China Food Additives Market - Growth, Trends, and Forecast (2020 - 2025)

The Chinese food additives market is projected to register a CAGR of 5.2% during the forecast period (2020 - 2025).

• The increasing disposable incomes of the burgeoning middle class, growing urbanization, and changing lifestyles are driving demand for convenience and packaged foods and, thus, escalating the need for food additives.
• The key players are focusing on promoting the benefits of clean label ingredients, due to the high interest of consumers in healthy eating habits and an increase in the awareness of ingredients used in the food products.
• However, food additives are allowed to be used in China only if they are within the list of allowable food additives announced by the Ministry of Health (MOH); and within the scope of allowed applications and dosage levels; these regulations are restricting the new players from entering the market.

Key Market Trends

Growing Trend for Clean Label Ingredients

Clean label ingredients are consumer-friendly ingredients, which are natural, organic, non-GMO, and very minimally processed. Clean label products are 100% natural, non-GMO, and organic. The demand for natural ingredients is increasing, owing to the increasing health concerns of the customers, regarding the adverse health effects of artificial ingredients. There has been an increasing consumer demand for processed food and the expectations for safer and healthier ingredients have increased the need for the introduction of clean label ingredients across diverse applications. The manufacturers are adopting the strategy of incorporating functional ingredients that can improve the nutritional profile of the product. An interest in the development of new natural flavors has been observed for their use in the food industry due to the strong consumer demand for more natural products.

Increased Demand For Flavors

The demand for flavors is influenced by western-style cooking in China which can be observed in the growing import for flavoring products, along with domestic consumption. This is driving the market growth of premium products, such as seasonings and sauces, by inducing a sense of authenticity in the flavor. The market has observed a shift in consumer preference, owing to the expansion of the convenience food industry, which can be attributed to the growing population of working-class people, urbanization, and improved household income. The regional market holds huge potential for growth among the flavor suppliers and food manufacturers. Moreover, the Chinese market is also witnessing growth in the artificial flavor industry, due to consumer demand for exotic flavors in food.

Competitive Landscape

The market is fragmented with the presence of numerous players. The key players are focusing on product innovation, expansion, partnership, and mergers and acquisitions to meet the needs of growing consumers. The major players in the market are Archer Daniels Midland Company, Corbion NV, Kerry Group, Cargill, and Firmenich.

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