The global food additives market will expand from US$31.4 bn in 2014 to reach US$39.8 bn by 2021, according to new research.
The report by Transparency Market Research found that the growth is being driven by increasing expansion of the food and beverage industry.
As per the report, the increasing expansion of the food and beverage industry and the rising preference for natural additives in place of synthetic additives are amongst the prominent factors fuelling the growth of the market for food additives. However, growth opportunities for synthetic additives are still seen within developing nations, thus fuelling the overall market’s growth.
In addition, the increasing health concerns have resulted in the rising demand for functional food additives, hence boosting the market’s growth. On the other hand, the strict guidelines and regulations involved with the usage of food additives may restrain the growth of the market in the coming years.
In terms of product type, the market for food additives is segmented into sweeteners, flavours and enhancers, colorants, enzymes, food preservatives, emulsifiers, and fat replacers. Amongst these, the segment of flavours and enhancers led the market in 2014 and is predicted to maintain its superiority throughout the forecast horizon. This segment was trailed by the segment of fat replacers, which is predicted to take the second largest share in the market in the forecast period.
On the basis of source, the report segments the market into artificial food additives and natural food additives. Amongst these, artificial food additives led the market in 2014. On the other hand, the segment of natural food additives is poised to be the most swiftly growing segment in the forecast horizon.
In terms of geography, the report segments the market into Europe, North America, Asia Pacific, and Rest of the World (RoW). Amongst these, Europe led the market in 2014 and held a share of 30.1% in the market. This region was trailed by Asia Pacific, which stood as the second largest market for food additives and held a share of 27.2% in the same year. This region is predicted to surpass Europe and lead the market by 2021.
As stated in the report, the key players dominant in the market are Cargill, BASF SE, Associated British Foods, and Ajinomoto, among others.