Among the different regions, RoW and Asia Pacific market have the similar growth rate and are estimated to grow at the CAGR of 4.2% over the forecast period. In terms of revenue, Europe held the largest market size of USD 9.45 billion in 2014. However, it is expected that Asia Pacific is expected to acquire the largest market for the food additives by 2021.

The major factors driving the growth of the food additives market are growing food and beverages industry, increasing demand for functional food additives due to rising health concerns and shift in trends from synthetic food additives towards natural food additives.

By types, flavors and enhancers held the largest market in 2014 and is estimated to hold its leading position throughout the forecast period. Flavors and enhancers is followed by fat replacers, which is estimated to hold the second largest market share for food additives over the forecast period.


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By source, natural food additives is the fastest growing segment in the food additives market. However, artificial food additives held the largest market in 2014 and is projected to lead the food additives market over the forecast period.

Food and beverage industry is one of the major end users for food additives. The food and beverage industry has experienced stable growth in the previous years and is expected to undergo the same throughout the forecast period. This growth in the food and beverage industry is one of the major factors boosting the demand for food additives globally. Increasing health awareness is one of the major factors boosting the demand for functional food ingredients as well as natural food additives market. This changing trend has benefited the colorants segment the most. Due to pollution and environmental erosion, the demand for synthetic colors is expected to reduce substantially.

Additive makers in the market comprise small, mid and large size establishments, operating with different market and product focus. The food additives either reach the consumers directly through the industry participants by their own brands or through integrated producers. The major participants of the market are Cargill which is the second largest player in the market producing salt, BASF with it diversified portfolio of raw materials, Associated British Foods which is the second largest player in producing sugar and Ajinomoto the world's largest producer of aspartame and original monosodium glutamate (MSG) products. Apart from these, there are several other companies producing emulsifiers, catalysts, antioxidants, vitamins, sweeteners and other additives.

Europe held the largest market for food additives in 2014, followed by Asia Pacific. However, it is expected that Asia Pacific would hold the largest market share for food additives by 2021, followed by Europe.

The key players dominating the market for the food additives are Ajinomoto Co, Inc., ADM, Associated British Foods Plc and BASF among others are expected to capture the attention of consumers due to their cost effectiveness vis-à-vis branded products.

Increasing health awareness among consumers is one of the major factors boosting the demand for natural food additives. However, in the emerging economies of India, China and Malaysia among others, the use of synthetic additives is still acceptable due to increasing demand for processed food and beverages. Increasing local-foreign joint ventures and availability of synthetic additives at affordable prices is boosting the demand for synthetic additives in this region.


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Natural additive products are perceived as premium products and these products are ten times more expensive than synthetic additives; therefore they have limited buyers. Additionally, low shelf life stability of natural additives is a major challenge especially when the synthetic variants have improved stability properties. Therefore, availability of synthetic additives at cheap prices, their longer shelf life and absence of any government restriction on its use are providing synthetic additive manufacturers an opportunity in the emerging markets.


The global food additives market has been segmented as follows:

Global Food Additives Market by Product Type:

Flavors and Enhancers
Sweeteners
Enzymes
Colorants
Emulsifiers
Food Preservatives
Fat Replacers

Global Food Additives Market by Geography/ Country

North America
U.S.
Canada
Others

Europe
Germany
U.K.
France
Others

Asia Pacific
China
India
Japan
Others

RoW
Middle East
Latin America
Africa

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