Food Additives market COVID-19 Impact, Trends & Business Statistics By 2030

Posted by Mrudula Karmarkar on July 7th, 2022

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.

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.

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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 Report Highlights

• 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 2022 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 2022 in Australia

 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