Food Additives Market Size Worth $150.48 Billion by 2028: Grand View Research, Inc.

SAN FRANCISCO, Feb. 15, 2022 /PRNewswire/ -- The global food additives market size is expected to reach USD 150.48 billion by 2028, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 5.5% from 2020 to 2028. The growing consumption of packaged food products is anticipated to drive the market.

Key Insights & Findings from the report:

• The enzymes product segment is expected to register a CAGR of 6.5% over the forecast period. Enzymes are considered safer additives as they are derived from plants and microbes. Their widespread applications including dough strengthening in bakery products, fruit juice clarification, brewing, and wine processing, and preparation of cheese, yogurt, and curd are fueling the segment growth.
• New product developments and capacity expansions are the key strategies adopted by players to strengthen their foothold in the market. In July 2021, Tereos, a France-based food ingredient supplier, signed a supply agreement for stevia extracts with Firmenich, a fragrance and flavor supplier. This is expected to enhance the offerings of Tereos in terms of stevia-based sweetening solutions.
• The natural source segment is expected to witness significant growth over the forecast period. Rising preference for vegan diet globally is expected to push the manufacturers of food and beverage products toward formulating foodstuffs with naturally available plant-based ingredients.
• The dairy and frozen desserts application segment witness considerable growth over the forecast period. Rising consumption of milkshakes, ice creams, and yogurt among the young population is expected to propel the segment growth. As per the International Dairy Foods Association, the consumption of ice cream rose by 4.0% year-over-year in 2020, yogurt by 3.0%, and butter by 2.0% in 2020 as compared to 2019 in the U.S.
• The Asia Pacific held the largest revenue share of over 30.0% in 2020 and is expected to be the fastest-growing regional market over the forecast period. This is attributed to the increasing consumption of convenience food products in the region. As per the Australian Bureau of Statistics, per capita apparent consumption of commercially sterile, ready-to-eat soup increased by 147.0%, while that of jam and other sweet spreads increased by 45.0% in March 2020 compared to March 2019 in Australia.

Read 467-page market research report, "Food Additives Market Size, Share & Trends Analysis Report By Product (Flavors & Enhancers, Sweeteners, Enzymes, Emulsifiers), By Source (Natural, Synthetic), By Application, By Region, And Segment Forecasts, 2020 - 2028", published by Grand View Research.

Food Additives Market Growth & Trends

Rising consumption of ready-to-eat, ready-to-cook, and meal replacement food and beverages are expected to fuel the demand for food additives. For instance, according to the survey results published by the Food Standards Agency in May 2021, approximately 81.0% of survey respondents in the U.K. confirmed buying processed food products from April 2020 to March 2021. Food additives are commonly added to these products to enhance their appearance and mouthfeel.

The manufacturers of food and beverages are increasingly developing products infused with health-supporting ingredients to attract consumers supporting the demand for probiotics, prebiotics, and dietary fibers. For instance, In June 2021, Japan-based Yakult Honsha Co., Ltd., a key probiotic products company, launched a wide range of ice creams comprising probiotic strain Lactobacillus paracasei Shirota.

Manufacturers of food and beverage products are formulating their products with botanical ingredients due to shifting consumer preference towards plant-based diets. Plant-derived products often impart unpleasant or bitter after taste leading to an unappealing mouthfeel. Demand for food additives has surged as they are used as flavors, sweeteners, hydrocolloids, and preservatives to enhance taste and texture and increase the shelf life of such products.

The COVID-19 emergence disrupted the global supply chain in 2020 and led to limited demand for food additives from the foodservice industry. For instance, Givaudan reported that its 'Taste & Wellbeing' segment that is engaged in the business of flavor ingredients witnessed lower demand from foodservice and out-of-home food end users in 2020. However, this segment witnessed an increased demand for immunity-boosting products, juice-based beverages, culinary solutions, nutritional bars, and savory and snacks. 

Food Additives Market Segmentation

Grand View Research has segmented the global food additives market on the basis of product, source, application, and region:

Food Additives Product Outlook (Revenue, USD Million, 2017 - 2028)

• Flavors & Enhancers
• Sweeteners
• HIS
• HFCS
• Sucrose
• Others
• Enzymes
• Emulsifiers
• Mono, Di-Glycerides & Derivatives
• Lecithin
• Stearoyl Lactylates
• Sorbitan Esters
• Others
• Shelf-life stabilizers
• Fat Replacers
• Protein
• Starch
• Fat
• Prebiotics
• Probiotics
• Dietary Fibers
• Others

Food Additives Source Outlook (Revenue, USD Million, 2017 - 2028)

• Natural
• Synthetic

Food Additives Application Outlook (Revenue, USD Million, 2017 - 2028)

• Bakery & confectionery
• Beverages
• Convenience foods
• Dairy & frozen desserts
• Spices, condiments, sauces & dressings
• Others

Crisscross Analysis, Product by Source Outlook (Revenue, USD Million, 2017 - 2028)

• Flavors & Enhancers
• Natural
• Synthetic
• Sweeteners
• Natural
• Synthetic
• Enzymes
• Natural
• Synthetic
• Emulsifiers
• Natural
• Synthetic
• Shelf-life stabilizers
• Natural
• Synthetic
• Fat Replacers
• Natural
• Synthetic
• Prebiotics
• Natural
• Synthetic
• Probiotics
• Natural
• Synthetic
• Dietary Fibers
• Natural
• Synthetic

Crisscross Analysis, Product by Application Outlook (Revenue, USD Million, 2017 - 2028)

• Flavors & Enhancers
• Bakery & confectionery
• Beverages
• Convenience foods
• Dairy & frozen desserts
• Spices, condiments, sauces & dressings
• Others
• Sweeteners
• Bakery & confectionery
• Beverages
• Convenience foods
• Dairy & frozen desserts
• Spices, condiments, sauces & dressings
• Others
• Enzymes
• Bakery & confectionery
• Beverages
• Convenience foods
• Dairy & frozen desserts
• Spices, condiments, sauces & dressings
• Others
• Emulsifiers
• Bakery & confectionery
• Beverages
• Convenience foods
• Dairy & frozen desserts
• Spices, condiments, sauces & dressings
• Others
• Shelf-life stabilizers
• Bakery & confectionery Beverages
• Convenience foods
• Dairy & frozen desserts
• Spices, condiments, sauces & dressings
• Others
• Fat Replacers
• Bakery & confectionery
• Beverages
• Convenience foods
• Dairy & frozen desserts
• Spices, condiments, sauces & dressings
• Others
• Prebiotics
• Bakery & confectionery
• Beverages
• Convenience foods
• Dairy & frozen desserts
• Spices, condiments, sauces & dressings
• Others
• Probiotics
• Bakery & confectionery
• Beverages
• Convenience foods
• Dairy & frozen desserts
• Spices, condiments, sauces & dressings
• Others
• Dietary Fibers
• Bakery & confectionery
• Beverages
• Convenience foods
• Dairy & frozen desserts
• Spices, condiments, sauces & dressings
• Others

Food Additives Regional Outlook (Revenue, USD Million, 2017 - 2028)

• North America
• U.S.
• Canada
• Mexico
• Europe
• U.K.
• Germany
• France
• Italy
• Spain
• Asia Pacific
• China
• Japan
• Australia & New Zealand
• Central & South America (CSA)
• Brazil
• Argentina
• Middle East & Africa (MEA)
• UAE

 List of Key Players of Food Additives Market

• 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

Check out more related studies published by Grand View Research:

• Food Emulsifiers Market - The global food emulsifiers market size is expected to reach USD 7.51 billion by 2025, according to a new report conducted by Grand View Research, Inc. Growing requirements of nutritional foods, protein-rich products, and ready-to-eat snacks in Asia Pacific is estimated to drive the demand for food ingredients, including emulsifying agents, colorants, enzymes, and sweeteners. Furthermore, the presence of a broad consumer base coupled with the robust growth of the food & beverage sector is another critical driving factor that is likely to boost product consumption.
• Enzymes Market - The global enzymes market size is expected to reach USD 17.88 billion by 2028, according to a new study by Grand View Research, Inc. The market is expected to expand at a CAGR of 6.5% from 2021 to 2028. Rising consumer awareness regarding health has resulted in the growing consumption of functional food products, which is expected to trigger product demand in the coming years.
• Fat Replacers Market - The global fat replacers market size is anticipated to reach USD 2.79 billion by 2025, at a CAGR of 6.2% according to a new report by Grand View Research, Inc. Growing food processing industry coupled with a trend of maintaining nutritionally balanced lifestyle is expected to augment market growth over the coming years.

Browse through Grand View Research's more Food Additives & Nutricosmetics Industry Reports.

About Grand View Research

Grand View Research, U.S.-based market research and consulting company, provides syndicated as well as customized research reports and consulting services. Registered in California and headquartered in San Francisco, the company comprises over 425 analysts and consultants, adding more than 1200 market research reports to its vast database each year. These reports offer in-depth analysis on 46 industries across 25 major countries worldwide. With the help of an interactive market intelligence platform, Grand View Research Helps Fortune 500 companies and renowned academic institutes understand the global and regional business environment and gauge the opportunities that lie ahead.

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