Food additives are gaining traction as an essential ingredient in bakery and confectionery, dairy and desserts, snacks and convenience food, beverages, meat and poultry products and others. Future Market Insights (FMI) estimates global food additive volume to exceed 3,376 thousand tonnes by 2016 end and represent market value of over US$ 47,051.0 Mn.

There is an increasing demand for food additives in beverages, bakery, confectionery, dairy and frozen desserts. Growing consumer preferences for natural food additives and food products that contain low fat additives with lower sugar level and saturated fats can be attributed to increasing health awareness among consumers.

On the basis of source, the market has been segmented into natural and synthetic food additives. Synthetic food additives is estimated to account for 60.7% value share in 2016. However, demand for natural food additives is estimated to increase owing to low consumer preference for food products with synthetic additives. Natural food additives segment is estimated to reach 1,333.5 thousand tonnes in 2016, an increase of 5.4% over 2015.

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On the basis of product type, the market has been segmented into acidity regulators, colourants, emulsifiers, enzymes, hydrocolloids, flavouring agents, preservatives and sweeteners. In terms of revenue generation, flavouring agents segment is the most attractive segment and is estimated to account for around 11.9% volume share in the global food additives market in 2016. FMI estimates global consumption of emulsifiers to exceed 400.2 thousand tonnes by 2016, an increase of 3.5% in 2016 over 2015.

In terms of consumption, Japan is the largest consumer with total consumption accounting for 392.7 thousand tonnes in 2015. In terms of volume, the North America food additives market is predicted to observe the highest growth over the forecast period 2016-2026.

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Cargill, Incorporated; AJINOMOTO CO.,INC.; Archer Daniels Midland Company; Alpha Ingredients Srl; Kerry Group; E. I. du Pont de Nemours and Company; Ingredion Incorporated; Chr. Hansen Holding A/S; BASF SE; Tate & Lyle PLC and Novozymes A/S. are the market leaders identified across the value chain in the global food additives landscape. The leading players are focussing on market expansion and new product innovation in order to increase their market share, customer base and to attain a competitive edge in the global level market.

Long-term outlook: FMI maintains a positive long-term outlook on the global food additives market, anticipating global revenues to exceed US$ 83,234.0 Mn by 2026. In terms of volume, the global food additives market is anticipated to expand at a CAGR of 5.2% during the forecast period.

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Excerpts of the FMI study, “Food Additives Market: Global Industry Analysis and Opportunity Assessment, 2016-2026”.