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Royal DSM anticipates growth in food ingredients sector
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Dutch chemicals group Royal DSM, which specializes in life and material sciences, sees strong growth potential for its food ingredients business in China as people increasingly demand safer products.
The company, which makes food enzymes, cultures, and savory ingredients for the food and beverage industry, said while ingredients represent only about 2 percent of the value of the final product, the added value in terms of taste, texture and other functions is huge.
“While China's economic expansion is slower now, we still see very good growth in food-related sectors,” Hu Jian, Asia president for DSM Food Specialties, said at the Food Ingredients China trade fair.
He said sectors such as dairy pose great opportunities in China, where more than 80 percent of people are believed to be lactose intolerant or have digestion issues related to milk. DSM's fermentation produced lactase could solve the issue and it counts major Chinese dairy companies among its clients.
DSM also expects double-digit growth is hydrocolloids, which help reduce the fat content in food products, according to Gong Xiangwei, director of the company's hydrocolloids unit. Gong is also president of Yantai Andre Pectin Co, a Chinese ingredients maker partly owned by DSM.
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