Food Additives Food Additives Market

Food Additives Market: Overview     

The global Food Additives market accounted for USD 34.4 Billion in 2020 and is expected to reach USD 47.1 Billion by 2028, growing at a CAGR of 6.5% from 2021 to 2028.      

Food additives are usually in used in the production process of various food and beverages to maintain and develop the freshness, taste, and texture of the food. They are extracted from both natural and synthetic sources.

The major players in the global food additives market are emphasizing mergers & acquisitions in order to surge the product portfolio and also increase their presence across the globe. The companies in the market are focusing on expanding business across all the regions and developing strategies to size up production capability and strong global presence.

COVID-19 Impact Analysis:

The food & beverages industry is anticipated to experience differential impact of this rapid spreading COVID-19 on each stage of its value chain through mediums of affected workforce at industrial level, raw material supply, trade & logistics, demand-supply volatility, and uncertain consumer demand at retail outlets. Products and inventory levels across the industry spectrum are expected to be impacted. Key players and vendors are facing challenges in raw material supply, owing to poor logistics, traffic control, and restrictions on public movement in affected countries across the globe, which leads to supply disruptions. Trade restrictions imposed by several countries across the globe to prevent further spread of coronavirus has significantly affected global logistics and transportation, which, in turn, has impacted the food additives market.

Food Additives Market: Growth Factors

Increasing focus on healthier lifestyles, rising workforce and increasing awareness about quality foods, are likely to augment the growth of the food additives market.

The food additives market is highly consolidated owing to the presence of major players. The company is emphasizing mergers & acquisitions in order to surge the product portfolio and also increase its presence across the globe.

Changing the lifestyle of the consumer tendency towards shifting to convenient, processed, and packaged products may spur market growth. They are added in small quantities in various products such as Bakery & Confectionery, Beverage, and Sauces, Dressings, Spices & Condiments, Convenience Foods, among others. Moreover, Increase in women workforce and changing lifestyle patterns of consumers help the market to grow in the coming years.

Report Scope:

Type Segment Analysis Preview

Some of the major Food Additives types are Flavors, Hydrocolloids, Acidulants, Colors, Emulsifiers, Preservatives, and Sweeteners). The flavors segment gained a major demand in the coming years. High demand for new flavors from the food & beverages industry and continuous innovation drives the growth of the food additives market. In addition, increase in requirement from the fast food industry is expected to provide growth opportunities in the food flavors market during the forecast period.

Source Segment Analysis Preview

 By source, the market is segmented into Natural and Artificial Food Additives. Artificial flavors are chemical compounds that are used to add taste to the food or enhance the food flavoring characteristics of natural food flavors. Artificial flavors undergo stringent regulatory evaluation as compared to natural flavors. Chemicals used in artificial flavors involve less cost for processing as compared to natural flavors. Furthermore, the processing time of artificial flavors is extremely less and is eco-friendly. Artificial flavors are widely used across various industries, especially in the beverages and processed food industries

Application Segment Analysis Preview

The bakery & Confectionery segment holds the major share In the market. The sales of bakery & confectionery products are expected to increase by 2027 across the world with the change in taste of the global population. Bakery & confectionery offers innovative food items with delicious tastes. Asia-Pacific dominates the bakery & confectionery market. India and China are the biggest producers of grains, globally. Thus, bakery & confectionery products are manufactured in large volumes in these countries. Numerous industry giants, such as Cadbury Ltd. and Nestle S.A., focus on increasing their production capacities in Asia-Pacific. India is the third largest manufacturer of biscuits in the world after the U.S. and China. Low cost, easy availability, and good taste are the major factors that drive the growth of the bakery & confectionery market.

Food Additives Market: Key Players & Competitive Landscape

Some of key players in Food Additives market are Tate & Lyle PLC., International Flavors and Fragrances, Kerry Group Plc, CHR Hansen Holding A/S, INTERNATIONAL FLAVORS AND FRAGRANCES SE, and Ajinomoto Co Inc. among others.

The global Food Additives market is segmented as follows:    

By Type

• Flavors
• Hydrocolloids
• Acidulants
• Colors
• Emulsifiers
• Preservatives
• Sweeteners

By Process

• Natural
• Artificial

 By Application

• Bakery & Confectionery
• Beverage
•  Sauces
• Dressings
• Spices & Condiments
• Convenience Foods
• Dairy & Frozen Desserts
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of the Middle East & Africa