Natural Additives Market Size was valued at USD 2.2 Billion in 2023. The Natural Additives industry is projected to grow from USD 2.36 Billion in 2024 to USD 4.14 Billion by 2032, exhibiting a compound annual growth rate (CAGR) of 7.30% during the forecast period (2024 - 2032). Increased consumer preference for clean-label and healthier food products and the regulatory push and industry focus on food safety and sustainability is the key market drivers enhancing growth of the market.
Source: The Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for natural additives is being driven by the rising consumer preference for clean-label and healthier food products. Consumers are increasingly scrutinizing product labels and ingredient lists. They prefer products with easily recognizable, natural ingredients, and they often view clean-label products as more trustworthy and wholesome. The pursuit of healthier lifestyles and better dietary choices has prompted consumers to seek foods that are free from synthetic additives, artificial preservatives, and excessive chemicals. Natural additives align with this health-conscious trend by offering functional benefits without the perceived drawbacks of synthetic alternatives.
Natural additives, such as those derived from herbs, spices, and fruits, often provide additional nutritional value, including vitamins, antioxidants, and dietary fiber. Consumers perceive these additives as contributing positively to their nutritional intake. Food allergies and sensitivities have led consumers to seek clean-label products with transparent ingredient lists. Natural additives can often be allergen-free, reducing the risk of adverse reactions. Concerns about sustainability and ethical food production practices have led consumers to opt for natural additives that are sourced responsibly and have a reduced impact on the environment, aligning with their values. Regulatory authorities in various countries are increasingly scrutinizing synthetic additives, leading to stricter regulations and labeling requirements. This has encouraged food manufacturers to explore natural alternatives to ensure compliance. As consumer demand for clean-label products continues to rise, food manufacturers are responding by reformulating their products to include natural additives, which, in turn, drives the growth of the market for these ingredients.
Stricter regulations often require food manufacturers to use safer, naturally derived additives. This compels manufacturers to reformulate their products, favoring natural additives to meet compliance standards. Many food companies have adopted sustainability goals and eco-friendly practices as part of their corporate responsibility. Using natural additives aligns with these goals by reducing the environmental effect of food production and minimizing waste. The regulatory and industry emphasis on safety and sustainability stimulates innovation in the natural additives sector. Companies invest in research and development to identify new sources and applications for natural additives, expanding the market's offerings. Thus, driving the Natural Additives market revenue.
The Natural Additives market segmentation, based on type, includes Organic and Conventional. The organic category dominated the market, accounting for the largest market revenue due to their alignment with consumers' preference for clean, transparent, and health-conscious products. Organic additives are sourced from natural, sustainable, and environmentally responsible methods, appealing to those who prioritize chemical-free, non-GMO, and eco-friendly ingredients. This growing demand for organic natural additives reflects a broader shift towards clean-label and sustainable food and beverage products, driving the prominence of this additive type in the market.
The Natural Additives market segmentation, based on end use, includes Food & Beverage, Dairy & Confectionery, Bakery & Frozen, and Sauces & Dressings. The food & beverage category dominates the market due to the widespread consumer preference for clean-label and healthier food products. Natural additives are extensively used in this sector to enhance taste, texture, shelf life, and nutritional profiles while meeting the demand for more transparent and natural ingredient lists. As the food and beverage industry adapts to changing consumer preferences, the use of natural additives has become a fundamental strategy, making this end-use segment a dominant force in the natural additives market. Further, the dairy & confectionery segment is one of the fastest-growing in the market of natural additives. This is driven by the demand for natural ingredients in dairy products, as well as the confectionery sector.
The Natural Additives market segmentation, based on origin, includes Plants, Animals, and Insects. The plants category dominates the market of natural additives in origin. Plant-based natural additives, derived from sources like fruits, vegetables, and herbs, are widely used in the food and beverage industry due to their clean-label appeal, sustainability, and perceived health benefits. This aligns with the surging consumer preference for plant-based and natural ingredients in food products.
Figure 1: Natural Additives Market, by Origin, 2022 & 2032 (USD Billion)
Source: The Secondary Research, Primary Research, MRFR Database and Analyst Review
By region, the study gives market insights into the North America, Europe, Asia-Pacific and the Rest of the World. The North American Natural Additives market area dominates the market due to stringent regulatory standards and a well-established clean-label food trend, driving both consumer and industry demand for natural and safer food ingredients. The region's robust research and development efforts, combined with a strong emphasis on sustainability and food safety, further contribute to its leadership in the natural additives market.
Further, the prime countries studied in the market report are The US, Canada, Germany, France, the UK, Italy, Spain, Japan, China, India, Australia, South Korea, and Brazil.
Figure 2: NATURAL ADDITIVES MARKET SHARE BY REGION 2022 (USD Billion)
Source: The Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's Natural Additives market accounts for the second-largest market share due to the stringent food safety regulations, a growing preference for clean-label products, and increased consumer awareness of the health and the environmental benefits of natural ingredients in food and beverages. Further, the German Natural Additives market held the largest market share, and the UK Natural Additives market was the fastest-growing market in European region.
The Asia-Pacific Natural Additives Market is expected to rise at the fastest CAGR from 2023 to 2032. This is due to the region's expanding food and beverage industry, which is increasingly focused on clean-label products and consumer demand for natural and healthier ingredients. Moreover, China’s Natural Additives market held the largest market share, and the Indian Natural Additives market was the fastest-growing market in Asia-Pacific region.
Leading market players are investing heavily in research and development in order to spread their product lines, which will help the Natural Additives market grow even more. Market players are also undertaking a variety of strategic activities to spread their footprint, with important market developments including contractual agreements, new product launches, mergers and acquisitions, higher investments, and collaboration with other organizations. To spread and survive in a more competitive and rising market climate, the Natural Additives industry must offer cost-effective items.
Manufacturing locally to minimize the operational costs is one of the key business tactics used by the manufacturers in the Natural Additives industry to benefit the clients and increase the market sector. In recent years, the Natural Additives industry has offered some of the most significant advantages to the food industry. Major players in the natural additives market include Cargill, Incorporated, ADM, DuPont de Nemours, Inc., Kerry Group plc, Chr. Hansen Holding A/S, BASF SE, Kalsec Inc., Ingredion, DöhlerGroup, International Flavors & Fragrances Inc., and others are trying to increase the market demand by investing in research and development operations.
DuPont Nutrition & Biosciences, formerly known as DuPont Nutrition & Health, is a leader in food and beverage, healthcare, and industrial biotechnology sectors. The company is known for its innovative solutions in the development of ingredients and technologies that enhance the nutritional, taste, texture, and safety of various products. DuPont Nutrition & Biosciences operates in a wide range of applications, including food and beverage, dietary supplements, pharmaceuticals, and personal care. The company's expertise in science and research contributes to advancements in nutrition and biotechnology. In May 2023, DuPont Nutrition & Biosciences announced a partnership with Chr. Hansen, a manufacturer of natural food cultures and enzymes develops and commercializes new natural food solutions for food and beverage manufacturers. This partnership will help DuPont Nutrition & Biosciences expand its portfolio of natural food solutions and meet the growing demand for natural food solutions from food and beverage manufacturers.
DSM (short for Royal DSM N.V.) is a science-based company headquartered in Heerlen, Netherlands. It is a leading company in the field of health, nutrition, and materials. Innovation is a core part of DSM's strategy. The company invests heavily in research and development to create innovative products and technologies that benefit society and the environment. DSM's work is grounded in science and research, and it collaborates with experts and institutions to address complex challenges, particularly in the areas of nutrition, health, and sustainability. In April 2023, DSM announced a partnership with Givaudan, a manufacturer of natural flavors and fragrances, to develop and commercialize new natural food and beverage solutions. This partnership will help DSM to expand its portfolio of natural food and beverage solutions and meet the growing demand for natural food and beverage solutions from food and beverage manufacturers.
Natural Additives Industry Developments
May 2023: Ingredion acquired PureCircle Stevia, a manufacturer of stevia sweeteners, for $600 million. PureCircle Stevia produces a range of stevia sweeteners, including Reb A, Reb D, and Reb M. This acquisition will help Ingredion to expand its portfolio of natural sweeteners and meet the growing demand for natural sweeteners from food and beverage manufacturers.
June 2023: Kerry Group announced a partnership with Natreon, a manufacturer of natural preservatives, to develop and commercialize new natural preservation solutions for food and beverage manufacturers. This partnership will help Kerry Group to expand its portfolio of natural preservation solutions and meet the growing demand for natural preservatives from food and beverage manufacturers.
March 2023: Tate & Lyle announced a partnership with Firmenich to develop and produce sustainable natural flavors and fragrances. The partnership will focus on developing new natural flavors and fragrances for a variety of food and beverage applications.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 2.2 Billion |
| Market Size 2024 | USD 2.36 Billion |
| Market Size 2032 | USD 4.14 Billion |
| Compound Annual Growth Rate (CAGR) | 7.30% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2019- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, The Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Type, End Use, Origin and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The US, Canada, Germany, France, UK, Italy, Spain, Japan, China, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Cargill, Incorporated, ADM, DuPont de Nemours, Inc., Kerry Group plc, Chr. Hansen Holding A/S, BASF SE, Kalsec Inc., Ingredion, DöhlerGroup, and International Flavors & Fragrances Inc |
| Key Market Opportunities | The regulatory push and industry focus on food safety and sustainability. |
| Key Market Dynamics | Increased consumer preference for clean-label and healthier food products. |
Natural Additives Market Highlights:
Frequently Asked Questions (FAQ) :
The Natural Additives market size was valued at USD 2.2 Billion in 2023.
The market is foreseen to rise at a CAGR of 7.30% during the forecast period, 2024-2032.
North America held the largest share in the market
The key participants in the market are Cargill, Incorporated, ADM, DuPont de Nemours, Inc., Kerry Group plc, Chr. Hansen Holding A/S, BASF SE, Kalsec Inc., Ingredion, DöhlerGroup, and International Flavors & Fragrances Inc.
The organic category dominates the market in 2023.
The food & beverage held the largest share in the market.
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