The global food preservative market is expected reach USD 3,001.4 million by 2023, at an estimated CAGR of 2.7% during 2018-2023 (the forecast period). The market is driven by increasing demand for clean label solutions, growing consumption of processed and packaged food, and complexity in supply chain in the food industry. The increasing penetration in the organized retail sector is likely to drive the food preservative market, particularly in emerging markets.
Food preservative manufacturers are seeing an increased demand from food manufacturers to preserve the freshness, safety, taste, appearance, and texture of processed foods. The growing market for processed food compliments the growth of the food preservative market. Changing lifestyle of people has also impacted their food habits. Consumers prefer convenience food, as it has high flavor profile and shell life. In developed regions, like the United States, processed food accounts for about 50% of the daily diet. Consumers in developing regions, like India and China, are also likely to follow a similar diet in the near future. The growing market for processed food acts as a prominent driver for the food preservative market. A large number of processed food manufacturers are aiming to shift from synthetic to natural additives in their products, to cater to the needs of the health conscious consumer. Thus, the natural preservative segment is expected to see high growth in the near future.
Over time, preservatives have become necessary additives in most food products, as they offer benefits, like extending the longevity of products and helping in keep them free from bacteria. The growing trend of living a healthy lifestyle has led to an increase in demand for food that contains natural ingredients, such as natural food preservatives, globally. Natural preservatives account for about 17% of the total share of the global food preservative market. A majority of natural preservatives in use now, are antioxidants that are found in a majority of fruits and vegetables. These compounds act as free radical scavengers and bacterial growth inhibitors.
North America accounts for about 34% market share in the global food preservative market. The US food preservative market is the one of largest in the world. The increasing demand for convenience and processed food propels the manufacturers to use food preservatives, to enhance the shelf life of food products. Asia-Pacific is expected to have the highest CAGR of 3.1% during the forecast period. Increasing population and rising disposable incomes of the middle-class consumers, created a subsequent demand for food, and in turn, for that of food preservatives in the Asia-Pacific region.
The global preservative market is dominated by Cargill, Danisco, Celanese Corp, Brenntag Inc., Kerry Group, and Royal DSM and Brenntag accounting for more than 70% share of the total market. To gain market share, these companies are adapting numerous market strategies, like innovative product development, partnerships, mergers and acquisitions, and expansion of existing facilities.