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Food Preservatives Market – Insights

Food preservatives are substances added or sprayed in food to restrict growth of fungi, bacteria, and other harmful microorganisms. Food preservatives are broadly classified as natural and synthetic. Natural food preservatives is dominating the market, according to stats provided by Coherent Market Insights in 2016. Growing population and increasing prevalence of foodborne diseases is expected to boost growth of the market, as preservatives are used in food to increase shelf life and maintain optimal quality of food. Food and beverages are stored after addition of food preservatives to reduce the possibilities of bacterial infection. Furthermore, high prevalence of various foodborne diseases and disorders such as abdominal pain, vomiting, and diarrhea is expected to fuel the demand for food preservatives during the forecast period. Moreover, growing awareness for natural food ingredients and side effects of synthetic preservatives is propelling the growth of natural preservatives.

The global food preservatives market size was valued at US$ 2.23 billion in 2016 and is expected to expand at a CAGR of 3.30% from 2017 – 2025.

The meat, poultry & sea food segment held dominant position in the global food preservative market in 2016, and the trend is expected to continue during the forecast period. The demand for protein food and organized retail is expected to drive the global food preservatives market. Moreover, changing demography and increase in disposable income especially in Latin America and Asia Pacific coupled with innovation in meat processing technology is expected to fuel the global food preservatives market. Furthermore, supportive government initiatives in Asia Pacific, is expected to boost the market for food preservatives. For instance, in July 2015, The Government of India announced the plan to set up 13 Mega Food Parks in various states of India, which include Andhra Pradesh, Bihar, Chhattisgarh, Himachal Pradesh, Gujarat, Jammu & Kashmir, Madhya Pradesh, Maharashtra, Odisha, Rajasthan and Uttarakhand. Moreover, according to India Brand Equity Foundation (IBEF)’s data published in December 2018, the total Indian spices export stood at 1.08 billion kg, worth US$ 3.11 billion during 2017-18.

Figure 1. North America Food Preservatives Market Share from 2015-2025

Government Regulations for Food Additives

Source: Coherent Market Insights Analysis (2016)

One of the major challenges of the global food preservatives market is the stringent government regulations. For instance, in June 2016, the Food Safety and Standards Authority of India (FSSAI) of the Government of India banned the use of potassium bromate and cyclamates in food. Moreover, the Government of the Hong Kong special Administrative region, in July 2008, introduced new regulations for controlling the use of preservatives and antioxidants in food. Furthermore, the National Food Safety Standard for Food Additive Use (GB2760-2014) was introduced in December 2014, by the National Health and Family Planning Committee of China and was implemented in May 2015.

Regional Insights

Europe, followed by North America and Asia Pacific accounted for major share in the global food preservatives market in terms of revenue in 2016 and the trend is estimated to remain the same over the forecast period. In 2016, Europe held the largest share of 28.1% in terms of value in the global food preservatives market. Growing demand for confectionery foods in Asia Pacific due to growing population, increased urbanization, and growing retail and hospitality sector is expected to drive growth of the global food preservatives market over the forecast period.

Multinational players need to tap potential addressable market in the emerging regions with the help of geographical expansion

Product portfolio expansion and geographical expansion are the key market trends which are expected to shape the industry in the near future.

Major players in the global food preservatives market include Univar Inc., Hawkins Watts Limited, Cargill Inc., DSM N.V., Galactic, Danisco A/S, Tate & Lyle PLC, and Brenntag AG, Kemin Industries Inc., and AkzoNobel N.V.