The food additives market is projected to grow at a CAGR of 6.34% to reach US$50.326 billion by 2025, from US$34.807 billion in 2019.
Increasing concerns of the market players are making them adopt and use food additives in the different food items so as to improve and enhance their properties and make them more appealing to the consumers Food additives are being increasingly used as they are necessary in order to maintain the freshness and safety of food. Preservatives can slow down the spoilage of the product that is caused by bacteria, moisture, fungi. In addition, the use of preservatives aids in preventing contamination of the product. Moreover, the texture and taste of the bakery and confectionery items can be used in order to provide a distinct texture and flavor profile by suing emulsifiers, stabilizers, and other products.
The usage of a wide range of food additives in a variety of applications such as bakery and confectionery, meat and seafood, which are being demanded by the different individuals in the population, is boosting the demand for different types of additives. There has been an increase in the number of individuals demanding the processed and canned foods along with ready to eat and ready to cook varieties, which is being caused as a result of majority of the population getting busier in their work lives and have limited leisure time. Thus, this leads to a surge in the market growth over the forecast period.
Rising urbanization and disposable incomes in conjunction with growing awareness about leading a healthy lifestyle among individuals are propelling the demand for the food additives market. The propensity of the individuals to spend on premium products and products with added nutrients and additional nutritional benefits in order to stay fit and healthy is being facilitated due to the increasing disposable incomes and contributing to the market growth further.
The presence of stringent measures in place by government organizations and regulatory bodies that are encouraging market players to comply with these standards. Stringent guidelines on food additives are necessary so that the quality of the end product reaching the consumer is not compromised. Organizations such as Food Standards Australia and New Zealand (FSANZ), is responsible and approves the food additives which can be added and are allowed in the different Australian foods, for which the additives have to undergo a strict and rigorous assessment and testing before approval. Besides, if there is even little concern regarding the safety of an additive, then approval is not given. In addition, the Joint FAO/WHO Expert Committee on Food Additives (JEFCA) is the international body that is responsible for evaluating the safety of the food additives being used in different applications effectively and accurately. The food additives that have been assessed and considered safe, by the Joint FAO/WHO expert committee on Food Additives (JEFCA) are allowed to be sold and traded internationally.
Product Offerings by Major Market Players
The offering of better and advanced varieties of food additives with enhanced chemical and physical properties by existing and new players in different markets is estimated to lead to increased adoption and propel the market growth further over the forecast period.
Some of the examples of the product offerings are as follows:
The Asia Pacific region is expected to witness a significant increase in its market share over the forecast due to the increasing demand for premium and better products and North American and European region to hold a considerable share over the forecast period
The presence of strict guidelines in place in New Zealand and Australia by organizations such as and the increasing disposable income of individuals among the low-income and middle-income population is leading to a boost in the demand for premium food products on the Asia Pacific region. Additionally, the North American and European regions are expected to hold a significant share on account of the fact that there are increasing investments in the food and beverage industry and also in the R&D of better technologies and testing methods to assess the quality of food additives effectively and efficiently.