Global Food Preservatives Market Size & Growth Trends Analysis Report

The rising demand for ready-to-eat meals and convenience foods as consumers gravitate towards longer-lasting goods due to modern lifestyles is the major factor driving the global food preservatives market. Particularly in processed meals, preservatives are crucial for preserving food quality and preventing spoiling. The rising public consciousness regarding food safety and sanitation has resulted in an increased focus on averting food-related infections and cutting down on waste. Preservatives are essential to keeping food safe to eat over time, as both manufacturers and consumers understand. The need for preservatives is also greatly fuelled by the growing world population and shifting eating patterns, particularly the move towards packaged and processed foods. In addition, the requirement for effective food preservation to meet the growing demand for processed foods has increased due to the growth of the food and beverage industry in emerging regions including Asia-Pacific and Latin America.

The safety, labelling, and allowable limits of preservatives in food are governed in large part by regulatory organisations such as the World Health Organisation (WHO), the European Food Safety Authority (EFSA), and the U.S. Food and Drug Administration (FDA). They guarantee that goods sold adhere to safety regulations and support the industry's adoption of safer and more environment-friendly preservation techniques. Several startups are becoming major participants in the business. Kemin Industries is committed to developing sustainable preservation solutions based on plants. While Corbion is making progress in producing natural, bio-based preservatives that appeal to environmentally concerned consumers, Handary is also creating natural preservatives for clean-label products. These businesses are benefiting from the move towards natural, secure, and efficient preservatives, which is in line with changing customer demands and legal requirements.

Conversely, the global food preservatives market is also constrained in several ways. A significant obstacle is the increasing inclination of consumers towards natural and organic products, which frequently aim to eschew artificial preservatives. Moreover, market expansion may be impeded by rigorous government rules about the usage of specific preservatives. The use of synthetic alternatives is restricted by regulatory agencies, such as the FDA and EFSA, which set tight limits on acceptable preservatives and their amounts. The growing awareness of the possible health hazards connected to specific preservatives such as sodium benzoate and nitrates, which have been connected to health issues in certain studies is another major restraint.

Nonetheless, the sector offers a lot of potential, especially for the creation of natural and clean-label preservatives. Manufacturers are responding to clean-label trends by investing in naturally derived and plant-based preservatives, as customers want healthier and more transparent food components. Furthermore, there are now more opportunities for preservatives made especially for plant-based and functional meals due to the growing demand for these goods. These include antioxidants and natural antimicrobials that appeal to customers who are concerned about their health and the environment.

Impact of COVID-19

The market for food preservatives was significantly impacted by the COVID-19 pandemic. On the one hand, customers stocked up on shelf-stable items during lockdowns and restrictions, which increased demand for packaged and processed meals. The demand for food preservatives to guarantee longer shelf lives and lower spoiling has expanded dramatically as a result of this greater reliance on preserved food goods.

However, the pandemic also made clear how crucial food safety and cleanliness are, which increased demand for preservatives that guard against bacterial contamination and foodborne illnesses. However, supply chain interruptions impacted the availability of specific raw ingredients needed to produce preservatives, creating short-term difficulties with distribution and manufacture.

Due to consumers' increased attention to food ingredients and growing health consciousness, the pandemic also spurred the movement towards natural and clean-label preservatives. This change gave businesses the chance to be creative and provide more sustainable, natural preservation methods. All things considered, even while the pandemic brought about some disruptions, it also fuelled the market for food preservatives by emphasising how crucial food safety and preservation are.

Segmentation

The global food preservatives market is segmented into type, function, and application. By type, the market is segmented into natural preservatives and synthetic preservatives. Natural preservatives include naturally occurring preservatives such as vinegar, citrus-based solutions, and rosemary extract. Companies such as Kemin Industries and Corbion are doing well in this sub-segment by providing plant-based preservative solutions that follow health-conscious trends, as customer demand swings towards clean-label and natural products. The synthetic preservatives sub-segment covers frequently used substances such as nitrates, potassium sorbate, and sodium benzoate. These are popular as they work well at keeping food from spoiling. Market leaders in this sub-segment, BASF, Celanese Corporation, and DuPont, provide artificial preservatives for industrial food processing.

By function, the market is segmented into anti-microbial, anti-oxidants, and others. Antimicrobial preservatives stop mould, yeast, and bacteria from growing on food. Corbion and Archer Daniels Midland (ADM), which provide antimicrobial treatments for meat, dairy, and baked goods, are leaders of this sub-segment. Similarly, antioxidants stop fats and oils from oxidising, which can lead to rancidity. Antioxidant compounds from companies like Kemin Industries and Eastman Chemical Company are well-known and are frequently found in processed meals, oils, and snacks.

By application, the market is segmented into beverages, bakery & confectionary, dairy & frozen products, meat & poultry, and others. To preserve quality and increase shelf life, preservatives are crucial in the beverage business. Strong players in the beverage segment are companies like Cargill and Tate & Lyle, which supply preservatives for juices, carbonated drinks, and flavoured beverages. Similarly, to keep baked items and sweets from growing mould or spoiling, preservatives are utilised. Kerry Group and IFF (International Flavours & Fragrances), provide solutions for longer shelf lives in cakes, pastries, and confections. Preservatives are also essential for keeping meat products from spoiling. DSM and BASF are well-known for providing preservatives for processed meat, poultry, and seafood products. Additionally, the preservatives in the dairy & frozen products category aid in preserving the quality and freshness of frozen meals and dairy products like cheese and yoghurt. Important companies in this market that offer preservation solutions for dairy products and frozen dinners include Danisco (DuPont) and Chr. Hansen.

Regional Analysis

Due to varying consumer tastes, laws, and industrial activity, different regions have different demand and growth trends, which are highlighted by the regional analysis of the food preservatives market.

As processed and packaged foods are consumed in large quantities, North America, and especially the U.S., account for a sizable portion of the food preservative market. Preservatives are highly sought after in ready-to-eat meals, drinks, and snacks. Furthermore, the use of safe preservatives is guaranteed by the Food and Drug Administration (FDA) of the U.S. through stringent rules. The growing customer concern over health is another factor driving the market for natural and organic preservatives. The key companies in this market include DuPont, Kemin Industries, and Archer Daniels Midland (ADM), all of which have robust product lines for artificial and natural preservatives.

Due to the stringent rules in Europe from organisations such as the European Food Safety Authority (EFSA) and rising customer desire for healthier food options, Europe is a mature market with an increasing focus on clean-label and natural preservatives. Leading nations in the desire for more natural and sustainable preservatives, especially in organic and functional food items, include Germany, France, and the UK. The European market is dominated by BASF, Corbion, and DSM, who provide both natural and conventional preservatives to satisfy consumers' increasing demands for ingredient clarity.

Owing to the quickly developing food & beverage industries in China, India, Japan, and Southeast Asia, the Asia Pacific region is witnessing the fastest growth rate in the food preservatives market. Preservatives are in high demand to preserve food quality owing to the region's growing population, rising disposable incomes, and urbanisation, which have increased consumption of processed and convenience foods. Here, synthetic preservatives are more commonly used as they are less expensive and have longer shelf lives. Nonetheless, it is anticipated that the market for natural preservatives will grow as people become more conscious of food safety and health issues. Celanese Corporation, Kerry Group, and Tate & Lyle are important players in this region.

Due to the rising demand for packaged and processed foods in nations such as Brazil, the Latin America region's market for food preservatives is expanding somewhat. Preservative demand is rising as a result of the food & beverage industry's growth, notably in processed meats, snacks, and bakery goods. The demand for more natural preservatives is gradually increasing, even if synthetic preservatives still have a monopoly due to growing health concerns about artificial additives. Notable businesses in this region are Cargill and Danisco (DuPont).

The food processing industry is growing in the Middle East & Africa region, especially in Saudi Arabia, South Africa, and the United Arab Emirates, which is fuelling the region's food preservative market expansion. Preservative demand is being driven by changing consumer lifestyles and urbanisation, which is leading to an increase in the need for processed, shelf-stable food products. A gradual trend towards natural preservatives is also being observed in the region as people become more health-conscious. Chr. Hansen and IFF (International Flavours & Fragrances) are important players in this region.

Competitive Analysis

The key players in the global food preservatives market are ADM, Corbion N.V., Galactic S.A., Tate & Lyle, Koninklijke DSM N.V., Cargill Inc., Kemin Industries Inc., BASF SE, Celanese Corporation, and Kerry, among others.

Texas-based startup BioVeritas created a mould inhibitor with a clean label in July 2023 by utilising a patented fermentation and upcycling method that uses repurposed biomass. When it comes to maintaining the taste and texture of baked goods, the inhibitor has shown to be just as successful as conventional petrochemical-based additives. With an eye towards the North American baked goods industry, BioVeritas intends to open its first commercial factory by 2026 and is pursuing GRAS status. Along with working with international producers of ingredients and foods, the company is also investigating uses in processed meat and food.

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The global food preservatives market is segmented as follows:

By Type (Revenue: USD Billion, 2019 – 2031)
●    Natural
●    Synthetic

By Function (Revenue: USD Billion, 2019 – 2031)
●    Anti-Microbial
●    Anti-Oxidant
●    Others

By Application (Revenue: USD Billion, 2019 – 2031)
●    Beverage
●    Bakery & Confectionary
●    Dairy & Frozen Product
●    Meat & Poultry
●    Others

By Region (Revenue: USD Billion, 2019 – 2031)

● North America
o U.S.
o Canada
o Mexico

● Europe
o U.K.
o France
o Germany
o Italy
o Spain
o Rest of Europe

● Asia Pacific
o China
o Japan
o India
o South Korea
o South East Asia
o Rest of Asia Pacific

● Latin America
o Brazil
o Argentina
o Rest of Latin America

● Middle East & Africa
o GCC Countries
o South Africa
o Rest of Middle East & Africa