Food additives market to exceed $163 bn by 2024

A report by Global Market Insights has stated that the worldwide food additives market was valued $78 billion in 2018 and will surpass a revenue collection of $163 billion by 2024 with an annual growth rate of 10.5 per cent over 2018 to 2024.

Growing consumer awareness about health consciousness along with supportive government schemes has led to widespread usage of food additives in market. Technology innovation in food industry pertaining to consumer’s demand for healthy and organic product options will positively affect market growth.

Food additives have various applications in bakery and confectionery, beverages, dairy and frozen products, sauce and dressings among others. Global frozen desserts market size accounted over $14 Billion in 2017 and is predicted to register substantial gain in future period owing to rising trend of outside dining and inclination of young population towards tasty flavors.

Food additives are used to improve the safety and quality along with lengthening the shelf life, keeping it fresh and suitable to consume for longer periods. They help in preventing the growth of fungi, bacteria, and yeasts due to the presence of water in excess quantities leading to product spoilage. Growing preferences of consumers toward processed products and beverages owing to the changing lifestyle patterns accompanied by high economic growth will drive the market growth for food additives in the coming years.

U.S. food additives market demand may exceed $33 billion by the end of 2024 owing to favorable government mandates regarding the approval of various substances. The introduction of Food Safety Modernisation Act was passed by the U.S. government to address concerns regarding food additives including pathogens. High penetration of obesity and metabolic syndromes has led to increasing consumption of functional ingredients and dietary supplements in the region.

Artificial flavours and enhancers are likely to register significant gains over five per cent by the end of forecast time-frame. Artificial flavors are additives designed to mimic the taste of natural ingredients. They are a cheap way for manufacturers to make something taste like strawberry, for example, without actually using any real strawberries. They are used in various applications including beverages, confectionery products, thereby propels the product demand.

Bakery and confectionery application of food additive market is expected to surpass over $50 billion by the end of 2024. They are used in bakery applications including biscuits and cakes, cookies, sandwiches, breads and chocolates, thereby stimulating the market size. They are used in bakery and confectionery products as a powerful thickening agent, and also used as a stabiliser to prevent ingredients from separating, which will propel the product demand in bakery and confectionery application.

Stevia market demand may exceed $867 million by the end of 2024. It develops most of its sweetness from glycosides called stevioside and rebaudioside. Stevia can lower human high blood pressure by six per cent to 14 per cent. These compounds are 250-300 times sweeter than sucrose and they have the ability to withstand heat and have a long shelf life, thereby stimulating industry demand.

China food additives market demand may exceed $14 billion by the end of 2024. Increase in demand for packaged food and beverages owing to busy and hectic schedules will further drive market growth. Food additives in the packaged products and helps in enhancing the shelf life along with maintaining freshness. High growth in urbanization along with growing middle-class population will also enhance the demand for packaged products and beverages in the country.

Food additives market from dairy application is expected to gain over 4.5 per cent over forecast period. These products are used in the application of dairy and frozen desserts which includes cheese and milk. Sorbitan esters are used as a blending agent in dairy product. Shelf-life stabilizers are widely used in ice creams to avoid the formation of ice crystals. It provides important nutrients to the human body for good health.

BASF, ADM, Ajinomoto, DuPont and Cargill are the prominent industry participants in food additives market. Strong R&D spending by manufacturers in order to comply with various environmental regulations may improve and expand product portfolio thereby stimulating industry growth.