Food Additives Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Food Additives Market is segmented by Type (Preservatives, Sweeteners, Hydrocolloids, Food Flavors and Enhancers, Food Colorants, Emulsifiers, Anti-caking Agents, Enzymes, and Acidulants); by Application (Bakery and Confectionery, Dairy and Desserts, Beverages, Meat, and Meat Products, Soups, Sauces, and Dressings, and Other Applications); and by Geography (North America, Europe, Asia-Pacific, South America, and the Middle-East and Africa). The report offers market size and forecasts for food additives in value (USD million) for all the above segments.

Market Snapshot

Food Additive Market Size
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.

By Type
Preservatives
Natural
Synthetic
Sweeteners
Sucrose
Fructose
Stevia
High-fructose Corn Syrup
Xylitol
Aspartame
Other Sweeteners
Hydrocolloids
Starch
Gelatin Gum
Xanthan Gum
Other Hydrocolloids
Food Flavors and Enhancers
Natural Flavors
Synthetic Flavors
Flavor Enhancers
Food Colorants
Synthetic Food Colorants
Natural Food Colorants
Emulsifiers
Mono- and Di-Glycerides and Derivatives
Lecithin
Sorbate Esters
Other Emulsifiers
Anti-caking Agents
Calcium Compounds
Sodium Compounds
Silicon Dioxide
Other Anti-caking Agents
Enzymes
Carbohydrase
Protease
Lipase
Other Enzymes
Acidulants
Citric Acid
Phosphoric Acid
Lactic Acid
Other Acidulants
By Application
Bakery and Confectionery
Dairy and Desserts
Beverages
Meat and Meat Products
Soups, Sauces, and Dressings
Other Applications
Geography
North America
United States
Canada
Mexico
Rest of North America
Europe
Germany
United Kingdom
Spain
France
Italy
Russia
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
Rest of Asia-Pacific
South America
Brazil
Argentina
Rest of South America
Middle-East and Africa
Saudi Arabia
South Africa
Rest of Middle-East and Africa

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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.

Food Additive Market Trends

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.

Food Additive Market Analysis

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. 1. INTRODUCTION

    1. 1.1 Study Assumptions and Market Definition

    2. 1.2 Scope of the Market

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Drivers

    2. 4.2 Market Restraints

    3. 4.3 Porter's Five Forces Analysis

      1. 4.3.1 Threat of New Entrants

      2. 4.3.2 Bargaining Power of Buyers/Consumers

      3. 4.3.3 Bargaining Power of Suppliers

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry

  5. 5. MARKET SEGMENTATION

    1. 5.1 By Type

      1. 5.1.1 Preservatives

        1. 5.1.1.1 Natural

        2. 5.1.1.2 Synthetic

      2. 5.1.2 Sweeteners

        1. 5.1.2.1 Sucrose

        2. 5.1.2.2 Fructose

        3. 5.1.2.3 Stevia

        4. 5.1.2.4 High-fructose Corn Syrup

        5. 5.1.2.5 Xylitol

        6. 5.1.2.6 Aspartame

        7. 5.1.2.7 Other Sweeteners

      3. 5.1.3 Hydrocolloids

        1. 5.1.3.1 Starch

        2. 5.1.3.2 Gelatin Gum

        3. 5.1.3.3 Xanthan Gum

        4. 5.1.3.4 Other Hydrocolloids

      4. 5.1.4 Food Flavors and Enhancers

        1. 5.1.4.1 Natural Flavors

        2. 5.1.4.2 Synthetic Flavors

        3. 5.1.4.3 Flavor Enhancers

      5. 5.1.5 Food Colorants

        1. 5.1.5.1 Synthetic Food Colorants

        2. 5.1.5.2 Natural Food Colorants

      6. 5.1.6 Emulsifiers

        1. 5.1.6.1 Mono- and Di-Glycerides and Derivatives

        2. 5.1.6.2 Lecithin

        3. 5.1.6.3 Sorbate Esters

        4. 5.1.6.4 Other Emulsifiers

      7. 5.1.7 Anti-caking Agents

        1. 5.1.7.1 Calcium Compounds

        2. 5.1.7.2 Sodium Compounds

        3. 5.1.7.3 Silicon Dioxide

        4. 5.1.7.4 Other Anti-caking Agents

      8. 5.1.8 Enzymes

        1. 5.1.8.1 Carbohydrase

        2. 5.1.8.2 Protease

        3. 5.1.8.3 Lipase

        4. 5.1.8.4 Other Enzymes

      9. 5.1.9 Acidulants

        1. 5.1.9.1 Citric Acid

        2. 5.1.9.2 Phosphoric Acid

        3. 5.1.9.3 Lactic Acid

        4. 5.1.9.4 Other Acidulants

    2. 5.2 By Application

      1. 5.2.1 Bakery and Confectionery

      2. 5.2.2 Dairy and Desserts

      3. 5.2.3 Beverages

      4. 5.2.4 Meat and Meat Products

      5. 5.2.5 Soups, Sauces, and Dressings

      6. 5.2.6 Other Applications

    3. 5.3 Geography

      1. 5.3.1 North America

        1. 5.3.1.1 United States

        2. 5.3.1.2 Canada

        3. 5.3.1.3 Mexico

        4. 5.3.1.4 Rest of North America

      2. 5.3.2 Europe

        1. 5.3.2.1 Germany

        2. 5.3.2.2 United Kingdom

        3. 5.3.2.3 Spain

        4. 5.3.2.4 France

        5. 5.3.2.5 Italy

        6. 5.3.2.6 Russia

        7. 5.3.2.7 Rest of Europe

      3. 5.3.3 Asia-Pacific

        1. 5.3.3.1 China

        2. 5.3.3.2 Japan

        3. 5.3.3.3 India

        4. 5.3.3.4 Australia

        5. 5.3.3.5 Rest of Asia-Pacific

      4. 5.3.4 South America

        1. 5.3.4.1 Brazil

        2. 5.3.4.2 Argentina

        3. 5.3.4.3 Rest of South America

      5. 5.3.5 Middle-East and Africa

        1. 5.3.5.1 Saudi Arabia

        2. 5.3.5.2 South Africa

        3. 5.3.5.3 Rest of Middle-East and Africa

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Most Active Companies

    2. 6.2 Market Share Analysis

    3. 6.3 Strategies Adopted by Leading Players

    4. 6.4 Company Profiles

      1. 6.4.1 Cargill Incorporated

      2. 6.4.2 BASF SE

      3. 6.4.3 Givuadan

      4. 6.4.4 Sensient Technologies​

      5. 6.4.5 Archer Daniels Midland Company

      6. 6.4.6 Tate & Lyle PLC

      7. 6.4.7 Koninklijke DSM N.V.

      8. 6.4.8 Corbion NV

      9. 6.4.9 Ingredion Incorporated

      10. 6.4.10 Kerry Group

    5. *List Not Exhaustive
  7. 7. MARKET OPPORTUNITIES AND FUTURE TRENDS

  8. 8. IMPACT OF COVID-19 ON THE MARKET

**Subject to Availability

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Frequently Asked Questions

The Food Additives Market market is studied from 2016 - 2027.

The Food Additives Market is growing at a CAGR of 4.93% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia-Pacific holds highest share in 2021.

Cargill, Incorporated, Archer Daniels Midland Company, Kerry Group, Ingredion Incorporated, Givuadan are the major companies operating in Food Additives Market.

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