Market Size of Food Additives Industry
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 135.78 Billion |
| Market Size (2029) | USD 166.83 Billion |
| CAGR (2024 - 2029) | 3.54 % |
| Fastest Growing Market | Middle East and Africa |
| Largest Market | Asia-Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Food Additives Market Analysis
The Food Additives Market size is estimated at USD 135.78 billion in 2024, and is expected to reach USD 166.83 billion by 2029, growing at a CAGR of 3.54% during the forecast period (2024-2029).
The multifunctionality of additives, such as sweeteners, organic acids, and other hydrocolloids, is driving the demand for food additives in the market. These additives are used in different segments of the food manufacturing process, from structuring food and beverages to enhancing nutrition profile and flavor, thus increasing their desirability among food companies. The market is also driven by the rising demand for convenience, ethnic, and processed food, which is increasing the need for food packaging and processing solutions. Therefore, to preserve the freshness, safety, taste, appearance, and texture of processed foods, food additives are extensively used in processed and convenience food products. For instance, in 2023, plant technology company Ayana Bio conducted a survey, namely the “Ultra-processed Food Pulse survey,” across the United States and concluded that 82% of adults reported including ultra-processed foods in their diets.
New and emerging technologies, such as artificial intelligence, including CNN, ANN, fuzzy logic, and machine learning, which are boosting the Industrial Revolution 4.0, enable the production of cost-effective, safer, nutrient-rich ingredient additives and optimize their key attributes such as high bioactive (i.e., antioxidant) content, sustainability, authenticity, stability, and purity. For instance, with the growing demand for sustainable food products with ethical claims, many ingredient companies, like Cargill Inc. and Archer Daniels Midland Company, have incorporated AI tools into their supply chain to create transparency, hence enticing more consumer trust and brand loyalty. The trend of consumption of plant-based food is creating opportunities for the demand for natural and clean-label food ingredients worldwide, especially in the categories of colorants, acidulants, or hydrocolloids. Clean labels showing the words GMO-free, natural preservatives, and organic, among others, are helping the market grow significantly. The demand for food additives is expected to increase over the medium term, owing to the increasing consumption of processed foods and organic additives worldwide.
