Market Trends of Food Additives Industry
Augmented Demand for Processed Food Products
With the rise in urbanization and a growing middle-income population, developed and developing regions across the globe are witnessing a rising demand for processed and packaged food, leading to more demand for food additives worldwide. Convenience is the key factor driving the global growth of processed product consumption. Due to the technological innovations in the food industry, convenience food has expanded to include chilled, frozen, and shelf-stable, microwave-able, prepared mixes, supporting the demand for food additives such as preservatives, emulsifiers, sugar, and substitutes. Baked goods, including pastries, cakes, industrial breads, and soft drinks, are among the most consumed ultra-processed foods and drinks in Europe, North America, and Australasia, according to an article published in the National Library of Medicine in 2022. Therefore, an increase in the global demand for processed food and beverages is fueling demand for food additives like preservatives, sugar and its substitutes, emulsifiers, food colorants, food flavors, and enhancers, among others. The demand for food additives is expected to increase over the medium term owing to the increasing demand for them in ultra-processed products.
Asia-Pacific Dominates the Market
China is the world's largest producer of ingredients, supplying them at a lower cost than others and thereby driving its exports of food additives. Furthermore, China is one of the world's largest consumers of ingredients. In addition, the growth of the food additive market in this country is supported by a growing middle-income population and economic development. Owing to this, the demand for food additives is increasing in the country as well as the region. Food and beverage manufacturers are actively looking for a perfect balance between maintaining and increasing the quality of nutrition characteristics in food products while also optimizing sensory factors such as taste and aroma to promote demand for food additives. As food manufacturers seek ingredients that can keep their production costs under control, flavoring additives are becoming more and more desirable. Market players are also launching new products to cater to the growing demand. For instance, in March 2021, BASF Venture Capital (BVC) invested in Bota Biosciences Ltd (Bota Bio), an industrial synthetic biotech company based in Hangzhou, China. Bota Bio is a next-generation biotechnology platform that enables sustainable and economical production of high-value products such as sweeteners for a broad array of industrial applications.
