The global food additives market was valued at USD 52.2 billion in 2020, which is projected to grow at a CAGR of 5.6% from 2015 to 2020.
Food additives find their usage in various end-use applications, such as bakery & confectionery, beverage, convenience foods, dairy & frozen desserts, sauces, dressings, and spices & condiments, among others. For example, Tate & Lyle (Ireland) launched TASTEVA, a zero calorie stevia sweetener; a natural sweetener product that will help beverage manufacturers to reduce sugar levels by 50% without a bitter/liquorice aftertaste. In the food additives market, the demand from the beverage segment dominated the market in 2015. The demand for food additives has gained tremendous growth in the bakery & confectionery and convenience food segments which are projected to grow at significant rates during the forecast period. The market for sauces, dressings, spices & condiments is projected to grow at the highest CAGR of 6.0% from 2015 to 2020.
The market for natural sources of food additives is estimated to record high-growth rate as increasing numbers of consumers across the globe demand natural ingredients or food products with “no additive.” As a result, growing levels of research & development activities are conducted that drive innovation. This includes developing additives that are mainly natural alternatives to synthetic, having multi-functional properties, and that suit a wide range of food applications, including new and emerging. However, the higher cost associated with the naturally sourced additives and their limited availability restrict their usage to premium products. Besides cost, the functionality and fit to product formulation is also a factor for consideration.
Geographically, the market for food additives in the Asia-Pacific region is projected to grow at the highest CAGR during the forecast period. This growth may be attributed to the region’s lucrative food & beverage sector attracting large amount of investments and is greatly influenced by consumer preference for healthy eating, trend towards natural and organic foods, and the growing demand for convenience food owing to the changing consumer lifestyles. This trend in the Asia-Pacific region is influenced by the economic growth of countries, growing industrialization, and greater consumer preference for quality and premium products, resulting in ingredient suppliers becoming increasingly optimistic about the future.
The food additives market was dominated by E.I. DuPont (U.S.), Archer Daniels Midland (U.S.), Cargill, Inc. (U.S.), and Chr. Hansen A/S (Denmark) with respect to their developments in the past few years. These companies accounted for a cumulative share of about 61% in the market. Other players include companies such as Kerry Group (Ireland), BASF SE (Germany), Evonik Industries AG (Germany), Tate & Lyle PLC (U.K.), Ingredion Incorporated (U.S.), and Novozymes A/S (Denmark).
