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Thursday, April 28, 2011  

Rice Flour and the Gluten-Free Demographic: As Commodity Prices Go Up, Food Manufacturers Find Solace in Niche Markets

Danisco's recent announcement that their natural preservatives will now be certified gluten free is a logical response to recent trends in the market.

While commodity prices are up on the whole, and spending is still down (though somewhat recovered from two years ago), niche markets that cater to specialty foods are still doing well.

One example is the gluten-free market, which is fueling the still-growing popularity of rice flour, soy flour, potato flour, and other wheat alternatives. As Danisco has found, the demand for such foods is going up even during a time of economic difficulty, and higher pricing doesn't deter those who prefer such foods.

Only a small percentage of those who purchase gluten-free foods do so because they suffer from Celiac Disease, an autoimmune disorder that makes it impossible to digest wheat. Most people purchase gluten-free foods because they believe that such products are higher in nutrition and quality.

Which is why "gluten-free" labels have begun appearing in mainstream grocery stores, and rice flour is often offered in the bakery isle.

This particular demographic is also interested in gluten-free foods that are already prepared or offered in simple kits or mixes. This is due to the fact that the demand for gluten-free foods has outpaced the public's understanding of how to prepare their dishes in a way that is devoid of wheat, and yet still tasty.

Of the flours most commonly used to replace wheat, rice flour tops the list. Soy flour follows behind as second. For food manufacturers looking for a new market for expansion, would be wise to consider the popularity of the gluten-free demographic.

 

Concerns Over "Soy Slump" Negated By Suppliers

Recent predictions that soy is on its way out have many food distributors confused. Is soy losing its popularity? According to Mintel soy's popularity dropped over 13% in 2008-2010, and may fall farther.

But according to Solae's article on the future of soy, a soy ingredients giant, these numbers are misleading.

It's true that popularity for soy drinks and soy baby foods have declined, blamed in part on the growing popularity of other milk alternatives. Rice milk, oat milk, hemp milk, and now coconut milk have appeared in the market and for a variety of reasons some soy milk drinkers may have been swayed.

However, isolated soy protein sales are actually up...way up. Solae reports that sales for products featuring isolated soy protein have gone up a whopping 170% from 2007 to 2010.

Why the big jump? For some people, soy protein is a useful meat protein alternative; it's particularly useful in the sports nutrition and weight management fields, too. Many consumers interested in weight loss, weight maintenance, and other health issues such as high cholesterol are big fans of soy protein.

And for those who cannot consume dairy-based protein powders hydrolyzed soy protein is a close alternative.

So for food manufacturers and distributors worried about the popularity of their soy products, isolated soy protein, soy flours, and other soy products are here to stay. Health conscious consumers are still eating it up.

Friday, April 15, 2011  

Alternative Flours Winning Big as Gluten-Free Market Grows

Everyone knows the gluten-free market is growing fast. According to Packaged Facts, sales are predicted to reach $5.5 billion by the year 2015.

But surprisingly enough, it isn't only those with gluten intolerance or dietary sensitivities that are opting for gluten-free foods. And because of the growing popularity attached to gluten-free flours, substitutes like rice flour, soy flour, chickpea flour, and almond flour are all smart upgrades for anyone's product line.

These gluten-free flours make it possible to cater to a new and growing demographic looking to avoid standard wheat products.

Of course, these less common flours tend to be more expensive. This will, of course, change the way that food-based businesses manage their bottom line. Fortunately, according to Packaged Facts the higher prices on gluten-free flours are commonly absorbed by the market, where consumers are used to paying more for specialty foods.

It's also important to remember that gluten-free flours don't react the same way that standard flours do, and require a reformulation of popular recipes. Additions like xanthan gum are sometimes required. In other cases a mix of flours, say potato flour and rice flour, produce better results.

Still, for businesses looking to capitalize on this growing market it is well worth the effort to design and manufacture tasty, gluten-free products. Those who need or want to go gluten-free are often searching for products that offer the taste and texture of their standard favorites, if not something similar.

Thursday, April 7, 2011  

Are "Natural" Sugars the New Health Food?

A recent Canadian report about maple syrup has many food manufacturers wondering if "natural" sugars are the next health food.

In lab studies reported by the University of Rhode Island, maple sugar was found to be chock full of antioxidants and beneficial compounds.

And as far as natural sugar products go, maple syrup isn't the only sweet treat getting some positive press. Molasses is also full of antioxidants, as are brown sugar and evaporated cane juice.

These so-called "natural" sugars aren't any less sugary than refined sugar or corn syrup. They have about the same calories as standard table sugar.

However, since they are less processed these other sugars and syrups do maintain the healthier nutrients often stripped out by the refining of standard table sugar.

And with the bad press lately aimed at refined foods and sugars, offering more "natural" alternatives may be a very smart move for food distributors.

It's important to keep in mind that alternative sugars like molasses crystals, cane juice crystals, brown sugar and maple syrup don't taste exactly like white table sugar, so switching sugars could change--perhaps dramatically--the color, texture and taste of your product.

Further, since each of these sugars requires different quantities in your end product, switching to an alternative sugar may have a significant effect on your bottom line, too, since different sugars are priced differently and required in different amounts in a given product.

Between the different taste, quantities needed, price, and marketing aspects of your end product, as a manufacturer, adding (or replacing) your current sugar with an alternative one may be a smart thing to consider.

Bear in mind, too, that the rich flavors associated with darker, less processed, and "natural" sugar products have their own fans. Offering a less processed sugar product might just attract a new customer base - one that wants to have their alternative sugar and eat it too.

 

Sweeteners Top the List for Upcoming Food Items

A panel of experts convened by food giant Tate & Lyle predicts that, among other things, sweeteners will be among the top food and beverage trends in the coming year.

Sweeteners and "stealth sugar" allow food manufacturers to offer products with a "higher sweetness profile" that doesn't mean added calories or sacrificing flavor.

In the last 20 years the popularity of sugar substitutes like sucralose (Splenda), saccharin (Sweet n' Low), and the up-and-comer stevia, have exploded. Once only a market for those with diabetes or other extreme diets, the use of sweeteners in every day products has gone entirely mainstream.

So, Tate & Lyle's ingredient predictions aren't surprising.

But what they are is heartening in a market of current sugar instability. With modern sugar substitutes offering the same or similar taste and texture of standard sugar, offering a reduced-calorie or low-sugar alternative in a variety of goods could be a smart means of minimizing costs.

And as more Americans become concerned with their weight, their health, and their overall well-being, sugar substitutes offer a product that fits neatly into the market.

It's hard to predict exactly how long the sugar substitute craze will last. Another food trend on Tate & Lyle's list was the "simple" food that relies on natural ingredients and few preservatives. White sugar itself often falls into this category, and more food manufacturers are offering "natural" or raw sugar products that would compete in this market for consumers.

However, for the time being it appears that both sweeteners and sugar itself can coexist. This means that food distributors have a variety of options to choose from, and multiple means of pleasing their consumers, and boosting their business.

 

Sugar Prices Look a Little Sweeter

Valentines day has come and gone, and the cost of sweets and chocolates left many consumers with a bad taste in their mouth.

But, as Brazil hints at a boost in supply, the record rise in wholesale sugar prices may get a bit of a break.

Foul weather in Australia and other sugar growing nations had led to high sugar prices worldwide. For food manufacturers this could mean double the price for popular sweets and higher costs for foods that use significant amounts of sugar.

According to a spokeswoman for the National Confectioners Association, small candy makers are hardest hit. With few other products to absorb costs, confectioners have no other recourse but to either raise prices or absorb higher sugar prices.

But Brazil is hinting at an increase in their yield that could offer some relief. Their crop this year is predicted to come in at least 3.4% higher than last year. Speculation alone brought sugar prices to 27.85 cents per pound, the lowest since December 2010.

If Brazil's predictions are correct, sugar prices will stabilize and perhaps even reverse direction.

With some luck those chocolate easter eggs may cost less, and food manufacturers and restaurants can enjoy a little breathing room.

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