Food Additives Market Trends | Global Size & Growth 2024-2032
Global Food Additives Market Size (2024 to 2032)
The food additives market is expected to expand at a CAGR of 6.12% during the forecast period. The market size was valued at USD 40.23 billion in 2023 and is projected to reach USD 68.66 billion by 2032 from USD 42.69 billion by 2024.
Current Scenario of the Global Food Additives Market
Presently, the food additives market is rapidly growing owing to the shift towards clean labelling. The half of 2024 highlights a growing consumer trend towards clean labelling, with brands actively removing artificial supplements and incorporating natural alternatives into their products. Moreover, the market is experiencing a rising demand for functional ingredients that deliver health advantages in addition to basic nutritional value. Additionally, technological progress is driving the development of innovative dietary and nutritional supplements which are effective and derived from natural sources.
Market Drivers
The growing popularity of ready-made and fast-food meals is fueling the growth of the food additives market. The use of these products has risen sharply over the past decades and this trend is likely to persist, given that they are engineered for convenience and require little preparation time. As a result, its consumption has emerged as a global phenomenon in numerous countries in the last few decades, with individuals increasingly opting to eat meals outside their homes or enjoying takeaway and home delivery services from food establishments.
Market Restraints
Adverse consumer opinion is one of the major challenges impeding the growth of the food additives market. There is a swift rise in demand for natural preservatives and ingredients, largely stemming from the unfavourable views consumers hold towards supplements and additives. Further, in total, 91.5 per cent of respondents expressed a negative view of food additives, believing they pose a genuine health risk. Consumers noted that food colourings are commonly found in industrial products, particularly in various spices like saffron, stock cubes, and beverages.
Segmental Analysis
Global Food Additives Market By Product
· Flavours & Enhancers
· Antioxidants
· Anticaking Agents
· Emulsifiers
· Sweeteners
· Stabilizers
· Colorants
· Fat Replacers
· Others
The sweeteners segment is expected to be the dominant category of the food additives market. These are extensively utilised in the food and beverages industry and are promoted as “diet” or “sugar-free”, comprising dairy products, jams and jellies, canned foods, candy puddings, candy, powdered drink mixes, soft drinks, baked goods, and many others. Moreover, aspartame, sucralose, and stevia-derived substances are examples of sugar substitutes or sweeteners that are used to add pleasantness to foods and sometimes improve their taste. Apart from these, other factors escalating the demand for this segment include low calories, versatility, etc.
Global Food Additives Market By Application
· Confectionary
· Hotels
· Bakery
· Dairy & Frozen products
· Meat
· Poultry & Seafood products
· Beverages
· Others
The bakery segment is the biggest user as compared to others in the food additives market. The segment is also witnessing several trends which is expected to keep growing during the forecast period. Functional, and clean label ingredients are rapidly gaining traction. Customers are progressively seeking easy-to-understand and transparency in food items, resulting in the escalating demand for clean label materials in bakery products. Another factor increasing the segment’s market size is ethical sourcing and sustainability. In this, plant-based and alternative ingredients, along with tenable sourcing practices are getting the consumer’s attention. The transition into plant-based diets has fuelled the innovations in bakery raw materials, contributing to the surging market share.
Global Food Additives Market By Source
· Natural
· Synthetic
The natural segment is the fastest growing category in this food additives market and is anticipated to experience further rise throughout the estimation period. This progress can be linked to increased awareness regarding the harmful effects of artificial or synthetic ingredients, and a progressive shift towards organic products. Moreover, even after complete regulation and research, few customers favour organic and natural items for their simplicity and user-friendliness, which gives a sense of safety and control. Hence, these factors are fueling the demand for these ingredients.
REGIONAL ANALYSIS
North America is spearheading the food additives market with the higher consumption of beverages and confectionery. Both Canada and the United States are prominent markets in the region. The region holds a significant market share owing to its increased consumption of convenience foods. The demand for convenience and packaged foods is growing, and these generally include a greater number of additives.
Europe is witnessing a positive wave in the food additives market and is expected to drive forward during the forecast period. This is primarily propelled by an accelerating amount of health-conscious customers and a deeper liking for clean label food.
RECENT MARKET DEVELOPMENTS
· In November 2024¸ Godrej Industries reported that it will take over the food additives and emulsifier operations of Savannah Surfactants Limited for 76 crore rupees. According to a regulatory filing, Godrej Industries confirmed the finalization of a ‘Business Transfer Agreement’ with Savannah Surfactants Limited (Goa, India) aimed at acquiring their food additives and emulsifier business.
· In October 2024, the Food Safety and Standards Authority of India (FSSAI) announced changes to the Food Products Standards and Food Additives Regulations that were initially proposed in 2022. After evaluating public responses, these updates will be effective from 1st May 2025, with immediate implementation for clauses for clauses 24C, 24B, and 24A of sub-regulation 2.4.6.
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