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Food Additives Market: Consumer Preference for Natural Additives Sway the Market

09-18-2017 07:49 AM CET | Business, Economy, Finances, Banking & Insurance

Press release from: Future Market Insights

Food Additives Market: Consumer Preference for Natural

A sweeping range of preservatives, antioxidants, flavour enhancers, colourants, and sweetening agents are being commercially used in packaged foods, functional beverages, bakery goods, dairy products, meat and seafood, snack items, and flavoured and functional water over the years. In addition, food additives such as enzymes, emulsifiers, acidulants, shelf-life stabilisers, and fat replacers are also in high demand.

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The global food additives market is rapidly growing and will witness moderate growth over the next decade. During 2016-2026, the market is expected to expand at a CAGR of 5.9% in terms of revenues. Foreseen to record the consumption of around 3,376 thousand tonnes by 2016 end, it will witness a CAGR of 5.2% in terms of shipment. By 2016 end, the market is predicted to exceed a value of US$ 47.0 Bn, which will further ramp up to US$ 83.23 Bn through to 2026.

A few strong factors that are likely to generate more opportunities in the global food additives market include:

Rising Emphasis on Organic Food Products

Growing health concerns among a sizeable global population, coupled with rising awareness about the benefits of consuming organic foods are the most likely to foster the demand for naturally sourced food additives. This in turn propels the adoption of natural food additives, such as organic preservativs and flavouring agents, natural colourants, stevia-based sweeteners, rosemary extracts, and so on. Health conscious consumers nowadays, meticulously check product labels to know the exact composition of packaged foods before purchasing. Organic food labelling is currently a growing trend among manufacturers.

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Flavours and Enhancers Spearhead

Flavours and enhancers are primarily responsible for raising the commercial quality of foods and beverages. In addition to improving the nutritional value of consumables, these additives enhance their structures and aromas as well. Moreover, food and drinks manufacturers are increasingly preferring natural and customised enhancers and flavouring agents over artificial enhancers, spurring introduction of innovative additives in market.

Influential M&A

Increasing mergers and acquisitions will continue to hold a strong positive impact on the additives market growth. Some of the most notable recent M&A activities are acquisition of Cognis by BASF (2010), FMC Corporation’s acquisition of Phytone in 2012, and acquisition of Diana Group by Symrise in 2014. M&A activities are increasingly favouring product offerings of leading companies, enhancing their presence in the global additives market.

Food Additives Market: Analysis and Forecast by Segmentation

On the basis of product type, flavouring agents will remain the most lucrative segment, contributing nearly 11.9% share to the total shipment in 2016. This segment is projected to reach a shipment of around () thousand tonnes by 2026 end. Emulsifiers will represent an important segment with an estimated consumption of over 400 thousand tonnes in 2016. By source, synthetic additives are currently dominating natural additives with over 60% market share. However, natural additives are rapidly gaining traction and may register the consumption of around 1,333.5 thousand tonnes by 2016 end.

Based on application type, the market comprises six key segments - bakery & confectionery, dairy & frozen desserts, snacks & convenience food, beverages, meat & poultry products, and others (including sauces, soups, and baby food). Beverages segment is foreseen to remain dominant in terms of value over the forecast period, expanding at nearly 7.1% of CAGR.

Food Additives Market: Analysis and Forecast by Region

Owing to rising adoption of natural additives in developing countries in Asia Pacific, the food additives market is foreseen to gain a strong foothold in APEJ, especially in Singapore, and Australia. The APEJ market will witness a healthy CAGR through to 2026 and account for over 24% share of the global market revenues. North America, despite representing the largest market in 2016, is likely to witness sluggish growth over the next decade. APEJ will be the fastest growing market, expected to outpace North America’s revenue share by 2026 end. Western Europe is also a major market.

Key Players Analysis

Some of the most prominent market players 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.

About Future Market Insights

Future Market Insights is the premier provider of market intelligence and consulting services, serving clients in over 150 countries. FMI is headquartered in London, the global financial capital, and has delivery centres in the U.S. and India.

FMI’s research and consulting services help businesses around the globe navigate the challenges in a rapidly evolving marketplace with confidence and clarity. Our customised and syndicated market research reports deliver actionable insights that drive sustainable growth. We continuously track emerging trends and events in a broad range of end industries to ensure our clients prepare for the evolving needs of their consumers.

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