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.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2021 | Market Size in 2021: | US$ 9595.0 Mn |
| Historical Data for: | 2017-2020 | Estimated Year: | 2022 |
| Forecast Period 2022 to 2030 CAGR: | 6.18% | Forecast Period: | 2022-2030 |
| Geographies covered: |
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| Segments covered: |
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| Companies covered: |
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.) |
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| Growth Drivers: |
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| Restraints & Challenges: |
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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
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.)).
The natural food additives are obtained from natural raw materials plant, animals, minerals, and others. Various synthetic food additives are available in the market as well. Natural food additives such as salt and sugar are being used for centuries in order to preserve food, enhance taste, and others. Both synthetic, as well as natural food additives, are largely used as stabilizers, emulsifiers, thickening agents, gelling agents, preservatives, coating agents, and others. Natural food additives are majorly used in food and beverages as flavoring agents. With the growing demand for products with health benefiting additives, the demand for natural food additives is expected to increase over the forecast period.
Market Dynamics
Increasing demand for plant extracts and essential oils from the food and beverages industry in the region is a prime factor driving the growth of the Europe natural food additives market. Moreover, in 2019 the European Commission has stated that the food and drinks industry is the European Union’s (EU’s) largest manufacturing sector and EU food and drinks exports have nearly doubled in the last decade, reaching over US$ 101 Bn. Thus, growing food and beverages industry in the region is expected to fuel the demand for natural food additives over the forecast period. On the other hand, the wide availability of substitutes is expected to hinder growth of the Europe natural food additives market.
The natural food additive manufacturers have also adapted the production of clean-label additives that can be helpful while developing clean-label products. These clean-label additives have found their applications in varied food products, including egg replacement in low- and high-fat vegan, dressings, white cooking sauces, ready meals, and other applications. Thus, food and beverage manufacturers are also increasingly reformulating their products to meet the changing consumer demand for natural ingredients.
Key features of the study:
Detailed Segmentation:
“*” marked represents similar segmentation in other categories in the respective
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