As per the latest analysis, the global food additive market size is estimated to reach USD 310.9 billion in 2024. In the forecast period, global demand for food additives is projected to rise at a healthy CAGR of 7.2%, taking the overall market valuation to a massive total of USD 551.4 billion by 2034.
Consumption of food additives remains particularly high in the beverage sector, and the trend will likely persist through 2034. This is due to the growing usage of artificial and natural sweeteners in diverse industries. The target segment is set to account for a dominant share of 34.0% in 2024.
Food additives have become essential substances in the food and beverage sector. This is due to their ability to significantly improve the freshness, flavor, and texture of food products as well as extend their shelf life.
Food additives are added to the processed food to ensure that it remains in a safe condition throughout its journey, from the industrial kitchen to warehouses & shops and finally to consumers. Some food additives have been used for centuries for preservation. These include sugar (in marmalade), sulfur dioxide (in wine), or salt (in meats such as bacon or dried fish).
To meet the evolving needs of consumers, manufacturers are offering additives obtained from various sources, including plants, animals, or minerals. For instance, new natural preservatives are being developed to preserve the nutritional quality of the food.
Top regulatory bodies like the World Health Organization and the Food and Agriculture Organization of the United Nations (FAO) have formulated regulations that manufacturers must follow to maintain the quality of their products. For instance, food additives that undergo JECFA safety evaluation and are found not to present any health risk to consumers can be incorporated as an additive in the value products.
Prominent Factors Driving Growth of Food Additive Market-
Global Food Additive Market Trends-
Insights into the Latest Food Additive Market Research Report
| Attributes | Key Insights |
|---|---|
| Estimated Global Food Additive Market Value (2024E) | USD 310.9 billion |
| Projected Food Additive Market Revenue (2034F) | USD 551.4 billion |
| Value-based CAGR (2024 to 2034) | 7.2% |
| Top 3 Countries’ Value, 2034 | USD 124.5 billion |
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| Market Statistics | Details |
|---|---|
| Jan to Jun (H1), 2022 (A) | 6.2% |
| Jul to Dec (H2), 2022 (A) | 6.8% |
| Jan to Jun (H1), 2023 Projected (P) | 7.9% |
| Jan to Jun (H1),2023 Outlook (O) | 6.9% |
| Jul to Dec (H2), 2023 Outlook (O) | 8.2% |
| Jul to Dec (H2), 2023 Projected (P) | 7.2% |
| Jan to Jun (H1), 2024 Projected (P) | 9.4% |
| BPS Change: H1, 2023 (O) to H1, 2024 (P) | 30 |
| BPS Change: H1, 2023 (O) to H1, 2023 (A) | 70 |
| BPS Change: H2, 2023 (O) to H2, 2024 (P) | -30 |
| BPS Change: H2, 2023 (O) to H2, 2023 (A) | 143 |
Global sales of food additives increased with a compound annual growth rate (CAGR) of 4.7% between 2019 and 2023. Over the assessment period, the global market for food additives is expected to rise with a CAGR of 7.2%.
One of the key drivers expected to drive the growth of the food additive market is the expansion of the convenience and processed food industry, especially in emerging regions. Similarly, increasing consumer spending on packaged food products will likely uplift food additive demand through 2034.
The demand for processed foods with longer shelf lives is rising significantly in regions like the Middle East and East Asia. This is due to rapid urbanization and increasing consumer per capita income. Driven by this, food additive sales are set to expand rapidly during the assessment period as they have become essential ingredients of these food products.
Leading companies are using anti-foaming agents, emulsifiers, and titanium dioxide in food to enhance their properties and extend their shelf lives. This will boost the growth of the food additive market during the assessment period.
Key producers of food additives are establishing production facilities in developing nations like India and China to take advantage of market growth potential. As a result, these nations are becoming the top producers and exporters of a variety of food additives.
Principal Consultant
Burgeoning Demand for Processed Food Products
Due to rapid urbanization and busy lifestyles, demand for processed and convenience foods is rising significantly across the globe. This is expected to boost sales of food additives as they are widely used in processed food products.
Growing Health Awareness among Consumers
Amid growing consumer awareness about health and nutrition, demand for food products with attributes like low sugar, natural ingredients, and reduced fat is expected to rise rapidly. This, in turn, is set to encourage the adoption of food additives that can enhance nutritional profiles and replace undesirable ingredients.
Top food and beverage firms are shifting their preference towards healthy food additives to meet evolving consumer preferences. For instance, they are incorporating functional food ingredients like prebiotics, probiotics, and dietary fibers into their products. This will benefit the target market during the forecast period.
| Countries | Projected Food Additive Market CAGR |
|---|---|
| United States | 4.2% |
| United Kingdom | 2.4% |
| Germany | 1.9% |
| India | 3.4% |
| Japan | 6.0% |
The United States food additive market is poised to advance with a CAGR of 4.2% during the forecast period. It will likely hold a dominant value share of 73.5% in North America’s food additive industry by 2034. Some of the key drivers/trends include:
There is a sharp rise in the demand for processed and convenient foods across the United States owing to the fast-paced lifestyle. This is expected to fuel sales of food additives as they are often used in these food products to enhance their taste, visual appeal, and shelf life.
The United States has a well-established food processing industry. Many leading companies in this sector are focusing on introducing modified products that meet the consumers' evolving needs. For this purpose, they use different food additives, thereby driving their demand.
Key manufacturers are actively engaging in researching new ingredients and their potential applications. For instance, the application of fibers and carbohydrates as a food additive to enhance sweetening, bulking, and texture improvement is being explored.
Food fortification is emerging as a key trend in the United States food additive industry. Consumers in the nation are increasingly seeking foods that offer additional benefits. This is prompting food manufacturers to use food additives.
Growing health concerns among consumers are expected to uplift the demand for low-calorie sweeteners and other healthy food additives. Similarly, increasing focus on enhancing the shelf life of packaged food products will likely improve the United States food additive market share through 2034.
India’s food additive market is anticipated to expand at a 3.4% CAGR throughout the assessment period. This can be attributed to several factors, including:
In India, more consumers are drawn towards easy and quick-to-make food solutions owing to changing lifestyles and rising urbanization. Consumers are attracted to foods with a long shelf life, taste better, and are healthier with enhanced nutritional content. This will continue to increase the consumption of food additives.
The changing consumer preferences are prompting manufacturers to utilize a variety of additive sources naturally or conventionally. Further, growing consumer awareness related to the importance of health and wellness is leading to the increasing incorporation of natural and functional additives in food products.
The growing food and beverage industry, coupled with a rise in disposable income, will further boost the growth of the food additive market in India. Subsequently, regulatory initiatives to ensure food safety and quality standards are set to encourage the adoption of additives.
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The below section provides insights into leading segments of the global food additive industry. This information could help companies to shift their focus on popular products and applications to stay ahead of the competition.
As per the latest analysis, demand for sweeteners, both natural sweeteners and artificial sweeteners, is expected to rise significantly during the forecast period. This can be attributable to factors like:
Demand for sweeteners across several industries is growing significantly. This is primarily attributed to shifting consumer preferences towards healthier lifestyles and the rising need for alternative sweeteners. As awareness of the hostile effects of extreme sugar intake grows, consumers seek substitutes that provide sweetness without the linked caloric intake.
Sweeteners such as synthetic and natural sugar substitutes offer a zero-calorie or low-calorie option and cater to health-conscious consumers and those managing conditions like diabetes. As a result, there is an increase in the adoption of sweeteners like stevia, aspartame, sorbitol xylitol, sucralose, molasses, and maple syrup in the goods & beverage industry.
The rising cases of obesity are fueling the demand for products with reduced sugar content. The food and beverage industry has responded by incorporating sweeteners to enhance the taste profile of products while aligning with the evolving preferences for healthier choices.
Growing usage of food additives like natural malt sweeteners in the food and beverage sector due to their several benefits will likely boost the growth of the sweeteners segment. Hence, a steady CAGR has been predicted for the same segment.
The beverage segment is expected to dominate the food additive market, holding a share of 34.0% in 2024. This can be mainly attributed to changing consumer preferences, the rising popularity of functional beverages, and the growing usage of food additives in a wide range of beverages to improve their:
Rapid demand for functional beverages, energy drinks, and carbonated drinks is anticipated to boost sales of food additives. Consumers are increasingly opting for drinks that are not only tasty but also healthier, with lower sugar content. Food additives like flavor enhancers and sweeteners play a vital role in meeting these demands, making beverages more enjoyable without the added calories.
The popularity of functional beverages, such as those with added energy or health benefits, further boosts the use of additives in this segment. While additives are essential in confectionery and bakery, the emphasis on healthier choices and the adaptability of additives to enhance drink formulations position the beverage sector as a frontrunner in the food additive market.
Beverages often rely on additives to achieve a desired taste, aroma, or sweetness, as natural ingredients alone may not be sufficient. As a result, beverage manufacturers use sweeteners, food preservatives, emulsifiers and stabilizers, flavorings, colorants, and other food additives.
The food additive market has a diverse and dynamic competitive landscape. Leading food additive manufacturers are innovating to develop novel solutions, including natural sweeteners and food coloring agents, carrageenans, food thickening agents, and high fructose corn syrup. They are focusing on innovation, quality, and matching customer preferences to stay ahead of the competition.
Several top food additive companies are concentrating on getting product approvals from regulatory bodies. They also employ strategies like acquisitions, partnerships, collaborations, distribution agreements, and mergers to expand their presence globally.
Recent Developments in the Food Additive Market-
The global food additive market value is anticipated to reach USD 310.9 billion in 2024.
The food additive market size is projected to reach USD 551.4 billion by 2034.
Global demand for food additives is set to rise at 7.2% CAGR through 2034.
With an estimated market share of 21.9% in 2034, Europe will remain a key consumer.
Chr. Hansen Holding A/S, BASF SE, Royal DSM N.V., and Dow Chemical Company, among others.
Monosodium glutamate (MSG), preservatives, antioxidants, artificial sweeteners, and food colorings.
Substances or chemicals are added to foods to enhance their shelf life, color, flavor, or texture.
1. Executive Summary 2. Market Overview 3. Market Dynamics 4. Value Chain Analysis 5. Global - Pricing Analysis 6. Global Market Size (in Value (USD billion) and Volume (MT) Analysis 2019 to 2023 and Forecast, 2024 to 2034 7. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By Product Type 7.1. Dairy Ingredients 7.2. Sweeteners 7.3. Fibers 7.4. Fine Ingredients 8. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, By End-use Application 8.1. Dairy Industry 8.2. Confectionery 8.3. Bakery 8.4. Snacks 8.5. Sauces & Soups 8.6. Pasta & Noodles 8.7. Meat Products 8.8. Baby Food 8.9. Pharmaceuticals 8.10. Beverages 8.11. Dietary Supplement 8.12. Personal Care 9. Global Market Analysis 2019 to 2023 and Forecast 2024 to 2034, by Region 9.1. North America 9.2. Latin America 9.3. Europe 9.4. East Asia 9.5. South Asia 9.6. Oceania 9.7. Middle East & Africa 10. North America Market Analysis 2019 to 2023 and Forecast 2024 to 2034 11. Latin America Market Analysis 2019 to 2023 and Forecast 2024 to 2034 12. Europe Market Analysis 2019 to 2023 and Forecast 2024 to 2034 13. East Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034 14. South Asia Market Analysis 2019 to 2023 and Forecast 2024 to 2034 15. Oceania Market Analysis 2019 to 2023 and Forecast 2024 to 2034 16. Middle East & Africa Market Analysis 2019 to 2023 and Forecast 2024 to 2034 17. Country-level Market Analysis, 2024 18. Market Structure Analysis 19. Competition Analysis 19.1. BASF SE 19.2. Chr. Hansen Holding A/S 19.3. BASF SE 19.4. Royal DSM N.V. 19.5. Sensient Technologies Corporation 19.6. Dow Chemical Company 19.7. Nutra Food Ingredients, LLC 19.8. Bell Flavors & Fragrances Incorporated 19.9. Ajinomoto Food Ingredients 19.10. Corbion Food Ingredients 19.11. Food Ingredient Solutions, LLC 19.12. Other Players (On Additional Requests) 20. Assumptions and Acronyms Used 21. Research Methodology
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