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Press Release / Business / Synthetic Food Additives Reveal Mammoth Opportunity for Growth in Emerging Countries

Synthetic Food Additives Reveal Mammoth Opportunity for Growth in Emerging Countries

By darshana on February 02 2018 | 113 Views

Global food additives market was valued at USD 31.43 billion in 2014 and is projected to reach USD 39.85 billion by 2021

The global food additives market is highly fragmented with a wide range of products and an equally large number of market players, working for the food industry. The growth in the food and beverages industry directly impacts the growth of the food additives market. The manufacturers in the food additives market have to consistently modify their products to meet the requirements of customers. Of late, customers are demanding newer flavors, gelatin-free, low fat, and color free products. Thus, companies are focusing on these customer requirements and launching newer products from time to time, Transparency Market Research finds in a new study.
Additive makers in the market comprise small, medium, and large size companies that work with different market and product focus. The major players in the market include Cargill, Danisco, Givaudan, Archer Daniels Midland, BASF, and Sensient Technologies Corporation. These players collectively accounted for a massive 68.5% of the global food additives market in 2011.
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The increasing prevalence of obesity, cancer, cardiovascular disorders, and other health issues have strongly created a demand for functional foods that benefits for the prevention, management, or the treatment of chronic diseases. This has spurred a growth in the demand for functional food additives. Increasing cases of obesity among teenagers have fueled the demand for additives such as hydrocolloids, emulsifiers, vitamins, and minerals. Apart from this, the growing population worldwide has led to a growth in the food and beverage industry, which in turn is driving the demand for food additives.
The U.S. Food and Drug Administration (FDA) has set safety standards that needs to be complied with, so that food additives can be used commercially. Rigorous testing is being done to determine the safety of additives. This can hamper the growth of the market. Another challenging factor includes the difficulty in working with natural additives. The demand for natural additives is growing high among the health conscious consumers and suppliers are unable to meet the demands. Natural flavors such as ribonucleotides and monosodium glutamate have several health benefits associated with them. As such, manufacturers are forced to focus on natural sources for developing natural food additives. However, this is proving to be a challenging task owing to the shortage of raw material supply and difficulty in working with natural sources.
Although the rising health awareness among consumers is driving the demand for natural food additives, the use of synthetic additives is still acceptable in the emerging economies. The rising demand for food and beverages and the availability of synthetic additives at affordable prices is driving their demand. Another factor why synthetic additives are being preferred to their natural counterparts, is the fact that natural additives have low shelf life. Moreover, natural additive products are being perceived as premium products and thus, are extremely expensive as compared to synthetic additives.
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By product, the flavors and enhancers segment led the market in 2014 and will continue to retain its leading position in the coming years, states a TMR analyst. By source, the artificial segment led the market in 2014 and will continue to do so by the end of 2021. By geography, the global food additives market was led by Europe in 2014. However, Asia Pacific is expected to take over the leading position by 2021.
According to the report, the global market opportunity in food additives will rise from US$31.43 bn in 2014 to US$39.85 bn by 2021 expanding at a 3.4% CAGR from 2015 to 2021.
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Transparency Market Research (TMR) is a market intelligence company, providing global business information reports and services. Our exclusive blend of quantitative forecasting and trends analysis provides forward-looking insight for thousands of decision makers. TMR’s experienced team of analysts, researchers, and consultants, use proprietary data sources and various tools and techniques to gather, and analyze information. Our business offerings represent the latest and the most reliable information indispensable for businesses to sustain a competitive edge. 
Each TMR syndicated research report covers a different sector - such as pharmaceuticals, chemicals, energy, food & beverages, semiconductors, med-devices, consumer goods and technology. These reports provide in-depth analysis and deep segmentation to possible micro levels. With wider scope and stratified research methodology, TMR’s syndicated reports strive to provide clients to serve their overall research requirement. 
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