Natural Food Additives Market Analysis

Global Natural Food Additives Market Overview

Natural Food Additives Market Size was valued at USD 2.1 Billion in 2023. The Natural Food Additives industry is projected to grow from USD 2.25 Billion in 2024 to USD 3.95 Billion by 2032, exhibiting a compound yealy growth rate (CAGR) of 7.30% during the forecast period (2024 - 2032). Increased consumer demand for clean-label and healthier food products and the rising demand for plant-based and vegan food products are the key market drivers enhancing the growth of the market.

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

Natural Food Additives Market Trends

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  Growing consumer demand for clean-label and healthier food products is driving the market growth.

  
  

Market CAGR for natural food additives is being driven by the rising consumer demand for clean-label and healthier food products. Consumers are becoming more health-conscious and are scrutinizing product labels. They prefer foods with ingredient lists that are easy to understand and do not contain artificial or synthetic additives. This demand for transparency and trust in food products has led to a rising preference for natural additives, which are perceived as safer and more authentic.

Consumer awareness of the impact of the diet on health and well-being has increased. There is a preference for foods that contribute to overall health and avoid potential health risks associated with synthetic additives. Natural additives, often sourced from plants and other natural origins, align with this focus on wellness. The clean-label movement is a significant driver. Consumers are actively seeking foods that are free from artificial or chemical additives. This movement encourages food manufacturers to reformulate their products with natural alternatives to meet the clean-label criteria. The regulatory bodies are responding to consumer demands by imposing stricter labeling requirements and safety standards. These regulations often encourage the use of natural additives while scrutinizing the use of synthetic ones. The market for natural food additives is driven by the broader sustainability movement. Consumers are increasingly conscious of the environmental impact and are inclined to choose products that are in line with eco-friendly and sustainable practices. Natural additives derived from renewable sources are considered more environmentally responsible.

The rise of specific dietary preferences, such as vegetarian, vegan, and organic diets, has contributed to the demand for natural food additives. These preferences often exclude synthetic ingredients and favor natural, plant-based alternatives. The demand for natural food additives has spurred innovation in the food industry. Manufacturers and food scientists work to develop new, effective, and flavorful natural additives, expanding the range of options available to meet consumer expectations. Thus driving the Natural Food Additives market revenue.

Natural Food Additives Market Segment Insights

Natural Food Additives Type Insights

The Natural Food Additives market segmentation, based on type, includes Preservatives, Bulk Sweeteners, Sugar Substitutes, Emulsifiers, Anti-caking Agents, Enzymes, Hydrocolloids, Food Flavors and Enhancers, Food Colorants, and Acidulants. The sweeteners segment dominated the market due to the widespread consumer demand for reduced sugar and healthier food options. As health-conscious consumers seek alternatives to traditional, calorie-laden sugars, natural sweeteners such as stevia, monk fruit extract, and erythritol have gained traction. These sweeteners offer the desired sweetness without the same caloric and glycemic impact as traditional sugars, making them a preferred choice for food and beverage manufacturers looking to meet consumer preferences for taste, health, and clean-label products. The market for natural sweeteners continues to expand as the food industry seeks innovative ways to deliver sweetness while addressing the growing focus on nutrition and well-being. Further, the sugar substitute type is the fastest growing due to the demand for reduced sugar.

Natural Food Additives Application Insights

The Natural Food Additives market segmentation, based on application, includes Bakery and Confectionery, Dairy and Desserts, Beverages, Meat and Meat Products, Soups, Sauces, and Dressings and Others. The bakery and confectionery category dominate the market as it is widely used to enhance the taste, texture, and shelf life of baked goods, confectionery items, and pastry products. Additionally, consumers often have high expectations for the quality and naturalness of ingredients in bakery and confectionery products, making this segment a key focus for the adoption of natural additives to meet clean-label and health-conscious demands. Further, the beverages segment is expected to experience the fastest growth as it is increasingly used in different beverages, including soft drinks, fruit juices, energy drinks, and functional beverages, to enhance flavor, provide nutritional benefits, and meet consumer demands for healthier and cleaner-label products.

Figure 1: Natural Food Additives Market, by Application, 2022 & 2032 (USD Billion)

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

Natural Food Additives Regional Insights

By region, the study gives market insights into the North America, Europe, Asia-Pacific and the Rest of the World. The North American Natural Food Additives market dominates this market due to a combination of factors, including stringent regulatory standards, robust consumer demand for clean-label and healthier food products, and the presence of major food manufacturers committed to meeting these preferences, positioning the region as a leader in the adoption of natural additives.

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 FOOD ADDITIVES MARKET SHARE BY REGION 2022 (USD Billion)

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

Europe's Natural Food Additives market accounts for the second-largest market share due to a strong emphasis on food safety, strict regulations, and a growing consumer inclination towards clean-label and organic food products. Further, the German Natural Food Additives market held the largest market share, and the UK Natural Food Additives market was the fastest-growing market in the European region.

The Asia-Pacific Natural Food Additives Market is expected to rise at the rapid CAGR from 2023 to 2032. This is due to the region's rising population, rising consumer awareness of the health and wellness, and a shift toward cleaner and healthier food choices, which are propelling demand for natural additives in the food industry. Moreover, China’s Natural Food Additives market held the largest market share, and the Indian Natural Food Additives market was the fastest-rising market in the Asia-Pacific region.

Natural Food Additives Key Market Players & Competitive Insights

Leading market players are investing heavily in research and development in order to spread their product lines, which will help the Natural Food 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 Food 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 Food Additives industry to benefit the clients and increase the market sector. In recent years, the Natural Food Additives industry has offered some of the most significant advantages to the food industry. Major players in the Natural Food Additives market, including ADM; Chr. Hansen Holding A/S; Ingredion Incorporated; Novozymes A/S; Tate & Lyle Plc; DSM; Ajinomoto Co., Inc.; Cargill, Incorporated; BASF SE; Givaudan; International Flavors & Fragrances, Inc.; Biospringer; Palsgaard; Lonza; Sensient Technologies Corporation; Kerry; Corbion; Fooding Group Limited; DuPont; The Kraft Heinz Company, and others, are trying to increase market demand by investing in the research and development operations.

The Kerry Group is a food and ingredients company based in Tralee, County Kerry, Ireland. Kerry Group is a multinational food company that operates in the food and beverage, pharma, and biotech industries. It was founded in 1972 and has since grown into a major player in the food and ingredient sector. Kerry Group focuses on addressing consumer demands for healthier and more nutritious food options. It offers a range of products and solutions aimed at improving the nutritional content of food and beverages. In March 2023, Kerry Group announced a partnership with DSM to develop new natural food additives for the food and beverage industry. Kerry Group is a leading producer of food ingredients and flavorings, and DSM is a leading producer of vitamins, minerals, and other nutrients. This will bring together the expertise of both companies to develop new and innovative natural food additives.

Tate & Lyle is a British-based multinational food and beverage ingredient supplier and manufacturer. Tate & Lyle specializes in the production and supply of a wide range of ingredients that improve the taste, texture, and nutritional content of food and beverages. Some of its core products include high-fructose corn syrup, modified food starch, and other specialty ingredients. The company places a strong focus on sustainability, including reducing its environmental impact and promoting ethical and responsible business practices. In February 2023, Tate & Lyle announced a partnership with SteviaFirst to develop new stevia-based sweeteners for the food and beverage industry. Stevia is a natural sweetener that is low in the calories and has a low glycemic index. This will bring together the expertise of both the companies to develop new and innovative stevia-based sweeteners.

Key Companies in the Natural Food Additives market include

• ADM


• Chr. Hansen Holding A/S


• Ingredion Incorporated


• Novozymes A/S


• Tate & Lyle Plc


• DSM


• Ajinomoto Co., Inc.


• Cargill Incorporated


• BASF SE


• Givaudan


• International Flavors & Fragrances, Inc.


• Biospringer


• Palsgaard


• Lonza


• Sensient Technologies Corporation


• Kerry


• Corbion


• Fooding Group Limited


• DuPont


• The Kraft Heinz Company

Natural Food Additives Industry Developments

June 2023: IFF acquired Frutarom, a leading provider of natural flavorings, extracts, and other food additives. This acquisition strengthens IFF's position in the natural food additives market and gives it access to Frutarom's broad portfolio of products.

January 2023: Ingredion announced a partnership with Novozymes to develop new natural food additives for the food and beverage industry. Novozymes is a leading producer of enzymes. This will bring together the expertise of both the companies to develop new and innovative natural food additives.

March 2023: Cargill acquired Delacon, a leading provider of phytogenic feed additives. This acquisition strengthens Cargill's position in the animal nutrition market and gives it access to Delacon's expertise in phytogenic feed additives.

Natural Food Additives Market Segmentation

Natural Food Additives Type Outlook

• Preservatives


• Bulk Sweeteners


• Sugar Substitutes


• Emulsifiers


• Anti-caking Agents


• Enzymes


• Hydrocolloids


• Food Flavors and Enhancers


• Food Colorants


• Acidulants

Natural Food Additives Application Outlook

• Bakery and Confectionery


• Dairy and Desserts


• Beverages


• Meat and Meat Products


• Soups, Sauces, and Dressings


• Other

Natural 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