Food Additives Market by Type (Emulsifiers, Hydrocolloids, Preservatives, Dietary Fibers, Enzymes, Sweeteners, Flavors), Source (Natural, Synthetic), Form, Application (Food, Beverages), Functionality and Region - Global Forecast to 2028
[434 Pages Report] According to MarketsandMarkets, the global Food additives market size is estimated to be valued at USD 73.4 billion in 2023 and is projected to reach USD 96.3 billion by 2028, recording a CAGR of 5.6%. This growth is primarily attributed to the increasing demand for processed and convenience foods. As consumers seek longer shelf life, enhanced taste, and appealing visual attributes, the food industry relies on additives. Their multifunctional roles in improving texture, flavor, and preservation contribute significantly to this expansion.
The expanding business has offered lucrative business opportunities to the players who are operating in the market segments. For instance, in April 2023, IFF launched BCLEAR, which empowers breweries to effortlessly preserve the clarity of their beers through a smarter, streamlined process. With BCLEAR, breweries can enjoy enhanced cost efficiency and a robust stabilization method that outshines other enzymatic solutions in the market. Other key players like CP Kelco have capitalized on this by making strategic partnerships. For instance, CP Kelco partnered with Shiru, Inc., a food startup, to advance sustainable food with precision fermentation. Leveraging nearly 90 years of expertise, CP Kelco collaborates with global food leaders to create innovative products meeting texture and consumer preferences, including clean labels. This reinforces its commitment to sustainable ingredient innovation in the food additives market.
The overall Food additives market is classified as a competitive market, with the key players, namely ADM (US), Cargill Incorporated (US), IFF (US), Ingredion Incorporated (US), and Givaudan (Switzerland) occupying 35-40% of the market share.
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Food Additives Market Dynamics
Drivers: Expansion of convenient and processed food products to catalyze demand
The demand for processed foods is increasing due to the growing need for convenient and ready-to-eat food products. As people lead busy lives, they seek options that are quick and easy to prepare. Processed foods, which are easy to cook and have a long shelf life, have become an essential part of modern dietary habits. To meet this demand, food additives are used to enhance the quality, safety and overall appeal of these products. Additives such as preservatives, flavor enhancers, and stabilizers are used to maintain the freshness and taste of these products, meeting consumer expectations for both convenience and sensory satisfaction. This preference for processed foods also extends to a growing appetite for diverse and exotic flavors, textures, and appearances, driving innovation within the food additives sector. As the inclination toward processed foods continues to thrive, the role of food additives in meeting consumer demands for convenience and quality remains pivotal in shaping the industry’s trajectory.
Restraints: Limited raw material availability and price fluctuations
The prices of essential raw materials used in food additive formulations can greatly impact production costs and ultimately, the pricing of end products. The food additives market relies on a diverse range of raw materials, including preservatives, emulsifiers, flavors, and sugar substitutes, making it vulnerable to global economic shifts, weather patterns affecting agriculture, and geopolitical factors that impact the supply chain. This creates a scenario where manufacturers must navigate unpredictable market conditions, adjusting their pricing strategies in response to the ever-changing costs of inputs. To maintain their competitiveness, companies need to have strategic foresight and adaptability to ensure product affordability for consumers while grappling with the broader economic landscape.
Opportunities: Advancements in food processing technologies
Advancements in food processing technologies have had a significant impact on the food additives market. The evolution of food processing has enabled the purposeful inclusion of food additives and preservatives in minute quantities to serve specific technological or sensory functions. These functions range from enhancing shelf life and maintaining color to preserving nutritive value and improving flavor. While conventional additives have played a vital role in processing and storage, concerns regarding safety and health have led to a shift towards natural sources such as phytochemicals and plant essential oils as antioxidants and preservatives. The use of metallic nanoparticles as antimicrobial agents and innovative techniques like nanoencapsulation have opened new avenues for developing novel food ingredients. The exploration of non-conventional cell disruption technologies for extracting potential food additives and nutraceuticals from microalgae, along with the use of encapsulated natural compounds as antimicrobial additives in food packaging, exemplifies the industry’s commitment to technological advancements.
Challenges: Widespread negative perception of food additives among consumers
Food additives play an important role in enhancing food quality, safety, and shelf life. However, some consumers perceive them unfavorably due to concerns about the potential health effects associated with certain additives, coupled with a lack of understanding about their various functions. This poses a challenge for companies operating in this market, as they need to address and overturn these negative perceptions. To do so, companies can use consumer education and transparent communication to dispel myths and foster a better understanding of the purpose and safety of various food additives. They can also emphasize natural and familiar ingredients through clean-label initiatives to align their products with evolving consumer preferences for simpler and more recognizable formulations.
The Food Additives Market Ecosystem
By type, the Dietary Fibers segment is projected to grow with the highest CAGR in the Food additives market during the forecast period.
As more consumers prioritize well-being, there's a growing demand for functional foods containing dietary fibers known for promoting digestive health and aiding weight management. The rising prevalence of lifestyle-related health issues is driving the incorporation of dietary fibers in various food products, including baked goods, cereals, and snacks. Additionally, the trend towards clean-label products aligns with the natural origin of many dietary fibers, further boosting their adoption. Regulatory support emphasizing the health benefits of dietary fibers adds impetus to their growth. With consumers actively seeking fiber-rich options for improved nutrition, the dietary fibers segment is positioned to dominate the market, contributing significantly to the overall expansion of food additives.
By source, the Natural segment is projected to grow with the highest CAGR in the Food additives market during the forecast period.
Growing health consciousness has led consumers to seek clean-label and minimally processed products, fueling the demand for natural additives sourced from fruits, vegetables, and plants. Increasing concerns about synthetic additives and their potential health impacts further propel the growth of the natural segment. Industry players are responding with innovations in natural additives, aligning with the ongoing trend towards healthier and more sustainable food choices. As regulatory scrutiny intensifies, the natural segment gains prominence, offering not only consumer-desired transparency but also functional benefits, contributing significantly to the overall expansion of the food additives market.
By form, the liquid segment accounts for the second-highest market share in the Food additives market.
The liquid segment secures the second-highest market share in the food additives industry due to its versatile applications and consumer preferences. The demand for liquid additives stems from their convenience in incorporation across various food and beverage products. Liquid forms offer ease of handling, precise dosing, and efficient blending during the manufacturing process. Additionally, in products like beverages, sauces, and dressings, liquid additives seamlessly integrate, enhancing sensory attributes and ensuring homogenous distribution. The shift towards innovative and exotic flavor profiles in liquid-based formulations, including beverages and condiments, fuels the popularity of liquid additives. With consumers gravitating towards diverse taste experiences and the industry's continuous pursuit of formulation efficiency, the liquid segment plays a pivotal role, contributing significantly to the overall market share of food additives.
By application, the beverages segment accounts significant market share in the Food additives market.
The beverages segment claims a significant market share in the food additives industry, driven by ongoing trends and evolving consumer preferences. One prominent factor is the rising demand for functional and enhanced beverages, where additives play a crucial role in improving taste, texture, and nutritional profiles. The surge in health-conscious consumers has led to a growing preference for fortified and natural beverages, prompting the use of additives to address formulation challenges and deliver desired attributes. Additionally, the popularity of ready-to-drink products and the continual innovation in beverage formulations, such as plant-based and functional drinks, further propel the demand for additives. As consumers seek diverse and novel taste experiences, the beverages segment remains a focal point for additive applications, contributing significantly to the overall market share.
Asia Pacific is poised to experience the highest CAGR in the Food additives market during the forecast period.
The region's remarkable economic growth has led to increased consumer purchasing power, which, in turn, has boosted demand for processed foods and beverages. Food additives play a crucial role in this sector as thickeners, preservatives, stabilizers, and texture enhancers, driving their growth. Additionally, The region's escalating demand for clean-label products has spurred a surge in the adoption of natural and minimally processed additives, aligning with the global movement towards healthier options. Innovations in plant-based food additives cater to the growing popularity of vegetarian and sustainable dietary choices. The emphasis on health and wellness has elevated the demand for functional additives, addressing specific health concerns and contributing to the region's overall market growth. Furthermore, the rich tapestry of ethnic and authentic flavors in the Asia Pacific fuels a need for additives that enhance and preserve the unique tastes of regional cuisines. Stringent regulatory compliance and a focus on food safety underscore the importance of compliant and safe food additive solutions in this rapidly growing market.
Asia Pacific: Food Additives Market Snapshot
Key Market Players
Key players in this market include Cargill, Incorporated (US), BASF SE (Germany), ADM (US), IFF (US), Kerry Group PLC (Ireland), Ingredion (US), Tate & Lyle (UK), Givaudan (Switzerland), Darling Ingredients Inc. (US), Chr. Hansen Holding A/S (Denmark), Novozymes (Denmark), Ashland (US), Cp Kelco (US), Glanbia PLC (US), and Sensient Technologies Corporation (US).
Other prominent players in the market also include Ajinomoto Co., Inc. (Japan), Biospringer (France), Palsgaard (Denmark), Lonza (Switzerland), Fooding Group Limited (China), Evonik Industries AG (Germany), Kalsec Inc. (US), Dohler Group (Germany), Lallemand Inc. (Canada), AB Mauri (UK), and Laffort (France).
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Report Metric |
Details |
Market size estimation |
2023–2028 |
Base year considered |
2022 |
Forecast period considered |
2023–2028 |
Units considered |
Value (USD), Volume (KT) |
Segments Covered |
Type, Source, Form, Application, Functionality (qualitative), and Region |
Regions covered |
North America, Europe, Asia Pacific, South America, and Rest of the World |
Companies studied |
|
Report Scope:
Food additives market:
By Type
- Emulsifiers
- Hydrocolloids
- Preservatives
- Enzymes
- Flavors
- Anti-caking Agents
- Colors
- Sugar Substitutes
- Dietary Fibers
- Vitamin & Mineral Premixes
- Acidulants
By Source
- Natural
- Synthetic
By Form
- Dry
- Liquid
By Application
- Food
- Dairy & Non-Dairy Products
- Bakery & Confectionery Products
- Supplements & Sports Nutrition
- Meat & Seafood and Meat Alternative Products
- Cereal, Savory, & Snacks
- Soups, Sauces, Dressing & Condiments
- Other Food Applications
- Beverages
- Juice & Juice Concentrates
- Functional Drinks
- Alcoholic Drinks
- Carbonated Soft Drinks
- Powdered Drinks
- Other Beverages
By Functionality (Qualitative)
- Thickening
- Stabilizing
- Binding
- Emulsifying
- Other Functionalities
By Region
- North America
- Europe
- Asia Pacific
- South America
- Rest of the World
Recent Developments
- In November 2023, Chr. Hansen introduces NEER Poly and NEER Punch strains, expanding SmartBev NEER technology for non-alcoholic brewing. Enhancing flavor diversity, reducing costs, and accelerating production, this innovation aligns with market trends, positioning Chr. Hansen as a leader in providing top-notch solutions for the food additives market.
- In October 2023, Cargill is poised for double-digit growth in 2023, focusing on South India expansion, investing USD 35 million in a Nellore manufacturing facility. Cargill emphasizes quality and supply chain resilience to navigate inflationary pressures and drive long-term sustainable growth in India's evolving food market.
- In June 2023, CP Kelco partnered with Shiru, Inc., a food startup, to advance sustainable food with precision fermentation. Leveraging nearly 90 years of expertise, CP Kelco collaborates with global food leaders to create innovative products meeting texture and consumer preferences, including clean labels. This reinforces their commitment to sustainable ingredient innovation in the food additives market.
Frequently Asked Questions (FAQ):
What are the key applications considered in the study for major food additives, and which segments within North America's beverage application are projected to experience promising growth?
The study focuses on two major applications: food and beverages. Within North America's beverage application, the subsegment of carbonated soft drinks emerges as the dominant category, showcasing promising growth potential in the projected market trends.
Is there customizable information available specific to the South America beverage market within the food additives study, and if so, what details are provided?
Yes, customization for the South America market for various segments can be provided on various aspects, including market size, market dynamics, forecast, competitive landscape, and company profiles. Exclusive insights on below Asia Pacific countries below will be provided:
- Brazil
- Argentina
- Colombia
- Chile
- Peru
- Rest of South America (Uruguay, Ecuador, Venezuela Paraguay, and other South American countries)
Could you highlight the opportunities identified in the study that are expected to fuel the future growth of the food additives market?
The global Food additives market is characterized by the following opportunities:
Advancements in Food Processing Technologies:
The study recognizes the opportunity for future growth in the food additives market through ongoing advancements in food processing technologies. These innovations enhance efficiency, product quality, and the overall capability to meet evolving consumer demands, fostering a dynamic landscape for additive applications.
Custom Food Additives for Personalized Nutrition:
A notable opportunity lies in the development of custom food additives tailored to individual nutrition and health goals. As consumers increasingly seek personalized dietary solutions, the ability to customize additives aligns with this trend, offering unique formulations that cater to diverse nutritional preferences and well-being objectives.
Among the regions studied, which one is anticipated to exhibit the CAGR for the food additives market?
Asia Pacific is anticipated to exhibit the highest CAGR for the food additives market at 6.1%. This projection is attributed to factors such as robust economic growth, a large and diverse population, shifting dietary preferences, and an increasing demand for processed and convenience foods in the region.
What is the expected CAGR range projected for the food additives market during the period 2023-2028, as outlined in the study?
The Food additives market is expected to record a CAGR of 5.6 % during the period 2023-2028. .
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This research involves the extensive use of secondary sources; directories; and databases (Bloomberg and Factiva) to identify and collect information useful for a technical, market-oriented, and commercial study of the Food additives market. In-depth interviews were conducted with various primary respondents, such as key industry participants, Subject Matter Experts (SMEs), C-level executives of key market players, and industry consultants, to obtain and verify critical qualitative and quantitative information and to assess prospects.
Secondary Research
In the secondary research process, various sources, such as the Food and Agricultural Organization (FAO), United States Department of Agriculture (USDA), U.S. Food and Drug Administration (FDA) U.S. Food and Drug Administration (FDA), European Food Safety Authority (EFSA), World Health Organization (WHO), Consumer Healthcare Products Association (CHPA), European Federation of Associations of Health Product Manufacturers (EHPM), Canadian Health Food Association (CHFA), and Health Food Manufacturers' Association (HFMA), associations were referred to identify and collect information for this study. The secondary sources also include journals, press releases, investor presentations of companies, whitepapers, certified publications, articles by recognized authors and regulatory bodies, trade directories, and paid databases.
Primary Research
The Food additives market encompasses various stakeholders involved in the supply chain, raw material manufacturers, raw material suppliers, regulatory organizations, and research institutions. To gather comprehensive information, primary sources from both the supply and demand sides were engaged. Primary interviewees from the supply side consisted of manufacturers, distributors, importers, and technology providers involved in the production and distribution of Food Additives. On the demand side, key opinion leaders, executives, and CEOs of companies in the Food additives industry were approached through questionnaires, emails, and telephonic interviews. This approach ensured a comprehensive and well-rounded understanding of the Food additives market from various perspectives.
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Market Size Estimation
The top-down and bottom-up approaches were used to estimate and validate the market’s and various dependent submarkets’ size. The research methodology used to estimate the market size includes extensive secondary research of key players, reports, reviews, and newsletters of top market players, along with extensive interviews from leaders, such as CEOs, directors, and marketing executives.
Global Food additives Market Size: Bottom-Up Approach
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Global Food additives market Size: Top-Down Approach
Global Food additives market size estimation: Supply Side
Data Triangulation
The data triangulation and market breakdown procedures explained above were implemented, wherever applicable, to complete the overall market engineering process and arrive at the exact statistics for various market segments and subsegments. The data was triangulated by studying various factors and trends from the demand and supply sides. Along with this, the market size was validated using both the top-down and bottom-up approaches.
Market Definition
The definition of food additives according to the European Commission is "any substance not normally consumed as a food in itself and not normally used as a characteristic ingredient of food, whether or not it has nutritive value."
Article 3.2 (a) of the European Council Regulation (EC) No. 1333/2008 (“Regulation 1333/2008”) legislation in the UK, defines food additives as "any substance not normally consumed as a food in itself and not normally used as a characteristic ingredient of food, whether or not it has nutritive value, the intentional addition of which to food for a technological purpose in the manufacture, processing, preparation, treatment, packaging, transport or storage of such food results, or may be reasonably expected to result, in it or its by-products becoming directly or indirectly a component of such foods."
Key Stakeholders
- Raw material suppliers of food additives
- Intermediate stakeholders, including distributors, retailers, associations, and regulatory bodies.
- Manufacturers and traders of food additives
- Manufacturers of food & beverage products
- Trade associations and industry bodies
- Government organizations, research organizations, and consulting firms
- Importers and exporters of food additives
- Associations, regulatory bodies, and other industry-related bodies:
- Food and Agriculture Organization (FAO)
- Institute of Food and Agricultural Sciences (IFAS)
- Global Food & Beverage Association (GFBA)
- Food Export Association
- European Union (EU)
- The European Food Safety Authority (EFSA)
- United States Department of Agriculture (USDA)
- Organization for Economic Co-operation and Development (OECD)
Report Objectives
- To define, segment, and project the global market for Food additives on the basis of type, source, form, application, functionality (qualitative), and region
- To provide detailed information regarding the key factors influencing the growth of the market (drivers, restraints, opportunities, and industry-specific challenges)
- To strategically analyze the micro markets with respect to individual growth trends, future prospects, and their contribution to the total market
- To analyze the opportunities in the market for stakeholders and provide a competitive landscape of the market leaders
- To project the size of the market and its submarkets, in terms of value with respect to the regions (along with the key countries)
- To strategically profile the key players and comprehensively analyze their market position and core competencies
- To analyze competitive developments in the Food additives market, including joint ventures, mergers & acquisitions, new product developments, and research & development activities
Available Customizations
With the given market data, MarketsandMarkets offers customizations according to company-specific scientific needs.
The following customization options are available for the report:
Product Analysis
- Product Matrix, which gives a detailed comparison of the product portfolio of each company
Geographic Analysis
With the given market data, MarketsandMarkets offers customizations according to company-specific scientific needs.
- Further breakdown of the Rest of the European Food additives market, by key country
- Further breakdown of the Rest of the Asia Pacific Food additives market, by key country
- Further breakdown of the Rest of South America Food additives market, by key country
Growth opportunities and latent adjacency in Food Additives Market