Global Wood-derived Food Additives Market Grows Steadily at a CAGR of 4.85%

Introduction

Wood is the primary structural component found in the stems and roots of trees and other botanical specimens characterized by their woody nature. The utilization of this particular component is prevalent in the production of food additives and components. Wood-derived food additives are natural substances derived from wood used in the food industry to preserve flavor and other sensory food qualities. These additives are derived from hardwood and softwood trees, including birch, beech, pine, and oak. These additives extend the product's shelf life.

Market Dynamics

Growing Demand from the Convenience Food Industry Drives the Global Market

Wood-derived food additives such as cellulose, lignin, and hemicellulose serve as stabilizers, thickeners, and emulsifiers in numerous food applications. In addition to enhancing texture, retaining moisture, and extending shelf life, these additives also provide functional advantages. Wood chips and sawdust from specific wood species, such as hickory and mesquite, impart smokey aromas to food items through smoking or grilling. This technique frequently preserves various foods, including smoked meats, cheeses, and certain snacks.

Rapid urbanization, an improved consumer lifestyle, and a high disposable income all contribute to expanding the market for convenience foods. In addition, factors such as the increase in the number of millennials, the increase in the number of working women, hectic work schedules, and on-the-go consumption patterns are anticipated to contribute to the expansion of the global convenience food market. This has stimulated the adoption of wood-derived food additives to improve convenience foods' texture and preservation properties, driving market expansion.

Rising Demand for Sustainable Products Creates Tremendous Opportunities

Wood is a renewable and sustainable resource used to produce wood-derived food additives. They can lessen the use of fossil fuels and other non-renewable resources. Indicating a desire to identify and comprehend the ingredients used in these products, consumer demand for products with clean labels is increasing. In contrast to synthetic or chemically modified additives, additives derived from wood may be natural and in line with the current trend.

In recent years, consumer engagement with a sustainable perspective has grown. The Economist Intelligence Unit reports that online searches for sustainable products have increased 71% over the past five years. Moreover, according to a survey conducted by McKinsey & Co., 66% of all respondents and 75% of millennials consider sustainability when making purchases. Given that environmental stability is a top priority for many individuals, businesses must reduce their carbon footprint. The food industry increasingly utilizes wood-derived food additives to meet sustainability standards. This is anticipated to create market expansion opportunities.

Regional Analysis

North America is the most significant global wood-derived food additives market shareholder and is expected to expand substantially during the forecast period. The significant growth of the natural and organic food additives market in North America can be attributed to the strong customer demand for such products in this region. Organic packaged food consumption is anticipated to increase by approximately USD 3.8 billion between 2021 and 2025, reaching over USD 25 billion. In addition, the consumption value of organic beverages is anticipated to reach approximately USD 2.8 billion by 2025.

One of the primary factors influencing U.S. consumers' decisions to purchase organic food is the absence of artificial ingredients and pesticides. Therefore, the high demand for natural and organic foods drives the demand for natural and organic food additives, such as wood-derived food additives.

Key Highlights

• The global wood-derived food additives market size is estimated to grow at a CAGR of 4.85% during the forecast period (2023–2031).
• Based on type, the global wood-derived food additives market is divided into fibrillated cellulose, lignin, xylan, vanillin, and carboxymethyl cellulose (CMC).
• Based on application, the global wood-derived food additives market is segmented into bakery and. confectionery, beverages, sweet and savory snacks, and dairy and frozen desserts.
• North America is the most significant global wood-derived food additives market shareholder and is expected to expand substantially during the forecast period.

Competitive Players

Competitive Players

The key global wood-derived food additives market players E. I. DU Pont DE Nemours and Company, BASF SE, Cargill Inc., Tate & Lyle Plc., Archer-Daniels-Midland Company, Kerry Group Plc, Evonik Industries AG, CP Kelco U.S., Inc., and Ingredion Incorporated, and others.

Recent Developments

Market News

• In April 2023, Impossible Materials, a Swiss startup, raised SFr3.4 million (S3.8 million) in seed funding to commercialize its first product, a cellulose-based alternative to titanium dioxide (TiO2), a white pigment recently prohibited for use in EU food products.
• In October 2023, With the launch of ROVITARIS Binding Solution made with Rubi Protein, functional ingredient supplier ICL Food Specialties and Plantible Foods entered the race to replace the widely used but increasingly detested binding and gelling ingredient methylcellulose in plant-based proteins.

Segmentation

Global Wood-derived Food Additives Market: Segmentation

By Type

• Fibrillated Cellulose
• Lignin
• Xylan
• Vanillin
• Carboxymethyl Cellulose (CMC))

By Applications

• Bakery and Confectionery
• Beverages
• Sweet and Savory Snacks
• Dairy and Frozen Desserts

By Regions

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa