USD 115.4 billion
Food Additives Market Size, Share, and Growth Analysis
Food Additives Market By Type (Emulsifiers, Hydrocolloids), By Source (Natural, Synthetic), By Form (Dry, Liquid), By Application (Food, Beverages), By Functionality (Qualitative) (Thickening, Stabilizing), By Region - Industry Forecast 2025-2032
Report ID:
SQMIG30C2173 |
Region:
Global |
Published Date: January, 2025
Pages:
186
|Tables:
88
|Figures:
76
Format -
Food Additives Market Insights
Food Additives Market size was valued at USD 115.4 billion in 2023 and is poised to grow from USD 123.36 billion in 2024 to USD 210.38 billion by 2032, growing at a CAGR of 6.9% during the forecast period (2025-2032).
Specialty food ingredients are utilized in products to enhance their properties such as taste, shelf life, texture, and health benefits. The market is classified into sensory ingredients and functional ingredients. Higher expenditure on food & beverage products in the U.S. compared to other countries across the globe due to the overall high disposable incomes of the U.S. population has increased the production of food & beverage products in the country. This can be attributed to increasing demand, which is likely to result in the growing consumption of additives in these products. Increased demand is expected to support the consumption of fat replacers and high-intensity sweeteners that lower the fat content and sugar content of food or drinks. In November 2020, BLUE CALIFORNIA launched the Destination Flavors Collection for ready-to-drink (RTD) alcoholic beverages comprising lower sugar content. The flavours offered are inspired by regional flavours such as Catalan Crush, Arctic Gem, Pacific Blossom, Thai Treat, and California Dreamin.
The consumption of packaged food products and beverages is rising globally. This is expected to contribute to the surging demand for additives used during the processing of various packaged products and beverages. According to the survey results published by the Food Standards Agency in May 2021, approximately 81.0% of survey respondents in the UK confirmed buying processed food products from April 2020 to March 2021. Rising demand for packaged products and beverages is expected to fuel the global food additives market growth worldwide.
Market snapshot - 2025-2032
Global Market Size
Largest Segment
Natural
Fastest Growth
Synthetic
Growth Rate
6.9% CAGR
Global Food Additives Market ($ Bn)
Country Share for North America Region (%)
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Food Additives Market Segments Analysis
Global Food Additives Market is segmented by Type, Source, Form, Application, Functionality (Qualitative) and region. Based on Type, the market is segmented into Emulsifiers, Hydrocolloids, Preservatives, Enzymes, Flavors, Anti-caking Agents, Colors, Sugar Substitutes, Dietary Fibers, Vitamin & Mineral Premixes and Acidulants. Based on Source, the market is segmented into Natural and Synthetic. Based on Form, the market is segmented into Dry and Liquid. Based on Application, the market is segmented into Food and Beverages. Based on Functionality (Qualitative), the market is segmented into Thickening, Stabilizing, Binding, Emulsifying and Other Functionalities. Based on region, the market is segmented into North America, Europe, Asia Pacific, Latin America and Middle East & Africa.
Analysis by Product
As per the global food additives market analysis, the sweeteners led the market with the largest revenue share of 55.6% in 2024. This is attributed to rising demand for sweet products, such as confections and soft drinks, which has resulted in an increased demand for high fructose corn syrup. High fructose corn syrup, which has a high glycemic index, is considered a high caloric sweetener as it increases the calorie content of food products to which it is added. According to the Food & Agricultural Organization (FAO), global caloric sweeteners production is expected to reach 218 million tons by 2029. However, rising awareness among the population regarding health concerns due to excessive intake of high calorific foods is expected to limit the demand for HFCS. The demand for chocolates, candies, baked goods, and non-alcoholic beverages is soaring from the young population globally. Moreover, according to Döhler GmbH, approximately 73% of the total confectionary consumers demand a healthier and more natural confectionary. This is expected to fuel the demand for sweeteners over the forecast period.
The flavors & enhancers are another major product segment in the global food additives market industry. The segment includes flavoring agents, enhancers, carriers, modulators, bitterness suppressors, and flavor emulsions, among others. Flavoring agents effectively mask unpleasant taste and improve the taste of food & beverages. Rising health consciousness and awareness regarding the side effects of artificial flavors, such as allergies and risk of cancer, has encouraged market players to focus on naturally derived ingredients. Essential oils or oleoresins-based flavors are extracted from naturally available plant sources such as fruit pulp, fruit peel, leaves, and seeds. Increasing consumer preference for natural and organic products is projected to fuel the demand for natural flavors from dairy, frozen desserts, and beverage manufacturers. Commonly used sources for oleoresins such as turmeric, ginger, garlic, rosemary, vanilla, and cocoa.
Analysis by Source
The natural segment led the market with the largest revenue share of 82.6% in 2024. This is attributable to the growing preference for natural and organic products among consumers. The natural segment comprises additives that are derived from naturally available sources like various parts of plants such as dietary fibers derived from fruit peels; animal sources such as milk or egg proteins or microorganisms such as probiotic strains including lactic acid bacteria. The rising trend of veganism is expected to increase the demand for plant-based ingredients globally. Therefore, the market players are also shifting to this trend by launching several plant-based meat products.
The synthetic segment is the fastest growing in the market which comprises additives that are chemically synthesized from raw materials. Different food additives are synthesized from different raw materials following different chemical reactions. For instance, sweeteners such as saccharin are synthesized by the oxidation of o-toluene sulfonamide to the corresponding carboxylic acid by reacting with potassium permanganate or chromic acid. Similarly, food emulsifiers are synthesized by chemical reactions of hydrophilic (poly) alcohols such as polyglycerol, propylene glycol, sorbitol, and sucrose with vegetable oils or fats. Monoglycerides are esterified with lactic acid, citric acid, or acetic acid anhydride to produce other emulsifiers such as lactic acid esters of mono-and diglycerides of fatty acids. Artificial flavors such as esters are made synthetically by reacting carboxylic acids and alcohol together during a condensation reaction. Aldehyde flavors are formed by the partial oxidation of primary alcohols to form carboxylic acids when they are further oxidized.
Global Food Additives Market By Source (%)
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Food Additives Market Regional Insights
North America dominated the market with a revenue share of 34.1% in 2024. This is attributed to the rise in consumption of chemicals by numerous industries like pharmaceuticals, industrial, and food & beverages. In addition, expanding pharmaceutical industry in countries such as U.S., Mexico and Canada are anticipated to surge the demand in North America. Europe is run by major industrial economies such as the UK, Germany, France, Italy, and others. It is characterized by the presence of an increasing number of manufacturers and suppliers of food & beverage, cosmetics, and pharmaceutical products penetrating the regional ecosystem. The presence of major cosmetic manufacturing companies in the region is expected to drive the demand for food additives.
As per the global food additives market outlook, Asia Pacific is poised to experience the highest CAGR in the food additives market during the forecast period. Pharmaceutical, personal care & cosmetics, and food & beverage applications all have an impact on the demand for additives. The rising purchasing power parity, rising income levels, and expanding populations in nations like China and India have all contributed to the increased demand for the goods. Additionally, over the forecast period, a lot of industries are expected to see an increase in demand due to the quickly expanding number of food and beverage start-ups, particularly in India.
Global Food Additives Market By Geography
- Largest
- Fastest
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Food Additives Market Dynamics
Food Additives Market Drivers
Rise in Expansion of Convenient and Processed Food Products
- The demand for processed foods is increasing due to the growing need for convenient and ready-to-eat food products. As people lead busy lives, they seek options that are quick and easy to prepare. Processed foods, which are easy to cook and have a long shelf life, have become an essential part of modern dietary habits. To meet this demand, food additives are used to enhance the quality, safety and overall appeal of these products.
Surge in Low-Calorie and Low-Fat Food Additives
- The increasing demand for low-calorie and low-fat products has led to the increasing adoption of artificial additives in the market. The addition of additives enables ease of transportation of products across the globe without affecting the quality of the products. The increasing disposable income in developing economies enables consumers to spend more on packaged products which has supported the growth of the food additives market globally.
Food Additives Market Restraints
Limited Raw Material Availability and Price Fluctuations
- The prices of essential raw materials used in food additive formulations can greatly impact production costs and ultimately, the pricing of end products. The food additives market relies on a diverse range of raw materials, including preservatives, emulsifiers, flavors, and sugar substitutes, making it vulnerable to global economic shifts, weather patterns affecting agriculture, and geopolitical factors that impact the supply chain. This creates a scenario where manufacturers must navigate unpredictable market conditions, adjusting their pricing strategies in response to the ever-changing costs of inputs.
Widespread Negative Perception of Food Additives Among Consumers
- Food additives play an important role in enhancing food quality, safety, and shelf life. However, some consumers perceive them unfavorably due to concerns about the potential health effects associated with certain additives, coupled with a lack of understanding about their various functions. This poses a challenge for companies operating in this market, as they need to address and overturn these negative perceptions.
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Food Additives Market Competitive Landscape
The competitive landscape of the market is characterized by the presence of key players such as ADM, BASF SE, Chr. Hansen Holding A/S, Ingredion Incorporated, Novozymes A/S, Tate & Lyle Plc, DSM, Ajinomoto Co., Inc; Cargill, Incorporated, Givaudan, International Flavors & Fragrances, Inc., Biospringer, Palsgaard, and Lonza. These companies are actively engaged in strategic activities such as new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations to expand their footprint and enhance their market presence.
Top Players in Food Additives Market
- Cargill, Incorporated (USA)
- Archer Daniels Midland Company (USA)
- BASF SE (Germany)
- IFF (International Flavors & Fragrances) (USA)
- Kerry Group PLC (Ireland)
- Ingredion Incorporated (USA)
- Tate & Lyle PLC (UK)
- Givaudan SA (Switzerland)
- Ajinomoto Co., Inc. (Japan)
- Novozymes (Denmark)
- Ashland (USA)
- CP Kelco (USA)
- Glanbia PLC (Ireland)
- Sensient Technologies Corporation (USA)
- Roquette Frères (France)
- Corbion NV (Netherlands)
- Evonik Industries AG (Germany)
- DuPont de Nemours, Inc. (USA)
- Darling Ingredients Inc. (USA)
Recent Developments
- In March 2024: BASF introduced a new flavor from its Isobionics portfolio. The latest introduction, Natural Beta-Caryophyllene 80, boasts an aroma reminiscent of vegan notes, black pepper, grape seeds and clary sage.
- In March 2023, BASF SE increased the production capacity of high-molecular-weight poly-isobutane by 25% at its plant in Ludwigshafen, Germany.
- In October 2023, ADM announced its decision to invest in the Guadalajara project. The company invested US$33 million to strengthen its position in the human food and livestock sector.
Food Additives Key Market Trends
- Advancements in Food Processing Technologies: Advancements in food processing technologies have had a significant impact on the food additives market. The evolution of food processing has enabled the purposeful inclusion of food additives and preservatives in minute quantities to serve specific technological or sensory functions. These functions range from enhancing shelf life and maintaining color to preserving nutritive value and improving flavor. Concerns regarding safety and health have led to a shift towards natural sources while conventional additives have played a vital role in processing and storage.
- Demand for Bakery and Confectionery Drives the Use of Additives: Shifting customer preferences are fueling the demand for food additives. The rising demand for functional ingredients in bakery and confectionery products is largely attributed to their nutritional benefits. Bakery staples, including bread, buns, and biscuits, are integral to daily consumption. This widespread use across various regions is bolstering the market for food additives, encompassing flavors, preservatives, and emulsifiers.
Food Additives Market SkyQuest Analysis
SkyQuest's ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
According to SkyQuest analysis, the food additives market is experiencing strong growth, driven by increasing demand for processed and convenience foods, increasing consumer awareness about health and nutrition. Additives like preservatives, sweeteners, emulsifiers, and flavor enhancers are widely used to improve taste, extend shelf life, and enhance the nutritional profile of foods. The competitive environment is more dynamic, with BASF SE, Archer Daniels Midland Company, DuPont, Kerry Group, Cargill, Inc. and others including through innovation and product diversification. These companies emphasize R&D investments to develop additional products that address regulatory requirements and changing customer needs. Strategic initiatives including mergers, acquisitions and collaborations further intensify competition, enabling companies to expand their geographic and market share. Emerging and start-up players contribute by offering specialized and niche products will take place, which fosters innovation across the region.
| Report Metric | Details |
|---|---|
| Market size value in 2023 | USD 115.4 billion |
| Market size value in 2032 | USD 210.38 billion |
| Growth Rate | 6.9% |
| Base year | 2024 |
| Forecast period | 2025-2032 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Food Additives Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Food Additives Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Food Additives Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Food Additives Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Food Additives Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Food Additives Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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