The food additives market is estimated to grow at a CAGR of 5% and the size of the market is forecast to increase by USD 14,211.34 million between 2022 and 2027. Our report includes historic market data from 2017 to 2021. The growth of the market depends on several factors, including rising demand for processed food, increasing complexities in the food supply chain, and growing demand for home food preservation.
This report extensively covers market segmentation by application (bakery and confectionery, beverages, convenience food, snacks, and others), product (flavors and enhancers, acidulants, colorants, sweeteners, and others), and geography (North America, APAC, Europe, South America, and Middle East and Africa). It also includes an in-depth analysis of drivers, trends, and challenges.
What will the Size of the Food Additives Market be During the Forecast Period?

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Food Additives Market Segmentation by Application & Geography
Application Insights
The market share growth by the bakery and confectionary segment will be significant during the forecast period. The bakery and confectionery segment showed a gradual increase in market share with USD 12,887.31 million in 2017 and will continue to grow during the forecast period. The bakery and confectionery segment is the largest application segment in the market. The segment contributes a major portion of the market share of the market in terms of volume. Vendors offering confectionery products are expanding their product portfolios by launching new variants of confectionery products. For instance, in January 2019, Cargill Inc. announced the launch of its new chocolate brand, Veliche Gourmet, in the Netherlands. Such expansions by vendors may increase the demand for additives for confectionery and bakery products during the forecast period.

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Globally, a wide range of food additives find applications in bakery and confectionery food products. Some of the most common ingredients used in bakery and confectionery products are specialty fats, enzymes, starches, preservatives, food colorants, flavors, and acidulants. One of the most sought-after ingredients in bakery products like muffins, cookies, biscuits, and others is preservatives. Preservatives are indispensable in bakeries as bakery products are highly perishable and are characterized by very short shelf life. Food additives that are in extreme demand in bakeries are colors, sweeteners, and flavors.
Regional Insights
North America is projected to contribute 32% by 2027. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The food additives market in North America is expected to witness a steady growth rate. This is attributed to the growing demand for fat replacers, emulsifiers, and healthy ingredients, especially in North America. The use of food additives that are detrimental to health may negatively impact the growth of the market in North America during the forecast period. Vendors operating in the regional market in focus are increasingly adopting new distribution channels as well as automation in the manufacturing process, along with digital technologies in supply chain operations and changes in logistics and transportation. This will drive the growth of the regional market in focus during the forecast period.
Covid-Recovery Analysis
The initiation of vaccination drives and the reopening of manufacturing units of food additives stabilized the growth of the regional market in focus in the first half of 2021. Moreover, the key vendors in the regional market in focus are adopting different strategies to recover from the pandemic. Vendors operating in the regional market in focus are increasingly adopting new distribution channels, adoption of automation in the manufacturing process, digital technologies in supply chain operations, adopting changes in logistics and transportation. This will drive the growth of the regional market in focus during the forecast period.
Key Food Additives Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Global Food Additives Market Customer Landscape
Food Additives Market: Key Drivers, Trends, Challenges
The rising demand for processed food is notably driving the market growth, although factors such as the growing demand for fresh foods may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Driver
Improving economic conditions and disposable income levels in developed and developing nations has directly increased the demand for food processing and packaging solutions. Processed food manufacturers are increasingly focusing on product differentiation that enables them to sustain themselves in the highly competitive environment in the market. Urbanization has resulted in a shift in dietary habits. The urban population globally is inclined toward packaged food products and frozen food products. The expanding global middle class and an increase in the number of working women contribute to the high demand for processed foods. The aforementioned factors act as driving forces for the growth of the market.
Significant Trend
The rising demand for non-GMO ingredients is the primary trend driving the food additives market growth. Consumers are becoming increasingly conscious about their diet, as well as the composition and nutritional content of the food they consume, owing to the rising global awareness about food safety. People tend to avoid foods that contain artificial additives as they are increasingly aware of the adverse health impacts of such additives. This has given rise to clean-label and organic foods. Thus, the aforementioned factors will positively impact the market in focus and, in turn, will drive the market during the forecast period.
Major Challenge
Growing demand for fresh foods is the major challenge impeding the market growth. Fresh foods are not frozen and are preservative-free. There is a high demand for such products across the globe, owing to the rising awareness among consumers about the health benefits of these products. There has been a global shift in demand for fresh food products as opposed to frozen foods. Eating fresh produce provides an individual with enhanced energy, reduces the effects of aging, and helps in reducing weight. The market is expected to face stiff competition from the global fresh food market during the forecast period. This, in turn, tends to affect the growth of the market negatively.
Who are the Major Food Additives Market Vendors?
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Ashland Inc. - The company offers Aspartame and Advantame, sugar substitute additives as key offerings under its additives segment. The company focuses on sauce and seasoning, ready-to-eat meals, individual meals, and healthy meals and provides integrated food solutions. This segment also focuses on amino acids along with products and services using amino acids to customers globally in a broad range of industries, including pharmaceuticals, food, and cosmetics.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
- Ajinomoto Co. Inc.
- Archer Daniels Midland Co.
- Associated British Foods Plc
- Bell Flavors & Fragrances GmbH
- Cargill Inc.
- Chr Hansen Holding AS
- Eastman Chemical Co.
- Evonik Industries AG
- Givaudan SA
- Griffith Foods Worldwide Inc.
- Ingredion Inc.
- International Flavors & Fragrances
- J M Huber Corp.
- Kerry Group Plc
- Koninklijke DSM NV
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
Segment Overview
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by application, product, and region.
- Application Outlook ( USD Million, 2017 - 2027)
- Bakery and confectionery
- Beverages
- Convenience food
- Snacks
- Others
- Product Outlook ( USD Million, 2017 - 2027)
- Flavors and enhancers
- Acidulants
- Colorants
- Sweeteners
- Others
- Region Outlook ( USD Million, 2017 - 2027)
- APAC
- Europe
- The U.K.
- Germany
- France
- Rest of Europe
- Middle East & Africa
- Saudi Arabia
- South Africa
- Rest of the Middle East & Africa
Food Additives Market Scope
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Report Coverage
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Details
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Page number
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190
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Base year
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2022
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Historic period
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2017-2021
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Forecast period
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2023-2027
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Growth momentum & CAGR
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Accelerate at a CAGR of 5%
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Market growth 2023-2027
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USD 14,211.34 million
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Market structure
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Fragmented
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YoY growth (%)
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4.4
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Regional analysis
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North America, APAC, Europe, South America, and the Middle East and Africa
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Performing market contribution
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North America at 32%
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Key countries
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US, China, Germany, UK, and France
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Competitive landscape
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Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled
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Ajinomoto Co. Inc., Archer Daniels Midland Co., Associated British Foods Plc, Bell Flavors & Fragrances GmbH, Cargill Inc., Chr Hansen Holding AS, Eastman Chemical Co., Evonik Industries AG, Givaudan SA, Griffith Foods Worldwide Inc., Ingredion Inc., International Flavors & Fragrances Inc, J M Huber Corp., Kerry Group Plc, Koninklijke DSM NV, Quality Ingredients Corp., Tate & Lyle Plc, Wego Chemical Group Inc., BASF SE, and Ashland Inc.
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Market dynamics
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Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and market condition analysis for the forecast period.
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Customization purview
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If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.
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What are the Key Data Covered in this Food Additives Market Report?
- CAGR of the market during the forecast period.
- Detailed information on factors that will drive the growth of the food additives market between 2023 and 2027
- Precise estimation of the food additives market size and its contribution to the parent market.
- Accurate predictions about upcoming trends and changes in consumer behavior.
- Growth of the industry across North America, APAC, Europe, South America, and the Middle East and Africa.
- A thorough analysis of the market’s competitive landscape and detailed information about vendors.
- Comprehensive analysis of details of factors that will challenge the growth of market vendors.
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