The Food Additives Market was valued at USD 131.53 billion in 2021 and is projected to reach USD 160.59 billion in 2027 by registering a CAGR of 3.55%during the forecast period 2022-2027 (henceforth, referred to as the forecast period).
During the COVID-19 pandemic, the food additives market was adversely impacted along with the various processes ranging from the procurement of raw materials to the production of end products. In addition, the manufacturers faced issues because of the labour shortage, and the import and export restrictions halted the production process. Food and beverage products, such as bakery, confectionery, dairy products, and soft drinks containing food additives, like sweetener and food flavour, have been withheld as supermarkets re-allocated stock priorities toward staples and essential supplies due to the outbreak. It was mainly due to the mass lockdown instructions given by several countries' governments to avoid the spread of the pandemic in their respective countries. However, nutraceuticals and healthy food products have paced their market growth due to the demand for immunity-boosting products, which, in turn, has increased the demand for additives.
The multifunctionality of food additives has been raising their desirability among food companies and increasing the market's growth. Additionally, consumption of sustained quality food and beverages with improved visual and taste appeal increases, and demand for food additives is assumed to boost the market. Several organizations, such as the Food Administrative Organization, the United States Department of Agriculture, and JECFA (Joint FAO/WHO Expert Committee on Food Additives, are introducing a general standard for food additives (GSFA) to increase the trade among countries.
Furthermore, the rapid expansion of technology in the industry about consumers' demand for healthy food options is projected to positively impact market growth. For instance, companies operating in the food additives market have been focusing on adopting micro-encapsulation techniques for color delivery in the final product formulations.
Moreover, extensive promotions made by several associations worldwide are further boosting the consumption of natural and clean-label additives. For instance, one of the most popular associations promoting the market includes the Natural Food Colors Association. Based in Europe, the association involves an extensive promotion of natural colorants. Moreover, it works with industry leaders, such as ADM Wild, DDW Color House, CHR Hansen, FMC, and GNT. To increase efficiency in the industry, the association operates different working groups to examine the potential of various natural color sources.
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During the COVID-19 pandemic, the food additives market was adversely impacted along with the various processes ranging from the procurement of raw materials to the production of end products. In addition, the manufacturers faced issues because of the labour shortage, and the import and export restrictions halted the production process. Food and beverage products, such as bakery, confectionery, dairy products, and soft drinks containing food additives, like sweetener and food flavour, have been withheld as supermarkets re-allocated stock priorities toward staples and essential supplies due to the outbreak. It was mainly due to the mass lockdown instructions given by several countries' governments to avoid the spread of the pandemic in their respective countries. However, nutraceuticals and healthy food products have paced their market growth due to the demand for immunity-boosting products, which, in turn, has increased the demand for additives.
The multifunctionality of food additives has been raising their desirability among food companies and increasing the market's growth. Additionally, consumption of sustained quality food and beverages with improved visual and taste appeal increases, and demand for food additives is assumed to boost the market. Several organizations, such as the Food Administrative Organization, the United States Department of Agriculture, and JECFA (Joint FAO/WHO Expert Committee on Food Additives, are introducing a general standard for food additives (GSFA) to increase the trade among countries.
Furthermore, the rapid expansion of technology in the industry about consumers' demand for healthy food options is projected to positively impact market growth. For instance, companies operating in the food additives market have been focusing on adopting micro-encapsulation techniques for color delivery in the final product formulations.
Key Market Trends
Rising Preference for Clean Label and Natural Ingredients as Food Additives
‘Clean labeling’ is no longer a trend but has become a high-rated consumer demand that the global food industry responds to by putting additional emphasis on these aspects while processing a food product. The food additive manufacturers have also adapted the production of clean-label additives that can be helpful while developing clean-label products. These clean-label additives have found their applications in varied food products, including egg replacement in low- and high-fat vegan, dressings, white cooking sauces, ready meals, and other applications. Thus, food and beverage manufacturers are also increasingly reformulating their products to meet the changing consumer demand for natural ingredients. For instance, in March 2020, Ingredion Inc. introduced its first clean-label emulsifier, Evanesse CB6194, to the markets in the United States and Canada. This emulsifier range caters to the rising demand for clean labels and acts as an apt solution for vegan products, as it is a vegan chickpea broth. Therefore, such ingredients are projected to drive the market with escalating veganismMoreover, extensive promotions made by several associations worldwide are further boosting the consumption of natural and clean-label additives. For instance, one of the most popular associations promoting the market includes the Natural Food Colors Association. Based in Europe, the association involves an extensive promotion of natural colorants. Moreover, it works with industry leaders, such as ADM Wild, DDW Color House, CHR Hansen, FMC, and GNT. To increase efficiency in the industry, the association operates different working groups to examine the potential of various natural color sources.
Asia-Pacific Dominates the Market
Asia-Pacific is the fastest-growing among all the regions because of the increase in demand for processed food. India and Australia are among the world's largest milk producers, and demand in the region is increasing for flavoured milk, ice creams, and many other dairy products. Food additives, such as colours, emulsifiers, food flavours, sweeteners, and others, are required for the production of various dairy products. For instance, emulsifiers in the ice cream industry are very common, especially E4701, which helps in viscosity, stability, and fat reduction, used by such as Amul. Also, demand for food colouring has spiked dynamically across Asian countries. As a result, China, a significant producer and consumer of food colourants published a new standard to provide regulatory certainty to colouring foodstuff, which intended to offer absolute rights to products, using these ingredients to claim as natural. The standard is anticipated to provide ease to manufacturers willing to replace additive colours with clean label solutions, eventually aiding the natural food colourant market value.Competitive Landscape
The market is highly competitive and is, therefore, fragmented. It is dominated by Cargill Incorporated, The Archer-Daniels-Midland Company, Kerry Group plc, Ingredion Incorporated, Givaudan SA, and Royal DSM N.V., among others, who account for a substantial market share. Leading companies emphasize the merger, expansion, acquisition, and partnership of other companies and new product development as strategic approaches to boost their brand presence across different regions. Prominent players in the market studied are more focused on developing new and innovative offerings in their research and development centres to cater to consumers' changing needs and demands. Moreover, key players are expanding their regional presence by opening new manufacturing plants in new regions. For instance, In May 2022, Kerry Group opened a new EUR 38 million manufacturing plant in Africa. The 10,000-square-meter plant is to produce nutrition products that will be consumed across Africa. The facility will advance Kerry’s Food & Beverage production capacity by 40% to 40,000 tons per annum.Additional Benefits:
- The market estimate (ME) sheet in Excel format
- 3 months of analyst support
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Table of Contents
1 INTRODUCTION
4 MARKET DYNAMICS
5 MARKET SEGMENTATION
6 COMPETITIVE LANDSCAPE
Companies Mentioned
A selection of companies mentioned in this report includes:
- BASF SE
- Ajinomoto Co. Inc.
- DuPont de Nemours, Inc.
- Archer Daniels Midland Company
- Tate & Lyle Plc
- AGRANA Beteiligungs - Ag
- Corbion NV
- Kerry Group Plc
- Givaudan SA
- DSM N.V.
Methodology
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