The firm said that due to health concerns over artificial antioxidants it will concentrate on finding natural ones from plant extracts.
A rise in demand for antioxidants has seen an increase in products containing fruits high in antioxidants.
For example, the antioxidant-packed aronia as an ingredient in Europe has risen from just two launches in 1997 to 108 last year.
Spokesperson Junny Liu told NutraIngredients.com: "Evidence suggests that butylated hydroxyanisole (BHA) is a carcinogen, and butylated hydroxytoluene (BHT) has been banned in Australia, Japan, Romania and Sweden. In the United States, it is prohibited for use in infant formulas.
"Besides the traditional natural antioxidants such as Vitamin E and Vitamin C, Fenchem is devoting the study and development for other plant based antioxidants based on large investment."
Research
Although Liu would not divulge the amount of investment Fenchem will dedicate, she did say its research will focus on two aspects.
The first is to "optimize" traditional plant extracts such as grape seed, rosemary, pomegranate and green tea. Fenchem hopes to do this by extending its applications they can be used in or by making it water soluble or odorless.
The second strategy for a new natural antioxidant source is to investigate how antioxidants can be combined and work in synergy.
This, Liu said, will make the firm more competitive in the antioxidant market.
Already, the firm said it can produce a colourless and odourless rosemary extract which can be "used widely."
The major markets for Fenchem are North America and Europe.
Fenchem will also continue to expand its current antioxidant production. Already, the firm said, it has enlarged the production capability of propyl gallate.
Market analysts Frost & Sullivan suggests that consumer pressure and revised legislation is causing a shift in antioxidant trends. From 2000 to 2009 the market for synthetic antioxidants in Europe was expected to rise from €15m by a mere 1.7 per cent a year, while natural antioxidants will experience a compound annual growth rate of 35 per cent.
