Press release
Food Additives Market to expand at a CAGR of 5.2% through 2016-2026
Rapid expansion of processed and packaged food industry will continue to foster the demand for food additives. The global food additives market is anticipated to reach the total consumption of over 3,376 thousand tonnes in 2016, globally. The market is likely to surpass a value of US$ 47.05 Bn by 2016 end. Natural additives are projected for significant growth; Japan will remain the largest consumer.In addition to expanding processed and convenience food industry, rising demand for functional food additives also fuel the market for food additives on a global level. Since the past decade, food additives have become an essential component in beverages, meat and seafood, bakery and confectionary, dairy products, desserts, snacks, and other products. This will remain a primary factor propelling the demand for food additives. Researchers and manufacturers have been introducing innovative additives in market, which is considered another booster pushing their adoption.
Growing consumer preference for naturally sourced, low-fat, low-sugar, and other customised additives is foreseen to be an important trend in market, pushing the market growth in near future. Rising awareness about healthy diet practices among consumers will also favour the market, coupled with increasing consciousness about consuming natural or organic food products. Leading companies in the global additives market are increasingly undergoing mergers and acquisitions lately, impacting the market dynamics in a positive manner.
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Based on product type, flavouring agents are expected to remain dominant with the most attractive growth opportunities. This segment is likely to account for around 29% share of the market in 2016, followed by sweeteners, hydrocolloids, and emulsifiers.
By source, the market is bifurcated into natural and synthetic additives. Although synthetic additives segment has been leading over the years, natural additives segment is expected to witness substantial growth. In 2016, synthetic additives segment is estimated to contribute over 60% share to the market, whereas the consumption of natural additives will possibly reach 1,333.5 KT, accounting for over 39% share.
On the basis of application type, the market comprises six key segments. Beverages segment is likely to maintain the leading position with over 28% revenue share in 2016, followed by bakery & confectionery, dairy & frozen desserts, and snacks & convenience food segments.
By region, natural additives are expected to gain higher traction in developing market of Asia Pacific. APEJ, with over 21% market share in 2016, will exhibit strong growth post-2016, led by Singapore and Australia. North America is expected to be the largest market in 2016; sales will however rise moderately post-2016. APEJ is anticipated to exhibit the fastest growth.
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Some of the key players competing in the global food additives marketplace include 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.
Long-term Outlook: Over 2016-2026, the global food additives market revenues will exceed US$ 83.23 Bn. The market is likely to expand at a moderate CAGR of 5.2%, in terms of shipment.
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