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.
The Europe natural food additives market is estimated to be valued at US$ 9,595.0 million in 2021 and is expected to exhibit a CAGR of 5.6 % over the forecast period (2021-2028).
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.
In August 2018, DuPont Nutrition & Health, a food, health, pharma and biotech industries launched DIMODAN HP 90-M, a naturally-sourced homogeneous emulsifier. The product is launched for food manufacturers who used to face problems in product flow ability while using powdered inhomogeneous emulsifiers.
Germany held dominant position in the Europe natural food additives market in 2020, accounting for 25.3% share in terms of value, followed by the U.K. and France, respectively. Germany is a prominent player of natural food additive products, owing to the high number of health-conscious population as well as strict government regulations regarding the use of chemical additives in food products.
Figure 1. Europe Natural Food Additives Market Value (US$ Mn), by Country, 2020
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 FAO, 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 forced 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 forced manufacturers to invest in R&D and launch innovative products, and increase the market presence.
|Base Year:||2020||Market Size in 2021:||US$ 9,595.0 Mn|
|Historical Data for:||2017 to 2020||Forecast Period:||2021 to 2028|
|Forecast Period 2021 to 2028 CAGR:||5.6%||2028 Value Projection:||US$ 14,213.33 Mn|
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.))
|Restraints & Challenges:||
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 Share, By Function, 2020
Key Takeaways of the Graph:
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.
European Countries Players
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.
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.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.