Argentina Food Additives Market - Growth, Trends, and Forecast (2018 - 2023)
Food additives are used to enhance the taste, color, texture of food, same time maintaining the freshness and nutritional content. The food additives market in Argentina is expected to be USD1.5 billion by 2023, registering a CAGR of 5.1%, during the forecast period, 2018 ¬– 2023. The population growth coupled with higher food production and demand is the major factors leading to high requirement of food additives applications in Argentina. Growing urbanization and changing lifestyles, due to globalization are driving demand for convenience and packaged foods. The scenario in turn is helping the food additives industry to grow, as food additives are an important component of these kinds of foods.
Additives are mainly used to maintain and improve safety of the packaged food and to enhance the nutritional value of the food. Expanding processed food market due to increasing disposable incomes of the burgeoning middle class is the major drivers for Argentina food additives market growth in the country. The growth is further supported by increasing urbanization of the rural population and rising organized market in rural segments of Argentina. Argentina food additive market is also supported by the fact, that additives are applied as a way of curbing risk of wastage of food products. However, the consumer preference for natural alternatives, demand for clean label products, and stringent regulations hinders the market growth.
The Argentina food additives market is segmented by type viz. Preservatives, Food flavors and Flavor enhancers, Antioxidants, Sweeteners, Emulsifiers, Anti Caking agents, Enzymes, Fat replacers, Acidulants, and others (texturizer, shelf life stabilizers, etc.). The largest segment is flavors and flavor enhancers market which recorded value wise, followed by hydrocolloids which function as texturizer, thickening, stabilizing, and gelling agents. The fastest growing segment is the sweetener type, which is seen as an alternative to sugar used in food & beverages. The major applications pertaining food additives are in Fruits & Vgetables, Bakery & Confectionary, Dairy & Frozen products, Oils & Fats, Savory snacks, Meat, Poultry, and Seafood products.
The country is one of the developing economies in the region and this is expected to increase the consumer demand for packaged food, which in-turn drives the food additives industry. Growing consumer awareness on the benefits of natural additives and functional food additives would help capture the new markets in the region.