Food Additives Market is expected to reach USD 39.85 billion by 2021

Food additives are substances which are added to food products in order to preserve flavor and enhance its taste and appearance. The food additives market by type has been segmented into flavors and enhancers, sweeteners, enzymes, colorants, emulsifiers, food preservatives, and fat replacers. In addition, food additives market by source can be segmented into artificial and natural. Food additives being a chemical substance is regulated by government directives globally. The manufacturers of food additives have to constantly modify their products in order to meet customer requirements. Food and beverage industry is one of the major end users for food additives. Stable growth of food and beverage industry is one of the major factors driving the food additives market globally. In addition, increasing demand for functional food additives is also boosting the demand for food additives globally.

The Food and Drug administration (FDA) defines a food additive as, any substance the intended use of which results or may reasonably be expected to result, directly or indirectly, in its becoming a component or otherwise affecting the characteristic of any food (including any substance intended for use in producing, manufacturing, packing, processing, preparing, treating, packaging, transporting, or holding food; and including any source of radiation intended for any such use); if such substance is not GRAS or sanctioned prior to 1958 or otherwise excluded from the definition of food additives.

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The food additives that the FDA does regulate are broken down into three categories. "Indirect Food Additives" include packaging materials such as paper, plastic, cardboard and glue that come into contact with food. "Direct Food Additives" include preservatives, nutritional supplements, flavors and texturizers that are added to food. "Color Additives" are used to alter color.

Increasing health consciousness and increasing demand for natural food additives over synthetic food additives is also expected to boost the food additives market. However, stringent rules and regulations governing the food additives market and changing customer requirements is expected to restrain the demand for food additives in the forecast period.

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By geography the food additives market has been segmented into North America, Europe, Asia Pacific and Rest of the world. Europe is the largest market for food additives followed by North America. However, Asia Pacific with large number of upcoming business utilities holds large potential for the food additives market.

This report has been segmented by type, by source and by region. The study highlights the current market trends and provides forecasts from 2015 to 2021. The report also analyzes the macroeconomic factors that are driving and inhibiting the growth of the food additives market. The report would help manufacturers, suppliers, and distributors to understand the current and future trends in this market and formulate their strategies accordingly.

By types, flavors and enhancers held the largest market for food additives in 2014, followed by fat replacers and sweeteners. It is estimated the trend would be the same over the forecast period and it is expected that flavors and enhancers would hold its position as the market leader in 2021, followed by fat replacers and sweeteners.

Food additives are made by using raw material such as sugar, starch, corn syrup, sodium benzoate and others which are reacted with certain chemicals and are blended with various ingredients such as grains and soya to match the requirement by the FDA. The food additives market globally comprises of six categories: texture, nutritional, flavor, color, preservatives and miscellaneous. There are two types of additives, direct and indirect. Additives can be direct additives, which are added for a specific purpose in the food such as to improve its taste, nutritive value, ease in processing and to retain the quality of food during handling and retailing for e.g. emulsifiers are used to improve the texture, iodine is added to salt to maintain its nutritional value and many more. There are also indirect additives, which are not added intentionally but get included into the foods during processing, handling and packaging for e.g. inclusion of adhesives and components of coatings, paper and paperboard components, polymers etc.

By geography, the market is segmented into four regions; North America, Europe, Asia Pacific and RoW. Europe held the largest market for food additives in 2014, however it is estimated that Asia Pacific would hold the largest market share for the food additives market by 2021.

The key players dominating the market for the food additives are Ajinomoto Co, Inc., ADM, Associated British Foods Plc and BASF among others.


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