Global Food Preservatives Market Size, Sector / Industry Report & Analysis 2020, & Forecast 2021-2026 (Includes Business Impact of COVID-19)

                                          
Abstract, Snapshot, Market Analysis & Market Definition: Global Food Preservatives Market


The global Food Preservatives market size is projected to reach US$ 3.34 billion by 2026, from US$ 2.69 billion in 2020, at a CAGR of 3.7% during 2021-2026. Food preservatives are the products incorporated during food processing to increase its stability and to avoid its 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, confectionaries, bakery products, and dairy, meat, and poultry products. Demand for these products is increasing globally owing to various factors such as change in customer lifestyle, surge in imports and exports, increasing preference for fresh products, accompanied by rise in consumer willingness to pay for premium price.

North America acquired the maximum market share during 2016 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 U.S. and Canada are driving the demand for convenient foods.

The U.S. food preservatives market was valued at USD 375.3 million in 2018 and is anticipated to register a CAGR of 2.8% from 2019 to 2025. Rising demand in meat and poultry products is expected to boost the 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.

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

Market Segmentation, Outlook & Viewpoint: Global Food Preservatives Market

Type Market Segmentation & Outlook (Revenue, USD Million, 2014 - 2025)

Natural

  
Edible Oil
  
Rosemary Extracts
  
Natamycin
  
Vinegar
  
Others

Synthetic

  
Propionates
  
Sorbates
  
Benzoates
  
Others

Function Market Segmentation & Outlook (Revenue, USD Million, 2014 - 2025)

  
Anti-microbial
  
Anti-oxidant
  
Others

Application Market Segmentation & Outlook (Revenue, USD Million, 2014 - 2025)

  
Meat & Poultry
  
Bakery
  
Dairy
  
Beverages
  
Snacks
  
Others

Key Players, Recent Developments & Regional Insights: Global Food Preservatives Market

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 34.8% in 2018. The processed meat, poultry, and seafood industry is expanding at a significant rate globally, which is expected to drive the demand over the forecast period.

Meat and poultry is followed by bakery products, which is expected to reach USD 504.9 million by 2025. Beverage segment is expected to witness the fastest growth over the forecast period driven by the expansion of the industry in Asia Pacific.

Type Insights

On the basis of type, the market is classified into natural and synthetic types. Synthetic type accounted for the largest market share of 81.3% in 2018 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. 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 labelled products.

Function Insights

In 2018, anti-microbial preservatives dominated the market with a share of 56.5%On the basis of function, the products are categorized into two: 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 U.S.

Sodium propionate and calcium propionate are used as mold inhibitors in cheese, cake, bread, and other baked and confectionary 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, sulphites 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 1.0 billion by 2025. The market in North America was driven by rise in various applications of the product in U.S, Canada, and Mexico. Well-established bakery stores and increase in consumption of processed meat is expected to boost the growth.

Increasing working population and consumer preference for ready-to-eat products is expected to benefit the market expansion in 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 4.9% during the forecast period. The region accounted for 29.1% market share in terms of revenue in 2018, 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 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 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 production portfolio and geographical presence. BASF SE has collaborated with Chinas state-owned SINOPEC to expand its production capacity and cater to the stringent safety regulations in China.

Key Insights Covered: Global Food Preservatives Market

1. North America, Europe, Asia Pacific, Middle East & Africa, Latin America market size (sales, revenue and growth rate) of Food Preservatives industry.
2. Global major manufacturers" operating situation (sales, revenue, growth rate and gross margin) of Food Preservatives industry.
3. Global major countries (United States, Canada, Germany, France, UK, Italy, Russia, Spain, China, Japan, Korea, India, Australia, New Zealand, Southeast Asia, Middle East, Africa, Mexico, Brazil, C. America, Chile, Peru, Colombia) market size (sales, revenue and growth rate) of Food Preservatives industry.
4. SWOT analysis, New Project Investment Feasibility Analysis, Upstream raw materials and manufacturing equipment & Industry chain analysis of Food Preservatives industry.
5. Global market size (sales, revenue) forecast by regions and countries from 2019 to 2024 of Food Preservatives industry.

Research Methodology: Global Food Preservatives Market

  
Data collection and base year analysis is done using data collection modules with large sample sizes. The market data is analyzed and forecasted using market statistical and coherent models. Also market share analysis and key trend analysis are the major success factors in the market report. To know more please Request a Sample Report.
  
Demand Side Primary Contributors: OEMs, Industrial Professionals, Researches, Suppliers and Distributors, Group Purchasing Organizations, Associations, Insurers, Universities, Technological Writers, Scientists, Promoters, Investors among others.
  
Supply Side Primary Contributors: Product Managers, Marketing Managers, C-Level Executives, Distributors, Market Intelligence, Regulatory Affairs Managers among other