The Canadian food additives market is expected to register a CAGR of 3.6% during the forecast period, 2020 - 2025. The market is driven by an extensive use of additives in the food and beverage sector for different functioning, such as preservative, flavor enhancer, emulsifier, sweetener, colorant, and many other functions.
Moreover, the rising population, growing demand for food, need for food preservation, growing concerns toward food safety due to contamination, rising health concerns, consumer demand for better quality, and increasing consumption of premium food products are several important reasons that are driving the demand for food additives.
Furthermore, the food additives markets obeserve it as an opportunity in the form of rising innovations, to meet the nutraceutical ingredients market requirements. However, several health hazards and side-effects associated with synthetic food additives are anticipated to negatively impact the growth of the market.
Key Market Trends
Rising Demand for Sweeteners in the Country
- The Canadian sweetener segment is recorded to have a significant growth over the last decade. This segment includes bulk sweetener and sugar substitute. The bulk sweetener subsequent, which include sucrose, fructose. lactose, high fructose corn syrup (HFCS), and others are the largest segment.
- Growing health concerns associated with artificial sweeteners, such as aspartame and saccharin, are driving consumers' interest in natural sweeteners. Steviol glycosides majorly contribute to the growth in the natural high-intensity sweeteners space, followed by monk fruit extract and Mogroside V. Sugar substitutes, like stevia, aspartame, sucralose, neotame, acesulfame potassium, and saccharin.
- These substrates are approved by USDA and are categorized under GRAS in Canada. Therefore, these favorable regulations result in further growth of the market.
Acquisitive Demand of Food Additives in Bakery Industries
- The population of Canada represents diversified tastes and preferences. Thus, manufacturers are constantly innovating and widening their product portfolio to meet the dynamic consumer demands.
- Hectic lifestyles present a suitable opportunity for on-the-go breakfast and convenient baked goods. In Canada, indulgence is leading the growth in baked goods and pastries, which, in turn, is resulting a growth in the market studied.
- Furthermore, an increase in the number of retailers, retail channels, and formats is widening consumer's access to processed and convenience foods, thereby, eventually resulting a further increase in the demand for food additives in the food and beverage industry in Canada.
Competitive Landscape
The Canadian food additives market is highly competitive and fragmented in nature, owing to the presence of many regional and domestic players. Emphasis is given on the merger, expansion, acquisition, and partnership of the companies, along with new product development as strategic approaches adopted by the leading companies, to boost their brand presence among consumers. Key players dominating the country's market include Cargill Incorporated, DuPont de Nemours Inc., Ingredion Incorporated, NOW Health Group Inc., JG Group Stevia Canada, Brenntag Canada Inc., and Jungbunzlauer Suisse AG, among others.
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Table of Contents
Methodology
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