Food additives are ingredients used in food products to enhance the texture of food. They can be classified into emulsifiers, acidity regulators, enzymes, colorants, flavoring agents, hydrocolloids, preservatives, and sweeteners. Food additives are widely used in the food products to add sweetness, flavor, nutrients and prevent the food spoilage by keeping the products fresh.
Global food additives market was valued at US$ 61,453.4 Million in 2021 in terms of revenue, exhibiting a CAGR of 5.7% during the forecast period (2022 to 2030).
Drivers
Growth in the processed food industry across regions is primarily driving the market growth of food additives. Growing population coupled with the rising per capita income around the world is creating demand for processed food. According to the U.S. Department of Agriculture Economic Research Service, in 2021, U.S. consumers, businesses, and government entities spent US$ 2.12 trillion on food. Also, spending of consumers on food-away-from-home increased to US$ 1.17 trillion in 2021 from US$ 922.2 Million in 2020. Therefore, increase in processed food industry is propelling demand for food additives and positively influencing growth of the food additives market.
Rising demand for functional food additives due to growing consumption of food products with high nutritional value is also expected to fuel the market growth of food additives. For instance, food and beverages producers use seaweed derivatives as a substitute for fat and stevia-based sweeteners in order to reduce sugar levels in their products. Functional food additives have numerous health benefits as they are rich in antioxidants and essential nutrients, prevent cell damage and lower the risk of chronic diseases, thus fueling the market growth of food additives.
In terms of revenue, North America is expected to dominate the market growth over the forecast period in the global food additives market. Growth is attributed to increasing food budget of consumers in the U.S., rising awareness among consumers regarding healthy food and launch of new products. The U.S. and Canada are major contributing economies in the food & beverages sector. According to the U.S. Department of Agriculture Economic Research Service, in 2021, consumers in U.S. spent around 10.3% of their disposable personal income on food, which increased from 9.4% in 2020. Furthermore, high presence of key players in North America is driving growth of the food additives market in this region due to strategic initiatives undertaken by them such as product launches. For instance, in May 2022, a U.S.-based biotechnology company, Lifeasible, launched nine new sweetener products under its food additives product line, for helping researchers to create healthy food.
Figure 1. Global Food Additives Market Value Share (%), By Region, 2021
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Market Restraints
Health concerns associated with synthetic food additives is expected to limit the consumption of food additives. According to the Coherent Market Insights analysis, in Europe, 80% of consumers prefer foods that are free from artificial additives. Also, the lack of awareness regarding the benefits of the food additives in emerging economies as well as rural areas is expected to hamper the market growth of food additives.
Food Additives Market Report Coverage
Report Coverage | Details | ||
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Base Year: | 2021 | Market Size in 2021: | US$ 61,453.4 Mn |
Historical Data for: | 2017 to 2020 | Estimated Year: | 2022 |
Forecast Period 2022 to 2030 CAGR: | 5.7% | Forecast Period: | 2022 to 2030 |
Geographies covered: |
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Segments covered: |
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Companies covered: |
Cargill Incorporated, Ajinomoto Co., Inc., Archer Daniels Midland, Alpha Ingredients Srl, Kerry Group, E. I. du Pont de Nemours and Company, Ingredion Incorporated, Chr. Hansen Holding A/S, BASF SE, Tate & Lyle PLC, and Novozymes A/S. |
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Restraints & Challenges: |
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Market Trends
The low-fat additive is gaining huge popularity in the food additive market. This is attributed to the rising demand for food products with low food additives that have low amount of sugar and saturated fats levels. Rising cases of obesity and other lifestyle-related diseases is fuelling demand for low-fat additives. Moreover, citric acid as an acidity regulator is also gaining popularity across the food & beverage industry. Several manufacturers are introducing citric acid in anhydrous and liquid forms for being used across confectionery, bakery, and convenience, and dairy food products. Moreover, growing demand for emulsifiers and stabilizers with enhanced functionalities is further expected to augment the market growth of food additives.
Figure 2. Global Food Additives Market Value Share (%), By Source, 2021
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On the basis of Source, Synthetic segment dominated the global foods additives market in 2021, accounting for 53.40% share in terms of value, followed by Natural. Synthetic food additives are dominating market due to growing demand for processed food and convenience food products. This includes instant snacks and ready meals as demanded by working population as well as changing lifestyle of people living in urban cities. Therefore, manufacturers of processed food and convenience food products are focusing on increasing use of synthetic food additives in the above mentioned food products. This is driving growth of the synthetic segment over the forecast period.
Recent Developments
Competitive Section
Major players operating in the global food additives market include Cargill Incorporated, Ajinomoto Co., Inc., Archer Daniels Midland, Alpha Ingredients Srl, Kerry Group, E. I. du Pont de Nemours and Company, Ingredion Incorporated, Chr. Hansen Holding A/S, BASF SE, Tate & Lyle PLC, and Novozymes A/S.
Frequently Asked Questions
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