Press release
Food Preservatives Market - Global Industry Insights, Trends, Outlook, and Opportunity Analysis
The Global Food Preservatives Market was valued at US$ 2.23 billion in 2016, according to a new report published by Coherent Market Insights. Food preservatives are substances added or sprayed onto food to restrict the growth of fungi, bacteria, and other harmful microorganisms. Increasing demand for convenience and packaged food is driving growth of the global food preservatives market. Natural food preservatives are the most preferred preservative and the segment is expected to gain further traction over the forecast period, according to the stats provided by Coherent Market Insights. Oil and salt are the primary natural food preservatives used to preserve food. For instance, salt is used to trap the water content in the food and is applied to store dried vegetables and fruits. Moreover, citric juices are also used as antioxidants and helps in fermentation of various foods. Increasing population, growing urbanization and increasing number of women in the workforce is increasing demand for processed and ready-to-eat food products, in turn driving growth of the global food preservatives market.
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Rampant economic growth in Asia Pacific is expected to create a highly conducive environment for growth of the food preservative market. For instance, according to India Brand Equity Foundation (IBEF)—a Trust established by the Department of Commerce, Ministry of Commerce and Industry, Government of India—the Indian food processing industry accounts for 32% of the total food market in the country and contributes around 14% towards the country's GDP. Furthermore, increasing investment by various players and supportive government initiatives would further favor growth of the food preservatives market in one of the largest economies in Asia Pacific. Also, ITC Limited plans to set up a premier food processing unit in Medak, Telangana with an investment of US$ 117.4 million. Furthermore, the Government of India, in December 13, 2014, established the Mega International Food Park at Dabwala Kalan, Punjab, which is directed towards strengthening the food sector in the country.
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Key takeaways of the market:
• Asia-Pacific is projected to be the third-largest region in global Food Preservatives market. It accounted for around 27.6% of overall Food Preservatives market revenue in 2016. The market in this region is expected to be primarily driven by rampant growth of economy and rapid urbanization in China, India, and ASEAN countries. The growing demand for convenience food is expected to be the key drivers for the growth of Food Preservatives in the Asia-Pacific region.
• The market in Latin America is expected to register highest growth rate over the forecast period. Rise in discretionary income along with increasing disposable income is expected to create lucrative growth opportunities for the players in this region.
• Meat, poultry and sea food industry is one of the key industries for the use of food preservatives. Rapid urbanization and increasing working population in Asia-Pacific and Europe is expected to enhance the growth of Food Preservatives in the forecast period. Moreover, growing food industry and Foreign Direct Investment in Asia Pacific is expected to double the demand for food preservatives. For instance, according to the Department of Industrial Policies and Promotion (DIPP), the food processing sector in India has received around US$ 7.47 billion worth of Foreign Direct Investment (FDI) during the period April 2000-December 2016.
• Univar Inc., Hawkins Watts Limited, Cargill Inc., DSM N.V., AkzoNobel N.V., Tate & Lyle PLC, Brenntag AG, Galactic, Danisco A/S, Kemin Industries Inc., among others are few of the key players in global food preservatives market.
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