Global Food Additives Market: Snapshot
The global food additives market is prophesied to hold a direct relation with the food and beverages sector as a notable end user during the forecast years. With no real alternatives available for food additives, the growth in the food and beverages sector could positively influence that of the world market. Since there are a significant number of companies contributing to the food industry and broad scope of products available, the international food additives market is prognosticated to showcase a fragmented nature. Health concerns such as obesity among teenagers and even adults could pave the way for functional food additives in the market. The demand for natural food additives is anticipated to rise at a telling degree as consumers become health conscious and aware about the harmful effects of synthetic food colors.
According to market research cognoscenti, the worldwide food additives market is expected to surge at a CAGR of 3.4% between the years 2015 and 2021. By the end of the forecast period, the analysts foresee the market to stand at almost US$40.0 bn.
Fat Replacers to Follow Lead of Flavors and Enhancers Stimulated by Taste Desires
Flavors and enhancers are envisaged to be a highly promising product type securing a major part of the revenue share, i.e. US$12.92 bn, by 2021. The market growth for flavors and enhancers could be propelled as a rising number of consumers are allured by the different types of taste in different cuisines. The soaring demand for healthier food types is also foretold to set the tone for the flavors and enhancers food additives market.
Standing second to the global food additives market for flavors and enhancers, fat replacers could garner a handsome share during the course of the forecast period. This growth is analyzed to be probably attributed to the increasing incidences of health problems associated with hyper-obesity and diabetes.
The problems encountered when working with natural additives and strict guidelines formulated for the use of food additives are projected to suppress the market growth. Howbeit, players could even benefit from products that have a dying demand in the global food additives market. For instance, the growth of synthetic additives is still predicted to prevail in less developed countries such as Malaysia, China, and India, owing to the elevating demand for processed food and beverages.
Europe and Asia Pacific to Compete Nip and Tuck
The international food additives market could witness a fierce competition between Europe and Asia Pacific as both the regions take hold of a closer share. Although Europe held a lion’s share in the recent past, this trend is expected to see a change as Asia Pacific makes a good comeback in 2021. By the concluding year of the forecast period, Asia Pacific could win the competition with a mere 0.5% share margin. Countries such as India are envisioned to be particularly impressed by food additives as they find an extensive usage in the processed food sector. Food additives are studied to upgrade the shelf life of processed food products and also enhance their appearance and taste.
Europe could rake in a handsome revenue as the demand for novel flavors and tastes increases in the processed food sector. Besides this, there could be a ballooning demand for natural food additives in respect of a magnifying number of people becoming aware about health problems such as diabetes and obesity and start taking effective steps to live a healthy life. Colorants are predicted to gain a faster foothold in the Europe food additives market on the back of an aggravating demand for ice creams and chewing gums. Flavors and enhancers, however, could grasp a larger share in Europe until the end of 2021.
Companies in the food and beverages industry is constantly looking for ways to improve the longevity of their products without compromising on their flavors or appearance. This is where food additives come into play in an increasingly competitive global food and beverages industry. Food additives can either be natural or synthetic, with the demand for the former witnessing a steady increase over the last few years.
For the purpose of this study, the report segments the global food additives market on the basis of the following criteria: Product type, source, and geography. Each of these segments is studied in detail, creating a vivid picture of the current dynamics that prevail in the global food additives market. The report takes into consideration the drivers, restraints, and opportunities (DROs) that are at play in the global food additives market and will influence its growth trajectory over the next few years.
On the basis of product type, the report segments the global food additives market into: Flavors and enhancers, enzymes, sweeteners, emulsifiers, colorants, fat replacers, and food preservatives. Likewise, on the basis of source, the report segments the market into Europe, North America, Asia Pacific, and Rest of the World.
Overview of Global Food Additives Market
The growing trend of obesity in mature markets is perhaps the greatest opportunity for companies in the global food additives market. With more and more people suffering from overweight and obesity, there is a definite demand for naturally-sourced food additives. Low-calorie additives will be among the most sought-after characteristic in nearly every type of food and beverage product. However, even as they plan their growth strategies, companies in the global food additives market will have to contend with challenges such as inflation, a strict regulatory control on the quality of food products, and the need to constantly cater to changing health-related fads. Food additives, being chemically formulated for the most part, come under the regulation of government directives. Hence, companies find themselves faced with the need to comply with different directives in different national markets.
Although natural additives will become more popular over the foreseeable future, they are currently perceived as premium products. Moreover, they cost nearly ten times more than synthetic food additives. This factor will, for now, keep the latter in the leading position in the global market (especially in India, Malaysia, and China). Flavor enhancers were the most widely used type of food additives in 2014, and will continue to stay at the top through the report’s forecast period. Fat replacers trail flavor enhancers, and their status quo will likely remain unchallenged, too.
From the global perspective, the report notes that Europe stood as the largest market for food additives. However, the Asia Pacific food additives market is growing robustly and will report a high growth rate over the next few years. Asia Pacific will thus create a high demand for food additives in the coming years – an opportunity that companies in this space cannot afford to ignore.
Companies Profiled in the Global Food Additives Market
Currently, the global food additives market is composed of both small and large companies, each trying to strengthen their hold over the market with unique products in specific markets. Some of the leading companies in the market are: Cargill (the second-largest company in the market), BASF SE (boasts a diversified raw material portfolio), Associated British Foods (holds second place globally in sugar production), and Ajinomoto (globally leading company for MSG and aspartame).
Global Food Additives Market by Product Type:
- Flavors and Enhancers
- Food Preservatives
- Fat Replacers
Global Food Additives Market by Source:
Global Food Additives Market by Geography/ Country
- North America
- Asia Pacific
- Middle East
- Latin America
This report gives you access to decisive data such as:
- Market growth drivers
- Factors limiting market growth
- Current market trends
- Market structure
- Market projections for the coming years
Key highlights of this report
- Overview of key market forces propelling and restraining market growth
- Up-to-date analyses of market trends and technological improvements
- Pin-point analyses of market competition dynamics to offer you a competitive edge
- An analysis of strategies of major competitors
- An array of graphics and SWOT analysis of major industry segments
- Detailed analyses of industry trends
- A well-defined technological growth map with an impact-analysis
- Offers a clear understanding of the competitive landscape and key product segments