Increasing demand for natural food additives due to rising awareness regarding health benefits of natural food products is projected to augment market growth. The implementation of strict regulations regarding food safety is again expected to foster market growth. Moreover, rising government support for creating awareness regarding the health benefits of organic and natural food ingredients is further projected to bolster the market growth of food additives.
The Global Food Additives Market is estimated to value over US$ 84,208.8 mn by end of 2027, and is expected to register a CAGR of 5.3 per cent during the forecast period of 2020 to 2027, according to Coherent Market Insights market study.
Growing demand for healthy snacks among health-conscious consumers and athletes is projected to offer lucrative opportunities for the market of food additive. Rising demand for natural food colours due to rising awareness regarding the benefits of natural food ingredients is expected to fuel the market growth. Moreover, various manufacturers are adopting a microencapsulation technique for providing colour to the final food &beverage product. All these factors are expected to propel the market growth of food additive.
Strict regulations associated with the use of food additives derived from GMO food are expected to hinder the market growth of food additives. According to the Coherent Market Insights analysis, in Europe, regulations mandate that foods additives, wholly or partly derived from genetically modified corn and soybeans, must be labelled accordingly.
On the basis of application, beverages segment dominated the global foods additives market in 2019, accounting for 30.5 per cent share in terms of value, followed by Bakery and Confectionery and Dairy and Frozen Desserts, respectively.
Global beverage companies such as Coca Cola and Mondelez International are focussing on increasing their market presence in high demand regions such in developing countries of Asia Pacific region through product innovations and strategic partnerships with brand partners. This is driving the growth of the beverages segment over the forecast period.
According to Coherent Market Insights, Flavour and Enhancers segment dominated the global foods additives market in 2019, accounting for 28.2 per cent share in terms of value, followed by Hydrocolloids and Enzymes, respectively. Flavours and enhancers are being used in nearly all kinds of ready-to-eat food & beverages. The consumers also have an inclination towards natural flavours and enhancers. To fulfil the increased demand, the manufacturers are focussing on increasing use of enzymes to extract flavour compounds from natural sources.
Based on source, synthetic segment dominated the global food additives market in 2019, accounting for 53.4 per cent share in terms of value, followed by natural. Synthetic food additives can be easily made in manufacturing plants and can be used over a longer period of time.
Increasing use of advanced enzymes in bakery applications for extending shelf-life is an emerging trend in the market. According to the analysis, Danisco manufactures a range of bakery enzymes such as Max-Life, PowerBake, PowerFlex, PowerFresh, and PowerFresh Bread, which are used for various functions such as to impart freshness, retain moisture and others. Thus, enzymes are gaining traction in the market.
Read-to-eat meals and savoury snacks are witnessing huge demand among consumers which is raising demand for exotic and spicy flavours such as ginger, chilly, and pepper. Growing demand for natural preservatives due to growing awareness regarding the ill-effects of synthetic preservatives is expected to foster the market growth of food additive. Sweeteners such as natural sweetener and flavoured sweetener are gaining huge demand among weight-conscious consumers. All these factors are augmenting the market growth of food additives.
Food Additive Market - Impact of Coronavirus Pandemic
Covid-19 has had a major impact on the food and beverages industry and food ingredients market. Manufacturers of food ingredients are focussing on maintaining food ingredient processing and supply chain activities so as to fulfil the needs of the customers in these extreme conditions. Food ingredient manufacturers should focus on prohibiting all non-critical visitation and travelling of employees/contractors and implementing a business model which includes minimal staff wherever required, and by providing facilities for the remotely operating employees in the supply chain process. This would help in ensuring that the industry is capable of fulfilling the market demand, even during times of pandemic.