Food Additives Market Size Estimated to Grow at a CAGR of 7.8% Over 2021-2026 1
Food Additives Market
Rising Demand of Convenience and Packaged Foods Among Population and Growing Prevalence of Food Borne Disease Is the Major Factor Driving the Growth of Food Additives Market

Food Additives Market size is estimated to reach $55,530 million by 2026, growing at a CAGR of 7.8% over 2021-2026. Food additives are considered as natural or synthetic chemicals that are added in foods to enhance the taste, texture and color and also helps in improving the appearance of food. Food additives also helps to increase the shelf life of food and keep the food fresh. Food additives are available in two different types such as natural and artificial food additives. Natural food additives are extracted naturally and are used in various foodstuff whereas artificial food additives are made synthetically. Food additives are used to reduce bacteria and contaminants in foods and are helps in preventing food borne diseases. Emulsifiers are added to make the food stable and re-used in various processed products. Enzymes are used in food owing to their specialized nature that helps to complete the reaction during processing. Ascorbic acid are used as preservatives in various food and beverage products to enhance taste and currently, sodium nitrite are added to processed and cured meals. Rising demand of convenience and packaged foods among population and growing prevalence of food borne disease is the major factor driving the growth of Food Additives Market. Furthermore, growing technological advancement in food and beverage industry, rising busy schedule owing to hectic lifestyle, rising use of food additives in food and beverage industry is set to further enhance the overall market demand for Food Additives Market for the period 2021-2026. 

Food Additives Segment Analysis – By Type

The Food Additives Market based on Type can be further segmented into Flavor & Enhancer, Antioxidants, Anticaking Agents, Emulsifiers, Sweeteners, Stabilizers, Colorants, Fat Replacers, and Others. The Flavor & Enhancer segment is the major segment generating revenue in 2020. This is mainly owing to the fact that flavor and enhancer are used in various food and beverage products to enhancing the color, texture and taste that helps to attract consumers towards foods which contains flavors. Moreover, various manufacturers are also using flavors and enhancers to increase the sales of food products and thus boosting the market growth. The sweetener segment is estimated to register the fastest CAGR of 8.1% for the period 2021-2026. Sweetener are added in food to provide sweet taste in foods which contains low calories that rising the preference of sweeteners among consumers owing to rising health consciousness. Moreover, rising prevalence of diabetes among consumers increases the use of sweeteners in food for sweet taste which in turn boosting the growth of Food Additives Market.

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Food Additives Segment Analysis – By Application

The Food Additives Market based on Application can be further segmented into Bakery & Confectionery, Beverages, Dairy & Frozen Products, Poultry & Sea Food Products, and Others. The Bakery & Confectionery segment registers for the highest Food Additives Market share in 2020. This is mainly owing to the fact that food additives aid in enhancing the texture and volume of baked goods that rising the use of food additives in various bakery and confectionery products such as cakes, biscuits, cookies and many more. Moreover, rising consumer demand towards bakery and confectionery products increases the production that rising the use of food additives in bakery and confectionery application. The Beverages segment is forecasted to register the fastest CAGR of 9.2% over 2021-2026. This is mainly owing to rising demand of exotic flavours in various non-alcoholic beverages such as juices, drinks and many more. Moreover, growing trends of consuming various sports related juices with flavors among adults increases the use of food additives in beverages and are thus propelling the growth of Food Additives Market.

Food Additive Segment Analysis – By Geography

North America dominated the Food Additive Market with major share of 45% in 2020. This is owing to changing lifestyle that increases the consumption of processed food which contains food additives. Moreover, owing to busy schedule the consumption of confectionery and bakery products increases and are therefore boosting the growth of North America. Moreover, rising advancement of technology in food and beverage sector increases the developments of various new flavors which in turn driving the demand and growth of Food Additives Market.

However, Asia Pacific is projected to be the significant-growing market during the forecast period 2021-2026 owing to rising trends of consuming high-nutrient diet and rising demand of ethnic taste in Asian countries such as India, china increases the demand of food additives and thus propelling the growth of Food Additives Market.

Food Additives Market Drivers

Rising Demand of Convenience and Packaged Foods

Growing hectic lifestyle among consumer increases the demand of ready-to eat snacks, convenience and packaged foods is a significant factor driving the market growth. Moreover, rising consumer preference towards different type of exotic flavors in foods rising the need of processed food as food additives helps to add taste and flavor in food and also rising the shelf life of food which rising preference of consumers towards processed food and therefore rising the growth of the Food Additives Market over the period 2021-2026.

Growing Prevalence of Food Borne Disease

Food borne are caused by pathogens and contaminants present in food that increases the prevalence of food borne disease is a major factor driving the market growth. According to World Health Organization, in 2020 about 600 million cases of food borne disease occur that increases various initiatives among government to reduce the risk of food borne disease and thus increases the use of food additives which further boosting the growth of Food Additives Market over the period 2021-2026.

Covid-19 Impact

COVID-19 pandemic had greatly impacted the growth of Food Additives Market. During pandemic, there is a lockdown that created a disruption in supply chain and the manufacturing industries owing to less availability of human resources. Moreover, production capacity also decreases among manufacturers and are negatively impacted the growth of Food Additives Market.

Food Additives Market Challenges

Strict Regulation among Various Government Agencies

The factors that is set to impede the growth of the Food Additives Market are the rising strict regulation towards food additives by various government agencies. Moreover, owing to regulation there is delay in production that is also set to create hurdles for the Food Additives Market.

Food Additives Market Landscape

Product launches, acquisitions, collaboration, joint ventures, and geographical expansions are key strategies adopted by players in the Food Additives Market. Food Additives top 10 companies are E.I. DuPont, Archer Daniels Midland Company, Eastman Chemical Company, Incorporated, CHR. Hansen Holding A/S, Kerry Group Plc, and BASF SE, IFF, Frutarom, Givaudan, and Tate & Lyle.

Food Additives Market Development

In May 2021, Eastman acquired 3F Feed and Food business in order to expand the production of food additives and is expected to drive the market growth.

Key Takeaways

In 2020, North America dominated the Food Additives Market owing to changing lifestyle that increases the consumption of processed food which contains food additives. Moreover, owing to busy schedule the consumption of confectionery and bakery products increases and are therefore boosting the growth of North America.

Rising demand of convenience and packaged foods among population and growing prevalence of food borne disease are enhancing the growth of the Food Additives Market.

Detailed analysis of the Strength, Weakness, and Opportunities of the prominent manufacturers operating in the market will be provided in the Food Additives Market report.

Rising strict regulations by various government agencies is set to create hurdles for the Food Additives Market.

Related Reports:

A. Food Flavors Market

https://www.industryarc.com/Report/7460/food-flavors-market.html

B. Food Emulsifiers Market

https://www.industryarc.com/Research/Food-Emulsifiers-Market-Research-504928

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