protection to the food products. Sometimes, natural food preservatives are also used in combination with chemical preservatives. Apart from application of a single food preservation method, a combination of methods has also been explored by the food & beverage manufacturers to improve the safety and storage stability of foods. This concept is currently referred to as hurdle technology; it is also known as food preservation by combined methods, combination preservation, or combination techniques. This method of food preservation is based on the use of a combination of several preservative factors (called hurdles) such as high or low temperature, reduced water activity, acidity, and antimicrobial food additives. These hurdles inhibit or prevent growth of foodborne microorganisms to enhance food safety and reduce food spoilage. The application of hurdle technology permits mild but very effective preservation of safe, stable, nutritious foods with desirable sensory qualities because only a relatively low level of each preservation factor is usually required to improve the storage capacity of foods. In MarketsandMarkets Sample Pages | 12 Food Preservative Market – By Type, Function, Application & Geography — Global Trend & Forecast to 2018 pickling vegetables, the combination of preservation factors (heat, acetic acid, and salt) contributes to increase the microbial safety. 5.3 MARKET DYNAMICS FIGURE 5 FOOD PRESERVATIVE MARKET DYNAMICS High Impact High Growth Impact Medium Growth Impact XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Low Impact Low Growth Impact High Low Drivers Restraints Opportunities Source: MarketsandMarkets Analysis The benefits of food preservatives impact their market dynamics. Extension of product shelf life and increasing demand for ready meals drive the market and moderately impact the market growth. Application of food preservatives can be considered as the biggest restraint in the market. Functionality of preservatives, food demand, and emerging markets can be observed as opportunities for the food preservative market growth. MarketsandMarkets Sample Pages | 13 Food Preservative Market – By Type, Function, Application & Geography — Global Trend & Forecast to 2018 5.3.1 OPPORTUNITIES 5.3.1.1 Differential Functionality of Food Preservatives Differential functionalities enable the F&B manufacturers to use preservatives in various food applications. The development of new lead molecules that can perform wide range of functions in food can further help the market growth. Food preservatives can be used as antimicrobial, antioxidants, and enzyme inhibiting agents. FIGURE 6 FUNCTIONS OF FOOD PRESERVATIVES Extend Product Shelf Lif e Prevent Microbial Growth Prevent Food Spoilage Prevent Oxidation Reaction Food Preservatives Sequestrant Food Saf ety Enzyme Inhibition Source: FDA, Chemical Research Journals, and MarketsandMarkets Analysis Food preservatives restrict the growth of the microorganisms and limit the oxidation process in products that result in food spoilage. The enzyme inhibiting function of food preservatives help stop the ripening or aging of food caused by the enzymatic reactions. Food preservatives can also act as sequestrant also known as chelating agents that help to restraint oxidation of food products. MarketsandMarkets Sample Pages | 14 Food Preservative Market – By Type, Function, Application & Geography — Global Trend & Forecast to 2018 6 6.1 FOOD PRESERVATIVE MARKET, BY TYPE INTRODUCTION Food products, being perishable items, are under the constant threat of spoilage due to microbial contamination, enzymatic activities, etc. that alters the quality of products and raise consumer health safety concerns. Microorganisms are ubiquitous and given the optimum conditions, can grow, flourish and affect the nutritive quality of the foods and beverages. Similarly, most food products also contain enzymes or natural chemicals that upon enzymatic activity alter the aesthetic properties of the products. Preservation, primarily, aims to alter these influential conditions in order to hinder or retard the proliferation of the microbes and the enzymatic reactions. They may either be additives or methods which enable such functions. The food preservatives traditionally have three goals; i.e. to retain nutritional characteristics, appearance and prolong the shelf life of the product. FIGURE 7 FOOD PRESERVATION METHODS Food Preservation Packaging Methods Preservation Additives Physical Treatments Natural (Class I) Chemical (Class II) Source: GFSI, IAFP, and MarketsandMarkets Analysis MarketsandMarkets Sample Pages | 15 Food Preservative Market – By Type, Function, Application & Geography — Global Trend & Forecast to 2018 Three methods are used primarily to preserve food by keeping it from contamination and extend its shelf life. Packaging materials and techniques include the vacuum, inert gas, MAP (Modified Atmospheric Packaging), along with the material of the packaging and packing containers/bags designed in a manner to suit the product and prevent spoilage. Physical treatments include heating, boiling, pasteurizing, radiation, and freezing practices to check the proliferation of microbes and the enzymatic reactions. Preservation additives include ingredients and compounds that demonstrate antimicrobial, antioxidant, and chelating activities, to prevent spoilage of food and extend its shelf life. FIGURE 8 FOOD PRESERVATIVE TYPE, BY THEIR FUNCTION Natural & Chemical Preservatives Antimicrobials Antioxidants Others (Chelating Agents/Enzyme Inhibitors) Benzoates Vitamin E (Tocopherol) EDTA Sorbates Propionates Nitrites Sulphites Lactates Polyphosphates Citric acid Acetates Nisin Natamycin Edible Oils Rosemary Extracts Polyphenols Vitamin C (Ascorbic Acid) BHA BHT Onion extract Flavonoids Salt, Sugar, Honey Alcohol, Vinegar Source: IFI, IFAP, and MarketsandMarkets Analysis All natural and chemical/synthetic preservation additives can be broadly classified as antimicrobials, antioxidants, chelates, enzyme inhibitors, etc. depending on their role in the MarketsandMarkets Sample Pages | 16 Food Preservative Market – By Type, Function, Application & Geography — Global Trend & Forecast to 2018 food product. Preservatives include salt, sulfites, sorbates, antioxidants, and antimicrobials such as benzoates and propionates. Certain chemical preservatives function well with select compatible products, and are hence used in combinations such as benzoates in carbonated drinks, ketchups or even salad dressings. Similarly, sulfites may be used in wine, in fresh & frozen shrimps and in pickles while nitrites are used almost exclusively for meat and meat products. However, the chemical preservatives may impose a certain degree of health risk to its consumers that include asthma, and high blood pressure, etc. MarketsandMarkets Sample Pages | 17 Food Preservative Market – By Type, Function, Application & Geography — Global Trend & Forecast to 2018 7 7.1 FOOD PRESERVATIVE MARKET, BY FUNCTION INTRODUCTION The classification of chemical preservatives is never constant. Sulfites and nitrites preservatives, which were once considered safe, have now been banned and their permissible uses, restricted. Food preservatives are used alone or in combination with other methods of preservation. Preservatives may be antimicrobial, which inhibit the growth of bacteria and fungi, or antioxidants such as oxygen absorbers, which inhibit the oxidation of food ingredients. Common antimicrobial preservatives include propionates, benzoates, sorbates, nitrates, and sulfites. Common antioxidants include BHT (butylated hydroxytoluene) and BHA (butylated hydroxyanisole). Other preservatives include chelating agents and enzyme inhibitors. The benefits and safety of many chemical food preservatives are still debatable in the food and beverage industry. TABLE 4 FOOD PRESERVATIVE MARKET VALUE, BY FUNCTION, 2011–2018 ($MILLION) Function 2011 2012 2013-e 2018-p CAGR% (2013–2018) Antimicrobials XX XX XX XX XX Antioxidants XX XX XX XX XX Others XX XX XX XX XX Total XX XX XX XX XX e – Estimated; p – Projected Source: Related Research Publication, Government Publication, Company Press Release, Company Annual Report, Company Website, Company Publication, and MarketsandMarkets Analysis MarketsandMarkets Sample Pages | 18 Food Preservative Market – By Type, Function, Application & Geography — Global Trend & Forecast to 2018 The food preservative market value was $XX million in 2012. The market for antimicrobial preservatives is projected to reach $XX million by 2018 growing at a CAGR of XX%. The antioxidants market is estimated to be $XX million in 2013. 7.2 7.2.1 ANTIOXIDANT PRESERVATIVES INTRODUCTION Antioxidants are compounds capable of slowing or preventing the oxidation that lead to over ripening or spoilage of food products. They are also known as free radical scavengers of the body for their ability to terminate chain oxidation reactions in two ways – by removing radical intermediates and by getting oxidized themselves. Antioxidants prevent rancidity in foods containing fats and damage to food caused by oxygen. Examples of antioxidants include vitamin C, vitamin E, BHA, BHT, and propyl gallate. Propyl gallate retards the spoilage of fats and oils, and is often used with BHA and BHT, because of the synergistic effects. Antioxidants are used as food preservatives to help guard against food deterioration. Exposure to oxygen and sunlight are the two main factors in the oxidation of food, so food is preserved by being kept in the dark and sealing it in containers or even coating it in wax, as done with cucumbers. However, as oxygen is also important for plant respiration, storing plant materials in anaerobic conditions produces unpleasant flavors and unappealing colors. Consequently, packaging of fresh fruits and vegetables contains an ~XX% oxygen. Antioxidants are an important class of preservatives as, unlike bacterial or fungal spoilage, oxidation reactions still occur relatively rapidly in frozen or refrigerated food. These preservatives include natural antioxidants such as ascorbic acid (E 300) and tocopherols (E 306), as well as synthetic antioxidants such as propyl gallate (E 310), tertiary butyl hydroquinone (TBHQ), butylated hydroxyanisole (E 320), and butylated hydroxytoluene (E 321). A mixture of plant extracts from rosemary, broccoli sprouts and citrus functions as a natural preservative for vegetable oils and other foods. Antioxidants are widely used as preservatives, as the oxidation process can negatively alter the food product’s color, taste, and texture. While previous studies have demonstrated rosemary extracts to be an effective antioxidant, the current study also looked at the effectiveness of extracts of broccoli sprouts, citrus and seed oils by measuring the rate at which high oleic sunflower oil broke down when mixed with the various extracts. The best antioxidant result came from a mixture of broccoli sprout (XX%), citrus (XX%) and rosemary extracts (XX%). MarketsandMarkets Sample Pages | 19 Food Preservative Market – By Type, Function, Application & Geography — Global Trend & Forecast to 2018 8 FOOD PRESERVATIVE MARKET, BY APPLICATION 8.1 INTRODUCTION The choice of a right preservative for a particular food product depends upon the product processing conditions such as acidity, water activity, and type of organism the food product is susceptible to. Clostridium botulinum in canned foods, that causes botulism, is one such example. Nitrites are very effective on meat products. Sorbates are effective in cheeses and sausages, where they control both, yeasts and molds. Nisin, an effective natural preservative, is naturally present in cheeses as a result of the fermentation processes. Benzoic acid and its salts are more effective on acidic foods, while propionates are more effective against yeasts and molds in bakery products. Sulfur dioxide, an antimicrobial used for centuries, is an antioxidant and hence prevents food from turning brown. The food standard regulations require that not more than one class II preservative is used in one particular food item. TABLE 5 FOOD PRESERVATIVE MARKET VALUE, BY APPLICATION, 2011–2018 ($MILLION) Application 2011 2012 2013-e 2018-p CAGR% (2013–2018) Oils & fats XX XX XX XX XX Bakery XX XX XX XX XX Dairy & frozen products XX XX XX XX XX Snacks XX XX XX XX XX Meat, poultry & seafood products XX XX XX XX XX Confectionery XX XX XX XX XX Beverages XX XX XX XX XX MarketsandMarkets Sample Pages | 20 Food Preservative Market – By Type, Function, Application & Geography — Global Trend & Forecast to 2018 Application 2011 2012 2013-e 2018-p CAGR% (2013–2018) Others XX XX XX XX XX Total XX XX XX XX XX e – Estimated; p – Projected Source: Related Research Publication, Government Publication, Company Press Release, Company Annual Report, Company Website, Company Publication, and MarketsandMarkets Analysis The food preservative market value is projected to grow at a CAGR of XX% from 2013 to 2018. The largest market for preservatives was meat, poultry & seafood products segment that accounted for a value of $XX million in 2012. The snacks category is projected to be the fastest growing segment at a CAGR of XX% to reach $XX million by 2018. The bakery market is estimated to be $XX million in 2013. MarketsandMarkets Sample Pages | 21 Food Preservative Market – By Type, Function, Application & Geography — Global Trend & Forecast to 2018 9 FOOD PRESERVATIVE MARKET, BY GEOGRAPHY 9.1 INTRODUCTION The preservative market has grown at a rapid speed over the last few years. A strong corelation has always been seen between the trends of the food preservative and the processed food industry. The key aspect for this co-relation is the role played by the preservatives for the shelf life enhancement. The growing demand for the processed foods, owing mainly to the changing lifestyle and the purchasing power of the consumer, has also fueled the growth for the food preservation additives market. The stricter legislatives and regulations, with respect to food safety and shelf life, has meant that processing industries are keen on getting the right formulation to present the best food product to the consumer, and preservatives play a pivotal role in this aspect. The main driving force for the growing market is the scope and range of food preservation and shelf life extension technology. FIGURE 9 FOOD PRESERVATIVE MARKET VALUE SHARE, BY GEOGRAPHY, 2012-2018 XX% No XX% As XX% Eu RO XX% Source: MarketsandMarkets Analysis MarketsandMarkets Sample Pages | 22 Food Preservative Market – By Type, Function, Application & Geography — Global Trend & Forecast to 2018 10 COMPETITIVE LANDSCAPE 10.1 INTRODUCTION This section presents the important growth strategies adopted by the companies in the food preservative market from 2009 to 2013. The main strategies identified are: • Mergers & acquisitions • Agreements, partnerships, collaborations, and joint ventures • New product launches • Expansions & investments The food preservative market is competitive and involves market players such as Brenntag AG (Germany), DuPont (U.S.), Purac Biochem B.V. (The Netherlands), and Royal DSM N.V. (The Netherlands). Also, companies such as Akzo Nobel N.V. (The Netherlands), Cargil,l Incorporated (U.S.), and Kerry Group (Ireland) have prominent presence in the food preservative market. 10.2 MOST PREFERRED STRATEGY: NEW PRODUCT LAUNCHES The most prevalent development activity in the global food preservative market from 2009 to 2013 was new product launches. It accounted for XX% of the total development activities undertaken by the key industry players during the concerned period. Year 2011 witnessed the most number of new product developments. Rising demand for processed food and beverages is providing important stimuli to the food preservative market to develop new products in the future. MarketsandMarkets Sample Pages | 23 Food Preservative Market – By Type, Function, Application & Geography — Global Trend & Forecast to 2018 FIGURE 10 FOOD PRESERVATIVE MARKET DEVELOPMENT SHARE, BY GROWTH STRATEGY, 2010–2013 XX% New XX% XX% Exp Mer XX% Agr Source: Company Press Release, Company Website, Company Publications, and MarketsandMarkets Analysis From 2009 to 2013, new product launches is the main development activity followed by the key market players. Key market players such as DuPont, Purac and Royal DSM N.V. have opted for new product launches as their main strategy. Expansions & investments formed the second most important development policy adopted by the market players. Companies such as Brenntag, Cargill, and Akzo Nobel contributed significantly to this strategy. MarketsandMarkets Sample Pages | 24 Food Preservative Market – By Type, Function, Application & Geography — Global Trend & Forecast to 2018 11 COMPANY PROFILE 11.1 DUPONT DE NEMOURS & COMPANY Recent Financials Company at a Glance 37,300 2012 Founded: XX XX 32,300 1802 XX 27,300 Headquarters: Delaware, U.S. Employees: 70,000 17,300 Revenue: $XX million 12,300 Ownership: NYSE:DD 22,300 7,300 2,300 2010 Geographic Revenue Mix 2011 Annual Revenue ($Million) Business Revenue Mix Agriculture XX% XX% XX% XX% XX% 2012 Industrial biosciences XX% Perf ormance chemicals XX% Perf ormance materials XX% Saf ety & protection XX% Nutrition & health XX% XX% Electronics & communications XX% XX% Others Source: Company Website, Company Publications, and MarketsandMarkets Analysis 11.1.1 OVERVIEW DuPont de Nemours & Company is an innovative agricultural and industrial biotechnology manufacturing company. The company operates through eight business segments, namely, agriculture, electronics & communications, industrial biosciences, nutrition & health, performance chemicals, performance materials, safety & protection, and pharmaceuticals. DuPont carries out its operations in more than 90 countries. The company’s nutrition & health and industrial biosciences segments are jointly comprised of the specialty food ingredients business of Danisco A/S (Denmark) (a global enzyme and specialty food ingredients company MarketsandMarkets Sample Pages | 25 Food Preservative Market – By Type, Function, Application & Geography — Global Trend & Forecast to 2018 acquired in May 2011). The nutrition & health segment provides a range of preservatives and serves various end-markets within the food industry, including meat, dairy, beverages, and bakery segments. Nutrition & health has research, production, and distribution operations around the world. The company offers food preservatives products through Danisco, which is one of its subsidiaries. The company has over XX R&D centers and XX examining labs, world over. DuPont has its geographic presence across North America, Latin America, Europe, Asia, and Asia-Pacific. It faces competition from Archer-Daniels-Midland Company (U.S.), Cargill Incorporated (U.S.), Tate & Lyle Ingredients Americas Inc. (U.S.). 11.1.2 PRODUCTS & SERVICES TABLE 6 DANISCO: PRODUCTS & THEIR DESCRIPTIONS Product Description AvGard controls the growth of pathogens such as Salmonella, Escherichia AvGard XP coli, and Listeria. It is used in cooked/roasted red meats, raw poultry products, marinades, etc. AvGard TSP BioVia It controls growth of gram-negative pathogens such as Salmonella and Escherichia coli. It is used in raw poultry products. BioVia is a natural antifungal blend, specifically designed to enhance food quality and shelf life. It MicroGARD 100 is antiyeast and mold cultured skim milk-based antimicrobial and is used in yogurts, cottage cheese, sour cream, dairy desserts, fresh cheese (quark), filled-chocolate confectioneries, etc. MicroGARD 200 MarketsandMarkets It is used in sauces, dressings, pasta, side dishes, baked goods fruit applications, etc. Sample Pages | 26 Food Preservative Market – By Type, Function, Application & Geography — Global Trend & Forecast to 2018 Product MicroGARD 300 Description It is cultured skim milk-based and used in cottage cheese, flavored dairy drinks, custards and dairy desserts. MicroGARD 400 MicroGARD 400 is used mainly in dairy-based products. MicroGARD 520 It is used in soups and dressings. MicroGARD 730 MicroGARD CS1-50 MicroGARD CM1-50 Natamax MicroGARD 730 is used in cured meats, refrigerated natural deli salads, prepared meals, and cooked meats. It is anti-gram-positive bacteria, used in soups, sauces, dressings, and prepared meals. It is used in dressing and prepared meals. It is an anti-yeast and mold formulation, used in cheese, fresh dairy, processed meat, and beverages. Natamax B Used in spraying of baked goods. Natamax SF Used in spraying, shredded and blocked cheese. Natamax Salt It is used in shredded cheese, PVA cheese coating, and dry sausages surface treatment. Natamax G Used in beverages, including wine. Natamax Gel Used in cheese surface treatment and dry sausages surface treatment. Natamax B Plus Nisaplin NovaGARD CB1 NovaGARD NR 100 NovaGARD NR 250 MarketsandMarkets It is a solution sprayed to protect beverages and baked goods against yeasts and molds. Nisaplin is a heat-stable non-dairy-based antimicrobial product used in a wide range of foods. It is efficient against spoilage organisms in refrigerated meals, deli salads, and side dishes. It offers reduction of risks of Listeria contamination, and fresher flavor, with natural ingredients. It is mainly used in fresh soups and sauces. It is used in cooked and cured meat. Sample Pages | 27 Food Preservative Market – By Type, Function, Application & Geography — Global Trend & Forecast to 2018 Product Description NovaGARD LM 100 Offers reduction of listeria risks and control of spoilage organisms. NovaGARD LM 220 It is used in cooked and cured meat. NovaGARD 285 It is efficient against gram-negative organisms and selected yeasts and molds and is used in baked goods, soups, sauces, fruit juices, and pastas. GUARDIAN CHELOX L It provides synergistic antioxidant activity that maximizes natural shelf life (EU) extension of dressings, mayonnaise, margarines, and spreads. GUARDIAN CHELOX L Used in dressings, mayonnaise, margarines, and spreads. GRINDOX 104 GRINDOX 105 GRINDOX 113 It delays the onset of rancidity, minimizing taste and color deterioration of chewing gum and vitamins. It is used in cereals and packaging materials. GRINDOX 109 GRINDOX 440 GRINDOX 561 Used in baked products, cereals, and sausages. GRINDOX 668 GRINDOX 204 GRINDOX 373 Used in frying oils and fish oils. GRINDOX 333 GRINDOX 344 GRINDOX 497 Used in nuts, trans-free oils, frying and fish oils. GRINDOX 657 GRINDOX 512 GRINDOX 558 Used in margarines and snacks. GRINDOX 520 It is used in infant formulas and fish oils. GRINDOX 1029 Used in soups. GUARDIAN Rosemary It offers long-lasting product flavor, aroma and color, used in oils, Extract dressings, mayonnaise, margarines, spreads, potato flakes, meat, poultry, MarketsandMarkets Sample Pages | 28 Food Preservative Market – By Type, Function, Application & Geography — Global Trend & Forecast to 2018 Product Description seafood products, and bakery products. GUARDIAN Green Tea It promotes longer product freshness and good health, used in ready-to- Extract eat meals, meat products, margarines, spreads, and pet foods. GUARDIAN It is a highly effective antioxidant. Tocopherol Extract Source: Company Website 11.1.3 STRATEGY & INSIGHTS DuPont focuses on obtaining market-driven solutions for the increasing demands for healthier and nutritive products. Investments and R&D activities are centered on the development of products for addressing the issues of growing demands which are environmental-friendly. Critical areas for the company's growth are innovation, differential management, and productivity. Applying science to deliver innovative solutions and new products in the marketplace generates shareholder value & profitable growth. 11.1.4 Date DEVELOPMENTS Approach October New product 2013 launch June 2012 New product launch September New product 2011 launch September New product 2011 launch MarketsandMarkets Description Danisco expanded its range of protective dairy cultures with the introduction of HOLDBAC YM Plus which will control contamination of fermented dairy products by yeast and mold. The company launched UARDIAN CHELOX L (EU) to the European market. It combines a natural antioxidant and natural chamomile flavoring in a new blend. Danisco unveiled new antifungal BioVia YM 10 for preventing yeast and mold in culinary food products. It is a natural preservative with a clean label option. Danisco introduced new natural antifungal ingredient named as Natamax B Plus, for baked foods and beverages. Natamax B Plus is effective in limiting yeast and mold on baked foods and Sample Pages | 29 Food Preservative Market – By Type, Function, Application & Geography — Global Trend & Forecast to 2018 Date Approach Description beverages, thereby increasing the shelf life of the products. This will result in savings for the producers by lessening energy and maintenance cost. Danisco, considering the new trend for gluten-free food preservatives, brought new developments in its MicroGARD January New product fermentation ingredients and NovaGARD antimicrobial mixtures 2011 launch by making them gluten-free. These products will now be made from Sensients 5001L Yeast Extract and are marketed in the American, Canadian, and Mexican markets. Danisco signed a long-term pact with France-based company, January 2009 Agreement Ferco for global supply of the Grap’Active, grape-based extracts. It is well-known for its health benefits and also used as preservatives as it controls food oxidation. Source: Company Press Release, Company Annual Report, Company Website, Company Publications, and MarketsandMarkets Analysis 11.1.5 MNM VIEW DuPont entered into partnership with Danisco to heighten its productivity of food ingredients business to the next level. To compete with the growing popularity in market, the company also developed new products. 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