Food Additives Market - Forecasts from 2024 to 2029

Food Additives Market - Forecasts from 2024 to 2029

The food additives market is estimated to reach US$47.080 billion in 2029, with a CAGR of 3.52%, from US$39.601 billion in 2024.

Food additives are increasingly being utilized since they are required to keep food fresh. Preservatives can slow down the spoilage of the product caused by bacteria, moisture, and fungi. The use of such substances prevents product contamination, thereby maintaining the overall nutrition content.

Additionally, by employing stabilizers, emulsifiers, and other ingredients, the texture and taste of bread and confectionery items may be exploited to offer a particular texture and flavor character. Increasing market concerns are prompting market players to incorporate food additives into various food items to improve and enhance their properties and make them more appealing to consumers, which is expected to drive market growth at a global scale.

Food Additives Market Drivers

Growing applicability in diverse food items has propelled the market growth.

Food additives are highly applicable in various products such as bakery, seafood, meat, and confectionery. Moreover, the number of individuals demanding processed and canned foods along with ready-to-eat and ready-to-cook varieties has increased. This is due to the majority of the population getting busier in their work lives and having limited leisure time. Thus, this led to a surge in market growth over the forecast period.
Rapid urbanization and increased disposable income have positively impacted market growth.

Consumer awareness regarding personal hygiene and healthy lifestyle drives the demand for additives with high nutritional content. Individuals' proclivity to spend on premium items and products with extra nutrients and additional nutritional advantages to keep fit and healthy is being assisted by rising disposable incomes, contributing to market expansion. The global urban population has shown an upward trajectory over the years, further bolstering the demand for additives. According to the United Nation’s data, in 2022, nearly 55% of the global population resided in urban areas and the percentage figure is set to reach 70% by 2050.

Food Additives Market Restraints:

Stringent government regulations regarding food safety have restrained the market growth.

Food additives play an integral role in maintaining the taste, texture, and flavor of the items; however, their usage is limited as per the rules set by the governing authorities, such as the Food and Drug Administration. Various additives can also pose a threat to human health, and laws are being passed to ban their usage. For instance, in April 2024, the Food and Drug Administration filed a food additive petition by the Breast Cancer Prevention Partner, Environmental Defense Fund, Environmental Work Group, and Center For Food Safety, which asked the FDA to remove fluorinated polyethylene as an indirect food additive. The petition was filed concerning the growing awareness regarding exposure to fluorinated polyethylene leading to breast cancer.

Food Additives Market Geographical Outlook

Asia Pacific will account for a considerable market share during the forecast period.

Asia Pacific is anticipated to account for a significant market share fueled by the booming food & beverage sector in major regional economies, namely China, India, Japan, and South Korea, among others. Additionally, the demand for processed food items has experienced a significant boom in the mentioned economies due to rapid urbanization and a growing fast lifestyle. For instance, according to the USDA’s “Food Processing Ingredient” report issued on April 2023, the sales volume of dairy products witnessed 65% growth in 2022 compared to 2018. In contrast, baked goods and savory snacks experienced 53% and 41% growth.

The demand for premium food products is also gaining traction in low—to middle-income APAC nations, and major firms are implementing investment options to optimize this growing opportunity by establishing their plants in nations such as Australia, New Zealand, the Philippines, and Vietnam.

Additionally, the North American and European regions are expected to hold a significant share since there are increasing investments in the food and beverage industry and also in the R&D of better technologies and testing methods to assess the quality of food additives effectively and efficiently. Moreover, the well-established presence of major firms, namely ADM, Cargill, Novozymes, and Ingredion Corporation, is further anticipated to drive the regional market expansion.

Food Additives Market Players and Products:

EverSweet: Cargill’s EverSweet is specifically designed to meet all caloric and taste preferences. Although sugar is associated with taste, the sweetener offers great taste and 100% sugar-reduction products that don’t require consumers to use extra flavor enhancers.
GrainSweet: ADM offers a comprehensive portfolio of sweeteners, including its traditional nutritive product “GrainSweet.” This product provides glucose, fructose, and dextrose, among other solutions that support flavor retention and reduce the calorie content present in the body.

Food Additives Market Key Developments
June 2022: The Live Green Group and FoodForms Solutions formed a collaboration to replace chemical food additives such as gums and other emulsifiers, as well as methylcellulose, with plant-based alternatives.

The Food Additives market is segmented and analyzed as follows:

By Additive Type
Preservatives
Ascorbic acid
Citric acid
Sodium Benzoate
Others
Sweeteners
Sucrose
Fructose
Glucose
Others
Flavors and Spices
Natural flavor
Artificial flavor
Spices
Flavor Enhancers
Monosodium Glutamate (MSG)
Hydrolyzed soy protein
Autolyzed yeast extract
Others
Stabilizers and Thickeners, Binders, Texturizers
Gelatin
Pectin
Guar gum
Others
Emulsifiers
Soy lecithin
Mono and di-glycerides
Egg yolks
Others
Others
By Application
Bakery and Confectionery
Processed and Canned Food
Fruits and Vegetables
Frozen Foods
Beverages
Dairy Products
Meat and Seafood
By Distribution Channel
Online
Offline
By Geography
North America
USA
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
Germany
United Kingdom
Italy
France
Others
Middle East and Africa
Saudi Arabia
UAE
Others
Asia Pacific
China
Japan
South Korea
India
Indonesia
Thailand
Others