The South America fat replacers market is projected to grow with a CAGR of 1.8% during the forecast period (2020 - 2025).

  • Chemically, fat replacers resemble fats, proteins, or carbohydrates. The rising awareness regarding health issues among consumers is making them change their dietary habits and eat less amount of fat. Therefore, owing to these reasons, fat replacers have a huge market opportunity. At present, fat replacer is a boon for society, as the high fat intake can lead to obesity and cause cancer, high blood cholesterol, or coronary heart disease. Furthermore, the rising demand for low-calorie and low-fat diet is identified as one of the primary growth factors for the fat replacer market. By choosing these alternative food options, health-conscious consumers can maintain their basic food selection patterns and easily adhere to a low-fat diet.

    Key Market Trends

    Rising Demand for Carbohydrate-based Fat Replacers

    Carbohydrate-based fat replacers help retain texture, moisture, viscosity, and provide mouth-feel and continue to lead the market because of its status as US FDA recognized GRAS substances. Cellulose (Avicel? cellulose gel, MethocelTM, Solka-Floc?) can replace some or all of the fat in dairy products, sauces, frozen desserts, and salad dressings. Finely ground micro-particles of cellulose provides a non-caloric network with the smoothness and flow properties similar to fat. Fiber-based products, such as guar gum, locust bean, xanthan gum, gum arabic, pectins, and carrageenan have virtually no calories. They provide a thickening or gelling effect and promote a creamy texture within the food. For instance, Gums, Kelcogel, Keltrol, Slendid, can be used in reduced-calorie and fat-free salad dressings. They can also be used to reduce the fat content in formulated foods such as processed meats and desserts.

    Argentina Holds the Largest Market Share

    In Argentina, the growing awareness about food in general and food additives, in particular, indicates that more and more consumers currently take due consideration of the different food ingredients before consumption. In addition, owing to the encouragement from health groups and health organizations, consumers are choosing food and beverages that are low in fat. With the availability of a range of fat replacers, many low-fat or fat-free products are increasingly made available in Argentina. The increasing utilization of fat replacers for texture enhancement, stabilization, and emulsification in baked goods and confectioneries drives the market growth in the region. Investments in nutritional health food products are expected to boost the demand for fat replacers in Argentina.

    Competitive Landscape

    The South America fat replacers market is competitive in nature having a large number of domestic and multinational players competing for market share. Emphasis is given on the merger, expansion, acquisition, and partnership of the companies along with new product development as strategic approaches adopted by the leading companies to boost their brand presence among consumers. Key players dominating the regional market include Gelita, Fiberstar, Inc., Beneo GmbH, AAK AB, and Biovelop AB, among others.

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