Food Additives Market

Report Overview

Product Overview

Food Additives Market size was USD 88.85 billion in 2021 and projected to grow from USD 99.2 billion in 2023 to USD 164.1 billion by 2032, exhibiting a CAGR of 5.7% during the forecast period.

Food Additives are substances that improves the colour, flavour and aroma of food. Food additives are utilized to meet a requirement like upgrading durability and preservation. New food additives are being created to reach the increasing consumer demand for processed foods. Natural food additives are obtained from natural raw sources like plants, animals etc. and several synthetic food additives are also present in the market. Commonly used natural food additives are salt and sugar which were used traditionally by people to preserve food and improve their flavour.

Market Highlights

Food Additives Market is expected to project a CAGR of 5.7% during the forecast period, 2022-2032

Food Additives Market is expected to reach USD 164.1 billion, growing at a CAGR of 5.7% during forecast period owing to the high requirement for preserving food from spoilage by using food additives which is expected to boost the growth of the Food Additives market. Food additives are included indirectly into the food material to improve the handling of food when stored and packed. Food additives play a vital role in packaging and processed food industry as additives possesses property of improving palatability, increase shelf-life of product and enhancing taste of the food item.

Food Additives Market Segmentation

Bulk Sweeteners segment is expected to grow with high CAGR during the forecast period

Food Additives Market is classified based on the System into Product Type into Preservatives, Bulk Sweeteners, Sugar Substitutes, Emulsifiers, Anti-caking Agents, Enzymes, Hydrocolloids, Food Flavours and Enhancers, Food Colorants, and Acidulants. Bulk Sweeteners segment is expected to dominate the market in the forecast period owing to the increasing geriatric population and rising risks related to health involved in old age population will may drive the segment growth. The demand for sweeteners is increasing as they aid in enhancing taste and are less in calories.

Bakery and Confectionery segment is expected to grow with high CAGR during the forecast period

Food Additives Market is classified based on the Application into Bakery and Confectionery, Dairy and Desserts, Beverages, Meat, and Meat Products, Soups, Sauces, and Dressings, and Other Applications. Bakery and the confectionery segment is expected to dominate the market in the forecast period as food additives helps in improving the quality of the confectionery and bakery products. Increasing consumption of bakery items by the population is also expected to drive the demand for Food Additives market growth.

Market Dynamics

Growth Drivers

Growing Food Processing Industries is Expected to Boost the Growth of the Market

The demand for food processing industries is increasing owing to the rising preference of people in consuming ready-to-eat processed foods which is anticipated to drive the demand for the growth of market in the forecast period. The increasing per capita income along with the rising population is also creating demand for processed food. Food additives market is also expected to grow due to the increasing food processing industries and high acceptance and spending on food-away-from-home by consumers which is anticipated to create demand for growth of the food additives market.

Growing Awareness on Consuming Natural Food Products is Expected to Boost the Growth of the Market

The preference of people on consuming clean label products with minimal ingredients included with high nutritional value is expected to boost the market growth. The inclusion of ingredients utilized in food is of prime importance and is creating demand for food additives. The applications of clean-label additives are rising, involving white cooking sauces, egg replacements in vegan dressings, ready meals etc. So, the preference on consuming natural ingredients has increased. The demand for functional food additives is also rising owing to the growing intake of food products with high nutritional value which may uplift the food additives market growth.

Restraint

Improper Awareness on Food Additives May Restrain the Growth of the Market

The consumption of synthetic food additives may cause certain health complications which may restrain the market growth. Improper awareness regarding the health benefits associated with utilizing food additives is expected to hamper the growth of food additives market.

Recent Developments

• In June 2022, BASF Aroma Ingredients launched its digital platform, Virtual Aroma Assistants, at the World Perfumery Congress 2022 in Miami, to create ease for clients in Flavour & Fragrance field to handle BASF’s range of Aroma Ingredients.
• In April 2022, The ST. Clair Plant extension by Cargill Salt is used to generate salt and widen the facility up to 50,000 square feet.

Food Additives Market

Key Players Covered:

• Fooding Group Limited
• Ingredion Incorporated
• Novozymes Chr. Hansen Holding A/S
• International Flavors & Fragrances, Inc.
• Tate & Lyle Plc
• Givaudan
• BASF SE
• ADM
• Biospringer
• Corbion
• Sensient Technologies Corporation
• The Kraft Heinz Company
• Kerry
• Ajinomoto Co., Inc.
• Other Prominent Players (Company Overview, Business Strategy, Key Product Offerings, Financial Performance, Key Performance Indicators, Risk Analysis, Recent Development, Regional Presence, SWOT Analysis)

Regional Analysis

Food Additives Market is segmented based on regional analysis into five major regions: North America, Latin America, Europe, Asia Pacific and the Middle East and Africa. Asia Pacific market dominated the market in 2021 owing to the presence of large consumer base and several industries. The growing food and beverage industry in countries of this region is anticipated to drive the demand for growth of the market in this region. The spike in consumption of processed food products like instant foods and the modern lifestyle of people is expected to boost the market growth in forecast period.

Impact of Covid-19 on Food Additives Market

The COVID-19 outbreak had resulted in the economic downfall. Several countries had imposed travel restrictions and lockdown measures to control the spread of virus. The supply of raw materials was interrupted and there was lack of manpower during the pandemic period. The food additives used in confectionery bakery products and different food & beverages were impacted during the pandemic due to shutdown of restaurants and online delivery platforms. Covid-19 had negatively impacted the growth of food additives market.

Food Additives Market is further segmented by region into:

• North America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United States and Canada
• Latin America Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – Mexico, Argentina, Brazil and Rest of Latin America
• Europe Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – United Kingdom, France, Germany, Italy, Spain, Belgium, Hungary, Luxembourg, Netherlands, Poland, NORDIC, Russia, Turkey and Rest of Europe
• Asia Pacific Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – India, China, South Korea, Japan, Malaysia, Indonesia, New Zealand, Australia and Rest of APAC
• Middle East and Africa Market Size, Share, Trends, Opportunities, Y-o-Y Growth, CAGR – North Africa, Israel, GCC, South Africa and Rest of MENA.

Food Additives Market Scope and Segments:

Frequently Asked Questions (FAQ):