Preservatives are employed in food goods because people are increasingly looking for convenient meals with a longer shelf life. Food products’ quality, freshness, and flavor are preserved while also increasing their shelf life by applying food preservatives. Another factor influencing the market for food preservatives is the growing demand for natural and organic preservatives.
The market for food preservatives in 2021 was worth USD 3 billion, and by 2030, it will reach USD 4.65 billion, expanding at a 5% CAGR during the forecast period.
The market for food preservatives is expanding due to increased demand for processed foods due to their strong link with one another. The use of food preservatives in many food businesses has increased demand for them. These food preservatives are unavoidable for the food industries to extend the shelf life of the products and inhibit undesired microbiological activity due to their antibacterial and antioxidant capabilities.
Market Dynamics
Drivers
Consumer tastes are evolving toward hygienically packed and fortified food products as the emphasis on maintaining health and hygiene standards grows. This is a major component driving increased global demand for food preservatives in processed foods such as crackers, cereals, bread, snacks, cheese, yogurt, deli meats, sauces, and soups. Furthermore, increased urbanization, hectic lifestyles, rising per capita earnings, and the growing tendency of nuclear families are encouraging the use of ready-to-eat (RTE) food items that require little preparation and cooking time. Aside from that, increased health concern is boosting demand for organic preservatives and clean-label products. They are non-toxic, soluble, and cost-effective, and they aid in preserving the food’s natural color, flavor, and texture.
The main market restrictions are the high cost of natural preservatives and consumer awareness of the negative consequences of synthetic preservatives.
Opportunities
Increasing demand for clean-label products and natural preservatives will fuel market expansion over the forecast period. In addition, the market will undoubtedly expand in the near future thanks to the ongoing expansion of the food processing sector in developing nations like China and India. The establishment and expansion of food parks are supported by a $300 million “Food Processing Fund” established by the Indian government. At the moment, 42 Mega Food parks are being built. Numerous global food processing businesses, including Kraft, Mars, Nestle, Kellogg, Coca-Cola, and others, have invested due to this government program.
Market Segmentation
By Label
The conventional segment ruled the market with a revenue share of nearly 65% in 2021. Conventional food is used with various food preservative techniques. It mostly includes antioxidants that work as oxygen absorbers or antimicrobial preservatives that limit the growth of bacteria or fungi.
By Type
In 2021, the synthetic type segment was the market leader, with a revenue share of 65%. The synthetic variety is frequently utilized since it is affordable and simple. Depending on the needs of the application, they can be created. The market is divided into synthetic and natural types based on type.
Natural preservatives are in increased demand due to regulatory bodies’ support of natural preservatives in processing and growing consumer health concerns. Due to consumer preference for clean-label products, natural products will contribute to a significant portion of the market throughout the forecast period.
By Application
In 2021, meat and poultry accounted for more than 30.0% of total sales. The expansion of the processed meat, poultry, and seafood industries throughout the forecast period will drive the demand. Food preservatives are use in a wide range of items, such as dairy, frozen goods, meat and poultry, seafood, drinks, candies, and oils and fats.
Regional Analysis
In 2021, North America had the highest revenue share of over 30.0%. An increase in the product’s different uses in the United States, Canada, and Mexico propelled the market in North America. Existing bakeries and a rise in processed meat consumption will drive the development.
The food and beverage sector is the main driver of market expansion in Europe. The United States, China, Canada, Australia, Saudi Arabia, and Japan are the leading export destinations for Europe’s food and beverage sector. Meat, seafood, dairy, and beverages such as alcoholic beverages, soft drinks, and dairy products make up the bulk of the products exported. Thus, increased food export from Europe will increase the demand for food preservatives necessary to preserve shelf life during transit activities.
Key Players
- Celanese Corporation
- ADM
- Kemin Industries, Inc.
- BASF SE
- Tate & Lyle
- Corbion N.V.
- Cargill, inc.
- Galactic S.A.
- Kerry
The market for food preservatives in 2021 was worth USD 3 billion, and by 2030 it will reach USD 4.65 billion, expanding at a 5% CAGR during the forecast period. The market is being driven by the expanding demand for clean-label products, the rising consumption of packaged and processed foods, and the complexity of the food supply chain. Additionally, the market will be driven by the growing penetration in the organized retail sector, particularly in emerging nations.
Food additives are utilized for saving bites, candy stores, pastry shop items, dairy, meat, and poultry items. Interest in these items is expanding worldwide inferable from different factors like an adjustment of client’s way of life, the flood in imports and commodities, expanding inclination for new items, and an ascent in buyer readiness to follow through on an exceptional cost.
North America procured the most extreme piece of the pie in 2021 and is supposed to proceed with its strength for the following couple of years. Expanded accessibility of handled food varieties and more prominent acknowledgment of prepared-to-eat food varieties from customers in the U.S. Furthermore, Canada are driving the interest for accommodation food varieties.
The U.S. market size was esteemed at USD 668.0 million in 2021 and is expected to enlist an extensive CAGR from 2022 to 2030. Rising interest in meat and poultry items is supposed to help development. Producers like Corbion N.V. use vinegar, alongside jasmine extricate as an enemy of the oxidant and the citrus powder, to forestall the dampness movement of the item.
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