EMULSIFIERS MARKET ANALYSIS

Emulsifiers Market Size and Trends

The emulsifiers market is estimated to be valued at USD 10.50 Bn in 2024 and is expected to reach USD 17.30 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 7.4% from 2024 to 2031.

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The increasing demand from various industries like the food processing industry is expected to drive the market growth. Emulsifiers help to extend the shelf life of products and maintain quality and texture during processing and distribution activities in the food and beverage industry. Growth in the convenience food industry and rising consumption of packaged food are also contributing to the increased demand for emulsifiers. Moreover, rising disposable income and changing lifestyles leading to more prosperity is further expected to propel the market growth during this period. Wide applications in various end-use industries along with innovation of bio-based emulsifiers are expected to provide growth opportunities in the coming years.

Growing demand from food processing industry

The global food processing industry has been witnessing strong growth over the past few years. Rapid urbanization, rising disposable incomes, and changing lifestyles have led to a surge in the demand for packaged, processed, and convenience foods worldwide. Emulsifiers play a vital role in the production of various packaged food products. They help improve texture, increase shelf life by preventing separation of ingredients, and enhance sensory properties. The bread industry extensively uses emulsifiers to improve loaf volume and structure. Mayonnaise, salad dressings, ice creams, and other dairy products also require specific types of emulsifiers for uniform mixing and stabilization.

With growing health-consciousness, the demand for low-fat and low-calorie food variants has also grown substantially. Emulsifiers assist in producing reduced-fat foods while maintaining desired attributes such as texture and mouthfeel. They facilitate the incorporation of water into oil-based mixtures, which helps reduce the overall fat content. Significant R&D investments are being made by emulsifier manufacturers to develop new product lines that can meet the complex functional requirements of low-fat and nutritionally enhanced foods. Rapid proliferation of the bakery, dairy, and packaged snack companies across developing regions is expected to further augment emulsifier consumption in the coming years. Stringent international food safety regulations also necessitate the use of approved and certified emulsifier additives, increasing their commercial utilization globally.

Market Concentration and Competitive Landscape

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Surging demand from personal care and cosmetics sector

The personal care and cosmetics industry has emerged as a major end-use sector for emulsifiers in recent times. These additives play a crucial role in the manufacturing of various hair care, skin care, color cosmetics, and fragrances. Emulsifiers help combine oil- and water-based formulations, maintaining stability and imparting a smooth texture. They allow for the efficient suspension of pigments, vitamins, and active components within lotions, creams, and other topical products. Rapid urbanization, increasing spending power, and growing awareness about personal grooming have boosted the demand for stylish beauty and skin care items worldwide. This, in turn, is driving the emulsifiers market as they find widespread applications across a myriad of cosmetic formulations including foundations, sunscreens, shampoos, conditioners, and hair serums.

Key Takeaways from Analyst:

The emulsifiers market is expected to grow at a steady pace due to increased demand from the food processing industry globally. The growth in the convenience food segment will drive the usage of various emulsifiers to produce products like mayonnaise, baked goods, ice cream, etc. North America dominated the market owing to rising food production in China and India. North America and Europe are relatively mature markets but constant new product development will ensure ongoing demand.

Stringent regulations over the use of certain chemical-based emulsifiers are a challenge for vendors. However, the demand for clean label and natural emulsifiers from health-conscious consumers presents an opportunity for manufacturers to widen their product portfolios. Innovation and development of emulsifiers from natural sources such as polysorbates, glycerides, esters of fatty acids, etc. is expected to boost the market growth.

The expanding global beverage industry particularly coffee, energy drinks, and flavored water also rely on emulsifiers for improved texture and appearance, offering further prospects. Food stabilizers that double up as emulsifiers is a trend observed in the market.

Market Challenges: Stringent regulations regarding emulsifier use

Stringent regulations imposed by various government bodies around the use of certain emulsifiers are posing a major challenge for the growth of the emulsifiers market. Over the past few years, regulatory authorities like the U.S. Food and Drug Administration (FDA) and European Food Safety Authority (EFSA) have imposed restrictions on the usage levels as well as applications of some traditionally used emulsifiers like polysorbates and carrageenan owing to health concerns. For instance, the EFSA in 2021 published a scientific opinion stating there is insufficient evidence of safety for the use of carrageenan in infant formula and concluded that it should not be added to such products. This has led major baby food manufacturers in Europe to remove carrageenan from their formulations.

Market Opportunities: Product diversification through new formulations

Product diversification through new formulations is a major opportunity in the emulsifiers market that can significantly impact its long-term growth trajectory. As consumer food preferences become more diverse and demand for specialized products increases, emulsifiers that can enable novel textures, enhanced nutrition, and unique tastes/flavors will be in high demand. Manufacturers are actively exploring new formulation technologies to develop high-performing emulsifiers tailored for plant-based alternatives, non-dairy products, clean-label items, and fortified/functional foods.

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Insights by Source: Low cost of production and versatility of synthetic emulsifiers

In terms of source, the synthetic segment is expected to contribute 75.7% share of the global emulsifiers market in 2024, owing to its low cost of production and versatility. Synthetic emulsifiers can be customized during manufacturing to meet the specific technical requirements of various end-use applications. They offer superb stability and workability across a wide range of pH levels and temperatures. This increases their usage in diverse industrial sectors like food processing, personal care, and pharmaceuticals.

Synthetic emulsifiers are derived from petroleum-based feedstocks through chemical synthesis, allowing for mass production. This economies of scale enable synthetic varieties to undercut bio-based options in terms of price. Their affordable costs make synthetic emulsifiers attractive for use in mass-consumed, low-budget food and homecare products. Demand for value-for-money items among cost-conscious consumers, especially in emerging economies, further drives adoption.

Synthetic emulsifiers also demonstrate excellent shelf-life extension and preservation abilities. This amplifies their function in processed snacks, desserts, and ready meals that require a long shelf life without compromises to texture or quality. Detailed customization at the molecular level yields emulsifiers that impart unique sensory properties desirable to product developers and formulators.

While bio-based options gain traction owing to clean label trends, synthetic emulsifiers will continue dominating on the strength of their stable performance, affordability, and personalized characteristics supporting innovative product launches. Mass manufacturing capabilities and functional superiority especially in shelf-stable packaged food and low-cost personal care segments will propel the synthetic variety to remain a market leader.

Insights by Application: Food & Beverage Represents the Largest Application Segment

The food & beverage industry is expected to account for 41.5% share of the global emulsifiers market in 2024 attributable to their ubiquitous need across many product categories. Emulsifiers play vital roles in improving texture, stability, and sensory qualities of processed foods and drinks. They enable the creation of emulsions which help incorporate oils, fats, and liquids into solid or semi-solid food matrices.

In culinary applications, emulsifiers permit ingredient blending and combination that would otherwise separate. They allow oil-in-water or water-in-oil emulsions integral to many staple foods. Mayo, salad dressings, baked goods, processed meats, snack foods extensively use emulsifiers to achieve desired mouthfeel and prolonged shelf life.  In beverages, emulsifiers provide stability against separation in oil-containing products like milk, coffee creamers, flavored drinks. They prevent curdling and sedimentation that can lead to an unsightly product and consumer dissatisfaction.

As lifestyles get busier with more demand for convenient, prepared options, food manufacturers incorporate ever complex formulations with emulsifiers to satisfy this need. Their functionality supports innovations from reduced/low-fat to high-protein/fiber variants across many product lines. An aging population also drives demand for emulsifier-enabled easy-to-swallow, nutrient-fortified options.

Regional Insights

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North America has established itself as the dominant regional market for emulsifiers. The region is expected to account for 34.6% of the market share in 2024. The large food processing industry in the U.S. and Canada drives significant demand. Major food companies have their headquarters and research centers located in the region to cater to the sophisticated consumers. This enables them to continuously innovate and develop new product formulations requiring extensive use of emulsifiers. Stringent food safety regulations also encourage manufacturers to use FDA approved food-grade emulsifiers.  The region is home to leading global emulsifier producers such as Archer Daniels Midland (ADM) and Cargill who have a wide production footprint and product portfolio. Their expertise in indigenous oilseed processing assists in cost-effective manufacturing. Well-established distribution networks ensure consistent supplies to a broad customer base. Market consolidation has allowed key players to benefit from economies of scale. Export opportunities are also sizable due to NAFTA and other trade deals.

Asia Pacific has emerged as the fastest growing regional market for emulsifiers. Countries like India and China are witnessing rising incomes and shifting dietary trends towards packaged and processed foods. Local snacks and convenience foods sectors in these nations are flourishing. This stimulates the need for stabilizing agents to maintain quality. Asian processors are recognizing the functional advantages of emulsifiers over traditional alternatives to deliver improved textures. Many international food companies have entered through joint-ventures or have set up independent facilities. Their technical expertise transfers application knowledge to domestic small and medium enterprises. This collaboration aids product development and shelf-life extension of regional food products using emulsifiers. Additionally, developing infrastructure and global sourcing have made raw materials more accessible at affordable rates. The extensive youth population also pushes the demand for personal care and cosmetic products employing emulsifiers.

Market Report Scope

Emulsifiers Industry News

• In 2023, Vantage Food announced the launch of its Simply Kake emulsifier
• In 2023, Vantage Food launched a guide to emulsifiers for cake products through BAKERpedia
• In 2021, Kerry Group, a public food company, launched a new range of beverage concepts for spring/summer 2021.
• In 2021, Kerry Group, a public food company, developed and released a leading-edge Plant-based Dairy Alternative Toolkit. Kerry Group’s toolkit provides innovators with a range of benefits and a research-based ‘building your brand’ checklist, which guides to help product developers create consumer-preferred taste experiences and tips on formulating with exciting flavours that will build consumer loyalty and foster repeat purchasing.

*Definition: The emulsifiers market consists of additives that stabilize emulsions. Emulsifiers help blend together two liquids that normally don't mix, such as oil and water, by reducing surface tension at the interface between the liquids. Common emulsifiers used in foods, pharmaceuticals, cosmetics and other industries include lecithin, lanolin, sorbitan esters and other compounds. They allow producers to create emulsified end products like mayonnaise, lotions, creams, and others with a uniform blend of ingredients. The global emulsifiers market has seen steady growth due to their widespread applications across many sectors.

Market Segmentation

•  Source Insights (Revenue, USD Bn, 2019 - 2031)
  • Bio-based
  • Synthetic
•  Application Insights (Revenue, USD Bn, 2019 - 2031)
  • Food & Beverage
  • Industrial Applications
  • Pharmaceuticals
  • Personal Care
  • Others
• Regional Insights (Revenue, USD Bn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • BASF SE
  • Dow
  • DuPont
  • Kerry Group
  • Koninklijke DSM N.V.
  • Akzonobel N.V.
  • Evonik Industries AG
  • Clariant
  • Solvay SA
  • Archer Daniels Midland Company
  • Cargill
  • Incorporated
  • The Lubrizol Corporation
  • Stepan Company
  • Lonza
  • SM Nutritional Products,
  • Palsgaard A/S
  • Spartan Chemical Company
  • Solvay
  • Matangi Industries