The Global Food Preservatives Market size is expected to reach $4.1 billion by 2030, rising at a market growth of 5.1% CAGR during the forecast period. In the year 2022, the market attained a volume of 192,466.9 Kilo Tonnes, experiencing a growth of 4.3% (2019-2022).
Vinegar, particularly apple cider vinegar, is associated with potential health benefits. The demand for artisanal and specialty food products has grown, and vinegar fits well into this trend. Therefore, the Vinegar segment captured $192.8 million revenue in the market in 2022. The ongoing influence of health and wellness trends on consumer decision-making has led to the recognition of vinegar as both a preservative and a functional constituent in food products. Specialty vinegar, such as balsamic or flavored vinegar, is used for its unique taste profiles and natural preservative properties.
The major strategies followed by the market participants are Product Launches as the key developmental strategy to keep pace with the changing demands of end users. For instance, In May, 2023, Akzo Nobel N.V. introduced Accelshield 700, a BPA-NI inner coating for beverage can lids, specifically designed for food and liquids with stringent storage requirements, catering to acidic or high-temperature sterilization needs, such as yogurt, milk, coffee, soft drinks, and beer. Additionally, In December, 2021, BASF SE introduced Natupulse TS, a non-starch polysaccharide (NSP) enzyme for animal feed. Functioning as an endo-1,4-ß-D-mannanase, it hydrolyzes ß-mannans into smaller components, such as manno-oligosaccharides (MOS).
Cardinal Matrix - Market Competition Analysis
Based on the Analysis presented in the Cardinal matrix; Archer Daniels Midland Company are the forerunners in the Market. Companies such as Koninklijke DSM N.V., Kerry Group PLC, Akzo Nobel N.V. are some of the key innovators in the Market. For Instance, In October, 2019, Kemin Industries, Inc., introduced two new product ranges in its Ruminant Essentialities portfolio for animal nutrition and health. The offerings comprised Kessent, featuring rumen-protected Methionine developed by Kemin for precise feeding in ruminant diets, and CholiGem, a Choline nutrition product also developed and produced by Kemin, completing the Ruminant Essentialities portfolio.
Market Growth Factors
Increasing demand for processed and convenience foods
Fast-paced routines, with limited time available for meal preparation, often characterize urban lifestyles. Convenience foods, which include ready-to-eat meals, snacks, and pre-packaged items, offer a quick and time-saving solution for individuals with busy schedules. Increased income levels and purchasing power often accompany urbanization. Urbanization brings challenges related to food distribution and storage, as products need to travel longer distances and be stored for extended periods. Food preservatives are essential for preventing spoilage, maintaining freshness, and extending the shelf life of products in the supply chain. Likewise, the growth of convenience stores, fast-food outlets, and online food delivery services in urban areas further supports the demand for processed and convenience foods. These factors will drive the demand in the market.
Globalization of food supply chains
Globalization often leads to longer and more complex food supply chains involving transporting raw materials and finished products across different countries and regions. The extended transit times and distances need effective preservation methods, with as essential tools to prevent spoilage and maintain product quality. Global supply chains are susceptible to various risks, including fluctuations in climate, political instability, and unforeseen events such as natural disasters. Preservatives help mitigate these risks by ensuring that food products remain viable and safe even in challenging conditions, reducing potential financial losses due to spoilage. These factors are expected to help expand the market.
Market Restraining Factors
Technological advancements in packaging
Modified atmosphere packaging (MAP) involves altering the composition of the air surrounding a food product within the package to slow deterioration. By adjusting the oxygen, carbon dioxide, and nitrogen levels, MAP can create an atmosphere that inhibits the growth of spoilage microorganisms and oxidative reactions. The controlled environments created by MAP and vacuum packaging reduce the need for certain preservatives traditionally used to inhibit microbial growth and prevent oxidation. This aligns with consumer preferences for minimally processed and additive-free foods. MAP and vacuum packaging help maintain the freshness of products by minimizing exposure to air and preventing the development of off-flavors or off-odors. This is particularly important for products sensitive to oxidation or microbial contamination. The use of MAP and vacuum packaging provides an alternative approach to preserving food products, reducing the reliance on synthetic preservatives that consumers may perceive negatively. These factors will lead to reduced demand in the market.
The leading players in the market are competing with diverse innovative offerings to remain competitive in the market. The above illustration shows the percentage of revenue shared by some of the leading companies in the market. The leading players of the market are adopting various strategies in order to cater demand coming from the different industries. The key developmental strategies in the market are Product Launches and Product Expansions.
Function Outlook
Based on function, the market is divided into anti-microbial, anti-oxidant, and others. The anti-microbial segment held the largest revenue share in the market in 2022. Growing consumer awareness about foodborne illnesses and the importance of food safety has driven the demand for preservatives with antimicrobial properties. Consumers seek products that remain safe and fresh for an extended period. Antimicrobial preservatives effectively prevent spoilage caused by bacteria, molds, and yeasts. As consumers increasingly prioritize longer shelf life and reduced food waste, the demand for preservatives with antimicrobial properties has surged. These factors will pose lucrative growth prospects for the segment.
Type Outlook
Based on type, the market is bifurcated into natural and synthetic. The natural segment held a significant revenue share in the market in 2022. Growing awareness of health and wellness, coupled with concerns about the potential health impacts of synthetic additives, has influenced consumers to choose products with natural preservatives. Natural preservatives are often associated with a healthier and more wholesome image. These factors will boost the demand in the segment.
Application Outlook
On the basis of application, the market is divided into meat & poultry product, bakery products, dairy product, beverages, snacks, and others. The meat and poultry product segment recorded the maximum revenue share in the market in 2022. The susceptibility of meat and poultry products to microbial contamination makes effective preservation essential. Foodborne pathogens and spoilage microorganisms can compromise the safety and quality of these products. Preservatives help inhibit the growth of bacteria, molds, and yeasts, contributing to the microbiological safety and shelf-life extension of meat and poultry. These aspects will boost the demand in the segment.
Regional Outlook
By region, the market is segmented into North America, Europe, Asia Pacific, and LAMEA. In 2022, the Europe segment acquired a considerable revenue share in the market. Europe has robust regulatory frameworks governing food safety. Stringent regulations related to food preservation and additives drive the demand for approved and safe preservatives, fostering growth in the market. Growing consumer awareness about food safety, shelf-life extension, and the impact of preservatives on health has influenced purchasing decisions. This has led to a demand for preservatives that align with clean label and natural food trends. Therefore, the segment will expand rapidly in the future.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include Archer Daniels Midland Company, Cargill, Incorporated, Kerry Group, Plc., Akzo Nobel N.V., Kemin Industries, Inc., Univar Solutions, Inc., Koninklijke DSM N.V., Tate & Lyle Plc., BASF SE, Celanese Corporation.
Strategies Deployed in the Market
Partnerships, Collaborations and Agreements:
- Aug-2023: Akzo Nobel N.V. partnered with BioCote, the market leading antimicrobial technology supplier, to extend their Interpon brand, creating Interpon AM, an antimicrobial powder coating range. Interpon AM ensures protection against microbial growth and degradation on treated surfaces, with guaranteed high performance in various applications and environments, subject to regular quality control by BioCote.
- Oct-2022: Cargill, Inc., Unitec Foods, and Fuji Nihon Seito Corporation signed an MoU to enhance their partnership in food ingredient solutions in Japan and the Asia Pacific. The collaboration included joint efforts in technical, operational, and commercial initiatives, leveraging Cargill's global insights and expertise from the Cargill Innovation Center in Singapore and Unitec Foods' facilities in Japan.
- Nov-2020: Kemin Industries, Inc. and Pestell Nutrition, a prominent distributor in the animal nutrition sector, had announced a distribution and logistics partnership throughout Canada. This extended relationship allowed Kemin Animal Nutrition and Health – North America to reach a broader customer base, while Pestell expanded its value-added feed additive portfolio in Canada.
Product Launches and Product Expansions:
- Sep-2023: Kemin Industries, Inc. developed Shield V Plus Dry as a potassium sorbate alternative for the bakery industry. This natural ingredient, utilizing advanced technology, inhibited mold growth and extended the shelf life of bakery products. The company claimed that Shield V Plus Dry provided a balanced flavor, was heat-stable, allowing manufacturers to meet the demands of health-conscious consumers without compromising taste or sensory attributes.
- May-2023: Akzo Nobel N.V. introduced Accelshield 700, a BPA-NI inner coating for beverage can lids. This coating facilitated the transformation process for metal can and roll coating factories to go bisphenol-free. It was specifically designed for food and liquids with stringent storage requirements, catering to acidic or high-temperature sterilization needs, such as yogurt, milk, coffee, soft drinks, and beer.
- Dec-2021: BASF SE introduced Natupulse TS, a non-starch polysaccharide (NSP) enzyme for animal feed. Functioning as an endo-1,4-ß-D-mannanase, it hydrolyzes ß-mannans into smaller components, such as manno-oligosaccharides (MOS). The inclusion of ß-mannanase in the feed reduced digesta viscosity, enhanced feed digestibility, and promoted more sustainable production.
- Jul-2021: Koninklijke DSM N.V. expanded its Dairy Safe cheese biopreservation portfolio with new phage-robust culture rotations, ensuring reliable and consistent cheese production with optimal phage management for cheese producers.
Acquisition and Mergers:
- Sep-2021: Kerry Group, Plc. completed the acquisition of Niacet, a leading producer of organic salts, including propionates and acetates, serving the Food, Pharmaceutical and Technical industries, enhancing its global food protection platform with Niacet's capabilities. The addition of complementary technologies strengthened Kerry's leadership and accelerated its growth in clean-label food protection and preservation.
- Apr-2021: Kemin Industries, Inc. acquired Proteus Industries, Inc., a food technology and ingredient company known for developing patented clean label protein ingredients to enhance yield. The acquisition expanded Kemin Food Technologies' global portfolio, offering sustainable clean label yield enhancement technology. This enabled manufacturers to meet consumer preferences, achieve greater yields, and reduce input costs.
- Oct-2020: Koninklijke DSM N.V. completed the acquisition of Biomin and Romer Labs, subsidiaries of the Erber Group. DSM stated that acquiring Erber Group's Biomin enhanced DSM's expertise and aligned with its commitment to making animal farming more sustainable ecologically and economically.
Scope of the Study
Market Segments Covered in the Report:
By Function (Volume, Kilo Tonnes, USD Billion, 2019-2030)
- Anti-microbial
- Anti-oxidant
- Others
By Type (Volume, Kilo Tonnes, USD Billion, 2019-2030)
- Natural
- Edible Oil
- Rosemary Extracts
- Natamycin
- Vinegar
- Others
- Synthetic
- Sorbates
- Benzoates
- Propionates
- Others
By Application (Volume, Kilo Tonnes, USD Billion, 2019-2030)
- Meat & Poultry Product
- Bakery Products
- Dairy Product
- Beverages
- Snacks
- Others
By Geography (Volume, Kilo Tonnes, USD Billion, 2019-2030)
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- Archer Daniels Midland Company
- Cargill, Incorporated
- Kerry Group, Plc.
- Akzo Nobel N.V.
- Kemin Industries, Inc.
- Univar Solutions, Inc.
- Koninklijke DSM N.V.
- Tate & Lyle Plc.
- BASF SE
- Celanese Corporation
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Table of Contents
Companies Mentioned
- Archer Daniels Midland Company
- Cargill, Incorporated
- Kerry Group, Plc.
- Akzo Nobel N.V.
- Kemin Industries, Inc.
- Univar Solutions, Inc.
- Koninklijke DSM N.V.
- Tate & Lyle Plc.
- BASF SE
- Celanese Corporation
Methodology
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