The food additives market is projected to grow at a CAGR of 3.80% over the forecast period, increasing from US$57.063 billion in 2025 to US$72.715 billion by 2030.
A food additive is a type of substance that is added to foods and beverages produced on alarger scale to maintain its key characteristics, like texture, taste, smell, and nutritional values. It also helps in increasing the shelf life of food and beverage products and enhances the appeal of the products.
The rapid growth in the global urban population is propelling the demand for food additives during the forecasted timeline. With the increasing urbanization, the demand for packed andprocessed foodand beverages rises, mainly due to the growing availability of a wide range of products to choose from and theincrease in the expenditure capability of an individual.
The global urban population during thepast few years witnessed a significant increase. The World Bank, in its report, stated that in 2021, the total population of urban areas worldwide was recorded at 4.45 billion. The total urban population in 2022 increased to 4.52 billion, reaching 4.6 billion in 2023, accounting for57% of the total population.
The Agriculture and Agri-Food Canada, or AAFC, in its 2023 report, stated that in the year, the total sales of food and beverages processing was recorded at US$167.5 billion. The agency further stated that the meat processing sector occupied the largest share, with about 25.5%, followed by grain & oil seed milling at 12.7%. The dairy product manufacturing and bakeries & tortilla processing sector accounted for 10.9% and 10.6% shares, respectively.
The increasing demand for a wide range of beverageitems has led to an exponential rise in the incorporation of various food additives, for instance, to enhance the quality of the product, extend its shelf life, or consider the tastes of the consumers. Accordingly, the leading manufacturers of these additives are also funding research works in the advent of developing some new additives that not only improve product qualities but also help in addressing some product trends. For example, natural clean labels will play a big role in the growth of the industry in the coming years.
Moreover, the consumption of both alcoholic and non-alcoholic drinks has increased significantly. More specifically, the demand for alcoholic beverage markets is on the rise due to the millennials, especially in developed regions such as North America and Europe, which have a strong culture of consuming alcohol.
Additionally, the beverage industry is highly competitive, with various domestic and international firms leading the market. For example, Nouryon offers water-soluble cellulose-based gums called Akucell® and Cekol® that improve the look and flavor of a variety of foods, such as protein and fruit-flavored drinks, baked goods, dairy products, frozen desserts, sauces, noodles, and low-fat and gluten-free foods.
This demand has also increased the sales of alcoholic beverages in the United States. For instance, $7.2 billion in nearly flat vodka sales, and sales of mezcal and tequila increased 7.9%, or $476 million, for a total of $6.5 billion.
Moreover, access to processed and convenient types of foods has increased for consumers due to the growth in the number of retailers, retail channels, and formats. This, in turn, is increasing the demand for food additives within the US food and beverage industry. Organized retailing also gives the consumers the advantage of the label and other aspects at focused prices, quality, and services. Due to price competition with both national and store brands, the retail food market in the US is on the increase, which is also increasing the market for food additives in the United States. For instance, retail and food services sales in the United States were projected to reach $714.4 billion in September 2024 which is a rise from US$711.3 billion in August of the same year.
A food additive is a type of substance that is added to foods and beverages produced on alarger scale to maintain its key characteristics, like texture, taste, smell, and nutritional values. It also helps in increasing the shelf life of food and beverage products and enhances the appeal of the products.
The rapid growth in the global urban population is propelling the demand for food additives during the forecasted timeline. With the increasing urbanization, the demand for packed andprocessed foodand beverages rises, mainly due to the growing availability of a wide range of products to choose from and theincrease in the expenditure capability of an individual.
The global urban population during thepast few years witnessed a significant increase. The World Bank, in its report, stated that in 2021, the total population of urban areas worldwide was recorded at 4.45 billion. The total urban population in 2022 increased to 4.52 billion, reaching 4.6 billion in 2023, accounting for57% of the total population.
Food additives market drivers
- The increasing global demand for processed food and beverage products is projected to propel the food additives market expansion.
The Agriculture and Agri-Food Canada, or AAFC, in its 2023 report, stated that in the year, the total sales of food and beverages processing was recorded at US$167.5 billion. The agency further stated that the meat processing sector occupied the largest share, with about 25.5%, followed by grain & oil seed milling at 12.7%. The dairy product manufacturing and bakeries & tortilla processing sector accounted for 10.9% and 10.6% shares, respectively.
The increasing demand for a wide range of beverageitems has led to an exponential rise in the incorporation of various food additives, for instance, to enhance the quality of the product, extend its shelf life, or consider the tastes of the consumers. Accordingly, the leading manufacturers of these additives are also funding research works in the advent of developing some new additives that not only improve product qualities but also help in addressing some product trends. For example, natural clean labels will play a big role in the growth of the industry in the coming years.
Moreover, the consumption of both alcoholic and non-alcoholic drinks has increased significantly. More specifically, the demand for alcoholic beverage markets is on the rise due to the millennials, especially in developed regions such as North America and Europe, which have a strong culture of consuming alcohol.
Additionally, the beverage industry is highly competitive, with various domestic and international firms leading the market. For example, Nouryon offers water-soluble cellulose-based gums called Akucell® and Cekol® that improve the look and flavor of a variety of foods, such as protein and fruit-flavored drinks, baked goods, dairy products, frozen desserts, sauces, noodles, and low-fat and gluten-free foods.
This demand has also increased the sales of alcoholic beverages in the United States. For instance, $7.2 billion in nearly flat vodka sales, and sales of mezcal and tequila increased 7.9%, or $476 million, for a total of $6.5 billion.
Food additives market geographical outlook
Based on geography, the food additives market is segmented into North America, South America, Europe, the Middle East and Africa, and the Asia-Pacific.Due to the growing number of elderly individuals and a rise in health-concerned consumers, there is an increasing demand for healthy alternatives. The market is growing owing to the extensive use of additives in food and beverages throughout the market in forms such as colorants, sweeteners, emulsifiers, flavor enhancers, and preservatives, among many other uses. There is also a rise in demand for packaged and convenience foods, which use more additives.Moreover, access to processed and convenient types of foods has increased for consumers due to the growth in the number of retailers, retail channels, and formats. This, in turn, is increasing the demand for food additives within the US food and beverage industry. Organized retailing also gives the consumers the advantage of the label and other aspects at focused prices, quality, and services. Due to price competition with both national and store brands, the retail food market in the US is on the increase, which is also increasing the market for food additives in the United States. For instance, retail and food services sales in the United States were projected to reach $714.4 billion in September 2024 which is a rise from US$711.3 billion in August of the same year.
Reasons for buying this report:
- Insightful Analysis: Gain detailed market insights covering major as well as emerging geographical regions, focusing on customer segments, government policies and socio-economic factors, consumer preferences, industry verticals, other sub-segments.
- Competitive Landscape: Understand the strategic maneuvers employed by key players globally to understand possible market penetration with the correct strategy.
- Market Drivers & Future Trends: Explore the dynamic factors and pivotal market trends and how they will shape up future market developments.
- Actionable Recommendations: Utilize the insights to exercise strategic decision to uncover new business streams and revenues in a dynamic environment.
- Caters to a Wide Audience: Beneficial and cost-effective for startups, research institutions, consultants, SMEs, and large enterprises.
What do businesses use our reports for?
Industry and Market Insights, Opportunity Assessment, Product Demand Forecasting, Market Entry Strategy, Geographical Expansion, Capital Investment Decisions, Regulatory Framework & Implications, New Product Development, Competitive IntelligenceReport Coverage:
- Historical data & forecasts from 2022 to 2030
- Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, Customer Behaviour, and Trend Analysis
- Competitive Positioning, Strategies, and Market Share Analysis
- Revenue Growth and Forecast Assessment of segments and regions including countries
- Company Profiling (Strategies, Products, Financial Information, and Key Developments among others)
Thefood additives market is analyzed into the following segments:
By Additives 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
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
- South America
- Europe
- Middle East and Africa
- Asia-Pacific
Table of Contents
1. INTRODUCTION
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
5. FOOD ADDITIVES MARKET BY ADDITIVE TYPE
6. FOOD ADDITIVES MARKET BY APPLICATION
7. FOOD ADDITIVES MARKET BY DISTRIBUTION CHANNEL
8. FOOD ADDITIVES MARKET BY GEOGRAPHY
9. COMPETITIVE ENVIRONMENT AND ANALYSIS
10. COMPANY PROFILES
Companies Mentioned
- Cargill Incorporated
- ADM
- Novozymes
- DuPont
- Chr. Hansen Holdings A/S
- Ingredion Incorporated
- Ashland
- CP Kelco U.S., Inc.
- Bell Flavours & Fragrances
- Kerry, Inc.
- International Flavors & Fragrances Inc.
- BASF SE
- DSM-Firmenich
Methodology
LOADING...
Table Information
| Report Attribute | Details |
|---|---|
| No. of Pages | 148 |
| Published | December 2024 |
| Forecast Period | 2025 - 2030 |
| Estimated Market Value ( USD | $ 57.06 Billion |
| Forecasted Market Value ( USD | $ 72.72 Billion |
| Compound Annual Growth Rate | 3.8% |
| Regions Covered | Global |
| No. of Companies Mentioned | 13 |
