Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Definition of Market/Industry:
Food additives are ingredients used in the food product 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 to enhance the sweetness, add flavor, and prevent the food spoilage.
The global Food additives market accounted for US$ 55,654.5 Mn in terms of value by the end of 2019.
Growth in the processed food industry across developing regions is primarily driving the market growth of food additives. Increasing populations coupled with the rising per capita income of the population is creating demand for processed food. According to the United States Department of Agriculture Economic Research Service, in 2018, U.S. consumers, businesses, and government entities spent $1.71 trillion on food and beverages in grocery stores and other retailers and on away-from-home meals and snacks.
Rising demand for functional food additives due to the growing demand for higher nutritional value food products is expected to fuel the market growth of food additives. For instance, food and beverages producers use seaweed derivatives as a substitute for fat and stevia-based sweeteners in order to reduce sugar levels in their products. Functional food additives have numerous health benefits thus fueling the market growth of food additive.
North America region dominated the global Food additives market in 2019, accounting for 22.7% share in terms of value, followed by APEJ and Western Europe, respectively.
Figure 1. Global Food additives Market Share (%), By Region, 2019
Health concerns associated with the synthetic food additive is expected to limit the consumption of food additive. According to the Coherent Market Insights analysis, in Europe, 80% of consumers prefer foods that are free from artificial additives.
Lack of awareness regarding the benefits of the food additives across developing regions of rural areas is expected to hamper the market growth of food additive.
Food Additives Market Report Coverage
||Market Size in 2019:
||US$ 55,654.5 Mn
|Historical Data for:
||2016 to 2019
||2020 to 2027
|Forecast Period 2020 to 2027 CAGR:
||2027 Value Projection:
||US$ 84,208.8 Mn
- U.S., Canada, Brazil, Argentina, Mexico, Rest of Latin America, U.K., Germany, France, Italy, Spain, Russia, Rest of Europe, China, India, Japan, ASEAN, South Korea, Australia, Rest of Asia Pacific, Middle East, Africa.
- By Product Type: Acidity Regulators, Colorants, Emulsifiers, Enzymes, Flavor & Enhancers, Hydrocolloids, Preservatives, Sweeteners.
- By Application: Bakery & Confectionery, Beverages, Dairy & Frozen Desserts, Meat &Poultry Products, Snacks & Convenience Food, Others ( Sauces,Soups and Baby Food)
- By Source: Natural, Synthetic
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, Novozymes A/S among others.
- Growth in the processed food industry
- Rising demand for functional food additives
- New product development and continuous innovations in packaging of products
|Restraints & Challenges:
- Health concerns associated with the synthetic food additive
- Lack of awareness regarding the benefits of the food additives
Increasing working women coupled with the changing lifestyle of the consumers has increased consumption of convince food products, this is expected to serve major growth opportunities to the market of food additive. Advancement in the technology used for the processing of food products along with the rising need to minimize the wastage and spoilage of the food products is further expected to augment the market growth of food additive.
The growing use of food additive in a dietary supplement is expected to provide enormous growth opportunities to the market in the near future. The growing sale of dietary supplements is also expected to impact the market of food additives positively. Expansion of convenience and processed food industry across less developed countries is further anticipated to provide potential opportunities to the market of food additives over the foreseeable period.
Figure 2. Global food additive Market: Opportunity Analysis
For any segment information:
On the basis of source, Synthetic segment dominated the global food additive market with a share of 53.4% in 2019 and is projected to grow at a CAGR of 5.3% between 2019 and 2027.
Market Trends/Key Takeaways
The low-fat additive is a trendy concept in the food additive market. This is attributed to the rising demand for low-fat additives food products that have low sugar and saturated fats levels. Rising cases of obesity and other lifestyle-related disease are fueling the demand for low-fat additive. Thus, the growing demand for low-fat additives is expected to foster the market growth of food additives over the forecast period.
Citric acid as acidity regulators is gaining popularity across the food &beverage industry. Many manufacturer are introducing citric acid in anhydrous and liquid forms which are widely used across confectionery, bakery, and convenience, and dairy food products. Moreover, the growing demand for emulsifiers and stabilizers with enhanced functionalities is further expected to augment the market growth of the food additives.
Figure 3. Global food additive Market Share, By Source, 2018
Food Additive Market - Impact of Coronavirus (Covid-19) Pandemic
The global food additive market is largely impacted by COVID-19 pandemic and the situation is expected to prevail in the global economy until the virus stops spreading. The outbreak of novel coronavirus has resulted in surging sales of frozen food and ready-to-cook food, globally. These frozen food and ready-to-cook food contain food additives in large amount, as they contain preservatives. Therefore, it can be said that despite the emergence of coronavirus pandemic, the food additive market would experience a positive growth in near future.
- 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
- Novozymes A/S
Few Recent Developments
In January 2019, Kerry Taste & Nutrition, has announced the launch of a non-GMO yeast as a natural solution for acrylamide reduction. The new product has been brought to the market in partnership with Renaissance BioScience Corp.