Global Food Additives Market to Reach $96.3 Billion by 2028, Growing at a 5.6% CAGR

/EIN News/ -- Delray Beach, FL, Jan. 17, 2025 (GLOBE NEWSWIRE) -- The global food additives market has been experiencing remarkable growth, with its size valued at USD 69.8 billion in 2022. Projections indicate it will expand to USD 73.4 billion in 2023 and reach USD 96.3 billion by 2028, reflecting a CAGR of 5.6%. This expansion is largely driven by the increasing demand for processed and convenience foods, as consumers seek products with enhanced shelf life, improved taste, and appealing aesthetics. Food additives play a critical role in improving texture, flavor, and preservation, making them indispensable to the food industry.

Lucrative Business Opportunities for Industry Players

The expanding market has created opportunities for businesses to innovate and grow. A prime example is IFF's launch of BCLEAR in April 2023, designed to help breweries maintain beer clarity efficiently. BCLEAR enhances cost efficiency and outperforms existing enzymatic solutions, highlighting the potential for innovation in the sector.

Similarly, CP Kelco's partnership with Shiru, Inc. exemplifies strategic collaborations aimed at advancing sustainable food solutions. Leveraging nearly 90 years of expertise, CP Kelco works with global food leaders to develop innovative products that meet consumer preferences for clean labels and sustainable ingredients.

Key Drivers of Food Additives Market Growth

Processed and Convenience Foods

The growing need for convenient and ready-to-eat products is a major market driver. Processed foods, known for their ease of preparation and extended shelf life, are central to modern dietary habits. Food additives such as preservatives, stabilizers, and flavor enhancers ensure the freshness, safety, and sensory appeal of these products.

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Natural and Transparent Ingredients

Consumer demand for natural and plant-based additives aligns with the global trend of eco-consciousness and clean-label products. The shift towards functional foods emphasizing health benefits has spurred innovations in nutritional fortification and encapsulation technologies, improving ingredient stability and reducing flavor loss.

Regional Insights: Asia Pacific Leads the Way

The Asia Pacific region is expected to register the highest CAGR in the food additives industry during the forecast period. Rapid urbanization, a rising middle-class population, and increasing consumer purchasing power are driving demand for processed foods and beverages.

This growth is further fueled by a preference for clean-label and natural additives, as well as innovations in plant-based options catering to sustainable and vegetarian diets. Functional additives addressing health concerns and enhancing regional cuisines' unique flavors underscore the region's pivotal role in the market's expansion.

Market Segments and Trends

Beverages: A Key Segment

The beverages sector commands a significant market share in the food additives industry. The demand for functional and fortified beverages has driven the use of additives to enhance taste, texture, and nutritional value. Ready-to-drink and plant-based beverage innovations continue to bolster the need for advanced additive solutions.

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Sugar Substitutes on the Rise

Health-conscious consumers and industry innovation are fueling the surge in sugar substitutes. With rising concerns about diabetes and obesity, sugar alternatives have gained popularity. Companies like Cargill Incorporated have introduced products like C TruSweet and SweetPure in Europe, meeting demand for natural, clean-label, reduced-calorie sweeteners without compromising taste.

The global food additives market growth is driven by evolving consumer preferences for convenience, health, and sustainability. Innovations in natural and functional additives, coupled with regional growth in markets like Asia Pacific, highlight the industry's dynamic trajectory. With key players continually adapting to trends and advancing technologies, the future of the food additives market promises robust expansion and transformative opportunities.

Discovering Adjacent Markets

• Food Flavors Market
• Industrial Enzymes Market
• Food Preservatives Market
• Food Emulsifiers Market

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