Stevia Innovation: Improving Taste of F&B with Lower Cost

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01

Unprecedented Growth for APAC Food and Beverage Market

Facts

The APAC food and beverage industry is expected to achieve a turnover of US$ 3.23 trillion in 2016. With a projected year-on-year growth of 11%, the industry will outpace the second and third largest regions Western Europe (2%) and North America (4%).

China, Japan and Indonesia are set to rank as the pioneers in food and beverage producers in this region in 2016, together accounting for over three quarters of total turnover.

World No. 1 Beverage Market

Data from Canadean shows Asia Pacific beverage market will experience unprecedented growth, representing two-thirds of global commercial beverage incremental volume growth and 48% of the global beverage consumption by 2021.

Alcoholic drinks, soft drinks and spirits are the top two beverage categories with a turnover exceeding US$ 150 billion and the most significant growth from 2015 to 2016.

02

Consumers Want to Eat Healthy and Are Willing to Pay More

China is the largest market for food and beverages in Asia Pacific. With the fast economic development, more and more Chinese consumers want to pay a premium price for natural and healthy foods.

Nielsen found that 70% surveyed Chinese consumers consciously control or refuse the intake of certain ingredients or food, for example fat, sugar, salt, preservatives and artificial flavors and colors. 82% consumers are willing to pay more for the food containing less ingredients they perceive bad for health, far exceeding the global average level of 68%.

79% consumers pay attention to the ingredients on the label, particularly the artificial flavors, preservatives, colorants and sweeteners. They hope to see more natural, organic and Non-GMO food and beverages.

77% Chinese consumers claimed they more trusted the food and beverages companies with a transparent manufacturing process. Food safety (63%) and healthy (58%) are the most important factors Chinese consumers consider when purchasing food and drinks.

03

Stevia Market in APAC

$208.3 Million

Stevia market in APAC regions is estimated to reach $208.3 Million by 2020. Japan and China are predicted to be the largest stevia consumption markets. Emerging economies like India, Thailand,Indonesia and Malaysia are expected to be the key markets, due to developing food and beverage industry.

No.1

The CAGR of stevia market in APAC is estimated to be 5.7% from 2016 to 2024, making APAC the biggest market of stevia consumption area in the world followed by Europe (4.3%) and the North America (4.5%).

Opportunity

Analysis revealed that the stevia ingredient has a broad acceptance in APAC region especially in Japan, China, and South Korea. Consumers are becoming more aware about stevia as a natural sugar substitute, creating additional growth opportunities in this space.

Besides, India market is expected to be “the future of the stevia industry” for its increase in demand for convenience foods, low calorie beverages, and tabletop sweeteners, coupled with a rise indisposable income level and inclination towards western eating habits.

04

Stevia Applica Tion in APAC Market

Key application: beverage

The percentage of global beverage products launched with stevia grew by 161% between 2012 and 2017, compared with that of food products registering 57%.

APAC accounted for 40% of the total new food and beverage products launched with stevia.

Fastest-growing application: tabletop sweetener

Analysis on region-global stevia application shows the tabletop sweeteneris projected to be the most fastest-growing segment, particularly in developing Asian economics because they have greater demand for sugar alternatives.

Most often-used application: snacks

Survey data from Tate & Lyle shows stevia is most frequently used in snacks both savory and salty. Fruit based snacks rank second, followed by fruit, and juice and juice drinks.

This is driven by significant product innovation, new product introduction, changes in preferences of consumers toward taste & flavor, and rise in demand for premium quality products.

05

Product Launches with Stevia – Food and Drinks

Facts

The number of new food and drink products containing stevia around the globe has nearly doubled since 2012. Growth wasdriven by strong performance in APAC, where the number of launches with stevia was up 40%, while Europe recorded 21%, followed by North America on 19% and Latin America on 17%.

Trends

Data reveals that the use of “natural origin” sweetener is sharply on the rise, with stevia now outperforming as partame as a food and drink sweetener.

Forecasts from Mintel reveal that the value of stevia as an additive for use in food and beverage manufacture will grow to$275 million USD by 2017. In contrast, aspartame consumption is forecast to drop to £210 million by 2017. Stevia, and blends of stevia and other sweeteners such as acesulfame K begin to take a greater share of the market.

06

Challenges of Stevia in Beverages and The Solution

Challenges

Reb A stevia products remain the predominant stevia extracts used most widely across all food and beverage categories, as Reb A was the first commercialized steviol glycoside, owing toits pure taste and high concentration in the stevia leaf.

Low purity Reb A stevia extracts result inan unsatisfying taste in drinks. However high purity stevia products, forexample, RA95 to RA99, significantly increase in price but decrease insolubility which limits its acceptance in some cost-sensitive beverages and itsapplication in bottling operations.

Solution

Optimizer STEVIATM* series deliver comparable or even better taste than high purity Reb A stevia extracts, which allows beverage manufacturers who are using RA80 to RA99 to sustain the greattaste by using Optimizer STEVIATMto refresh their formulation.

The Optimizer STEVIATM series also facilitate beverage bottling operations where “syrup” concentrates areroutinely used on beverage manufacturing. These extracts will be stable insolution at the concentrations that allow for routine syrup use.

* Optimizer STEVIATM is a series of stevia extract products developed by Sweet Green Fields Co. Ltd (SGF) and available through Tate & Lyle and SGF.

07

Opitmizer STEVIATMSustains The Good Taste

In 50% sugar-reduced carbonated cola,Optimizer 1.10 and Optimizer 3.10 delivered a much purer taste with negligible bitterness and a significantly moderated bitter note than RA97.

In 50% sugar-reduced lemon and lime, the overall evaluation of the two variations of Optimizer STEVIATM is almost equal with RA97. However the Optimizer STEVIATMproducts showed much less bitterness and lingering.

Customer Voice

“We are evaluating the SGF Optimizer Stevia line to replace RA97 to achieve material cost savings. We got very positive results from the evaluation.”

08

Optimizer STEVIATMLowers Cost-in-Use in Beverages

In water that mimics the basic matrix of beverages, Optimizer STEVIATM and sugar were used as the sole sweetener to makeup aiso-sweet solution.

The test showed that can achieve a up to50% cost saving to reach the same sweetness level (SE) with a close taste from low to high sugar reduction replacement ratio.

09

Challenges of Stevia in Liquid TabletopSweetenrs and The Solution

Challenges

Tabletop sweeteners in liquid form have been popular among consumers as they are convenient. Typically liquid stevia tabletop concentrates have been made using RA50 and RA60 stevia extracts. This is because they are highly soluble relative to other stevia extracts and arerelatively cheap. However, they do not taste good when used in this way. More highly refined stevia extracts tend to taste better, but also have the drawback that as Reb A content rises the solubility of the stevia decreases, making them unsuitable for liquid concentrates.

Solution

The Optimizer* series bridges this gap.They satisfy all of the needs of liquid concentrates: high solubility,relatively low cost and great taste. Using Optimizer 3.10, SGF is studying itssuitability in liquid tabletop concentrates. In order to be useful its solubility must exceed 10% by weight. Optimizer 3.10 appears to be perfectly stable in a water based liquid concentrate above 10% by weight for the lengthof time required for shelf stability. Shelf life studies are not yet completebut results to date are encouraging.

* Optimizer SteviaTM is a series of stevia extract products developed by Sweet Green Fields Co. Ltd and sold through Tate& Lyle.

10

Opitmizer STEVIATMSustains The Good Taste

Optimizer 2.10 was the winner as compared to RA97 in hot coffee with shortened sweet and bitter linger.

The hot black tea sweetened with Optimizer2.10 tasted less bitter than the one using RA97.

Customer Voice

“We are now in commercial production with our new Optimizer tabletopstevia formula and we have received overwhelming positive customer feedback.”

11

Optimizer STEVIATMat Good Price

Optimizer steviaTM series exceed the taste profile of standard stevia extracts ranging from RA80 to RA97 with up to a 30%lower cost.

An example in form of bar chart shows therelative cost of Optimizer series with RA97 and the blend of RA and RD whentheir taste in tabletop sweeteners were scored the same. Optimizer 1.10 achieves a cost saving ofnearly 30 percent.

12

Beverages Launched with Stevia in APAC

Aug 2016 Fanta Peach Flavored Carbonated Soft Drink

Nov 2015 Zhangzhou ZishanZishan Mango Juice

Oct 2016 Fujian Kangzhiwei SaltyWater

Mar 2016 Dongpeng Beverage EastrocChrysanthemum Tea Drink

Aug 2016 Fanta Peach Flavored Carbonated Soft Drink

13

Snacks Launched with Stevia in APAC

Feb 2017 Kangtai Throat Plums Kangtai

Dec 2016 Wuweiyuan Green Peas with Garlic Flavor, Gaoda

Sep 2015 Easiyo Real Base & CultureYogurt Mix: Vanilla

Jan 2016 Fukang Dried Plum Kukang

Nov 2014 CalbeeJagabee Potato Sticks with Cheese Flavor

Sweet Green Fields Co., Ltd. is one of the largest, privately held, fully integrated global stevia ingredient companies.It strives to provide natural sweetening solutions to inspire healthy living through its extraordinary tasting stevia products.

Sweet Green Fields was established in 2007and started by providing standard stevia extracts to the food and beverageindustry. Today these standardized extracts come as Non-GMO Project verified.In recent years Sweet Green Fields has created an innovative series of stevia extracts covering a wide range of customer application needs.

Sweet Green Fields formed an exclusive partnership with Tate & Lyle on 3rd April, 2017. Tate & Lyle is aleading global provider of speciality food ingredients and solutions, with operations in over 30 locations worldwide. The partnership brings together thecombination of Sweet Green Fields’ world class stevia based ingredients andsupply chain and Tate & Lyle’s sweetener expertise, innovation platform,sales & distribution and applications network.

Through this partnership we provide customers and consumers with innovative stevia solutions to produce great tasting reduced sugars and low calorie foods across the globe. Click to find more extraordinary stevia solutions.

“Together, we will offer customers an extensive range of stevia-basedingredients and solutions to help them meet growing global consumer demand for healthier food and beverages with natural ingredients and fewer calories orless sugar.” –Joan Braca, President, Speciality Food Ingredients, Tate &Lyle.

Source:FoodNavigator

Tips:

* Have brilliant articles to contribute? Feel free to contact Wilbur Zhu (WeChat ID: aotokuer).

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