Market Snapshot
| Study Period: | 2016-2027 |
| Base Year: | 2021 |
| Fastest Growing Market: | Asia Pacific |
| Largest Market: | Asia-Pacific |
| CAGR: | 4.93 % |
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Market Overview
The food additive market is projected to grow at a CAGR of 4.93% during the forecast period (2022-2027).
During the COVID-19 pandemic, the food additives market got affected from the procurement of raw materials to the production of end products. 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 kept back as supermarkets re-allocated stock priorities toward staples and essential supplies due to the outbreak. It was mainly due to the mass lockdown instructions given by several countries' governments to avoid the spread of the pandemic in their respective countries. However, nutraceuticals and healthy food products have paced their market growth due to the demand for immunity-boosting products, which, in turn, has increased the demand for additives.
The multifunctionality of additives is raising their desirability among food companies and increasing the market's growth. Additionally, consumption of sustained quality food and beverages with improved visual and taste appeal increases, and demand for food additives is assumed to boost the market. Several organizations, such as the Food Administrative Organization, the United States Department of Agriculture, and JECFA (Joint FAO/WHO Expert Committee on Food Additives, are introducing a general standard for food additives (GSFA) to increase the trade among countries.
Furthermore, the rapid expansion of technology in the industry about consumers' demand for healthy food options will positively affect market growth. For instance, companies operating in the food additives market are focusing on adopting the micro-encapsulation technique for color delivery systems and final product formulation.
Scope of the Report
Food additives consist of substances added to enhance the processors' texture, taste, appearance, color, or functions. The food additives market is segmented by preservatives, sweeteners, emulsifiers, anti-caking agents, etc. Based on application, the market is segmented into bakery and confectionery, dairy and desserts, beverages, meat and meat products, soups, sauces, dressings, and other applications. Furthermore, the market is segmented by Geography, including North America, Europe, Asia-Pacific, South America, and Middle-East and Africa. The report offers market size and forecasts for food additives in value (USD million) for all the above segments.
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Key Market Trends
Rising Preference for Clean Label and Natural Ingredients as Food Additives
‘Clean labeling’ is no longer a trend but has become a high-rated consumer demand that the global food industry responds to by putting additional emphasis on these aspects while processing a food product. Extensive promotions made by several associations worldwide are further boosting the consumption of natural and clean-label additives. For instance, one of the most popular associations promoting the market includes the Natural Food Colors Association. Based in Europe, the association involves an extensive promotion of natural colorants. Moreover, it works with industry leaders, such as ADM Wild, DDW Color House, CHR Hansen, FMC, and GNT. To increase efficiency in the industry, the association operates different working groups to examine the potential of various natural color sources.
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Asia-Pacific Dominates the Market
Asia-Pacific is the fastest-growing among all the regions because of the increase in demand for processed food. India and Australia are some major milk producers worldwide, and the demand for flavored milk, recombined milk, and many others require food additives like food colors in the industry. For instance, emulsifiers in the ice cream industry are very common, especially E4701, which helps in viscosity, stability, and fat reduction, used in brands like Amul ice cream. Also, demand for food coloring has spiked dynamically across Asian countries. As a result, China, a major producer and consumer of food colorants published a new standard to provide regulatory certainty to coloring foodstuff, which intended to offer definitive rights to products, using these ingredients to claim as natural. The standard is anticipated to provide ease to manufacturers willing to replace additive colors with clean label solutions, eventually aiding the natural food colorant market value.
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Competitive Landscape
The market is highly competitive and is, therefore, fragmented. It is dominated by Cargill Incorporated, ADM, Kerry Group, Ingredion Incorporated, Givaudan, DSM, and others, who account for a substantial market share. Leading companies emphasize the merger, expansion, acquisition, and partnership of other companies and new product development as strategic approaches to boost their brand presence across different regions. Prominent players in the market studied are more focused on developing new and innovative offerings in their research and development centers to cater to consumers' changing needs and demands by using advanced technologies. For instance, Renmatix and Cargill have signed a joint development agreement to explore new technology to make label-friendly, functional food ingredients from unused plant materials to meet consumer demand in June 2020.
Recent Developments
In 2021, International Flavors & Fragrances merged with DuPont's Nutrition and Bioscience. The merger will lead to the creation of leadership of the company in enzymes, food flavors, and scents, among the many other benefits.
In 2020, Tate & Lyle made a distribution partnership with Solevo, a leading distributor of chemicals in South Africa. The companies shared the ambition of offering high-quality food and beverage ingredients like low-calorie sweeteners, soluble fibers, and many more.
In 2020, Ingredion Incorporation launched Evanesse CB6194, the company's first clean-label emulsifier, made of vegan chickpea, for the United States and Canada. This product innovation was following the increasing vegan population in the states.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Market
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.2 Market Restraints
4.3 Porter's Five Forces Analysis
4.3.1 Threat of New Entrants
4.3.2 Bargaining Power of Buyers/Consumers
4.3.3 Bargaining Power of Suppliers
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Type
5.1.1 Preservatives
5.1.1.1 Natural
5.1.1.2 Synthetic
5.1.2 Sweeteners
5.1.2.1 Sucrose
5.1.2.2 Fructose
5.1.2.3 Stevia
5.1.2.4 High-fructose Corn Syrup
5.1.2.5 Xylitol
5.1.2.6 Aspartame
5.1.2.7 Other Sweeteners
5.1.3 Hydrocolloids
5.1.3.1 Starch
5.1.3.2 Gelatin Gum
5.1.3.3 Xanthan Gum
5.1.3.4 Other Hydrocolloids
5.1.4 Food Flavors and Enhancers
5.1.4.1 Natural Flavors
5.1.4.2 Synthetic Flavors
5.1.4.3 Flavor Enhancers
5.1.5 Food Colorants
5.1.5.1 Synthetic Food Colorants
5.1.5.2 Natural Food Colorants
5.1.6 Emulsifiers
5.1.6.1 Mono- and Di-Glycerides and Derivatives
5.1.6.2 Lecithin
5.1.6.3 Sorbate Esters
5.1.6.4 Other Emulsifiers
5.1.7 Anti-caking Agents
5.1.7.1 Calcium Compounds
5.1.7.2 Sodium Compounds
5.1.7.3 Silicon Dioxide
5.1.7.4 Other Anti-caking Agents
5.1.8 Enzymes
5.1.8.1 Carbohydrase
5.1.8.2 Protease
5.1.8.3 Lipase
5.1.8.4 Other Enzymes
5.1.9 Acidulants
5.1.9.1 Citric Acid
5.1.9.2 Phosphoric Acid
5.1.9.3 Lactic Acid
5.1.9.4 Other Acidulants
5.2 By Application
5.2.1 Bakery and Confectionery
5.2.2 Dairy and Desserts
5.2.3 Beverages
5.2.4 Meat and Meat Products
5.2.5 Soups, Sauces, and Dressings
5.2.6 Other Applications
5.3 Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Mexico
5.3.1.4 Rest of North America
5.3.2 Europe
5.3.2.1 Germany
5.3.2.2 United Kingdom
5.3.2.3 Spain
5.3.2.4 France
5.3.2.5 Italy
5.3.2.6 Russia
5.3.2.7 Rest of Europe
5.3.3 Asia-Pacific
5.3.3.1 China
5.3.3.2 Japan
5.3.3.3 India
5.3.3.4 Australia
5.3.3.5 Rest of Asia-Pacific
5.3.4 South America
5.3.4.1 Brazil
5.3.4.2 Argentina
5.3.4.3 Rest of South America
5.3.5 Middle-East and Africa
5.3.5.1 Saudi Arabia
5.3.5.2 South Africa
5.3.5.3 Rest of Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Most Active Companies
6.2 Market Share Analysis
6.3 Strategies Adopted by Leading Players
6.4 Company Profiles
6.4.1 Cargill Incorporated
6.4.2 BASF SE
6.4.3 Givuadan
6.4.4 Sensient Technologies
6.4.5 Archer Daniels Midland Company
6.4.6 Tate & Lyle PLC
6.4.7 Koninklijke DSM N.V.
6.4.8 Corbion NV
6.4.9 Ingredion Incorporated
6.4.10 Kerry Group
*List Not Exhaustive7. MARKET OPPORTUNITIES AND FUTURE TRENDS
8. IMPACT OF COVID-19 ON THE MARKET
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Frequently Asked Questions
What is the study period of this market?
The Food Additives Market market is studied from 2016 - 2027.
What is the growth rate of Food Additives Market?
The Food Additives Market is growing at a CAGR of 4.93% over the next 5 years.
Which region has highest growth rate in Food Additives Market?
Asia Pacific is growing at the highest CAGR over 2021- 2026.
Which region has largest share in Food Additives Market?
Asia-Pacific holds highest share in 2021.
Who are the key players in Food Additives Market?
Cargill, Incorporated, Archer Daniels Midland Company, Kerry Group, Ingredion Incorporated, Givuadan are the major companies operating in Food Additives Market.
