Any substance which changes the characteristics of the food when added is known as food additives. Additives which are added for specific purpose in the food are known as direct additives for e.g. salt and those which are added for package, handling or storing of food are known as indirect additives. Additives are mainly used to maintain and improve safety of the packaged food and to enhance the nutritional value of the food. It is also used to improve the taste, appearance, texture and consistency of the food.

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The global market for food additives is expected to grow at a CAGR of 2% to 4.5% in the next five years. Europe, the United States and Japan, have the largest markets for food additives. Growth is expected to be robust in the emerging markets of Latin America and Asia; especially China, India, Mexico and Brazil shows more growth potential as the demand for further processed food is increasing tremendously in these regions.

The factors driving the growth of the markets are increasing concerns to improve overall health, food safety concerns, and the trend towards convenience foods due to hectic life schedule. In addition, restructuring of the food processing companies and the desire for natural ingredients in food and drinks products is expected to further drive the growth of the food additives market. Especially, additives like acidulates, hydrocolloids and enzymes are experiencing growth due to rise in energy and material cost.

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As the consumer are becoming more demanding for application specific ingredients many manufacturers are moving away from using artificial ingredients and additives. Factors such as increasing competition in the market and rise in purchasing power of the major retailers and manufacturers are causing industry consolidation. But the demand for food additive is quite dynamic with food ingredient suppliers and manufacturers focusing on enhancing existing products through innovative technologies that can satisfy customer’s requirements and introducing new product in the market.

Some of the major players of the market are Associated British Foods Plc., Ajinomoto Co. Inc., ABF Ingredients Ltd., Archer Daniels Midland Company, PGP International, Inc.

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