Food additives enhance color, taste, and texture to preserve freshness and nutritional content. According to BlueQuark Research and Consulting, the global Food additives market is expected to witness a significant growth rate during the forecasted period. The food additives market is driven by the rising urbanization, need for food preservation, hectic lifestyles, surging health concerns, and rising consumption of premium food products. The increasing demand from the Bakery & Confectionary food segment accounts for maintaining the nutritional value of the food, and preparing food to last longer is expected to contribute to the growth of the Food additives market. The development and surging preference for nature-based additives have created a chance for the new manufacturers to give the nature-based food additives to meet the need for food additives and provide a substantial growth opportunity in the forecasted period.

As foods are processed to transform into different products, it requires a considerable number of additives. More than 3000 various additives have been added to foods to produce the desired effect in recent years. The growing need for the increased shelf life of multiple food products has significantly raised the demand for food additives. Moreover, an increase in convenience and packed food and beverage has further pushed the market growth. Additionally, preservatives to prevent food spoilage and increase shelf life have tremendously increased in the past decade. Food preservatives are anticipated to be the dominant market shareholder, reducing food costs and waste.

As the world's developing economies, including Brazil, China, and India, become wealthier, their eating habits change. The people in these nations are inclined toward packaged food. The size of the processed food market is more than USD 3 trillion, and approximately 80% of agricultural outcomes in developed countries get processed and packaged. In developing countries like India, the packaged processed food industry is considered to be about USD 11 billion by the finish of 2020. According to the Indian Institutes of Packaging, the packaged food sector has grown at approximately 14%. With changing demographics, there is a rise in the population of emerging cities and changes in consumers' lifestyles and food habits. According to World Bank data in 2019, 55.7% of the total population was urban, which has led to a shift from conventional food to the adaption of packaged food. Growing urbanization has increased the number of nuclear families and the rise in the percentage of working women, which has increased the usage and reliance on easy to prepare or ready to make food. In the European Union, almost half of the women were employed in 2018. Increasing globalization has raised the experimentation with new cuisines among the urban population as they become more aware of products globally. Moreover, the increase in demand for various ingredients and beverages to satisfy the growing customer need has dramatically changed the enumeration for packaged food and drinks. In addition to this, advertisements on TV and social media by the manufacturers of the packaged foods and drinks are making the consumers aware of the new product launches and their USP. Along with raising awareness, easy accessibility boosts the consumption of packaged food and beverages. The increase in health consciousness and self-management of wellness has surged the consumption of healthy packaged foods owing to their promised health benefits or the usage of natural ingredients. Developing countries such as India have an enormous population of young people globally, with approximately half of the entire population under the age of 25 becoming increasingly health-conscious and well known for advancements in packaged food and industry. The high trust of consumers in the additives of branded packaged foods and beverages, along with stringent quality assurance by the food manufacturers, is increasing the usage of packaged foods and drinks.

In recent years, the growth of nano encapsulated food additives and their utilization in enhancing food matrices' safety and nutritional status have transformed the food sector. Manipulating food additives at the nanometer level stimulates the bioavailability and nutritional value of food based on the functions of the additives, and this strategy is expected to enhance the significant health-promoting compounds. The global market impact of nanotechnology is predicted to be more than USD 1 trillion. Further, the ongoing research on food nanostructures and nanoparticles in consumer foods is undergoing to see the extending result of nanotechnology in food additives.

The global Food Additives Market is fragmented based on type and source. The type segment is further segmented as Preservatives, Sweetener, Emulsifier, Anti-Caking Agents, Enzymes, Food Flavors & Enhancers, Food Colorants, Acidulants, and Others. In terms of type, Preservatives are majorly used in food and beverages to prevent decomposition and microbial growth. Preservatives are also added to avoid undesirable chemical changes. Preservatives include antimicrobials, antioxidants, and antibrowning agents and are utilized in multiple packaged foods and beverages like juices, baked goods, meats, snacks, and cereals. Food preservatives are categorized into two groups, Class I and Class II. Class I consist of natural preservatives such as salt and sugar. Class II preservatives are produced by chemicals like benzoate and sorbates. Food preservatives are widely produced on an industrial scale worldwide. North America accounts for most global production and consumption, followed by Europe and the Asia Pacific. Food preservatives are the focus of several regulatory policies by the national government regarding health risks & benefits, and appropriate restrictions are enforced in various countries to regulate preservative usage in eatables.

The global Food Additives Market is consolidated into Asia Pacific, North America, South America, Europe, and Middle East & Africa based on geography. The Asia Pacific is awaited to grow at the fastest rate during the forecast period due to the growing demand for convenience & packed food and beverages.

In 2019, the central region for the global food additive market was North America. Although the continuing Covid-19 pandemic has decreased the GDP of the United States by five percentage points in the second part of 2020, the market for food additives has shown growth at a constant pace. Growing health consciousness among the standard population has also led to an increase in food additives by food companies to boost the nutritional quality of food. Such fortification and enrichment have helped decrease malnutrition in the country. Further, Increased usage of packaged food and beverages in the area due to multiple reasons such as convenience, health, and high disposable income has boosted the market for food additives. Various companies in the area have large production capacities to meet the rising domestic consumer demand. The Chemical Company manufactures 139,000 tonnes of benzoic acid per year in their US manufacturing facilities for local consumption. The United States is a vast consumer and importer of preservatives, sweeteners, and other food additives. Furthermore, US packaged food companies' retail sales have grown by more than 20% in the second quarter of 2020 due to a vast shift in eating patterns among consumers owing to quarantine measures and social distancing practices. Due to the continuing coronavirus pandemic, 80% of the consumer spending in the country is on food. The food and drinks sales in the country are up by around 50% in the first and second quarters of 2020. The US Food and Drug Administration directs food additives like preservatives, sweeteners, fat replacers, emulsifiers, colors, and other food components added to food to improve or maintain freshness and nutritional value, texture, taste, and appearance. FDA keeps a list of over 3000 ingredients in its database. In recent years food landscape has replaced consumer demand for preservative-free food, and the expected population is navigating the movement of new food technologies. There are continuing debates among food scientists, industry groups, and health care professionals in the area over the protection of food additives and their effect on health. The American Academy of Pediatric recently called for regulatory changes due to food additives' potential adverse effects on child development. These potential barriers are expected to hinder market growth soon.

The global market for food additives is segmented. The primary critical market players include Ajinomoto Co. Inc., Archer Daniels Midland Company, BASF SE, Cargill Incorporated, and Fine Organic Industries.

In March 2020, Cargill and BASF joined a distribution collaboration to bring enzyme solutions to MEA (the Middle East and Africa) region. According to the partnership, Cargill will be the strategic marketing and sales channel partner of BASF's animal feed enzymes.

On 26th Sep 2019, BASF acquired Isobionics, an innovation leader in biotechnology serving the global market for flavors and fragrances (F&F). Through a collaboration agreement with Conagen, a leader in biotechnology research, BASF entered the market for F&F ingredients.

In July 2020, PLT Health Solutions announced that the mushroom-based vitamin D ingredient had received the consent of a food additive petition from the US Food & Drug Administration. It allows the ingredients to be added at specific levels to a wide range of food and beverages, including breakfast cereals, baked goods, juices, and meal replacements.

Our Global Food Additives Market report provides deep insight into the current and future state of the Food Additives Market across various regions. The study comprehensively analyzes the Food Additives Market by segments based on type (Preservatives, Sweeteners, Emulsifiers, Anti-Caking Agents, Enzymes, Food Flavors & Enhancers, Food Colorants, Acidulants, and Others), Source (Synthetic and Natural), and by Geography (Asia Pacific, North America, Europe, South America, and Middle-East and Africa). The report examines the market drivers and restraints, along with the impact of Covid-19 on market growth, in detail. The study covers & includes emerging market trends, market developments, market growth opportunities, market analysis, market dynamics, market estimate, food additives market size, and challenges in the industry. This report also covers extensively researched competitive landscape sections with profiles of prominent companies, including their market share and projects.