The global food additive market size was estimated at USD 107.00 billion in 2022 and is expected to hit around USD 176.79 billion by 2032, poised to grow at a compound annual growth rate (CAGR) of 5.20% during the forecast period 2023 to 2032.
To Access our Exclusive Data Intelligence Tool with 15000+ Database, Visit: Precedence Statistics
The food additive market is expected to grow during the forecast period as there has been a great demand for enhanced picture, appearance and the taste of food and beverages. Rapid growth of the food and beverages industry will drive the market during the forecast period. In the developed as well as the developing nations the demand for packaged food items and packaged beverages is expected to drive the market growth as that has been an increase in the consumption of the same. There shall be an increase in the demand for the additives which are used in processing different types of food as it helps in enhancing the nutritional content of the food and also improves the quality of the food products. There is a growth in the preference for the diet which is plant based as there is a growth in the awareness in the consumers. There is also a great demand for products that have a clean label in the food and beverages industry. Products with the clean label are in great demand in the United States and it is expected to grow during the forecast period.
Major manufacturing companies in the food industry are continuously improving their techniques to provide food and beverages that are less in fat and sugar content which will be helpful in lowering the content of the calories in their food products and the beverages which shall drive the market growth during the forecast period. The presence of the regulatory authorities with stringent policies will also affect the market to a great extent. Manufacturers seek approval from the regulatory bodies to replace the sweeteners that are less in terms of calorie and fat and this is expected to provide a great opportunity for the growth of the market in the coming years. Constant research and development activities conducted by the manufacturers are helpful in coming up with technologies that have enhanced the production processes and provided better quality products. The ingredients used in the manufacturing of the food and beverages have also improved.
The COVID-19 pandemic had affected the market as the supply of raw materials had stopped. There were major challenges for the manufacturing of these food products and beverages due to a shortage in the manpower. Various restrictions imposed by the governments affected the import and export of various businesses. Different types of products like the confectionery bakery products, dairy products, different beverages were affected during the pandemic to a great extent. The supermarkets had stuffed themselves with necessary supplies during the pandemic. Lockdowns imposed by the governments in many countries which were important in order to reduce the spread of the disease or two stop the spread of the disease was extremely important. Although the consumption of many other products had reduced but the healthy food products and the nutraceuticals were in great demand during the pandemic. Growing awareness regarding the health and the availability of products that will be beneficial in boosting the immunity were in great demand during the pandemic.
The use of additives is extremely beneficial as it helps in protecting the food products from different types of bacteria that are harmful for the shelf life of the product. Additives are added to the product at the end. It helps in maintaining the color and the texture of the food. It helps in enhancing the taste as well as the nutrition of the food products. Additives are extremely beneficial in improving the shelf life of the products. Change in the consumption patterns of the population across the developed as well as the developing nations will drive the market growth during the forecast period.
Developing nations will provide great opportunity for growth for the major market players during the forecast period. Increased use of technology in the production of nutritive food and beverages will have a positive impact on the market. As there has been an increase in the use of microencapsulation technique the market is expected to grow well during the forecast period. Growing demand for clean label will drive the market growth. Increased use of food colors that are natural will also drive the market growth in the forecast.
Asia Pacific region will dominate the market. Rapid urbanization and industrialization has changed the consumption patterns of the population in this region there is a greater demand for different types of processed foods Indonesians like India and China.
Report Scope of the Food Additive Market
|Market Size in 2023
USD 112.03 Billion
|Market Size by 2032
USD 176.79 Billion
|Growth Rate from 2023 to 2032
|CAGR of 5.20%
|2023 to 2032
|Product, Source, Application, Geography
Arm Holdings Plc., Fujitsu Limited, Intel Corporation, IBM Corporation, Microchip Technology, Inc., Microsoft Corporation, Qualcomm Incorporated, Renesas Electronics Corporation, STMicroelectronics, Texas Instruments Incorporated
On the basis of the product, the sweetness segment is expected to have the largest market share during the forecast period. Increase in the geriatric population and the health risks associated with the elderly people will drive the market growth. Increase in the cases of cardiovascular diseases and obesity will create a greater demand for food products that are flow in terms of fat and sugar. There is a growth in the demand for sweeteners that are less in terms of calories. General awareness regarding the health will drive the market growth in a positive manner during the forecast period. Various alternatives that will be helpful in replacing the unhealthy constituents of the food products will drive the market growth during the forecast period.
Major manufacturing companies are taking steps in order to provide better food products. PepsiCo worked on the similar lines when it announced that it will reduce the use of sugar in its beverages in the year 2022. It is expected that the manufacturer shall reduce the use of sugar in the beverages manufactured by this company by about 50% during the forecast period. This company is also working on coming up with sweeteners that will be low in terms of calories. There are many such initiatives that are taken by the various manufacturers present in the market. All of these factors will be helpful in boosting the growth of the market.
Depending upon the source, the natural segment will dominate the market during the forecast period. This segment has had a market share of about 82% in 2022 and it is expected to dominate the market during the forecast period as there has been an increase in the preference for natural products. These products are extremely safe for consumption at the awareness regarding the availability of such products will drive the market growth. Different flavoring agents that are chemically processed because many different diseases and allergies in human beings.
Prolonged consumption of such immense fires and sweeteners may lead to chronic diseases like cancer. Even though the cost of production of the synthetic additives is less as compared to that of the natural additives there is a greater demand for natural additives in the market due to the benefits associated with its usage. The market is expected to grow due to an increase in its production and a greater demand for this product.
The bakery and the confectionery segment will have the largest market share during the forecast period. In order to enhance the quality of the confectionery and bakery products there is a great demand for emulsifiers and enzymes. Sweetness and dietary fibers are also used to a great extent all of these additives are extremely important in providing a good taste to these products.
Major manufacturing companies in the bakery and confectionery segment are coming up with various products that will enhance their productivity and quality. Increased use of additives in different types of beverages will also drive the market growth period beverages or consumed to a great extent by the younger generation. Increase in the consumption of the non-alcoholic and alcoholic beverages which have different flavors will drive the additives market during the forecast period. Dual income households and increased purchasing power will drive the market growth for additives as there has been a growing demand for ready to eat meals and instant food products. Increase in the number of working hours and reduced time for cooking food at home is driving the market growth. There has been an increase in the demand for additives in various other food products like the seafood, meat as well as poultry. Additives are used in these food products in away to increase their shelf life or act as a preservative.
Food Additive Market Share, By Region, 2022 (%)
|Revenue Share in 2022(%)
The Asia Pacific region will dominate the market. It has had the largest market share in terms of revenue even in the past. There has been a increase in the demand for fast food in many nations across the Asia Pacific region. Increase in the population of the countries like China as well as India will create greater demand for additives. The demand for food additives in these nations will have a positive impact on the market.
The North American region and the European region will also grow well during the forecast. Due to an increased consumption of ready to cook meals and breakfast products. Hectic lifestyle of the people in this region will drive the market growth.
Key Market Developments
A distribution partnership between Solevo and Tate & Lyle Will increase its focus on providing high quality beverages as well as food ingredients. This announcement was made in the year 2020 which shall introduce the ingredients like soluble fibers and sweeteners that shall be low in terms of calorie.
Key Market Players
Segments covered in the report
PROCEED TO BUY :
ASK FOR SAMPLE
No cookie-cutter, only authentic analysis – take the 1st step to become a Precedence Research client