Market Overview:
Salt substitutes are products that are used as an alternative to table salt/sodium chloride. They provide salty taste without the adverse health effects of sodium. The major types of salt substitutes are mineral salts such as potassium chloride, and broth or yeast extracts that naturally mimic saltiness. They are widely used in bakery and processed food products to reduce sodium content. Due to rising health concerns related to excess sodium intake, there is an increasing demand for low-sodium food options, which is driving growth of the salt substitutes market.
Market key trends:
One of the major trends driving growth of the salt substitutes market is increasing consumer demand for low-sodium products. According to studies, excess sodium intake is linked to increased risk of high blood pressure, cardiovascular diseases, and stroke. As a result, there is significant focus on reducing salt consumption globally. Various government initiatives are underway in different countries to promote reduction of sodium in commercially sold food products. For instance, the FDA has set voluntary sodium reduction targets for packaged and restaurant foods. This is increasing adoption of salt substitutes by food manufacturers. Moreover, the growing health-conscious consumer base is fueling demand for reduced sodium food options, which is positively impacting the market.
The global Salt Substitutes Market Trends is estimated to be valued at US$ 1.16 Billion in 2023 and is expected to exhibit a CAGR of 5.67% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.
Porter's Analysis
Threat of new entrants: Low barriers to entry as technology is easily available but established players have strong brand recognition and distribution network.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitute products but buyers prefer branded salt substitutes for quality and taste.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power due to availability of substitute raw materials but key materials suppliers can impact prices.
Threat of new substitutes: Threat is moderate as alternative braded and organic salt substitutes are available in the market.
Competitive rivalry: Intense competition exists among existing salt substitute manufacturers.
SWOT Analysis
Strength: Brand recognition of key players, wider distribution network, effective marketing strategies.
Weakness: Higher prices compared to table salt, changing consumer preferences, supply chain disruptions.
Opportunity: Growing health conscious population, rising demand for low sodium food products, emerging markets offering growth prospects.
Threats: Stringent regulations pertaining to food ingredients, threat from substitute products like herbal salts.
Key Takeaways
The global salt substitutes market is expected to witness high growth, exhibiting CAGR of 5.67% over the forecast period, due to increasing health consciousness among consumers. Salt substitutes contain little or no sodium and are considered healthier alternatives to table salt for people watching their sodium intake or suffering from hypertension.
Regionally, North America dominated the global market and is expected to maintain its dominance over the forecast period. This is attributed to growing health issues like obesity and hypertension. Asia Pacific salt substitutes market is projected to exhibit fastest growth over next few years led by India, China and other developing nations due to improving lifestyle and diet habits.
Key players operating in the salt substitutes market are Cargill Inc., Nu-Tek Food Sciences LLC, Koninklijke DSM N.V., Montana Indusrie Holding A.G., Angel Yeast Co. Ltd., Tate & Lyle Plc, and Innophos Holding Inc. These companies are focusing on new product launches, facility expansion and mergers & acquisitions to strengthen their market position.
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