The global food additives market size was valued at USD 139.79 billion in 2021. It is projected to reach USD 215.76 billion by 2030, growing at a CAGR of 4.93% during the forecast period (2022–2030). Food additives are widely employed in the food industry and are used to improve the taste, texture, and appearance of food. Some additives are also used to preserve food or to make it healthier. In recent years, the usage of food additives has increased due to customers' growing desire for healthier and more functional foods. Food additives can help improve the nutrient content of food and enhance its flavor. Preservatives, coloring agents, and flavoring agents are a few examples of common food additives.
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Rising Preference for Clean Label and Natural Ingredients
As "clean labeling" is becoming increasingly important to consumers, the food industry worldwide has begun to prioritize it throughout the production process. Consumers are learning about the negative health impacts of consuming synthetic food additives such as colorants, flavors, texturizers, fat replacers, and sweeteners due to numerous research initiatives and limitations governments place. Furthermore, government agencies, including the WHO, FDA, EFSA, and FSSAI, have established regulations for using these substances in food items to which food and beverage producers must comply. These agencies have acknowledged the dangerous consequences of these ingredients.
Increasing Demand for Convenience and Processed Food
One of the key factors propelling the growth of the food additives market is the rising demand for convenience and processed foods such as ready-to-eat foods, ready-to-drink beverages, snacks, frozen dinners, and others. The need for processed and packaged foods is rising in both developed and developing regions of the world due to urbanization, a growing middle-class population, an increase in the number of working women, and an increase in disposable income. As a result, there is a tremendous need for food packaging and processing solutions. In order to preserve the original quality of processed foods, such as their freshness, safety, taste, appearance, and texture, food additives are commonly used in processed and convenience food products. For instance, antioxidants stop the oxidation of fats and oils, preservatives stop or slow the growth of germs (like mold on bread), and thickeners are a common additive in practically all dairy products.
Increased Consumer Awareness of Side-Effects of Chemical Additives
Many retailers include benzoate, bromate, BHA, BHT, brominated oils, maleic hydrazide, etc., in their list of "inappropriate ingredients" in response to consumers desiring to avoid synthetic chemicals. In order to limit the use of chemical additives in different food and beverage items, ongoing research and development have been conducted worldwide, especially in industrialized countries. This aspect has significantly decreased the market expansion for food additives. Also, there is a common misconception that underdeveloped countries serve as dumping grounds for chemical preservation agents due to their low regulatory systems. However, it is anticipated that increasing consumer knowledge of the lax safety standards in use would also slow the development of chemical food preservatives.
Increase Consumption of Beverages and Processed Food
The rate of globalization has accelerated the experimentation with new dishes as people get more familiar with various items around the world. Additionally, the variables and causes affecting packaged food and beverages have changed significantly due to the increased demand for multiple meals and drinks to satisfy growing customer demands. Emulsifiers, anti-caking agents, sweeteners, preservatives, food colors, and food tastes are just a few of the several additives. Nowadays, consumers want foods and beverages that are tasty as well as healthful, such as soft drinks, milkshakes, and fruit juices, which typically contain food coloring, natural food flavors, preservatives, and sweeteners. Due to their busy lifestyles, customers frequently prefer processed foods like ready-to-eat food items or canned foods because they are quick and fast to consume.
The global food additives market is segmented by product type.
Based on product type, the global food additives market is bifurcated into preservatives, bulk sweeteners, sugar substitutes, emulsifiers, anti-caking agents, enzymes, food flavors and enhancers, food colorants, and acidulants.
The bulk sweeteners segment is the highest contributor to the market and is estimated to grow at a CAGR of 2.83% during the forecast period. Some bulk sweeteners are lactose, sucrose, fructose, high-fructose corn syrup, and fructose. Sucrose also referred to as "table sugar" or "cane sugar," is widely utilized in various industries, including that confectionery, baking, and beverages. In addition to adding sweetness to the product, it can be used as a preservative in meat curing, fruit preservation, and canning. In order to serve the needs of the producers of food and beverages, sucrose is offered in the market in powdered, granulated, or liquid forms. The rising health consciousness of consumers worldwide affects sucrose's market share because it contributes to dental cavities, weight gain, and other health issues, reducing sugar consumption in foods and beverages.
Sweetness, humectant, color, taste improvement or development, freezing-point reduction, and osmotic stability are just a few of the physical and functional qualities that fructose can contribute to food and beverage applications. As a result, it may be found in various items such as dry mix beverages, low-calorie foods, enhanced or flavored water, still and carbonated beverages, sports and energy drinks, chocolate milk, breakfast cereals, baked goods, yogurt, fruit packs, and confections. Like sucrose, lactose is a disaccharide in the pharmaceutical, food, and beverage industries. Lactose is a joint filler and coating material used in the pharmaceutical industry. As lactose is the primary source of carbohydrates during the first few years of life, lactose has also seen considerable penetration in infant formulas as a sweetener. The most prevalent types of high-fructose corn syrup on the market are either 42% or 55% fructose, known in the industry as HFCS 42 and HFCS 55, respectively, as stated in the Code of Federal Regulations.
Natural flavors, artificial flavors, and flavor enhancers are all types of food flavors and additives. Consumers' attitudes have undeniably changed to become more health-conscious, which has further steered them toward goods with natural sources, including fruits and vegetables. Natural floral flavors are also becoming increasingly popular, particularly in the beverage industry, where goods like herbal teas are flourishing and constantly looking for new flavors. For food and beverage goods, the flavor is the primary deciding factor, indicating the significant influence that distinctive and cutting-edge flavors have on consumer purchasing behavior. As a result, food producers are increasingly reinventing their products with unusual and unexplored flavors, another factor driving market research. Mainly synthetic flavors have gained popularity because of their wide range of flavor characteristics, ease of accessibility, and comparably lower price than natural flavors.
Additionally, advantages, including enhancing the uniformity, and texture, and keeping the finished product's color, flavor, and smell, have affected the market for synthetic flavors. The demand for flavor enhancers was finally rooted in the food and beverage makers' active pursuit of a perfect balance between maintaining and improving the nutritional features of food products and enhancing the sensory aspects, such as taste and aroma.
The global food additives market is bifurcated into four regions, namely North America, Europe, Asia-Pacific, and LAMEA.
Asia-Pacific Dominates the Global Market
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Asia-Pacific is the most significant shareholder in the global food additives market and is expected to grow at a CAGR of 5.81% during the forecast period. The popularity of western-style cooking in China has raised the demand for additives such as food flavors among consumers, as evidenced by the rise in both imports of flavoring products and domestic use in recent years. The Ministry of Health and Welfare has authorized the Food for Specified Health Use (FOSHU) regulation criteria, which govern Japan's broad spectrum of functional ingredients. The nation has a thriving industrial sector, which gives ingredient producers an excellent chance to sell their goods to the region's burgeoning businesses and build a loyal customer base there.
North America is expected to grow at a CAGR of 4.48%, generating USD 58.61 billion during the forecast period. The nation's fast-paced way of life and changing customer preferences have created a booming market for processed meals. In addition, the use of additives such as emulsifiers, restaurants, colorants, and sweeteners increased simultaneously. Ice creams are one of the leading industries where additives like emulsifiers are used. Ice cream consumption in the U.S. has skyrocketed recently due to increasing awareness of famous brands, an expanding retail market, and innovative new products. This is expected to be the primary factor in the growth of the emulsifier market during the forecast period. The growing demand for bakery, confectionery, and beverage goods that use more natural ingredients makes the Canadian market for food additives very promising. Additionally, the market is pretty cost-competitive, and the tax cuts have given Canadian businesses an operational advantage, leading them to anticipate higher output in the coming years.
Germany is the leading country in the food business in Europe in terms of the consumption of additives and ingredients, including colorants, restaurants, emulsifiers, and flavors in the area. The meat industry is a growing market for emulsifiers that has the potential to advance market research. However, most additives will be utilized by the country's baking and confectionery industries in the coming years. The attraction to consumers is a primary driver of the natural coloring business in Germany. Other factors, like supportive food legislation, improvements in food technology, and growing knowledge of the advantages of natural colors, are driving the market even more. German law governs the use and application of food additives authorized for use in Germany and other EU member states and evaluated for safety by international and, in rare cases, national expert bodies. The U.K. has a considerable market for baked and confectionary goods throughout Europe. The country's flour production contributes to the bread sector by over 60%. As a result, it is projected that the baking industry is the largest consumer of food additives.
Brazil offers more significant potential for growth for food additives due to its agriculture and food-based economy. It takes a thorough understanding of the local conditions and careful consideration of chances to enter a market as big as Brazil. Additionally, the recent success of the sugar mills in Brazil makes the success of other well-known additives like sweetener components precise. The country's food and beverage business has seen a paradigm shift among customers toward innovative and ethnic flavors due to the impact of western culture. Additionally, there is a rising desire for food and beverage goods that use only natural ingredients and chemicals. Consumer demand for artificial food dyes is declining throughout South America, encouraging more food manufacturers to substitute farm-grown "colored foods" for chemical dyes. Bright and shelf-stable plant-based food pigments are in high demand and are expected to continue to be prominent, emphasizing vibrant colors that meet sustainability and clean label standards.
List of top key global food additives market manufacturers