Food Additive Market

Global Food Additive Market Outlook from 2024 to 2034

As per the latest analysis, the global food additive market size is estimated to reach US$ 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 US$ 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-

• Rapid expansion of the processed food industry, along with a growing need for food safety additives like food preservatives
• Increasing consumption of packaged food products and food processing additives
• Growing focus on food safety and preservation
• Soaring demand for food additives from the bakery & confectionery industry
• Increasing consumer inclination towards flavored products
• Expanding pet food additive market
• Rising interest in functional and fortified foods
• Absence of food additive regulations in several underdeveloped and developing regions
• Increasing usage of food additives in dietary supplements, dairy products, and pharmaceuticals
• Surging popularity of ready-to-eat meals, snacks, and beverages
• Escalating importance of food additives in the beverages industry

Global Food Additive Market Trends-

• Willingness of food product manufacturers to pay premium prices for high-quality food ingredients
• Increasing demand for naturally derived carotenoids & spirulina
• Rising popularity of clean-labeled products with natural or organic ingredients
• Growing demand for functional food additives or functional food ingredients
• High adoption of natural colors and flavor enhancers in baby foods

Insights into the Latest Food Additive Market Research Report

Semi-annual Market Update

2019 to 2023 Food Additive Sales Outlook Compared to 2024 to 2034 Forecast

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.

Nandini Roy Choudhury

Principal Consultant

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Understanding Crucial Drivers/Trends Impacting Global Food Additive Market

• 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.

Country-wise Insights

Growing Popularity of Food Fortification Uplifting Demand in the United States

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:

• Rising popularity of food fortification
• Increasing demand for processed and ready-to-eat foods
• Changing consumer preferences and dietary patterns
• High consumption of functional beverages
• Development of novel food additives with attractive benefits
• Growing interest in natural food additives

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.

Rising Demand for Processed and Convenient Food Products Boosting India’s Market

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:

• Increasing demand for processed and convenient foods
• Evolving consumer preferences
• Expansion of the bakery and confectionary industry
• Rising interest in functional and fortified beverages

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.

Category-wise Insights

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.

Sweeteners Becoming Highly Sought-after Products in the Market

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:

• Growing focus on improving the taste of food products and making them more palatable
• Rising popularity of low-calorie sweeteners/zero-calorie sweeteners in the food & beverage industry
• Increasing usage of sugar alcohols to preserve food quality and extend their shelf life due to their antimicrobial properties
• Shifting consumer preference towards natural and organic food additives like natural sweeteners (stevia, monk fruit extract,
• Wide range of applications ranging from baked goods to soft drinks and candies

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.

Beverages Segment to Create Lucrative Growth Opportunities for Manufacturers

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:

• Sensory qualities like taste, texture, and sweetness
• Shelf life
• Health benefits

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.

Competitive Landscape

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-

• In January 2021, Ingredient Solutions, Inc., a distributor and blender of specialty hydrocolloids, was acquired by Tilley Co. This development enhanced the company’s portfolio of value-added specialties and ingredients.
• In June 2020, the liquid version of Linablue natural blue food coloring was launched by DIC Corporation’s subsidiary, DIC Lifetec Co., Ltd. The new Spirulina-extracted natural food coloring is now available in no-drip bottles.
• In 2021, B.T. Sweets introduced Cambya, a plant-based, one-to-one sugar replacer made from soluble fibers, monk fruit, and select botanicals. Unlike other sugar substitutes, the company claimed that Cambya does not require any masking agents because it does not leave a bitter aftertaste.
• In September 2022, Sun Chemical introduced SUNFOODS Natural Colorants for the food & beverage industry.
• In May 2023, the National Commission of the People’s Republic of China approved six new food additives, two new food raw materials, and six food-related products.

Key Players Listed in the Food Additives Global Market Report

• Chr. Hansen Holding A/S
• BASF SE
• Royal DSM N.V.
• Sensient Technologies Corporation
• Dow Chemical Company
• Nutra Food Ingredients, LLC
• Bell Flavors & Fragrances Incorporated
• Ajinomoto Food Ingredients
• Corbion Food Ingredients
• Food Ingredient Solutions, LLC
• Others (on additional request)

Food Additive Market by Category

By Product Type:

• Dairy Ingredients
• Sweeteners
• Fibers
• Fine Ingredients

By End-use Application:

• Dairy Industry
• Confectionery
• Bakery
• Snacks
• Sauces & Soups
• Pasta & Noodles
• Meat Products
• Baby Food
• Pharmaceuticals
• Beverages
• Dietary Supplement
• Personal Care

By Region:

• North America
• Europe
• Latin America
• South Asia
• East Asia
• Oceania
• Middle East & Africa