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Innovation and Strategic Alliances Come to the Rescue of Participants in Mature Brazilian Market for Food Emulsifiers, Finds Frost & Sullivan
Date:4/16/2009

BUENOS AIRES, Argentina, April 16 /PRNewswire/ -- Against the backdrop of growing health concerns and awareness of the harmful consequences of trans-fats on health, consumers are ratcheting up pressure for healthy food ingredients. Emulsifiers are emerging as ideal substitutes for hydrogenated fats in foods. Healthy food innovation and transgenic rejection in food applications are the two factors ensuring that growth in this market maintains its upward trajectory.

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Consumer tastes and preferences are constantly evolving, so close scrutiny of the latest trends is required. Since new-age consumers are now more mindful of labels and are well informed on food ingredients, it is important to include this on innovation plans for the future.

New analysis from Frost & Sullivan (http://www.chemicals.frost.com), Brazilian Market for Food Emulsifiers, finds that market earned revenues of over $127.2 million in 2007 and estimates this to reach $175 million in 2014.

If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, then send an e-mail to Catalina Rossini, Corporate Communications, at catalina.rossini@frost.com, with your full name, company name, title, telephone number, company e-mail address, company website, city, state and country. Upon receipt of the above information, a brochure will be sent to you by e-mail.

With the preference for healthy food becoming increasingly apparent, it is imperative for raw material producers to remain alert to these trends and adapt their production models effectively to maintain market competitiveness. Dietary food options have been proliferating across all market segments, particularly in the bakery, confectionary, and dairy sectors. Advances in research have made available new knowledge to circumvent the challenges associated with texture quality besides masking the lack of taste.

"The dietary food markets have been boosting the growth of the food industry and the increasing need for functionally diverse emulsifiers, and competitive market share retention strategies among the major participants have propelled the trend of innovation," says Frost & Sullivan Research Analyst Johanna Duenas.

The economic crisis has also reined in market development and companies do not expect high growth rates. In such a scenario, innovation holds the key to new opportunities. Participants must design adequate strategies to access new markets and determine the right combination of technology, cost minimization, and strategic alliances to ensure strong business momentum.

Novel technologies, which improve the application of emulsifiers, along with new product development, are regularly announced in the market. Consumers are also gravitating toward ready-to-eat food, which is tasty, easy to cook, and healthy in content. Emulsifiers are the ideal food additive that guarantees product texture and quality and are responsible for making these foods succeed. The manufacture of products such as ready-to-eat and functional yogurts will assist market growth.

"Although the market is experiencing low growth, niche segments such as special products, diets, and kosher are gaining popularity, and this should be leveraged by companies," explains Duenas. "The steady growth of the traditional food sectors, the compounded growth of the contemporary foods market, and the increasing customization within synthetic emulsifiers are the key factors driving their use."

The Brazilian market is highly consolidated and many multinational companies are competing for market share. Increasing costs and technology imports are the major impediments that challenge participants. Manufacturers must migrate to new technologies and ensure that they are more compatible with other food ingredients to enhance productivity. The volatility of the market demands that food emulsifier manufacturers exercise extreme caution, and strategic input suppliers and new food segments will enable a stable and long-term strategy.

Brazilian Market for Food Emulsifiers is part of the Chemicals and Materials Growth Partnership Service program, which also includes research in the following markets: Biofuels; Polymers and Construction Chemicals. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants. Interviews with the press are available.

Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 31 offices on six continents. To join our Growth Partnership, please visit http://www.frost.com.

Brazilian Market for Food Emulsifiers

N49F

    Contact:
    Catalina Rossini
    Corporate Communications - Latin America
    P: + 54-11-4777-4777
    F: + 54-11-4777-0071
    E: catalina.rossini@frost.com

http://www.frost.com/


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SOURCE Frost & Sullivan
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