Food Additives Market Growth is Fueled by Rising Consumption of Meal Replacement Food and Beverages

Food Additives Industry Overview

The global food additives market size is expected to reach USD 150.48 billion by 2028, according to a new report by Grand View Research, Inc. It is expected to expand at a CAGR of 5.5% from 2020 to 2028. The growing consumption of packaged food products is anticipated to drive the market.

Rising consumption of ready-to-eat, ready-to-cook, and meal replacement food and beverages are expected to fuel the demand for food additives. For instance, according to the survey results published by the Food Standards Agency in May 2021, approximately 81.0% of survey respondents in the U.K. confirmed buying processed food products from April 2020 to March 2021. Food additives are commonly added to these products to enhance their appearance and mouthfeel.

Food Additives Market Segmentation

Grand View Research has segmented the global food additives market on the basis of product, source, application, and region:

Based on the Product Insights, the market is segmented into Flavors & Enhancers, Sweeteners, Enzymes, Emulsifiers, Shelf-life stabilizers, Fat Replacers, Prebiotics, Probiotics, Dietary Fibers, and Others

• The sweeteners segment dominated the market with a revenue share of more than 55.0% in 2020.
• Rising awareness regarding obesity and cardiovascular disease is expected to limit the demand for fatty foods and foodstuff added with high fructose corn syrup (HFCS)and sucrose, which are considered high-calorie sweeteners.
• This factor is anticipated to positively support the growth of high-intensity sweeteners such as stevia, aspartame, and fat replacers such as whey protein and starch.

Based on Source Insights, the market is segmented into Natural and Synthetic

• The natural segment dominated the market with a revenue share of over 80.0% in 2020.
• Increased demand for natural additives from food and beverage manufacturers is expected to support the growth of the natural source segment.

Based on the Application Insights, the market is segmented into Bakery & confectionery, Beverages, Convenience foods, Dairy & frozen desserts, Spices, condiments, sauces & dressings, and Others

• The bakery and confectionery segment dominated the market with a revenue share of over 30.0% in 2020.
• Beverages such as sports drinks, flavored water, flavored milk, and other ready-to-drink (RTD) beverages can be easily consumed on the go while commuting and are thus, anticipated to witness surged demand from the young generation.
• New developments in fermented beverages, such as kombucha and other fermented tea, have gained increased popularity, which is supporting the growth of the market.

Food Additives Regional Outlook

• North America
• Europe
• Asia Pacific
• Central & South America
• Middle East & Africa

Key Companies Profile & Market Share Insights

Players are adopting strategies such as mergers & acquisitions and capacity expansions for their business growth.

Some prominent players in the global Food Additives market include:

• ADM
• Hansen Holding A/S
• Ingredion Incorporated
• Novozymes A/S
• Tate & Lyle Plc
• DSM
• Ajinomoto Co., Inc.
• Cargill, Incorporated
• BASF SE
• Givaudan
• International Flavors & Fragrances, Inc.
• Biospringer

Order a free sample PDF of the Food Additives Market Intelligence Study, published by Grand View Research.