South America Fat Replacers Market - Growth, Trends, and Forecast (2018-2023)
The South America fat replacers market is expected to reach a market value of 302.14 USD million by 2023 and is estimated to register a 5.9% CAGR during the forecast period. Fat replacers chemically resemble fats, derived from proteins, or carbohydrates. The rise in obesity and growing consumer awareness about fat replacer products has increased the demand in the South American market, many folds. Tate & Lyle acquired the oat beta-glucan producer, Biovelop, to increase market growth of fat replacers by widening its product range.
The ability of fat replacer to mimic the physical and chemical qualities of lipids, thereby, providing fewer calories per gram, has fueled the fat replacer market growth. New product launches, catering to the low-fat and skimmed products segment, are anticipated to propel market growth.
Increasing incidence of obesity, cancer, high blood cholesterol levels, and coronary heart diseases have urged consumers in shifting to a low-calorie diet, thus complementing market demand. Regulatory support aimed at facilitating foreign direct investments in developing countries is expected to amplify food & beverage production, consequently, increasing demand for fat replacers in South America.
Fat replacers are widely used in food & beverage processing. Major application segments include – bakery & confectioneries, beverages, and convenience foods. Bakery and confectioneries segment occupied the largest share in 2016, and is projected to witness the highest growth during the forecast period. The beverages segment is also anticipated to register above average growth rate in the coming years.
Protein-based fat replacer ingredients will probably experience tremendous potential in dairy and frozen desserts, beverages, and bakery and confectionery products. According to the Food and Agriculture Organization (FAO) of the United Nations, consumption of milk and milk products in South America is expected to witness an exponential growth by 2023.
The South American fat replacer market is geographically divided into – Brazil, Argentina, and others. Brazil had the major market share of the South American fat replacer market, in 2016. Beta-glucan holds the major share of the Brazilian fat replacer market.
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