Nisin Market – Gains Likely From Consumers’ Quest for Natural Food Preservatives

A notable rise in the number of instances of food adulteration, under the disguise of innovation, has compelled regulatory bodies to focus more on the control food contamination. The concept of organic farming, in turn, has been offering the required boost to the 'clean food' movement, especially in developed countries, which has sown the seeds for the transmutation of the food industry.A seismic shift in consumers’ opinion towards synthesized food preservatives has made it apparent that, manufacturers need to look for natural food preservatives for survival in the landscape.

This shift has offered significant popularity to nisin, and has widened its application spectrum in end uses, including, but not confined to, snacks, bakery items, and dairy products, for improving their shelf lives. Market players are increasingly exploring the rancidity-control property of nisin, and expanding its application in alcoholic and non-pasteurized beverages.

The infiltration of nisin in a majority of food and beverage segments implies that, it has robust sales potential. However, manufacturers need to weed out the issues apropos of the high cost of nisin by leveraging the prowess of advanced technology.

Transparency Market Research, in its latest research report, underlines the vital data points, recent trends, and notable developments specific to the nisin market for the estimated timeline of 2019-2028, with a view to offer explicit information to the readers, and assist them in creating a future roadmap towards business advancement.

nisin market key challenges

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Tracing the Evolution of the Nisin Market

The approval of nisin for commercial use traces back to the 1960s, post which, it has been advancing towards the phase of disruption. With regulations passed in favor of nisin, it holds the status of a 'safe food preservative', which has entailed the movement of food and beverages manufacturers in the direction of leveraging its properties to improve the shelf life of their products. In 2018, ~ 6,700 MT worth of the nisin was sold, which corresponded to a value of ~ US$ 297 Mn.

Considerable efforts have been put in R&D activities by players to comprehend the antilisterial properties of nisin, and numerous propositions regarding its end-use applications have been made to control the spoilage of lactic acid bacteria in products undergoing the fermentation process.The restored interest of manufacturers in nisin as an antibacterial formulation has broadened the windows of opportunities in the treatment of human ulcers and mastitis among cattle.

Some researchers also claim to have found anticancer properties in nisin, which, if approved, will attract the attention of nutraceutical and pharmaceutical manufacturers. Sensing the perpetually growing interest of manufacturers, TMR estimates that the nisin market will register a CAGR of ~ 5% during the forecast period of 2019-2028.

Nisin Market - Clean Sweeping the Revenue Driven by the 'Clean Label' Products Trend

Continuous research activities in the landscape have led to the development of nisin in the powdered and liquid form, which adds value to its usability in the food and beverage industry. Though easy to blend, liquid nisin has a shorter shelf life as compared to powdered nisin, which offers better sales chances to the latter. Nearly 97% of the total nisin sales closed in 2018 were the ones in the powdered form; however, the liquid nisin segment is likely to grow exponentially through to 2028.

Among the broad spectra of end uses, the meat, poultry, and seafood segment has been contributing ~ 33% to the total market share. However, the penetration of nisin has been rapidly increasing in the dairy industry, as the need to preserve dairy products rises. With high consumption of meat and poultry, North America remains a leading region and accounts for ~ 54% of the total market share.

Europe, holds ~ 23% of the total market share, as the consumption of 'grab-to-eat' food products increasingly become the way to go for consumers. However, the price point of nisin becomes a pain point for the growth of the overall landscape, especially in developing countries.Consumers in developing countries continue to prefer cost-effective and widely available chemical preservatives, as the concept of 'clean label products' has still not evenly penetrated in these regions.

nisin market north america

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Weed Out the Challenges to Grow Share in the Nisin Market

Tackle Low Availability of Nisin in Developing Countries

Currently, chemical preservatives maintain a stronghold as compared to their natural equivalents across the globe, due to their cost-effectiveness and wide availability. Though the end users residing in developed countries are making a swift move towards the adoption of natural food preservatives, nisin still awaits proper exposure in developing countries.

Thus, developing countries can serve as a goldmine of opportunity for business expansion. Effective e-Commerce channels can be leveraged by manufacturers to increase the shelf space, and eventually, the sales of their products.

Strengthen Marketing Campaigns to Propagate 'Clean Label' Concept

The landscape remains significantly driven by the demand for clean label and organic food and beverage products. In order to add a new consumer base into the demand-supply circle, companies need to leverage effective marketing campaigns to penetrate the concept of clean label and enhance their brand recognition value.

However, the premium pricing of clean label products may work against the growth of the nisin market. This necessitates the need to leverage advanced technology to increase the production capability of nisin and reduce overhead costs.

Competition Intensity – Moderate at Global Level, High at Regional Level

The nisin market remains consolidated, with only two players – Danisco A/S and Koninklijke DSM NV – operating at the global level. These market goliaths account for a share of 60-70% in the nisin market, with product innovation being their key winning strategy. For instance, Koninklijke DSM NV averred the extension of its range of natural food protection solutions in 2018, with the addition of Delvo®Guard cultures. The product is aimed at improving the shelf life of dairy products. However, regional players employ different set of strategies to leapfrog their global competitors.

Regional players are heavily concentrated in China, and occupy nearly 10-20% of the market share. This batch of players focuses on offering nisin at competent prices, thereby intensifying the competition level. Regional players prioritize investments towards enhancing their regional and global footprints.

For example, in January 2017, Galatic S.A. partnered with Azelis to leverage the dedicated distribution channel of the latter in BENELUX. Local players account for around 2-10% of the total share, which implies that, high manufacturing cost creates an entry barrier in the nisin market.

nisin market segmentation

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Analysts’ Take on the Nisin Market

Authors of the study are sanguine about the prospects of the nisin market through to 2028. Market goliaths are diligently focusing on expanding their nisin-based product portfolios and penetrating their products in developing countries. The landscape witnesses numerous manufacturer-distributor partnerships, aimed at gaining a reciprocal advantage.

A potential application of nisin for curing cancer can bode a lucrative future of the landscape. Additional avenues in the pharmaceutical industry such as oral disorders and ulcers are also likely to supplement the growth of nisin market. Though nisin has a very low threat from substitutes, a well-established chemical preservative industry and low consumer confidence towards clean label products needs to be tackled by manufacturers.

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  • Nisin has been gaining considerable traction in the food additives market. As per Transparency Market Research (TMR), the nisin market is dynamic in nature, due to the trend for natural alternatives. The rise in the consumption for natural food preservatives is apparent, with the nisin market estimated to have a valuation of ~ US$ 310 Mn in 2019, according to the study.
  • At the demand side, consumer opinions are highly fragmented, with some seeking processed food due to convenience and busy life schedules, whereas others are opting for fresh food due to their positive health implications.

Growing Inclination toward Clean Label Products Driving Nisin Market Growth

  • Increasing consumer awareness regarding the health benefits of products containing natural ingredients and strong support from multinational ingredient manufacturing companies for the development of such products are key factors driving the demand for clean label ingredients. Hence, the need for natural food preservatives that aid in the extension of the shelf-life of products such as nisin is also growing.
  • Moreover, consumer buying patterns are being increasingly influenced by the ingredients mentioned on the labels, favoring the incorporation of nisin as a food preservative.
  • Also nisin is a unique bacteriocin that fights dental caries. Lack of substitutes for nisin in the market is also likely to act as a major push factor for the growth of the nisin market.

What are Key Trends in the Nisin Market? 

  • Spending on R&D is on the rise, as global manufacturers of nisin are now facing competition from Chinese players. There are many Chinese manufacturers who are offering nisin at a lower cost.
  • In recent years, nisin research has shown its potential use in a wide range of applications, including biomedical applications and food bio preservation. Nisin is one of the most well-known and studied bacteriocins. In the backdrop of this scenario, various grades of nisin are now available in its purest form. Hence, it is anticipated that, different applications of nisin could also be discovered with the increase in research and development expenditure. Many nisin manufacturers are consolidating their R&D divisions, signifying the research in this sector.
  • Asia remains one of the most preferred destinations for setting up R&D facilities for nisin, representing a gradual shift in the industry’s production center. With better technological skills in the coming future, optimization in the production of nisin is expected, which will enable manufacturers to offer their products at competitive pricing. 

Increasing Applications of Antimicrobial Food Packaging 

  • Shelf life is one of the main aspects of packaging. A higher shelf life of a product also help in cutting down the costs of transportation. Nisin is a well-known lantibiotic, which is known to increase the shelf life of any food product, because of which, it is used as an antimicrobial active ingredient in packaging material.
  • The presence of nisin in the active packaging of food help monitor freshness, improve safety, and convenience. Active packaging incorporates substances such as nisin, which directly interacts with the food item in order to enhance its shelf life, thus preserving the quality of the processed food product over a longer period of time.
  • The interest in using nisin as a bioactive ingredient in food products is also gaining importance, due to the usage of edible packaging in the food industry.
  • Recognition of nisin incorporated active packaging technology by food manufacturers has gone up over the past few years, which, in turn, is bolstering the growth of the nisin market. Consumer acceptance of these packaging technologies becomes an important aspect for the commercial realization of nisin. 

Focused Commercialization of Nisin-based Preservatives Plays Out as a Key Strategy 

  • Natural food additives such as nisin are often not preferred due to the high costs of production and procurement. Chemical food preservatives remain a cost-effective option. Hence, despite the demand for nisin, it is witnessing relatively slow growth.
  • In the Asia Pacific food industry, chemical preservatives are witnessing significant demand, owing to ease of availability. Due to this, the demand for bio preservatives such as nisin among food manufacturers has also been obstructed.
  • In Asia Pacific, natural ingredient manufacturers are highly export-oriented due to high-cost entry barriers in the local markets. Hence, commercialization and the right marketing strategies are essential in the nisin market, so as to attain a certain level of penetration.
  • Focused commercialization of nisin-based products has also been lacking in Asia Pacific. Therefore global manufacturers can expand their reach in this region in the nisin sector. 

Nisin Market Highly Concentrated Amongst Multinational Companies 

  • In 2017, Galactic S.A. introduced clean label solutions for the meat & poultry industry - Galimax Flavor, ProMeat Plus, Galacin Nisin, Galaxium, and many more. 
  • In 2013, Handary S.A. further developed 'White NisinA', and was honored with the FiE EXPO 'Excellence Award Finalist'.
  • An approximate share of 60-70% is accounted for by Danisco A/S and Koninklijke DSM NV. Consolidation in the preservatives industry through mergers and acquisitions is rapidly creating a global supply market. The global leader in the bio preservatives industry is Koninklijke DSM NV, followed by Danisco A/S.
  • North America and Western Europe are the two main target regions due to the increasing number of health-conscious consumers and increasing demand for organic and healthy food products in the market.
  • The market share accounted for by players from China is around 10-20%, and is increasing significantly. Some of these players are in joint ventures or alliances with European-based corporate entities. Chihon Biotechnology Co., Ltd. and Shandong Freda Biotechnology Co., Ltd are some of the big players based in China.
  • The market share accounted for by regional players is very low, accounting for only around 2-10%.

Nisin Market – Introduction

Transparency Market Research, in its recent study, enumerates significant information pertaining to the growth prospects of the nisin market during the forecast period of 2019-2028. This business asset will help readers understand the winning imperatives present in the nisin market. The report also covers reliable statistics and data on the nisin market, along with the untapped opportunities for stakeholders by analyzing the key trends and notable developments present in the landscape.

The comprehensive report offers a detailed assessment of the key drivers, restraints, opportunities, and threats that could influence the growth potential of the nisin market over the course of the forecast period. A detailed evaluation of the impact and relevance of the macroeconomic as well as microeconomic factors has also been included in the report.

This in-depth report also analyzes the key indicators associated with the nisin market during the foreseeable timeframe. An in-depth study on the supply chain of the nisin market is also included in this research report. The nisin market has been assessed in terms of value (US$ Mn) and volume (MT). The report also delivers Y-o-Y growth comparison, market share comparison, and volume and revenue comparison for readers to have a thorough understanding of the nisin market.

The exhaustive study analyzes the competition intensity prevailing in the nisin market. The report analyzes the market structure by assessing the share contributed by the players. In addition to this, key strategies adopted by the players to expand their foothold in the market has also been discussed in this report.

Nisin Market - Key Questions Answered

TMR’s report provides key figures and insights into the nisin market, acquired by carrying out exhaustive research on the historical and futuristic trends. The valuable information included in this report will help readers comprehend the behavior of the nisin market. Some of the key questions answered in this report include:

  • What will be the size of the nisin market in 2022?
  • What will be the volume sales of nisin for dairy products in 2020?
  • Which product form is preferred by end-use industries?
  • Which region holds lucrative opportunities for the nisin market?
  • What are the key trends observed in the nisin market?
  • What are the strategies employed by key players in the nisin market?

Nisin Market – Report Methodology

In order to acquire detailed information on the growth potential of the nisin market, our analysts adopt a top-down and bottom-up approach. The top-down approach aids in analyzing the market figures, and the bottom-up approach helps in validating the statistics for each region and segment. In addition to this, primary and secondary research has been undertaken to cull actionable intelligence on the behavior of the nisin market.

In order to conduct primary research, our analysts conducted interviews with opinion leaders, industry experts, distributors, and manufacturers operating in the nisin market. For conducting secondary research, various reliable sources were studied by our analysts, which include company websites, newspapers, journals, magazines, annual reports, white papers, and financial reports. Paid publications include Meltwater, Genios, GBI, and Factiva.

Data obtained through primary and secondary research is then validated with the help of the data triangulation method, wherein, data obtained through all the sources are consolidated, and qualitative as well as quantitative insights about the nisin market is obtained.

Nisin Market – Segmentation

A weighted chapter of the report offers valuable insights into the nisin market, based on the product type, end use, and region. The study assesses the growth potential of each segment, and their impact on the growth of the nisin market, by offering reliable statistics.

Product Type

Powder

Liquid

End Use

Beverages

Bakery

Confectionery

Meat, Poultry, & Seafood

Dairy Products

Ready Meals, Soups & Noodles

Snacks

Others

Region

North America

Latin America

Europe

APEJ

Japan

Oceania

MEA