Food Additives Market, By Source (Natural and Synthetic), By Product Type (Acidity Regulators, Colorants, Emulsifiers, Enzymes, Hydrocolloids, Flavoring Agents, Preservatives, Sweeteners, and Others), By Application (Bakery & confectionery, Beverages, Convenience Foods, Dairy & Frozen Desserts, and Others), By Geography (North America, Latin America, Asia Pacific, Europe, Middle East, and Africa)

Published In : Jul 2024

Code : CMI366

Pages :150

Formats :

Excel and PDF

Industry : Food and Beverages

Food Additives Market Size and Trends

The food additives market is estimated to be valued at USD 120.75 Bn in 2024 and is expected to reach USD 176.83 Bn by 2031, exhibiting a compound annual growth rate (CAGR) of 5.6% from 2024 to 2031.

Food Additives Market Key Factors

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The market has been witnessing consistent growth over the past few years owing to rise in demand for convenience and packaged food products across both developed and developing countries worldwide. Factors such as increasing global population, changing consumer food preferences, and growing demand for processed and packaged food have been driving the demand for various types of food additives. Additionally, rapid urbanization and rising disposable income levels have also boosted the sales of packaged food, thereby driving the food additives market growth. However, increasing awareness about the ill effects of chemical food preservatives and additives and growing demand for clean label and organic products are expected to hamper the market growth over the forecast period.

Rising health consciousness

With growing awareness about health, consumers are increasingly demanding food and beverage products that are natural, clean labelled , and healthy. People are more informed about ingredients in packaged food and their potential negative impact on health. This is fueling the demand for food additives that can help manufacturers substitute artificial flavors, colors and preservatives with natural varieties. Companies are under pressure to remove synthetic ingredients and switch to plant-based, organic and non-GMO food additives. The clean label trend is pushing food processors to find cost-effective and sustainable solutions to meet consumer aspirations for wholesome and nourishing products without compromising on taste and appearance. This consumer propensity towards naturalness and wellness will continue driving innovations in the food additive landscape, with increased spending on products featuring natural colors, flavors, texturizers and other attributes.

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Rising processed food consumption

As lifestyle changes lead to less time available for cooking homemade meals from scratch, the consumption of packaged and ready-to-eat food items is witnessing a strong growth worldwide. Working professionals and millennial population are favoring convenience foods that can be easily prepared or consumed on-the-go. Rapid urbanization is also contributing to this rise in demand for processed food, with busy urban dwellers heavily dependent on store-bought food products for their daily nutrition. In order to ensure a longer shelf-life, improve sensory qualities and provide required consistency across batches, food additive usage becomes critical for processed food manufacturers. Food additives allow the production of products that closely resemble freshly made food in terms of taste, texture, and appearance while remaining shelf-stable for weeks or months. Their functionality helps address the performance, safety, and quality challenges arising from large-scale processed food production. Hence, food additive suppliers stand to benefit tremendously from the soaring processed food business in both developing and developed nations.