Taste Modulators Market

[291 Pagees Report] According to MarketsandMarkets, the global taste modulators market size is estimated to be valued at USD 1.4 billion in 2023 and is projected to reach USD 2.0 billion by 2028, recording a CAGR of 7.4%. This growth is primarily attributed to the increasing demand for processed and convenience foods. As consumers seek longer shelf life, enhanced taste, and appealing visual attributes, the food industry relies on additives. Their multifunctional roles in improving texture, flavor, and preservation contribute significantly to this expansion.

The expanding business has offered lucrative business opportunities to the players who are operating in the market segments. For instance, in November 2022, Tate & Lyle launched ERYTESSE Erythritol, its range of sugar substitutes with the introduction of ERYTESSE Erythritol. This expansion of its sweet modulators portfolio demonstrates Tate & Lyle’s commitment to meeting the diverse needs of consumers and food manufacturers. Other key players like Cargill, Incorporated have capitalized on this by making strategic partnerships. For instance, Cargill's collaboration with Barcelona-based food tech company Cubiq Foods focuses on co-developing plant-based fat ingredients. This strategic partnership accelerates the commercialization of novel fat technologies, enhancing flavor, reducing total fat, and meeting consumer expectations in the plant-based meat and alternative dairy sectors. Cargill's investment and global application knowledge position them to drive the development of next-gen plant-based products. This reinforces its commitment to sustainable ingredient innovation in the Taste modulators market.

The overall taste modulators market is classified as a competitive market, with the key players, namely DSM (Netherlands), IFF (US), Givaudan (Switzerland), Kerry Group PLC (Ireland), Ingredion (US) occupying 35-40% of the market share.

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Taste Modulators Market Dynamics

Drivers: Increase in consumer demand for reduced-calorie products retaining the taste of sugar

In developed countries, the demand for healthier, low-caloric foods and sweeteners has been on the rise to tackle the adverse health effects of predominantly sedentary lifestyles. As consumer demand for healthy food products increases to reduce their calorie intake, they prefer low-calorie foods. Most health-conscious consumers prefer sugar substitutes because they contain fewer calories than regular sugar. Consumption of sugar substitutes is an easy way to reduce calorie intake and stay healthy, which makes consumers search for alternatives to regular sugar.

Sugar substitutes such as high-intensity sweeteners reduce the concentration of sucralose while maintaining the intensity of sweetness. However, they exhibit off-tastes in the final product. Sweet modulators help eliminate these off-tastes while maintaining the low-calorie content of food and beverages.

Restraints: Stringent regulations and international standards for sweet- and salt-reducing ingredients

International bodies such as the World Health Organization (WHO); Food and Drug Administration (FDA);  National Food Safety and Quality Service (SENASA), Argentina; Canadian Food Inspection Agency (CFIA), US; and Committee on the Environment; Public Health and Food Safety (EU) are associated with food safety regulations. These organizations have control over the use of different chemicals and materials used in food processing, directly or indirectly.

Sweetener products are subjected to rigorous safety and health checks. Regulatory bodies have conducted various studies in order to measure and assess the impact of these products on humans. Based on the results, products are classified, and the daily intake allowance (DIA) has been set. Standards established by agencies for classification and usage levels differ from respective authoritative bodies and pose a serious challenge to companies for streamlining product developments. Typically, European laws are stringent with artificial sweeteners, whereas US regulations favor the introduction of novel sweeteners irrespective of the origin.

Opportunities: Extensive research on Positive Allosteric Modulators (PAMs)

Positive allosteric modulators (PAMs) for sweet taste receptors are unique and represent a significant breakthrough in the effort to control caloric intake. PAMs do not exhibit any sweet taste on their own, simplifying the interpretation of enhancement properties. PAMs can enhance the sweetness using a low concentration of a modulator cost-effectively, maintaining the original taste of sugar without any increase in caloric value. Therefore, the continuous search for additional selective enhancers for other commercially relevant sweeteners acting within the Venus flytrap domain (VFT) of the sweet taste receptor could revolutionize the field of flavor development and sweetened products.

Challenges: Ambiguity regarding the health effects of sugar substitutes

Sweet taste modulators dominated the market as they are widely used in sugar substitutes to eliminate the metallic and bitter taste in the final product. However, the benefits and adverse effects of sugar substitutes are an ongoing subject of research and discussion. No regulatory body has declared sugar substitutes to be completely harmless for consumption as they do not have substantial evidence that they lead to health problems.

There are no standard regulations implemented on sweet modulators, and they vary with countries across the globe. For instance, The American Heart Association (AHA) and American Diabetes Association (ADA) have given cautious indications regarding the use of artificial sweeteners as a substitute for sugar. On the other hand, the FDA has approved some artificial sweeteners, including saccharin, aspartame, acesulfame potassium (Ace-K), sucralose, neotame, and Advantage. Research linking the use of sugar substitutes to various health problems is the biggest restraint to the sugar substitute market, which in turn impacts the growth of the taste modulators market.

The Taste Modulators Market Ecosystem

By type, the Sweet Modulators segment accounts highest market share Taste Modulators market during the forecast period.

The global shift towards healthier eating habits has led consumers to seek reduced sugar options without compromising on taste. Sweet modulators offer an effective solution by enhancing sweetness perception while allowing for sugar reduction in various food and beverage products. Secondly, the rising prevalence of health issues like obesity and diabetes has intensified the demand for sugar substitutes, propelling the dominance of sweet modulators. Additionally, ongoing advancements in sweet modulation technologies ensure the development of high-quality products, addressing consumer preferences for natural and clean-label sweeteners. The versatility of sweet modulators across diverse applications, from confectionery to beverages, further solidifies their market leadership, offering a comprehensive solution to manufacturers seeking to meet both taste and health-conscious consumer demands.

By application, the food segment accounts for a significant market share in the Taste modulators market.

Consumers increasingly prioritize healthier dietary choices; food manufacturers are compelled to reformulate their products by reducing salt, sugar, and fat content. Taste modulators play a crucial role in achieving this without compromising the overall flavor profile, thus addressing the growing demand for healthier food options. The versatile application of taste modulators across a wide range of food categories, including snacks, dairy, and processed foods, contributes to their prominence in the food segment. Furthermore, the emphasis on clean-label and natural ingredients in food products aligns with taste modulators, which can provide an improved sensory experience without resorting to artificial additives. The intersection of health-conscious consumer preferences, regulatory pressures, and the need for product innovation solidifies the food segment's substantial market share in the taste modulators landscape.

Asia Pacific is poised to experience the highest CAGR in the Taste modulators market during the forecast period.

The region's remarkable economic growth has led to increased consumer purchasing power, which, in turn, has boosted demand for processed foods and beverages. The escalating urbanization and evolving dietary preferences in the region play a pivotal role in propelling the adoption of taste modulators. Consumers' heightened preference for healthier food options, coupled with the proactive response from regional food manufacturers, propels the demand for taste modulation technologies. The robust food processing industry and the emergence of innovative culinary concepts further fuel the widespread incorporation of taste modulators across diverse food and beverage categories. As Asia Pacific aligns with global health trends, emphasizing reduced sugar, salt, and fat content, the demand for taste modulators is set to witness a substantial upswing. These factors collectively position Asia Pacific as a pivotal driver for the anticipated robust growth in the taste modulators market during the forecast period.

Asia Pacific: Taste Modulators Market Snapshot

Key Market Players

Key players in this market include DSM (Netherlands), IFF (US), Givaudan (Switzerland), Kerry Group PLC (Ireland), Ingredion (US), Symrise (Germany), Sensient Technologies Corporation (US), Tate & Lyle PLC (UK), Corbion (Netherlands), Takasago International Corporation (Japan), Icon Foods (US), Carmi Flavor & Fragrance Co., Inc. (US), Cargill Incorporated (US), MANE (France), and ADM (US)

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Scope of the Report

Recent Developments

• In October 2023, Cargill experienced double-digit growth 2023 and concentrated on expanding in South India by investing USD 35 million in a Nellore manufacturing facility. During this period, Cargill prioritized supply chain resilience and quality to navigate inflationary pressures, aiming for long-term sustainable growth in India's evolving food market.
• In September 2023, Tate & Lyle (UK) partnered with IMCD (Belgium) in Finland and the Baltic region, expanding their ingredient distribution. This collaboration would help Tate & Lyle (UK) to expand the geographical reach of its sweeteners business to Finland and the Baltic region, thereby expanding its market share.
• In March 2023, ADM announced the signing of a joint venture agreement with Marel, a prominent provider of advanced food processing solutions. The purpose of this collaboration is to establish an innovation center at the esteemed Wageningen Campus in the Netherlands, which is known as the heart of the country's food valley. Its opening is subject to regulatory approvals and is expected to take place in the latter half of 2024. It is specifically designed to facilitate the partnership between food manufacturers, food scientists, extrusion experts, and culinary professionals.

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