The European Commission defines food additive as "any substance not normally consumed as a food in itself and not normally used as a characteristic ingredient of food, whether or not it has nutritive value." Food additives have gained growing level of importance over the years owing to the diverse requirements of the food industry, end consumers, and regulatory bodies across the globe. Food additives are basically used for imparting specific desired properties to food products, enhancing food palatability in terms of food appearance & appeal, ensuring food safety through prevention of contamination, and through extended shelf-life of products.

The report discusses the drivers, restraints, opportunities, and challenges of the market in detail. In the next five years, the markets for acidulants and hydrocolloids are projected to gain better prospects as the fastest-growing segments, globally. The application of food additives is projected to witness strong demand from bakery & confectionery, beverages, and convenience foods segments.

This report estimates the size of the global food additives market in terms of value. The geographical and application-wise split was determined using secondary sources and verified through primary respondents. The demand in different regions was considered while estimating the share of the different regions in the food additives market. The market estimation was also based on various parameters, such as the number of players, demand trends, supply trends, and the extent of research activity in a particular region. The market for food additives is projected to grow at a CAGR of 5.6% to reach USD 52.2 Billion by 2020.

The market was dominated by the North American region in 2014, where the U.S. dominated the regional market with ~78% share in 2014. The market in Europe is projected to grow at steady rate while the market in Asia-Pacific is projected to grow at the highest CAGR. This growth may be attributed to the food & beverage sector in Asia-Pacific region, which is greatly influenced by consumer preferences for healthy eating, trend towards natural & organic foods, and the growing demand for convenience food. The trend in the Asia-Pacific region is influenced by the economic growth of countries, growing industrialization, and higher consumer preference for quality products, resulting in ingredient suppliers becoming increasingly optimistic about the future.

However, the health hazards associated with the consumption of synthetic additives, growing consumer demand for �no additive� food products or products with natural additives, limited availability & high cost of naturally sourced additives, and the rising consumer shift to organic foods have resulted in restrained market growth since the past few years.

MnM helped a leading Japanese in penetrating into the food additives market by providing market potential analysis for global and regional food additives demand in different end user applications. Client�s Problem Statement Our client, a leading Japanese specialized chemical trading firm, was interested in assessing market potential for Food additives used in the different application industries such as bakery & confectionery, beverages, dairy & frozen desserts, sauces, dressings, spices, & condiments market space globally. The key objectives of the study were to identify the market potential for target products for each application, its current and future scenario, potential and industrial functioning, in order to gain market understanding and focus on target industries to distribute their products. MnM Approach MNM assisted the client with an outside-in perspective on the global and regional market potential of various food additives such as acidulants, anti-caking agents, colors, flavors, emulsifiers, enzymes, hydrocolloids, preservatives, and sweeteners. Further, we helped them identify the highest potential end use applications such as bakery & confectionery, beverages, confectionery, dairy & frozen desserts, sauces, dressings, spices, & condiments. MNM also helped them better understand the regional market scenario, upcoming application segments & competitor strategies of different players to win in these markets. This helped them devise a targeted product offering. MNM also interviewed a host of potential customers in end-use industries to understand their unmet needs, demand for various patented additives and what they looked for in a technology partner. This helped our client refine their value proposition to devise an appropriate market penetration strategy. Revenue Impact (RI) Our work resulted in the client tapping into the Japanese food additives market forming strategic alliances with leading players to import their products and distribute to domestic Japanese companies. The client was successfully able to establish and grow his additives business in Japan and other Asian countries. The client could successfullt impact his revenue by USD 1.25 billion. Consult our Analyst now

Some of the key players in the food additives market include E.I. DuPont (U.S.), Archer Daniels Midland Company (U.S.), Cargill, Incorporated (U.S.), CHR. Hansen Holding A/S (Denmark), Kerry Group Plc (Ireland), and BASF SE (Germany), among others.

The food additives market is segmented as mentioned below:

By Types

Acidulants

Anti-caking agents

Colors

Emulsifiers

Enzymes

Flavors

Hydrocolloids

Preservatives

Sweeteners

By Source

Natural

Synthetic

By Application

Bakery & confectionery

Beverages

Convenience foods

Dairy & frozen desserts

Spices, condiments, sauces & dressings

Others

By Region

North America

Europe

Asia-Pacific

Rest of the World (RoW)

Available Customizations

With the given market data, MarketsandMarkets offers customizations according to the company�s specific needs.

The following customization options are available for the report:

Product Analysis

Product matrix which gives a detailed comparison of product portfolio of each company

Regional Analysis

Further breakdown of the food additives market by country in different regions in RoW

Further breakdown of the type of food additives into their subtypes

Further breakdown of the sources of food additives

Company Information

Detailed analysis and profiling of additional market players (Up to 5)

The global food additives market is projected to reach a value of USD 52.2 Billion by 2020, at a CAGR of 5.6% from 2015.

The market for food additives has a significant impact on the food & beverage industry across the globe. Food additives are broadly categorized based on their type into acidulants, anti-caking agents, colors, emulsifiers, enzymes, flavors, hydrocolloids, and sweeteners. These food additives are further segmented on the basis of source, including natural and synthetic. The global market is also segmented on the basis of application into bakery & confectionery, beverage, convenience foods, dairy & frozen desserts, spices, condiments, and sauces & dressings, among others.

The global food safety testing market has been showing dynamic growth over the years, owing to the growing need for different ingredients and multiple functionalities across food applications. Food additives are used in the food & beverage industry to impart specific properties to food products, enhance food palatability, replace fat content, enhance product shelf-life, and protect food from contamination, among others.

Furthermore, stringent legislatives and regulations with respect to food safety and public health concerns have meant that food processing industries are keen on getting the right formulation to present the best food product to the consumer, and additives play a pivotal role in this aspect. The main driving force for the growing market is the scope and range of food additives and research associated with it.

The figure above depicts the global market size of food additives by region. North America is estimated to account for the majority share in 2015. Europe and Asia-Pacific were estimated to be the second- and third-largest markets, accounting for a combined share of ~53% in 2015.

The food additives market constitutes a large number of players, including E.I. DuPont (U.S.), Archer Daniels Midland (U.S.), Cargill, Inc. (U.S.), Chr. Hansen A/S (Denmark), Kerry Group (Ireland), BASF SE (Germany), Evonik Industries AG (Germany), Tate & Lyle PLC (U.K.), Ingredion Incorporated (U.S.), and Novozymes A/S (Denmark).

The existing companies in this market are actively involved in introducing new products with diverse functionalities that would provide desirable properties to a wide range of products. Other strategies that are largely adopted by the market players include expansions & investments, acquisitions & strategic alliance, agreements, partnerships, and collaborations & joint ventures, among others.