Food Additives Market - Forecasts from 2025 to 2030

The food additives market is projected to grow at a CAGR of 3.80% over the forecast period, increasing from US$57.063 billion in 2025 to US$72.715 billion by 2030.
A food additive is a type of substance that is added to foods and beverages produced on a larger scale to maintain its key characteristics, like texture, taste, smell, and nutritional values. It also helps in increasing the shelf life of food and beverage products and enhances the appeal of the products.
The rapid growth in the global urban population is propelling the demand for food additives during the forecasted timeline. With the increasing urbanization, the demand for packed and processed food and beverages rises, mainly due to the growing availability of a wide range of products to choose from and the increase in the expenditure capability of an individual.
The global urban population during the past few years witnessed a significant increase. The World Bank, in its report, stated that in 2021, the total population of urban areas worldwide was recorded at 4.45 billion. The total urban population in 2022 increased to 4.52 billion, reaching 4.6 billion in 2023, accounting for 57% of the total population.
Food additives market drivers

The increasing global demand for processed food and beverage products is projected to propel the food additives market expansion.
A major factor driving the global food additives market is the increasing demand for processed food and beverage products worldwide. With this growth, the demand for food additives, in the manufacturing process of the products will increase significantly.
The Agriculture and Agri-Food Canada, or AAFC, in its 2023 report, stated that in the year, the total sales of food and beverages processing was recorded at US$167.5 billion. The agency further stated that the meat processing sector occupied the largest share, with about 25.5%, followed by grain & oil seed milling at 12.7%. The dairy product manufacturing and bakeries & tortilla processing sector accounted for 10.9% and 10.6% shares, respectively.
The increasing demand for a wide range of beverage items has led to an exponential rise in the incorporation of various food additives, for instance, to enhance the quality of the product, extend its shelf life, or consider the tastes of the consumers. Accordingly, the leading manufacturers of these additives are also funding research works in the advent of developing some new additives that not only improve product qualities but also help in addressing some product trends. For example, natural clean labels will play a big role in the growth of the industry in the coming years.
Moreover, the consumption of both alcoholic and non-alcoholic drinks has increased significantly. More specifically, the demand for alcoholic beverage markets is on the rise due to the millennials, especially in developed regions such as North America and Europe, which have a strong culture of consuming alcohol.
Additionally, the beverage industry is highly competitive, with various domestic and international firms leading the market. For example, Nouryon offers water-soluble cellulose-based gums called Akucell® and Cekol® that improve the look and flavor of a variety of foods, such as protein and fruit-flavored drinks, baked goods, dairy products, frozen desserts, sauces, noodles, and low-fat and gluten-free foods.
This demand has also increased the sales of alcoholic beverages in the United States. For instance, $7.2 billion in nearly flat vodka sales, and sales of mezcal and tequila increased 7.9%, or $476 million, for a total of $6.5 billion.
Food additives market geographical outlook
Based on geography, the food additives market is segmented into North America, South America, Europe, the Middle East and Africa, and the Asia Pacific. Due to the growing number of elderly individuals and a rise in health-concerned consumers, there is an increasing demand for healthy alternatives. The market is growing owing to the extensive use of additives in food and beverages throughout the market in forms such as colorants, sweeteners, emulsifiers, flavor enhancers, and preservatives, among many other uses. There is also a rise in demand for packaged and convenience foods, which use more additives.
Moreover, access to processed and convenient types of foods has increased for consumers due to the growth in the number of retailers, retail channels, and formats. This, in turn, is increasing the demand for food additives within the US food and beverage industry. Organized retailing also gives the consumers the advantage of the label and other aspects at focused prices, quality, and services. Due to price competition with both national and store brands, the retail food market in the US is on the increase, which is also increasing the market for food additives in the United States. For instance, retail and food services sales in the United States were projected to reach $714.4 billion in September 2024 which is a rise from US$711.3 billion in August of the same year.

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The food additives market is analyzed into the following segments:

By Additives Type

Preservatives
Ascorbic acid
Citric acid
Sodium Benzoate
Others
Sweeteners
Sucrose
Fructose
Glucose
Others
Flavors and Spices
Natural flavor
Artificial flavor
Spices
Flavor Enhancers
Monosodium Glutamate (MSG)
Hydrolyzed soy protein
Autolyzed yeast extract
Others
Stabilizers and Thickeners, Binders, Texturizers
Gelatin
Pectin
Guar gum
Others
Emulsifiers
Soy lecithin
Mono and di-glycerides
Egg yolks
Others

By Application

Bakery and Confectionery
Processed and Canned Food
Fruits and Vegetables
Frozen Foods
Beverages
Dairy Products
Meat and Seafood

By Distribution Channel

Online
Offline

By Geography

North America
United States
Canada
Mexico
South America
Brazil
Argentina
Others
Europe
Germany
United Kingdom
Italy
France
Others
Middle East and Africa
Saudi Arabia
UAE
Others
Asia Pacific
China
Japan
South Korea
India
Indonesia
Thailand
Others