|Market Size in 2020||Market Forecast in 2028||CAGR (in %)||Base Year|
|USD 34.4 Billion||USD 47.1 Billion||6.5%||2019|
Food Additives Market
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.
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.
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 Attributes||Report Details|
|Report Name||Food Additives Market Size Report|
|Market Size in 2020||USD 34.4 Billion|
|Market Forecast in 2028||USD 47.1 Billion|
|Growth Rate||CAGR of 6.5%|
|Number of Pages||188|
|Forecast Units||Value (USD Billion), and Volume (Units)|
|Key Companies Covered||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.|
|Segments Covered||By Type, By Application , By Process, and By Region|
|Historical Year||2017 to 2021|
|Forecast Year||2020 - 2028|
|Customization Scope||Avail customized purchase options to meet your exact research needs. Request For Customization|
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.
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
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.
The global Food Additives market is segmented as follows:
The global Food Additives market was valued at USD 34.4 Billion in 2020.
The global Food Additives market is expected to reach USD 47.1 Billion by 2028, growing at a CAGR of 3.9% between 2021 to 2028.
Some of the key factors driving the global Food Additives market growth are Favorable regulations by FDA pertaining to the approval of food additives, Increasing demand for clean labeled products along with innovation in the food industry
North America was the biggest area for food additives market in 2020 and is likely to sustain its position in the years to come. The food additives market is majorly boosted by the rising demand from the U.S. for food additives. North America grabbed over 30% share of the global food additives market in 2020.
Some of the major companies operating in Food Additives market are International Flavors and Fragrances, Tate & Lyle PLC., CHR. Hansen Holding A/S, Kerry Group Plc, Ajinomoto Co Inc., and INTERNATIONAL FLAVORS AND FRAGRANCES SE among others.