Wood-derived Food Additives Market

Market Overview

The global wood-derived food additives market size is estimated to grow at a CAGR of 4.85% during the forecast period (2023–2031). The global wood-derived food additives market is primarily boosted by the growing demand for using wood-derived food additives in convenience food to improve its texture and extend its shelf-life. Moreover, the paradigm shift towards sustainability and environmental care is expected to increase the use of wood-based products in the food industry, thereby creating opportunities for market development.

Wood is the structural tissue of trees and other woody plants found in their stems and roots. It is a common basic material for manufacturing food additives and ingredients. Wood-derived food additives are natural substances derived from wood and used to preserve flavor and other sensory food qualities in the food industry. These additives are derived primarily from hardwood and softwood trees, including birch, beech, pine, and oak.

Wood-derived food additives extend the expiration life of the product. Food additives derived from wood, such as fibrillated cellulose, lignin, xylan, vanillin, and CMC, play a crucial role in producing packaged and convenience foods.

Market Dynamics

Global Wood-derived Food Additives Market Drivers:

Growing Demand from the Convenience Food Industry

Wood-derived food additives such as cellulose, lignin, and hemicellulose serve as stabilizers, thickeners, and emulsifiers in numerous food applications. These additives also provide functional benefits such as enhanced texture, moisture retention, and increased shelf life. Wood chips and sawdust from particular wood varieties, such as hickory and mesquite, infuse smokey aromas into food items through smoking or grilling. This method is frequently employed to preserve various food items such as smoked meats, cheeses, and specific types of snacks.

Rapid urbanization, an enhanced consumer lifestyle, and a high disposable income all contribute to the growth of the convenience food market. In addition, factors such as the rising number of millennials, the rising number of working women, hectic work schedules, and on-the-go consumption patterns are anticipated to drive revenue growth for global convenience food products. This, in turn, has stimulated the adoption of wood-derived food additives to enhance the texture and preservation properties of convenience food, thereby driving market growth.

Health Benefits of Wood-Derived Additives

Wood-derived food additives are generally regarded as safe for eating. The health advantages associated with these additions are typically indirect and mostly stem from their functional properties in food products. Wood-derived additives can be bulking agents or thickeners in low-calorie and reduced-fat food products. This ingredient aids in enhancing the consistency and mouthfeel sensation of food items without introducing excessive calories, hence facilitating persons in effectively regulating their body mass.

Some wood-derived additives, specifically cellulose, can serve as a dietary fiber source. Consuming foods high in fiber aids digestion, promoting a sensation of satiety and assisting in regulating blood sugar levels. Fiber is also known for its role in enhancing gastrointestinal health. Likewise, wood-derived additives have the potential to function as substitutes for conventional thickeners and stabilizers, offering the advantage of being both gluten-free and allergen-free. This has advantageous implications for persons diagnosed with celiac disease or food allergies since it enables them to partake in a more extensive assortment of food items. Such advantages of wood-derived additives boost the global market expansion.

Global Wood-derived Food Additives Market Restraint:

Wood-Additives Allergy

Certain individuals exhibit intolerance to wood additives. Individuals may also exhibit allergies to particular types of wood species, wood dust, or wood oils. People are prone to allergies and other negative consequences. It is possible to have irritation of the eyes, nose, and skin, sometimes excessively. The potential toxicity associated with specific chemicals derived from wood can give rise to a multitude of issues for consumers. These factors restrict the market expansion.

Global Wood-derived Food Additives Market Opportunities:

Rising Demand for Sustainable Products

Wood-derived food additives are sourced from a sustainable and renewable resource, wood. They can mitigate the utilization of fossil fuels and other non-renewable resources. There is a growing consumer demand for items that feature clean labels, indicating a desire to identify and understand the ingredients used in these products. In contrast to synthetic or chemically manipulated additions, additives generated from wood might be natural and align with the current trend. In recent years, consumers are increasingly engaging with a sustainability approach. According to The Economist Intelligence Unit, online queries for sustainable products have increased by 71% worldwide over the past five years.

Additionally, McKinsey & Co. found that 75% of millennials and 66% of all respondents consider sustainability while making purchases. The brands that customers identify with the most are those that reflect their own beliefs and goals. Businesses should strive to lower their carbon impact since many people place a premium on environmental stability. Therefore, there is a surge in the use of wood-derived food additives in the food industry to meet sustainability standards. This is expected to generate opportunities for market growth.

Regional Analysis

North America Dominates the Global Market

Based on region, the global wood-derived food additives market is bifurcated into North America, Europe, Asia-Pacific, Latin America, and the Middle East and Africa.

North America is the most significant global wood-derived food additives market shareholder and is expected to expand substantially during the forecast period. In North America, consumers' high demand for natural and organic food additives is a major factor in this region's development. Between 2021 and 2025, organic packaged food consumption is projected to increase by approximately USD 3.8 billion, reaching over USD 25 billion. In addition, it is anticipated that the consumption value of organic beverages will reach approximately USD 2.8 billion by 2025. The absence of artificial ingredients and pesticides is one of the primary factors influencing U.S. consumers' decisions to purchase organic food. Therefore, the high demand for natural and organic food is driving the demand for natural and organic food additives like wood-derived food additives.

Additionally, the rising incidence of celiac disease in North America is amongst the highest globally. For instance, according to an article publicized in Verywell Health, one out of every 133 individuals in the United States has celiac disease. This represents 1% of the total population or 2 million individuals. However, over 80% of persons with celiac disease are undiagnosed or misdiagnosed, especially those from disadvantaged socioeconomic backgrounds. This is expected to boost the market growth as wood-derived food additives are a potential alternative to gluten products in the food industry.

Asia-Pacific is growing significantly due to surging demand for convenience food products, soaring disposable income, and a rising millennial population. For instance, according to a report published by the China Chain Store & Franchise Association (CCFA) in August 2021, the prepared food market in China experienced a year-on-year growth of 24.1% in 2021, amounting to approximately 310 billion yuan (equivalent to USD 42.44 billion). Thus, the increasing demand for prepared food also increases the demand for food coating ingredients to enhance the products' properties, texture, and flavors.

In addition, Western flavors and culture influence some Asian countries, where consumers are increasingly seeking convenient foods, creating opportunities for food-coating ingredients in these expanding industries. Further, Asia-Pacific consumers are the driving force behind the region's interest in purchasing sustainable products. According to the findings of a poll conducted on a sample of 16,000 consumers in the Asia-Pacific region, a significant majority of 90% expressed their willingness to spend a higher price for products that are deemed sustainable. This will subsequently drive the market for wood-derived food additives in the region.

Segmental Analysis

The global wood-derived food additives market is segmented by type and application.

Based on type, the global wood-derived food additives market is divided into fibrillated cellulose, lignin, xylan, vanillin, and carboxymethyl cellulose (CMC).

Lignin is a category of complex organic polymers found in the structural tissues of the majority of plants. Lignins are crucial to forming cell walls, particularly in wood and bark, because they impart rigidity and prevent decay. Lignins are crosslinked polymers derived from phenolic precursors. Lignin is the second most abundant biorenewable polymer, which is widespread in plant foods after cellulose. Lignin was frequently a major component of plant food byproducts in the food industry.

In the past decade, lignin's food and nutritional applications have garnered increasing attention, and significant progress has been made. The food industry uses lignin as an antioxidant additive. It helps prevent cell injury caused by free radicals produced during cooking or when fruit is overripe. The addition of lignin prevents the produce from becoming moldy and prolongs the preservation of its nutritional value.

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.

Wood-derived food additives can serve several applications in bakery and confectionery products. Microcrystalline cellulose is utilized to prevent clumping and enhance the flow characteristics of powdered ingredients, including flour, cocoa powder, and sugar. Wood-modified carbohydrates can be utilized in fillings, glazes, gelling agents, and stabilizers. Similarly, CMC can ensure a stable and uniform texture in cake mixtures and fillings by acting as an emulsifier. It aids moisture retention, preventing baked products from drying out and going stale.

Xylitol, a natural sweetener obtained from wood, can also be used as a substitute for sugar in confections and baked products that are reduced or sugar-free. Wood fibers can render them more palatable and tender by improving the texture of baked products and confections. As a leavening agent, acetic acid derived from wood can assist baked products in rising and becoming lighter.

Recent Developments

• 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.
• 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.