Global food preservatives market is estimated to be valued at USD 3.47 Bn in 2024, exhibiting a CAGR of 4.5% over the forecast period 2024-2031. The market is witnessing high growth, owing to factors such as rising health awareness among consumers and growing demand for convenience and processed foods. Food producers are incorporating food preservatives to prevent spoilage and increase shelf life of products without compromising on taste and quality.
Market Dynamics:
Increasing demand for convenience and processed foods is a key driver augmenting the growth of food preservatives market. Fast-paced lifestyle has led to rise in demand for packaged and ready-to-eat foods which require extended shelf life. Food preservatives help food manufacturers to offer products with long shelf life in accordance with changing consumer needs. Furthermore, rising health concerns among consumers has boosted need for natural and clean label ingredients. This has spurred innovations in natural preservatives containing plant extracts, essential oils and other all-natural compounds. Food industry players are increasingly investing in R&D activities to develop safe and natural shelf-life extending solutions.
Growing Demand for Processed and Packaged Foods The food processing industry has witnessed tremendous growth over the past few decades due to rising incomes, urbanization and changing lifestyles. As consumers opt for more packaged and processed foods due to their convenience, the demand for food preservatives has increased considerably. Food preservatives help increase the shelf life of packaged foods and prevent spoilage during transportation and storage. Without the use of preservatives, most processed foods would perish much sooner.
Increasing Health Awareness among Consumers is reducing the Use of Certain Synthetic Preservatives
While the processing industry is spurring growth, rising health consciousness among consumers is also impacting the food preservatives market. There is growing skepticism about the potential health risks of synthetic and chemical preservatives. Consumers are increasingly looking for cleaner labels and prefer natural and plant-based preservatives over artificial variants. This is challenging manufacturers to reduce the use of certain synthetic preservatives and explore safer alternatives. Stricter regulatory norms around the world are also restricting the application of particular preservatives. The negative perception around synthetic ingredients could restrain the demand for some conventional food preservatives.
Volatility in Raw Material Prices Pose a Challenge for Manufacturers
Food preservatives are derived from various raw materials including salts, acids, vinegar and plant extracts. Fluctuations in the availability and prices of these raw materials impact the costs of making preservatives. Sudden shortages or price spikes of essential feedstocks negatively affect the bottom lines of preservative producers. Sourcing consistent supplies of raw materials at competitive costs is a major issue, especially for SME manufacturers with limited bargaining power. Dependence on a few suppliers also makes the industry vulnerable to supply disruptions. Volatile commodity prices and dependency on overseas markets/suppliers can pose operational and pricing challenges for stakeholders.
Growing Demand for Clean Label and Natural Ingredients Offers Opportunities
The clean label movement is opening up opportunities for natural preservatives to gain wider acceptance. Consumers today scrutinize product labels and refuse foods with artificial or synthetic chemicals. This has propelled demand for naturally derived alternatives that are considered healthier and safer. Plant-based preservatives from rosemary, thyme, oranges and other sources are gaining popularity. Innovation is also taking place in extraction technologies to develop effective natural substitutes. The lucrative clean label market presents substantial scope for natural ingredients companies to offer plant-based preservative solutions.
Emerging Economies
While mature markets in the West have shown slowing growth patterns, developing regions continue to offer headroom for expansion. Emerging economies in Asia Pacific and Latin America are witnessing rising consumption of packaged and convenience foods owing to economic development. The growing middle class, rapid urbanization and Westernization of diets are catalyzing demand growth. However, the use of preservatives in these countries currently remains low compared to developed nations. Penetration levels provide significant potential for preservative makers to tap into these nascent markets of the future. Global food companies are also increasingly outsourcing production to such low-cost manufacturing hubs.
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Key Developments
- In 2023, BioVeritas, a U.S.-based startup, developed a natural mold inhibitor derived from upcycled biomass for use in baked goods. The company aims to achieve Generally Recognized as Safe (GRAS) status for its product, which is expected to be available in the market by 2026. BioVeritas is also considering expanding its presence to the North American baked goods market and the processed food industry.
- In January 2022, Florida Food Products (FFP) introduced VegStable Fresh, a clean label antioxidant for the meat and poultry industry, thus, addressing the demand for natural preservatives. This plant-based solution offers benefits like extended shelf life and rancidity prevention, aligning with the trend towards cleaner ingredients in food preservation
- In July 2021, Corbion acquired Granolife completely for an undisclosed amount. Granolife is a leading manufacturer of functional mixes for the baking and fortification sectors in Mexico.
- In April 2021, The 'Performance and Formulation Additives' division of had developed a new website. The new website has a number of useful features. Its architecture allows for quicker and easier access to new additives, meeting growing demands for performance and sustainability as well as higher regulatory requirements.
Key Players
BASF SE, Kerry Group Plc, Kemin Industries, Inc., DuPont Nutrition & Biosciences, ADM, Foodchem International Corporation, Corbion, Celanese Corporation, Jungbunzlauer Suisse AG, Cargill, Inc., Kemin Industries, Inc., ADM, Tate & Lyle, Koninklijke DSM N.V., Galactic S.A., Givuadan SA., Mane Kancor Ingredients Pvt. Ltd., Synthite Industries Ltd., International Flavors & Fragrances Inc., and Arjuna Natural.
