EUROPE NATURAL FOOD ADDITIVES MARKET ANALYSIS

The food additive are substances which improve the taste, color, smell, and adds flavor to the food items. Food additives are used for a particular functional need such as enhancing stability, preservation, and others. Various new food additives have been recently developed in order to cope with increasing demand, especially for processed food.

Europe natural food additives market was valued at US$ 9595.0 Million in 2021, in terms of revenue, exhibiting a CAGR of 6.18 % during the forecast period (2022 to 2030).

Drivers

The rising demand for healthy and natural foods ingredients is booming, which increases the demand for products with natural food additives. The increased awareness regarding health problems caused by artificial food additives is driving the demand for natural food additives. Natural food additives are approved by organizations such as The Food and Agriculture Organization as ethical and safe to utilize. This is also a positive factor for the Europe market for natural food additives. The baking industry's increased usage of food additives is a major contributor to the surge in demand for natural food additives.

The Europe market for natural food additives is growing, offering several opportunities for both existing and new market participants. The growing number of health-conscious people in a variety of demographics around the world has proven to be one reason that could drive up demand for natural food additives. Manufacturers are being insisted by Food and Drug Administration to use various natural food additives in products as a result of the ongoing "move to organic" and the growing popularity of clean-label products. The growing demand and competition has insisted manufacturers to invest in R&D and launch innovative products, and increase the market presence.

During the COVID-19 pandemic, the natural food additives market was adversely impacted along with the various processes ranging from the procurement of raw materials to the production of end products. In addition, the manufacturers faced issues because of the labor shortage, and the import and export restrictions halted the production process. Food and beverage products, such as bakery, confectionery, dairy products, and soft drinks containing food additives, like sweetener and food flavor, have been withheld as supermarkets re-allocated stock priorities toward staples and essential supplies due to the outbreak.

Figure 1. Europe Natural Food Additives Market Value Share (%), By Region, 2021

Market Restraints

The wide availability of substitutes is expected to hinder the market growth of Europe natural food additives market. A broad array of cheaper substitutes are available for natural food additives. For instance, essential oils can be substituted with fragrance oils or aromatic oils, which are manufactured using synthetic materials to mimic the scent of natural essential oils. Natural essential oils are expensive and its extraction depends on the season, availability of raw material, and complexity of extraction techniques. Moreover, essential oils are volatile while fragrance oils are non-volatile and thus, fragrance oils last longer as compared to essential oils. Furthermore, essential oils from banana, strawberry, melon, and others cannot be extracted and can only be created synthetically in the form of fragrance oils.

Market Trends

Food flavors and enhancers have experienced rapid development in terms of their application in different food industries within a limited period in recent years. This is mostly due to changing lifestyles, rising demand for flavor-profiled healthy foods with creative flavour profiles, and an influential trend for new exotic and ethnic flavours.

With the rising preference for premium-quality products, including premium lines of seasonings and sauces, the market is growing rapidly. Moreover, rising demand for natural food flavors and consumers is witnessed to avoid artificial colors and flavors and prefer a natural alternative due to the increasing health hazards that occur in the consumption of synthetic/artificial flavors, which has resulted in an increased demand for natural food flavors.

Figure 2. Europe Natural Food Additives Market Value Share (%), By Function, 2021

Recent Developments

• In January 2019, Symrise AG, a producer of flavours and fragrances announced to acquire American Dehydrated Food/International Dehydrated Foods (ADF/IDF), a natural nutrition ingredient provider. The acquisition will help Symrise AG to expand its product offering to pet food business and expand its presence in food nutrition market.
• In January 2019, Kerry, a food company launched a non-GMO yeast ‘Acryleast’, which can reduce acrylamide content in food products up to 90%. The product was launched due to increasing government regulations regarding acrylamide content in food products.

 Competitive Section

Major players operating in the Europe natural food additives market include BASF SE (Germany), Evonik Industries AG (Germany), Tate & Lyle PLC (U.K.), Dohler (Germany), Danisco A/S (Denmark), Symrise AG (Germany), Firmenich SA (Switzerland), and Chr. Hansen A/S (Denmark), International Players (Cargill, Inc. (U.S.), Kerry Group (Ireland), Carbery Group Ltd. (Ireland), Ajinomoto Co., Inc. (Japan), and Kalsec Inc. (U.S.)).