South America Food Preservatives Market-Growth, Trends, and Forecast (2022 - 2027)

South America Food Preservatives Market is projected to grow at a CAGR of 2.27% during the forecast period 2020-2025.

Key Highlights

• The South American market is one of the fastest growing markets for food preservatives. South America is an emerging market with huge potential and strong growth rates. ​
• The market for food preservatives in South America is mainly driven due to diet and flavor convergence, increasing per capita revenue in emerging economies, and increasing urbanization and growing consumer preference for processed foods.​
• Expanding processed foods market, penetration of the organized retail sector, and increasing demand for processed foods are the major factors driving the preservatives market in the region.​

Key Market Trends

Rising Consumption of Processed Food

The preservatives market is largely driven by demand for convenience and packaged foods by the burgeoning population and rising urbanization rates. However, the major constraint is the increased awareness on the ill effects of synthetic ingredients and growing consumer demand for fresh and natural foods. Companies are seeing this as an opportunity to innovate and provide solutions in the in the form of natural and functional ingredients. Growing share of organized retail in South America is driving increased acceptance of processed and packaged foods.

Brazil Holds the Largest Market Share in the Market Studied

Brazil accounts for almost half of the population of South America. It is South America’s largest economy. Moreover,​ higher employment rates and increasing presence of women in the work place drove Brazilians to include more processed foods in their daily diet. Furthermore, overweight and obesity rates are increasing in Brazil, leading to mounting health consciousness and shifting consumer attitudes toward food products. In response, major manufacturers are expected to further develop targeted fortified/functional products with safe preservatives. ​This in turn booting the market in the country.

Competitive Landscape

Some of the major players in the market studied are Kerry Inc., DSM, DuPont, BASF SE among others. These players have a strong position in the fast-growth natural preservatives and clean label categories, benefiting from greater usage of these preservatives in food and beverages generally. The strategy of developing new products and partnerships with local players helps to increase the company’s footprint in the foreign country and release new products according to the consumers’ changing preferences.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support