Food Preservatives Market Report

Food Preservatives Market Analysis By Type (Natural, Synthetic), By Function (Anti-microbial, Anti-oxidant), By Application (Meat & Poultry, Bakery, Dairy, Beverages, Snacks), By Region, And Segment Forecasts, 2018 - 2025

  • Published Date: Jan, 2018
  • Base Year for Estimate: 2016
  • Report ID: GVR-2-68038-062-0
  • Format: Electronic (PDF)
  • Historical Data: 2014 - 2015
  • Number of Pages: 122

Industry Insights

The global food preservatives market size was valued at USD 2.29 billion in 2016. These products are added during food processing to increase stability and avoid spoilage. A wide variety of preservatives are available in the market. However, not all are used during processing; they can also be added in small quantities to various types of food after processing, depending on the need. Traditionally, salts, sugar, and spices are used to preserve meat and other food types.

Food preservatives prevent multiplication of microorganisms, thus inhibiting or delaying the process of spoilage. Depending on toxicity, food preservatives are classified into non-toxic and moderately toxic. Non-toxic preservatives can be used in processing while moderately toxic variants are regulated by relevant regulatory bodies such as the U.S. FDA and European Food Safety Authority (EFSA), which are identified by appropriate index (INS or E) numbers.

U.S. food preservatives market

Food preservatives are used in dairy products, meat, poultry products, snacks, confectionaries, and bakery products. Globally, the demand for substances is increasing owing to various factors such as change in customer lifestyle, increase in imports and exports, rise in number of people seeking fresh and high-quality edibles, and surge in consumer affordability and willingness to pay premium price for these products.

North America dominated the market for food preservatives in 2016 and is expected to retain its dominance over the forecast period. Consumers in U.S. and Canada have positively responded to processed edibles and ready-to-eat products as they are readily available and have a longer shelf life.

The U.S. market was valued at USD 350.3 million in 2016 and is anticipated to grow with a CAGR of 2.9% over the forecast period. Rise in demand for food preservatives in meat and poultry products in U.S. is expected to boost market growth. Manufactures such as Corbion N.V. use vinegar along with jasmine extract as an anti-oxidant, in combination with citrus powder, to prevent moisture migration in edibles.

The U.S. market was dominated by chemical preservatives such as benzoates, nitrites, and propionates. However, manufacturers in the country are shifting from synthetic to natural preservatives, owing to increased demand for the latter. This can be attributed to rising health consciousness among consumers.

Type Insights

Food preservatives are classified on the basis of origin into natural and synthetic. Synthetic type accounted for the largest market share of 81.84% in terms of value in 2016. Synthetic food preservatives are widely used across the globe as they are economical and easy to formulate as per requirement.

Sorbates, among synthetic variants, accounted for the largest market share owing to their widespread application in meat, poultry, and dairy products. In addition to sorbates, nitrites, propionates, and benzoates are other types used extensively. Sorbates, benzoates, and propionates are often used in combination for improving efficiency. Propionates have gained wider acceptance in applications involving preservation at higher pH, baked goods, snacks, and other confectioneries. This is also owing to their higher permissible limit.

Natural food preservatives are witnessing a growth in demand in recent years. This can be attributed to acceptance by regulatory agencies in food processing and rise in health consciousness among consumers. The share of natural preservatives is expected to increase over the forecast period on account of customer preference for clean labeled products. As a result, numerous manufacturers are adopting new formulations and processes for production of organic food preservatives to meet consumer requirement.

Function Insights

On the basis of function, food preservatives are categorized into two types: anti-microbial and anti-oxidant. The global market is dominated by anti-microbial food preservatives, which held a 56.06% share in 2016. Sorbates and benzoates act as anti-microbial preservatives and are categorized as Generally Recognized As Safe (GRAS) in U.S.

Sodium propionates and calcium propionates are used as mold inhibitors in cheese, cakes, bread, and other baked and confectionery products. Some natural anti-microbial agents from plant or animal origin are rosemary extracts and edible oils. These contain metabolites that can retard development of micro-organisms such as staphylococcus aureus, aeromonas hydrophila, salmonella, and escherichia coli.

Sulphites are used as anti-microbial agents in the brewing industry. Other functions of sulphite include in medications such as natamycin and reuterin, wherein it offers the benefits of its anti-fungal and anti-bacterial properties.

Application Insights

Food preservatives are used in wide variety of applications, including bakery products such as different types of baking ingredients, meat products, poultry, seafood, beverages, confectionery products such as natural food colors, oils and fats, dairy products, and frozen food products. Among them, meat and poultry products accounted for the dominant market share of 34.45% in 2016. The global processed meat, poultry, and seafood industry has been growing at a significant rate, which is expected to drive demand for food preservatives over the forecast period.

Bakery products is the next largest segment and is expected to reach USD 504.92 million by 2025 as compared to USD 365.48 million in 2016.  The beverage segment is expected to witness the fastest growth over the forecast period, primarily driven by a thriving beverage industry in Asia Pacific.

Regional Insights

North America accounted for the largest share in terms of revenue and is expected to continue its dominance over the forecast period. North America was valued at USD 778.28 million in 2016 and is expected to reach USD 1,040.36 million over the forecast period.

Global food preservatives market

The North America market was driven by growth in various applications across U.S., Canada, and Mexico. These countries have large and well-established food and beverage companies, in addition to major bakeries and confectioneries. Increase in consumption of processed meat is also expected to drive market growth.

North America was followed by Asia Pacific, accounting for a 28.35% market share in 2016. APAC is also the fastest growing market in terms of revenue and the trend is projected to continue over the forecast period. Increase in working population and consumer preference for ready-to-eat products is expected to drive market growth in the region.

Competitive Insights

The market was earlier characterized by the presence of a large number of synthetic manufacturers. However, owing to rise in demand for organic food preservatives, this industry has witnessed new entrants making their presence felt. Major global manufacturers include Akzo Nobel N.V., BASF SE, and Celanese Corporation.   

Demand for natural produce is gradually increasing owing to rising consumer awareness about health and increase in customer willingness and affordability to pay for premium products. As a result, a large number of natural product manufacturers have entered the market, further intensifying competition. Global natural food preservative manufacturers include Royal DSM N.V.; Galactic S.A.; and Kemin Industries, Inc.

New entrants such as Kemin Industries and Galactic are competing by introducing new products formulated from various natural sources such as vinegar obtained from wood vinegar extract and rosemary extracts. Collaborations and mergers are part of growth strategies that manufacturers deploy to gain a larger market share and to expand their product portfolio and geographical presence. BASF SE has collaborated with China’s state-owned SINOPEC to expand production capacity and cater to the stringent safety regulations in China.  

Report Scope

Attributes

Details

Base year for estimation

2016

Actual estimates/Historical data

2014 - 2015

Forecast period

2017 - 2025

Market representation                         

Revenue in USD Million and CAGR from 2017 to 2025

Regional scope

North America, Europe, Asia Pacific, Central & South America, and the Middle East & Africa

Country scope

U.S., Canada, Mexico, Germany, U.K., France, China, India, Australia, Brazil, and South Africa

Report coverage      

Revenue forecast, competitive landscape, growth factors, and trends

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Segments covered in the report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis on industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global food preservatives market on the basis of type, function, application, and region.

  • Type Outlook (Revenue, USD Million, 2014 - 2025)

    • Natural

      • Edible Oil

      • Rosemary Extracts

      • Natamycin

      • Vinegar

      • Others

    • Synthetic

      • Propionates

      • Sorbates

      • Benzoates

      • Others

  • Function Outlook (Revenue, USD Million, 2014 - 2025)

    • Anti-microbial

    • Anti-oxidant

    • Others

  • Application Outlook (Revenue, USD Million, 2014 - 2025)

    • Meat & Poultry Products

    • Bakery Products

    • Dairy Products

    • Beverages

    • Snacks

    • Others

  • Regional Outlook (Revenue, USD Million, 2014 - 2025)

    • North America

      • U.S.

      • Canada

      • Mexico

    • Europe

      • Germany

      • U.K.

      • France

    • Asia Pacific

      • China

      • India

      • Australia

    • Central & South America

      • Brazil

    • Middle East & Africa

      • South Africa

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