How to Start Food Additives Manufacturing Business?
Various kinds of naturally available food additives such as salt, sugar, vinegar, etc. have been in usage since ancient times. These were primarily used for improving the shelf life of the food. Subsequently, many food additives were developed industrially to meet different requirements of the food processing sector. The usage of the food additives, especially organic food additives that are extracted from plants due to their health benefits has been increasing rapidly over the past few years. Consequently, the demand for these additives has increased, opening up new avenues for investments in food additives manufacturing.
What are Food Additives?
Food additives refer to the substances added to food in order to enhance taste, appearance, texture and colour. Some additives also help to preserve food by extending its shelf life for a longer period of time. These are manufactured industrially and are also derived from plants, animals or minerals.
Examples of Natural & Organic Food Additives
Here are some of the examples of natural and organic food additives are extracted from plant, animals or minerals:
- Curcumin
- Annatto extract
- Caramel
- Konjac flour
- Paprika extract
- Turmeric extract
- Carrageenan
- Gelatin
Types of Food Additives
There are more than a thousand food additives. As per the WHO, all the food additives are divided into three categories.
Flavouring Agents
Flavouring agents are food additives that help to increase taste and aroma of the food. Different kinds of flavouring agents are used in different types of foods such as confectionery, cakes, dairy products, soft drinks, etc. Natural food flavours are extracted from fruits, nuts, vegetables, spice blends, etc. Synthetic food flavours agents are synthesized from chemicals.
Enzyme Preparations
Enzymes help to catalyse the biochemical reactions by breaking down the complex molecules into small building blocks. Enzyme preparation involves enzymes that would help in accelerating the biochemical reaction in the food. Enzymes are naturally extracted from plants, animals and micro-organisms. They are mainly in baking, juice and wine manufacturing and brewing.
Other Additives
Apart from flavouring agents and enzyme preparations, there are several other food additives that are used for various purposes such as sweetening, colouring, preservation, etc. These additives include antioxidants, anticaking agents, sweeteners, emulsifiers, humectants, foaming agents, mineral salts, glazing agents, gelling agents, propellants, etc.
Food Additives Market
As the demand for processed food is increasing every year, the food additives market is growing at a rapid pace. According to a report by Coherent Market Insights, the global market for food additives is expected to become USD 84,208 million by the end of the year 2027, growing at a CAGR of 5.3%. The Indian food additives market is expected to register a growth rate of 6.5% between 2020 and 2025, as per Mordor Intelligence.
Beverage, bakery, meat & seafood and dairy industries are the major consumers of food additives. So, there exist huge opportunities to explore in food additives and food chemicals manufacturing. The budget required to start food additives manufacturing starts from INR 60 lakhs. So, it is a very viable business for MSMEs with limited financial capital. You can also avail bank loans and subsidies for starting food additives manufacturing.
Today, food additives have become an essential ingredient in processed foods. Particularly, the demand for organic food additives has been increasing multifold. With the tremendous growth of the food processing industry, the demand for food additives is only going to increase. This in turn is attracting many entrepreneurs to enter into the food additives business and start food chemicals manufacturing business. However, starting a food chemical manufacturing business is a challenging task. It requires domain expertise for product formulation, product development, plant setup of which many entrepreneurs may not be well aware of. So, it is advisable to seek help from experts while starting the food additives or food chemicals manufacturing business.
Contact Us
If you are planning to enter into the food additives manufacturing business and looking for experts who can assist you, kindly register with SolutionBuggy. We provide you access to trusted and verified experts. Our experts help you in starting your food additives manufacturing business right from market research, product formulation and plant setup to business development and supply chain management.
FAQs
Food additives are the substances that help to improve taste, appearance, texture, colour and shelf life of the food.
Sodium nitrate, guar gum, high fructose corn syrup, sodium benzoate, carrageenan, etc. are some of the examples of food additives.
Food regulating authorities such as FSSAI check food additives for harmful effects. So, it is safe to consume food with added food additives.
The budget required to start food additives or food chemicals manufacturing business is INR 60 lakhs.
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