Food Preservatives Market Size, Share & Trends Analysis Report By Type (Natural, Synthetic), By Function (Anti-microbial, Anti-oxidant), By Application (Meat & Poultry, Beverages), And Segment Forecasts, 2020 - 2027

Industry Insights

The global food preservatives market size was valued at USD 2.5 billion in 2019 and is anticipated to grow at a compound annual growth rate (CAGR) of 4.1% from 2020 to 2027. Food preservatives are the products incorporated during food processing to increase its stability and to avoid spoilage. They are added in small quantities to various types of food depending on the need. Traditionally, salt, sugar, and spices were used to preserve meat and other food types.

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

These are used for preserving snacks, confectioneries, bakery products, and dairy, meat, and poultry products. Demand for these products is increasing globally owing to various factors such as a change in customer lifestyle, the surge in imports and exports, increasing preference for fresh products, accompanied by a rise in consumer willingness to pay for a premium price.

North America acquired the maximum market share during 2019 and is expected to continue its dominance for the next few years. Increased availability of processed foods and greater acceptance of ready-to-eat foods from consumers in the U.S. and Canada are driving the demand for convenience foods.

The U.S. food preservatives market was valued at USD 638 million in 2019 and is anticipated to register a CAGR of 3.1% from 2019 to 2027. Rising demand for meat and poultry products is expected to boost growth. Manufactures such as Corbion N.V. use vinegar, along with jasmine extract as an anti-oxidant and citrus powder, to prevent moisture migration of the product.

The U.S. was led by chemical preservatives, such as benzoates, nitrites, and propionates. However, manufacturers in the U.S. are shifting from manufacturing synthetic to natural preservatives, owing to increasing demand for the latter.

Application Insights

The products are used in a wide variety of applications including bakery, meat and poultry, seafood, beverages, confectionery, oils and fats, and dairy and frozen products. Among them, meat and poultry accounted for the largest market share of 32.6% in 2019. The processed meat, poultry, and seafood industry are expanding at a significant rate globally, which is expected to drive the demand over the forecast period.

Meat and poultry are followed by bakery products, which is expected to reach USD 691.3 million by 2027. The beverage segment is expected to witness the fastest growth over the forecast period driven by the expansion of the industry in the Asia Pacific.

Type Insights

Based on type, the market is classified into natural and synthetic types. Synthetic type accounted for the largest market share of over 81% in 2019 in terms of value. Synthetic type is widely used as it is economical and easy to formulate. They can be formulated depending on the application requirements.

Sorbates, among all the chemical types, held the largest share in terms of value owing to their widespread application in meat, poultry, and dairy products. Other widely used synthetic types are nitrites, propionates, and benzoates. Sorbates, benzoates, and propionates are often used in combination to improve efficiency. Propionates are gaining wider acceptance owing to their higher permissible limit and applications, including preservation at higher pH, baked goods, snacks, and other confectionaries.

Natural preservatives are witnessing higher demand owing to their acceptance in processing by relevant regulatory agencies coupled with rising health consciousness among customers. The natural products segment is expected to hold a major market share over the forecast period on account of customer preference for clean label products. As a result, numerous manufacturers are adopting new formulation processes for the production of organic products to meet the requirement for clean labeled products.

Function Insights

In 2019, anti-microbial preservatives dominated the market with a share of 75.8%. Based on function, the products are categorized into anti-microbial and anti-oxidant. The global market is dominated by anti-microbial preservatives, followed by anti-oxidants. Sorbates, benzoates, and other chemicals act as anti-microbial preservatives and are categorized as generally recognized as safe (GRAS) in the U.S.

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

In addition to propionate, benzoates, and sorbates, sulfites are used as anti-microbial agents in the brewing industry. Other functions include anti-fungal and anti-bacterial properties provided by natamycin and reuterin.

Regional Insights

North America accounted for the largest market share in terms of revenue and is expected to reach USD 1.1 billion by 2027. The market in North America was driven by a rise in various applications of the product in the U.S., Canada, and Mexico. Well-established bakery stores and an increase in consumption of processed meat is expected to boost the growth.

Increasing the working population and consumer preference for ready-to-eat products is expected to benefit the market expansion in the Asia Pacific over the next few years. Asia Pacific is estimated to emerge as the fastest-growing region and is projected to expand at a CAGR of 5.6% during the forecast period. The region accounted for 28.4% market share in terms of revenue in 2019, and the trend is projected to continue over the forecast period.

Food Preservatives Market Share Insights

The market was characterized by a large number of synthetic manufacturers. However, due to the rising demand for organic preservatives, the market has witnessed new entrants marking their presence. Global manufacturers include Akzo Nobel N.V., BASF SE, and Celanese Corporation.

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

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

Food Preservatives Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2016 to 2027. For this study, Grand View Research has segmented the global food preservatives market report based on type, function, application, and region:

• Type Outlook (Revenue, USD Million, 2016 - 2027)

  • Natural

    • Edible Oil

    • Rosemary Extracts

    • Natamycin

    • Vinegar

    • Others

  • Synthetic

    • Propionates

    • Sorbates

    • Benzoates

    • Others

• Function Outlook (Revenue, USD Million, 2016 - 2027)

  • Anti-microbial

  • Anti-oxidant

  • Others

• Application Outlook (Revenue, USD Million, 2016 - 2027)

  • Meat & Poultry

  • Bakery

  • Dairy

  • Beverages

  • Snacks

  • Others

• Regional Outlook (Revenue, USD Million, 2016 - 2027)

  • North America

    • The U.S.

    • Canada

    • Mexico

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • India

    • Australia

  • Central & South America

    • Brazil

  • Middle East & Africa

    • South Africa