Food Preservatives Market, By Source, Functionality, Application, Geography - Industry Insights


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Mr. Raj Shah
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Food preservatives are substances added or sprayed in food to restrict the growth of fungi, bacteria, and other harmful microorganisms. Food preservatives are broadly classified as natural and synthetic. Natural food preservatives is dominating the market, according to stats provided by Coherent Market Insights in 2016. Growing population and increasing prevalence of foodborne diseases is expected to boost growth of the market, as preservatives are used in food to increase shelf life and maintain optimal quality of food. Food and beverages are stored after addition of food preservatives to reduce the possibilities of bacterial infection. Also, high prevalence of various foodborne diseases and disorders such as abdominal pain, vomiting, and diarrhea is expected to fuel the demand for food preservatives during the forecast period. Moreover, growing awareness for natural food ingredients and side effects of synthetic preservatives is propelling the growth of natural preservatives.

The global Food Preservatives market size is estimated at US$ 2.23 billion in 2016 and is expected to expand at a CAGR of 3.30% from 2017 - 2025.

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The meat, poultry & sea food is dominating the food preservative market in 2016 and the trend is expected to continue during the forecast period. The demand for protein food and organized retail is expected to drive the food preservatives market. Moreover, changing demography and increase in disposable income especially in Latin America and Asia Pacific also, innovation in meat processing technology is expected to fuel the market for food preservatives. Furthermore, supportive government initiatives in Asia Pacific, is expected to boost the market for food preservatives. For instance, in July 21, 2015, The Government of India plan to set up 13 Mega Food Parks in various states of India, which includes, Andhra Pradesh, Bihar, Chhattisgarh, Himachal, Gujarat, Jammu & Kashmir, Madhya Pradesh, Maharashtra, Odisha, Rajasthan and Uttarakhand. Moreover, by 2017, The Spice Board of India, set up by the Ministry of Commerce to promote and develop Indian spices across the world, aims to export US$ 3 billion.

Stringent government regulation is expected to be one of the key challenges for food preservatives market. For instance, in June 20, 2016, The Government of India's (GOI) Food Safety and Standards Authority of India (FSSAI), bans the use of potassium bromate and cyclamates in food. Moreover, The Government of the Hong Kong special Administrative region, in July 01, 2008, introduced new regulations to control the use of preservatives and antioxidants in food. Also, in December 24, 2014, the National Health and Family Planning Committee of China

Introduced the National Food Safety Standard for Food Additive Use (GB2760-2014), which will be implemented on May 24, 2015.

Regional Insights
Europe, followed by North America and Asia Pacific accounted for major share in the global Food Preservatives market in terms of revenue in 2016 and the trend is estimated to remain the same over the forecast period. In 2016, Europe held a share of 28.1% in terms of value, followed by Europe (27.6%). The growing demand for confectionery in Asia Pacific due to growing population, increased urbanization and growing retail and hospitality sector is expected to drive growth of the global food preservatives market over the forecast period. According to a study conducted by Coherent Market Insights, the global anti-oxidants market is expected to witness a CAGR of 3.32% during 2017-2025, which is expected to fuel growth of the global food preservatives market.

Multinational players need to tap potential addressable market in the emerging regions with the help of geographical expansion
Product portfolio expansion and geographical expansion are the key market trends which are expected to shape the industry in the near future.
Major players in the global Food Preservatives market include Univar Inc., Hawkins Watts Limited, Cargill Inc., DSM N.V., Galactic, Danisco A/S, Tate & Lyle PLC, and Brenntag AG, Kemin Industries Inc., AkzoNobel N.V., among others.

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