The global food preservative market is expected to develop at 3.7% CAGR from 2024 to 2031. The market's worth is predicted to increase from XX USD in 2024 to YY USD by 2031.
Asia-Pacific currently dominates the market, owing to rising urbanisation, shifting dietary preferences, and increased demand for processed and convenient foods. Key metrics include increased use in the beverage and snack industries, increased consumer awareness of food safety, and breakthroughs in food preservation techniques.
The market is growing steadily because of rising demand for processed and packaged foods, increased shelf life requirements, and the need to preserve food quality and safety. Food preservatives serve an important role in preventing spoilage, maintaining nutritional content, and ensuring food safety in a variety of food and beverage applications. The increase in global food trade, as well as the expansion of organised retail sectors in developing countries, are accelerating market growth.
Market Trend: Shift towards natural and clean label preservatives drives market innovation.
The food industry is seeing a substantial move towards natural and clean label preservatives, driven by rising customer demand for healthier, more natural food options. This trend is altering the food preservative market as manufacturers focus on developing natural preservatives, including rosemary extract, green tea extract, and vinegar.
Consumer knowledge of the potential health dangers linked with synthetic preservatives has resulted in a growing preference for natural or preservative-free products. According to a recent industry survey, 68% of consumers actively seek items made with natural ingredients, and 45% are willing to pay a premium for foods that do not include artificial additives.
This tendency has fuelled innovation in the food preservatives market, with players investing in R&D for novel natural preservatives. For example, fermentation-derived preservatives and plant-based antimicrobials are gaining popularity. The market for natural preservatives is predicted to increase at a CAGR of 5.2% between 2024 and 2031, outperforming the rise of synthetic preservatives.
Market Driver: Increasing demand for convenience foods boosts preservative usage.
The increasing demand for convenience foods is a major driver of the food preservatives market. Busy lifestyles, urbanisation, and shifting dietary preferences have resulted in increased consumption of ready-to-eat meals, packaged snacks, and processed foods, all of which require preservatives to retain quality and extend shelf life.
The worldwide convenience food industry is expected to reach $1.1 trillion by 2027, expanding at a 5.8% CAGR from 2022. This increase has a direct impact on the food preservatives industry, as preservatives are necessary to maintain the safety and quality of these items over time.
In emerging nations, the rapid growth of organised retail and e-commerce platforms has boosted the availability of packaged and processed foods, driving up demand for food preservatives. For example, in India, the packaged food market is predicted to treble between 2020 and 2025, offering significant prospects for preservative manufacturers.
Market Restraint: Stringent regulations and health concerns limit synthetic preservative use.
While preservatives are essential for food safety and quality, rigorous regulations and rising health concerns impede market growth, particularly for synthetic preservatives. Regulatory authorities such as the FDA and EFSA have placed severe restrictions on the use of some preservatives, and some have been banned due to health concerns.
Potassium bromate, a common flour improver and preservative, is, for example, banned in numerous countries due to its probable carcinogenic effects. Similarly, several regions are concerned about the usage of chemical preservatives such as BHA (butylated hydroxyanisole) and BHT (Butylated hydroxytoluene).
Over the last five years, the usage of certain synthetic preservatives in the food business has decreased by 15% as a result of regulatory challenges. Manufacturers must now find other preservation methods or develop new, safer synthetic preservatives to comply with changing rules.
The synthetic preservatives segment dominates the market, driven by cost-effectiveness and broad-spectrum antimicrobial activity.
The synthetic preservatives category currently dominates the food preservatives market, accounting for over 60% of total market value by 2023. This supremacy is due to synthetic preservatives' great efficacy, low cost, and wide variety of uses across multiple food categories.
Benzoates, sorbates, and propionates are common synthetic preservatives in the food business due to their strong antibacterial capabilities and ability to considerably extend shelf life. These preservatives are especially important for avoiding mould growth, reducing bacterial proliferation, and ensuring food quality in processed and packaged foods.
In the beverage sector, synthetic preservatives are essential for ensuring product quality and safety. The worldwide soft drinks market, estimated to be worth $640.3 billion in 2022, mainly relies on preservatives such as potassium sorbate and sodium benzoate to inhibit microbial development and lengthen shelf life. Major beverage corporations, such as Coca-Cola and PepsiCo, use these preservatives in many of their products to maintain uniformity and safety throughout their global supply networks.
The baking industry is another major consumer of synthetic preservatives. The demand for effective preservatives remains high, with the worldwide bakery products market estimated to reach $590 billion by 2028, increasing at a CAGR of 4.3% from 2023. Calcium propionate, a popular synthetic preservative, is commonly used in bread and baked goods to inhibit mould growth and increase shelf life.
However, while synthetic preservatives dominate the market, there is a rising preference for natural alternatives. This trend is especially noticeable in the premium and organic food categories, where consumers are ready to spend extra for items with clean labelling and natural ingredients.
Asia-Pacific leads the food preservatives market, driven by rapid urbanisation and increasing demand for processed foods.
Asia-Pacific currently dominates the worldwide food preservatives market, accounting for around 35% of the entire market value in 2023. The region's supremacy is partly due to rapid urbanisation, shifting dietary patterns, and rising demand for processed and convenient foods in countries such as China, India, and Southeast Asian nations.
Asia-Pacific's food processing industry is expanding rapidly, which has a direct impact on demand for food preservatives. According to the industry experts, Asia's processed food market is predicted to reach $3.2 trillion by 2030, with a 7.4% CAGR from 2023. This trend is especially noticeable in emerging economies, where rising disposable incomes and hectic urban lives are pushing consumption of packaged and convenience meals.
In recent news, several big food firms have announced expansions in Asia-Pacific, driving up demand for preservatives. Nestlé, for example, said in 2023 that it will invest $100 million to improve its food manufacturing capabilities in Vietnam, with a focus on developing goods with a longer shelf life for both domestic and export markets.
Asia Pacific's preservatives industry is also benefiting from the region's increased processed food exports. Thailand, Vietnam, and India are becoming major actors in the global food trade, necessitating the employment of effective preservatives to keep food fresh throughout shipping and storage.
Key statistics highlighting Asia-Pacific's dominance in the food preservatives market include:
China accounts for over 40% of the Asia-Pacific food preservatives market.
The Indian food preservatives market is expected to grow at a CAGR of 8.2% from 2024 to 2031, one of the highest growth rates globally.
In terms of country-specific developments, Japan has experienced an increase in demand for natural preservatives, reflecting a global trend towards clean-label products. The Japanese government has also imposed stronger limitations on synthetic preservatives, boosting natural preservation innovation.
Several large global firms as well as a number of smaller, specialised companies compete in the food preservatives market. Continuous R&D, strategic alliances, and a focus on natural and clean label solutions define the competitive environment.
To meet shifting consumer demands, key market companies have invested extensively in developing new preservation methods and increasing their product lines. There is a noticeable trend towards the creation of preservatives that not only increase shelf life but also provide additional functional benefits such as better texture or nutritional content.
In terms of market share, the top five competitors control over YY% of the worldwide food preservative industry. These companies have created robust distribution networks and a major presence in multiple locations.
Mergers and acquisitions have been an important method for expanding markets and acquiring new technologies. For example, in 2022, a large business bought a specialist in natural food preservation technologies to boost its position in the clean label market.
Collaborations with food manufacturers and research universities have also been a noticeable trend. These collaborations attempt to create customised preservation solutions for specific food categories while also addressing developing food safety and quality problems.
The financial study of important participants demonstrates consistent growth, with the leading companies in the food preservatives market experiencing an average annual revenue growth of 4-6% over the last three years. This development is mostly due to rising demand for processed foods in emerging markets and a trend towards natural preservatives in developed nations.
Looking ahead, the competitive environment is projected to shift as new competitors enter the market with innovative preservation technologies, notably in the natural and clean label segments. To maintain their market positions, established players will most likely continue to focus on product innovation and regional expansion.
The food preservatives business is at a crossroads, balancing longstanding demand for effective synthetic preservatives with rising consumer preferences for natural and clean label products. This contradiction creates both obstacles and possibilities for market participants.
One developing trend to watch is the development of hybrid preservation systems that mix natural preservatives with small amounts of synthetic ones, providing the best of both worlds in terms of efficacy and customer acceptance. This method has the ability to bridge the gap between consumer demand for clean labels and the necessity for longer shelf life in processed goods.
Another important trend is the growing use of preservation methods that eliminate the need for chemical additives. High-pressure processing (HPP), pulsed electric fields, and innovative packaging solutions are gaining popularity, particularly in the luxury food market. These solutions not only address consumer concerns about chemical preservatives, but they also aid in maintaining the nutritional and sensory properties of foods.
The impact of climate change on food security is likely to highlight the significance of good preservation techniques. As catastrophic weather events grow more common, keeping food over extended periods of time and under changing conditions will become increasingly important. This could spur innovation in more durable and adaptable preservation methods.
The regulatory landscape will continue to play an important role in defining the market. As governments throughout the world tighten their laws on food additives, corporations will need to spend on inventing preservatives that fulfil both regulatory and consumer expectations.
Overall, the food preservatives sector is ripe for reform. Companies that can innovate at the nexus of efficiency, safety, and customer preferences are likely to emerge as market leaders in this changing environment.
Kerry Group Plc
Koninklijke DSM N.V.
Cargill Incorporated
Archer Daniels Midland Company
BASF SE
Corbion NV
Tate & Lyle PLC
Galactic SA
Kemin Industries, Inc.
Celanese Corporation
June 2024: Kerry Group Plc launched a new line of plant-based preservatives for meat alternatives, addressing the growing demand in the plant-based food sector.
April 2024: Cargill Incorporated announced a strategic partnership with a leading food tech startup to develop novel fermentation-based preservation solutions for dairy products.
1. INTRODUCTION
1.1. Market Definitions & Study Assumptions
1.2. Market Research Scope and Segment
1.3. Research Methodology
2. EXECUTIVE SUMMARY
2.1. Market Overview & Insights
2.2. Segment Outlook
2.3. Region Outlook
3. COMPETITIVE INTELLIGENCE
3.1. Companies Financial Position
3.2. Company Benchmarking—Key Players
3.3. Market Share Analysis -- Key Companies
3.4. Recent Companies Key Activities
3.5. Pricing Analysis
3.6. SWOT Analysis
4. COMPANY PROFILES (Key Companies List by Country) (Premium)
5. COMPANY PROFILES
5.1. Kerry Group Plc
5.2. Koninklijke DSM N.V.
5.3. Cargill Incorporated
5.4. Archer Daniels Midland Company
5.5. BASF SE
5.6. Corbion NV
5.7. Tate & Lyle PLC
5.8. Galactic SA
5.9. Kemin Industries, Inc.
5.10. Celanese Corporation (LIST NOT EXHAUSTIVE)
6. MARKET DYNAMICS
6.1. Market Trends
6.1.1. Shift towards natural and clean label preservatives drives market innovation
6.1.2. Development of hybrid preservation systems combining natural and synthetic preservatives
6.1.3. Increasing use of advanced preservation technologies to reduce chemical additives
6.2. Market Drivers
6.2.1. Increasing demand for convenience foods boosts preservative usage
6.2.2. Growing food safety concerns and need for extended shelf life
6.2.3. Expansion of organised retail and e-commerce in developing countries
6.3. Market Restraints
6.3.1. Stringent regulations and health concerns limit synthetic preservative use.
6.3.2. Consumer perception and preference for fresh, additive-free foods
6.4. Market Opportunities
6.5. Porter's Five Forces Analysis
6.5.1. Threat of New Entrants
6.5.2. Bargaining Power of Buyers/Consumers
6.5.3. Bargaining Power of Suppliers
6.5.4. Threat of Substitute Products
6.5.5. Intensity of Competitive Rivalry
6.6. Supply Chain Analysis
6.7. Value Chain Analysis
6.8. Trade Analysis
6.9. Pricing Analysis
6.10. Regulatory Analysis
6.11. Patent Analysis
6.12. SWOT Analysis
6.13. PESTLE Analysis
7. BY TYPE (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
7.1. Natural
7.1.1. Plant-based
7.1.2. Microbial
7.1.3. Animal-based
7.2. Synthetic
7.2.1. Sorbates
7.2.2. Benzoates
7.2.3. Propionates
7.2.4. Others
8. BY FUNCTION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
8.1. Antimicrobials
8.2. Antioxidants
8.3. Others
9. BY APPLICATION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
9.1. Dairy & Frozen Products
9.2. Bakery
9.3. Meat, poultry & seafood
9.4. Beverages
9.5. Snacks
9.6. Others
10. REGION (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%), YOY GROWTH (%)-- 2020-2031)
10.1. North America
10.1.1. United States
10.1.2. Canada
10.1.3. Mexico
10.2. South America
10.2.1. Brazil
10.2.2. Argentina
10.2.3. Rest of South America
10.3. Europe
10.3.1. Germany
10.3.2. United Kingdom
10.3.3. France
10.3.4. Italy
10.3.5. Spain
10.3.6. Russia
10.3.7. Rest of Europe
10.4. Asia-Pacific
10.4.1. China
10.4.2. Japan
10.4.3. India
10.4.4. Australia
10.4.5. South Korea
10.4.6. Rest of Asia-Pacific
10.5. Middle-East
10.5.1. UAE
10.5.2. Saudi Arabia
10.5.3. Turkey
10.5.4. Rest of Middle East
10.6. Africa
10.6.1. South Africa
10.6.2. Egypt
10.6.3. Rest of Africa
*NOTE: All the regions mentioned in the scope will be provided with (MARKET SIZE/VALUE (US$ Mn), SHARE (%), MARKET FORECAST (%, YOY GROWTH)--2020-2031.
By Type:
Natural
Synthetic
By Function:
Antimicrobials
Antioxidants
Others
By Application:
dairy and frozen products
Bakery
Meat, poultry & seafood
Beverages
Snacks
Others
By Region:
North America
Europe
Asia-Pacific
Latin America
Middle East & Africa
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