Food Additives Market Analysis

Global Food Additives Market Overview

Food Additives Market Size was valued at USD 38.2 billion in 2023. The food additives industry is projected to grow from USD 40.33 Billion in 2024 to USD 62.37 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 5.60% during the forecast period (2024 - 2032). Increasing demand for functional food additives and rising growth in the processed are the key market drivers enhancing the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Food Additives Market Trends

• Growing demand for functional food additives is driving the market growth

Market CAGR for the food additives industry is driven by the increasing growth in the processed food industry across regions. The increasing population with hectic working life and increase in disposable income is also driving the demand for food additives. For instance: The U.S. Department of Agriculture Economic Research Service, in 2021, U.S. consumers, government, and business entities spent US$ 2.12 trillion on food. Also, consumers' expenditure on food-away-from-home increased to US $ 1.17 trillion in 2021 from US 922.2 million in 2020. Therefore, the rise in the processed food industry is driving demand for food additives and positively promoting the growth of the food additives market.

Additionally, increasing demand for functional food additives owing to the rising consumption of food products with high nutritional value is also anticipated to support the market growth of food additives. For instance: food and beverage manufacturers use seaweed derivatives as a substitute for fat and stevia-based sweeteners to reduce sugar levels. Functional food additives have various health benefits as they are rich in essential nutrients and antioxidants, lower the risk of chronic diseases, and prevent cell damage. As a result, it is anticipated that demand for food additives will increase throughout the projection period due to the rising processed food demand. Thus, driving the food additives industry revenue.

Segment Insights

Food Additives Product Insights

Based on product, the food additives market segmentation includes flavors & enhancers, sweeteners, enzymes, and emulsifiers. The sweeteners segment dominated the market. Growing knowledge about obesity and cardiovascular illness is anticipated to reduce consumer demand for fatty foods and foods containing high fructose corn syrup (HFCS), which are rich in calories. High-intensity sweeteners like stevia, aspartame and fat substitutes like whey protein and starch are all expected to benefit from this component.

Flavors and enhancers make meals and drinks taste better. The demand for flavor enhancers is increasing due to food and beverage makers’ efforts to reduce the amount of salt and sugar in their products. These additives can increase flavor without adding salt or sugar. Bitterness suppressors are required to balance food and beverage flavors to improve mouth feel and get rid of a bad aftertaste.

Food Additives Source Insights

Based on source, the food additives market segmentation includes natural and synthetic. The natural sector held a commanding revenue share. Compared to their chemical equivalents, additives from naturally produced sources are less dangerous for human ingestion. Chemically produced sweeteners, emulsifiers, and flavoring components frequently cause allergies or illnesses like cancer.

However, synthetic additives are less expensive to produce than natural ones. Synthetic additives replace pricey natural raw materials and the labor-intensive and expensive extraction processes that go with them. As a result, it is anticipated that synthetic additives' cost and production benefits will promote the expansion of the synthetic segment in the projected period.

Figure 1: Food Additives Market, by Source, 2022 & 2032 (USD billion)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Food Additives Application Insights

Based on application, the food additives market segmentation includes Bakery & Confectionery, Beverages, Convenience foods, dairy & frozen desserts, spices, condiments, sauces & dressings, and others. The bakery and confectionery segment dominated the food additive market in the projected period. Enzymes, sweeteners, emulsifiers, and dietary fibers are just a few additions that enhance the quality of baking and confectionery goods. DuPont’s’ Nutrition & Biosciences division provides various bakery enzymes, including POWERake, POWERSoft Cake, POWERFlex, and POWERFresh enzymes used to strengthen dough, lengthen dough stability, and improve flour quality.

The beverages segment is anticipated to be the fastest-growing segment because sports drinks, flavored water, flavored milk, and other ready-to-drink beverages may all be conveniently taken on the move while commuting, and it is expected that the younger generation will place a greater emphasis on these drinks. The industry is expanding due to new advances in fermented drinks like Kombucha and other fermented teas that have grown in popularity. The worldwide beverage market is anticipated to develop due to the increased demand for various alcoholic and non-alcoholic drinks with a wide range of flavor options.

Food Additives Regional Insights

By Region, the study provides market insights into North America, Europe, Asia-Pacific and Rest of the World. The North American food additives market area will dominate, owing to increased demand for processed food. In addition, the growing hectic working lifestyle will boost the market growth in this region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.

Figure 2: FOOD ADDITIVES MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Europe's food additives market accounts for the second-largest market share due to the health consciousness of consumers. Further, the German food additives held the largest market share, and the UK market of food additives was the fastest-growing market in the European region.

The Asia-Pacific food additives market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to expanding awareness of a healthy lifestyle and nutrition and rising per capita disposable income. Moreover, China’s market of food additives held the largest market share, and the Indian food additives was the fastest-growing market in the Asia-Pacific region.

Food Additives Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development to expand their product lines, which will help the food additives market, grow even more. Market participants are also undertaking various strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. The food additives industry must offer cost-effective items to expand and survive in a more competitive and rising market climate.

Manufacturing locally to minimize operational costs is one of the key business tactics manufacturer’s use in the food additives industry to benefit clients and increase the market sector. In recent years, the food additives industry has offered some of the most significant medical advantages. Major players in the food additives market, including Koninkjike DSM N.V. (Netherland), Sensient Technologies Corporation (US), Dohler Group (Germany), FMC Corporation (US), Tate & Lyle PLC (UK), Ingredion Incorporated (US), Evonik Industries AG (Germany), Kerry Group (Ireland), Archer Daniels Midland Company (US), BASF SE (Germany), Cargill Incorporated (US), and others, are attempting to increase market demand by investing in research and development operations.

Archer Daniels Midland Company (US) is a pioneer in human and animal nutrition and is one of the biggest nutrition firms in the world. For people worldwide, it unlocks the power of nature and turns crops into ingredients and solutions for meals, beverages, and supplements. It also provides various products and services for livestock, aquaculture, and pets. ADM aims to unleash nature’s potential and improve quality of life.  ADM is the world's leading agriculture origination and processing firm and a leader in human and animal nutrition. It has an unrivaled ability to address requirements for food, drinks, health, and wellness, among other things, to our breadth, depth, insights, facilities, and logistical. For instance: ScaleUp Bio, a joint venture firm established in Singapore, was launched by ADM, a food processing and commodities trading corporation, and Asia Sustainable Foods Platform, a new Temasek effort to drive the growth of sustainable foods in Asia. Precision fermentation of food applications will be the main emphasis.

Key Companies in the Food Additives Market include

• Koninklijke DSM N. V. (Netherland)


• Sensient Technologies Corporation (US)


• Dohler Group (Germany)


• FMC Corporation (US)


• Tate & Lyle PLC (UK)


• Ingredion Incorporated (US)


• Evonik Industries AG (Germany)


• Kerry Group (Ireland)


• Archer Daniels Midland Company (US)


• BASF SE (Germany)


• Cargill Incorporated (US)

Food Additives Industry Developments

In 2023: Consolidation in the food additives market is a trend, so expect to see major players like Ingredion, Cargill, or Dupont acquiring smaller companies or forming strategic partnerships to expand their product portfolios or access new technologies.

June 2022: At the World Perfumery Congress 2022 in Miami, BASF Aroma Ingredients introduced its Virtual Aroma Assistants, a new digital platform designed to make it easier for clients in the Flavor & Fragrance sector to navigate BASF’s Aroma Ingredients range. On virtual-aroma-assistants.basf.com, users can access the Virtual Aroma Assistants.

April 2022: To develop ST. Clair Plant, Cargill Salt indicated it might invest up to USD 68 billion. This plant extension produces salt and can expand the facility’s footprint by up to 50,000 square feet.

March 2022: Brenntag SE, a reputable company in the food additive industry, teamed with BASF to distribute Baxxodur® amine-based curing agents in North America. This company’s expansion of its business distribution channel aimed to increase revenue and brand recognition.

Food Additives Market Segmentation

Food Additives Product Outlook

• Flavors & Enhancers


• Sweeteners


• Enzymes


• Emulsifiers

Food Additives Source Outlook

• Natural


• Synthetic

Food Additives Application Outlook

• Bakery & Confectionery


• Beverages


• Convenience Foods


• Dairy & Frozen Desserts


• Spices, Condiments, Sauces & Dressings


• Others

Food Additives Regional Outlook

• North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  

• Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  

• Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia
  
  
  • South Korea
  
  
  • Australia
  
  
  • Rest of Asia-Pacific
  
  
  
  

• Rest of the World
  
  
  
  • Middle East
  
  
  • Africa
  
  
  • Latin America