Market Challenges: Stringent regulations regarding emulsifier use

Stringent regulations imposed by various government bodies around the use of certain emulsifiers are posing a major challenge for the growth of the emulsifiers market. Over the past few years, regulatory authorities like the U.S. Food and Drug Administration (FDA) and European Food Safety Authority (EFSA) have imposed restrictions on the usage levels as well as applications of some traditionally used emulsifiers like polysorbates and carrageenan owing to health concerns. For instance, the EFSA in 2021 published a scientific opinion stating there is insufficient evidence of safety for the use of carrageenan in infant formula and concluded that it should not be added to such products. This has led major baby food manufacturers in Europe to remove carrageenan from their formulations.

Market Opportunities: Product diversification through new formulations

Product diversification through new formulations is a major opportunity in the emulsifiers market that can significantly impact its long-term growth trajectory. As consumer food preferences become more diverse and demand for specialized products increases, emulsifiers that can enable novel textures, enhanced nutrition, and unique tastes/flavors will be in high demand. Manufacturers are actively exploring new formulation technologies to develop high-performing emulsifiers tailored for plant-based alternatives, non-dairy products, clean-label items, and fortified/functional foods.