An Incisive, In-depth Analysis on the Food Additives Market
This study offers a comprehensive, 360 degree analysis on the Food Additives market, bringing to fore insights that can help stakeholders identify the opportunities as well as challenges. It tracks the global Food Additives market across key regions, and offers in-depth commentary and accurate quantitative insights. The study also includes incisive competitive landscape analysis, and provides key recommendations to market players on winning imperatives and successful strategies.
Food additives are used across a variety of applications such as bakery & confectionery, dairy & frozen desserts, beverages, meat & poultry products, and others which include sauces, soups, and baby food, in order to increase the sweetness, enhance or add colors, add flavors, and stop the deterioration of food. Within the U.S., there are an estimated 10,000 food additives, including color additives, fat replacers, flavour enhancers, preservatives, stabilizers, and texturizers being used, of which, 3,000 are FDA approved.
Over the years, a huge range of food additives such as preservatives, antioxidants, flavour enhancers, colourants, and sweetening agents are used in the manufacturing or preservation of various food products, namely, packaged foods, functional beverages, bakery goods, dairy products, meat and seafood, snack items, and flavoured and functional water. Apart from the aforementioned list of food additives, enzymes, emulsifiers, acidulants, shelf-life stabilisers, and fat replacers also exhibit a high demand in the food additives market.
The global food additives market is expected to grow at a moderate growth rate over the forecast period. In terms of value, the food additives market is expected to grow at a CAGR of 5.9% during 2016-2026. The global food additives market consumption is estimated to be 3,376 thousand tonnes in 2016, which is expected to experience a CAGR of 5.2% in terms of volume during the forecast period. The global food additives market is expected to reach US$ 83.23 Bn by 2026 from US$ 47.0 Bn in 2016.
Various growth factors will drive the demand for global food additives market in the coming years. A few major factors influencing the food additives market are:
Rising Focus on the Production of Organic Food Products
Growing health concerns across the globe coupled with raising awareness about the associated benefits of organic food products will boost the demand for naturally sourced food additives in the global food additives market. The trends in the food additives market are expected to propel the adoption rate of natural food additive products such as organic preservatives and flavouring agents, natural colourants, stevia-based sweeteners, rosemary extract, and many more. Health conscious consumers prefer to check the ingredient list on any food product label prior to making a purchase decision. Manufacturers in the food additives market have understood this consumer sentiment, and are working towards creating packaging designs that are more appealing to health-conscious consumers.
Expansion of Convenience and Processed Food in Less Developed Countries
One of the major drivers expected to drive the growth of the food additives market across the globe is the expansion of the convenience and processed food industry in various less-developed countries across the globe. The food industry in regions such as North America and Europe is highly mature, which supports the growth of manufacturers in the food additives market in other regions.
For instance, in countries with rapidly increasing urban populations such as India, China, and Brazil, and regions such as the Middle East, there is an increasing demand for processed food, and the per capita income of consumers is also increasing. Growth opportunities in the food additives market due to a growth in food consumption in regions such as the Middle East and Asia Pacific is prompting various leading manufacturers in the food additives market to set up production units in these regions. Due to this, countries such as China have emerged as the leading producers and exporters of various varieties of food additives.
Increasing Supply Chain Inefficiencies
Another major driver in the food additives market is growing supply chain complexities in the food and beverage industry, such as last mile reach for various food products, transportation costs, and setting up storage facilities, which are various company's expansion strategies. All these factors increase the complexity of the value chain, which, in turn, promotes the demand for food additives in order to reduce the spoilage and wastage costs involved with various food products.
Flavours and Enhancers Spearhead
Flavours and enhancer food additives are majorly responsible for raising the commercial quality of any food and beverage product. In addition to the overall improvement of the nutritional value of consumables, these food additives enhance their structures and aromas as well. Moreover, food and beverage formulators are inclined towards natural and customised enhancers and flavouring agents over artificial enhancers, spurring the introduction of innovative additives in the food additives market.
Food Additives Market: Influential Mergers & Acquisitions
Increasing number of mergers & acquisitions and partnerships in the food additives market will continue to create a strong positive impact on the growth of the food additives market. Some of the most notable recent M&A activities in the food additives market are the acquisition of Cognis by BASF (2010), FMC Corporation’s acquisition of Phytone in 2012, and the acquisition of Diana Group by Symrise in 2014. M&A activities in the food additives market are increasingly favouring the product offerings of leading companies, enhancing their presence in the global food additives market.
Food Additives Market: Analysis and Forecast by Segmentation
Among the various product types analysed in the food additives market, flavouring agents will remain the most lucrative segment, contributing nearly 11.9% share to the total volume in 2016. This segment is projected to reach a volume of around 561.8 thousand tonnes by 2026 end in the food additives market. Emulsifiers will represent an important segment of the food additives market, with an estimated consumption of over 400 thousand tonnes in 2016. By source, synthetic additives are currently dominating the food additives market, with over 60% market share. However, natural additives are rapidly gaining traction in the food additives market, and may register a consumption of around 1,333.5 thousand tonnes by 2016 end.
Based on application type, the food additives market is segmented into bakery & confectionery, dairy & frozen desserts, snacks & convenience food, beverages, meat & poultry products, and others (including sauces, soups, and baby food). The beverages segment is estimated to remain dominant in terms of value over the forecast period in the food additives market, growing at a CAGR of 7.1% during the forecast period.
Food Additives Market: Analysis and Forecast by Region
Due to the rising adoption of natural food additives in developing countries in Asia Pacific, the food additives market is foreseen to gain a strong foothold in Asia Pacific excluding Japan, especially in Singapore and Australia. The Asia Pacific excluding Japan food additives market is expected to witness a healthy CAGR up to 2026, and account for over 24% share of the global food additives market revenue. North America, despite representing the largest food additives market in 2016, is likely to witness sluggish growth over the next decade. Asia Pacific excluding Japan will be the fastest growing food additives market, expected to outpace North America’s revenue share by 2026 end. Western Europe is also a major food additives market.
Key Players Analysis: Food Additive Market
Some of the most prominent players in the food additives market are E. I. du Pont de Nemours and Company, Cargill, Incorporated, BASF SE, Alpha Ingredients Srl, Ajinomoto Co., Inc., Kerry Group, Archer Daniels Midland Company, Ingredion Incorporated, Hansen Holding A/S, Novozymes A/S, and Tate & Lyle PLC.
Companies operating in the food additives market are focusing on adopting the micro-encapsulation technique for color delivery system and final product formulation. They develop colors for broad-spectrum foods and beverages. In February 2015, Tate & Lyle PLC, a major player in the food additives market, launched ultra-low calorie sugar, which is made using a proprietary process and enzymatic conversion of corn. In May 2015, Cargill Incorporated introduced a new range of carrageenans obtained from seaweed, Satiagel ABN 500, as a part of its texturing solutions. Cargill has been conducting research activities to identify solutions for reducing saturated fats in baked goods by 40%, using a mix of starches, vegetable waxes, and emulsions.
In this report, Future Market Insights offers a 10-year forecast (2016–2026) of the global food additives market. The food additives market is expected to grow at a CAGR of 5.9% in terms of value during the forecast period. The food additives market research study presents insights on the dynamics and trends of the food additives market across seven major regions which are expected to influence the current nature and future status of the global food additives market over the forecast period.
In the food additives market report, Future Market Insights (FMI) analyses the global food additives market for the period 2016–2026. The primary objective of the report is to offer updates on the advancements in the global food additives market.
Multiple factors are expected to drive the growth of the food additives market during the forecast period. Among those factors, the expansion of the convenience and processed food industry in emerging economic countries and the growing demand for functional food additives will have a huge impact on the growth of the food additives market. In the years to come, increasing new applications of food additives in the bakery & confectionery and beverages segments are also likely to drive the growth of the food additives market.
In the following section, FMI analyses the performance of the food additives market on the basis of the global food additives market revenue and volume split, since this is essential in understanding the future growth potential of the food additives market. This section also includes FMI's analysis of key trends, drivers, restraints, and opportunities that are influencing the growth of the food additives market currently. The impact analysis of key growth drivers and restraints across all major regions, based on the weighted average model, is included in the food additives market report, to better equip and arm clients with crystal clear decision-making insights.
As highlighted earlier, the food additives market is an aggregation of product type (including acidity regulators, colourants, emulsifiers, enzymes, hydrocolloids, flavouring agents, preservatives and sweeteners), source (includes natural and synthetic) and application (bakery & confectionery, dairy & frozen desserts, snacks & convenience food, beverages, meat & poultry products, and others) segments. All these segments are included in this section to make the food additives market study more comprehensive.
The next section of the report includes analysis of the food additives market by region. It provides the food additives market outlook for 2016–2026, and sets the forecast within the context of the food additives market. This study discusses the key regional trends contributing to the growth of the food additives market on a global basis. It also analyses the degree at which the global drivers are influencing the food additives market in each region. Key regions assessed in this report are North America, Latin America, Western Europe, Eastern Europe, Asia Pacific Excluding Japan (APEJ), Japan (as a separate region) and the Middle East and Africa (MEA).
All the above sections — by product type, by source, by application, and by region — evaluate the present scenario and the growth prospects in the food additives market for the period 2016–2026. We have considered 2015 as the base year for the food additives market, and provided data for the trailing 12 months.
To deduce the food additives market size, we have considered the overall revenue generated from the sales of food additive products across various regions. The forecast presented here assesses the total revenue, by value, generated across the food additives market. In order to offer an accurate forecast, we started by sizing the current market, which forms the basis of how the food additives market would develop in the future. However, forecasting the food additives market in terms of various food additive segments and regions is more a matter of quantifying expectations and identifying opportunities rather than rationalising them after the forecast has been completed. Given the characteristics of the food additives market, we triangulated the outcome on the basis of three different types of analyses, based on the supply side, consumer spending, and economic envelope.
Another key feature of this report is the analysis of all key food additives market segments, regional adoption, revenue forecast in terms of absolute dollar, and volume forecast in terms of absolute unit. This is usually overlooked while forecasting the food additives market. However, absolute dollar opportunity and unit opportunity are critical in assessing the level of opportunity that a provider can look to achieve, as well as to identify potential resources, from a sales and delivery perspective, present in the food additives market.
In order to understand the key segments in the food additives market in terms of growth and adoption of food additives across the concerned regions, FMI developed the food additives market attractiveness index. The resulting index would help clients identify existing market opportunities.
In the final section of the report, the food additives market competitive landscape is included to provide report audiences with a dashboard view, based on various categories of providers present in the market value chain, their food additives product portfolio, and key differentiating parameters in the market. This section is primarily designed to provide clients with an objective and detailed comparative assessment of key providers specific to a segment in the food additives market value chain. Food additives market report audiences can gain segment-specific vendor insights to identify and evaluate key competitors based on the in-depth assessment of their capabilities and success in the food additives marketplace. Detailed profiles of the providers are also included in the scope of the food additives market report to evaluate their long- and short-term strategies, key offerings, and recent developments in the food additives market space.
Key companies profiled in the food additives market report are Cargill Incorporated, Ajinomoto Co., Inc., Archer Daniels Midland, Alpha Ingredients Srl, Kerry Group, E. I. du Pont de Nemours and Company, Ingredion Incorporated, Chr. Hansen Holding A/S, BASF SE, Tate & Lyle PLC, and Novozymes A/S.
Key Segments Covered: Food Additives Market
By Product Type
Bakery & Confectionery
Dairy & Frozen Desserts
Snacks & Convenience Food (Processed & Frozen)
Meat & Poultry Products
Others (sauces, soups, and baby food)
Key Regions/Countries Covered
Asia-Pacific Excluding Japan (APEJ)
Middle East & Africa (MEA)
Ajinomoto Co., Inc.
Archer Daniels Midland Company
Alpha Ingredients Srl
du Pont de Nemours and Company
Hansen Holding A/S
Tate & Lyle PLC