Global Food Additives Market to Reach $59 Billion by 2026

Food additives are ingredients or substances that are added to foods and beverages with the aim to improve taste, texture, color and flavor of products. The use of food additives is an age-old approach to preserving and protecting foods against spoilage. While direct food additives are added to foods for specific purposes, example being salt, use of indirect food additives is aimed at improving storage, handling and packaging of food products. Food additives thus play a critical role in improving food palatability, maintaining quality, increasing shelf-life of foods, and protecting food against spoilage, all of which are integral to the commercial success of packaged and processed foods industry.

Amid the COVID-19 crisis, the global market for Food Additives estimated at US$45.7 Billion in the year 2020, is projected to reach a revised size of US$59 Billion by 2026, growing at a CAGR of 4.4% over the analysis period. Acidulants, one of the segments analyzed in the report, is projected to grow at a 5% CAGR to reach US$4.3 Billion by the end of the analysis period. After a thorough analysis of the business implications of the pandemic and its induced economic crisis, growth in the Sweeteners segment is readjusted to a revised 3.4% CAGR for the next 7-year period. This segment currently accounts for a 10.8% share of the global Food Additives market.

The U.S. Market is Estimated at $12.7 Billion in 2021, While China is Forecast to Reach $11.7 Billion by 2026

The Food Additives market in the U.S. is estimated at US$12.7 Billion in the year 2021. The country currently accounts for a 27.02% share in the global market. China, the world second largest economy, is forecast to reach an estimated market size of US$11.7 Billion in the year 2026 trailing a CAGR of 7% through the analysis period. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at 2.5% and 3.4% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 3.1% CAGR while Rest of European market (as defined in the study) will reach US$12.6 Billion by the end of the analysis period.

Rising demand for processed, packaged and convenience foods, specifically in developing economies, constitutes a major driving factor for the global food additives market. Changing and diversifying consumer tastes and escalating demand for foods and beverages with higher nutritional value, without compromising visual appearance, are also making it essential for food companies to use food additives. With hectic lifestyles of people and growing workforce population, particularly expanding female workforce, changing consumer lifestyles and urbanization trend contributing to increased sales of packaged foods such as frozen meals, ready-to-eat meals and appetizers, food companies are increasing production capacity of such products, thus fueling demand for food additives. With food manufacturing companies looking for ways to prolong shelf-life of products without affecting the flavor or appearance, maintaining consistent quality and ensuring food safety, additives are being widely used to ensure the same during transportation to storage facilities.

Vitamins & Minerals Segment to Reach $2.7 Billion by 2026

In the global Vitamins & Minerals segment, USA, Canada, Japan, China and Europe will drive the 3.4% CAGR estimated for this segment. These regional markets accounting for a combined market size of US$1.7 Billion in the year 2020 will reach a projected size of US$2.2 Billion by the close of the analysis period. China will remain among the fastest growing in this cluster of regional markets. Led by countries such as Australia, India, and South Korea, the market in Asia-Pacific is forecast to reach US$365.1 Million by the year 2026, while Latin America will expand at a 3.9% CAGR through the analysis period.