Food Preservatives Market

Market Overview:

The global food preservatives market size reached US$ 3.1 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 4.3 Billion by 2032, exhibiting a growth rate (CAGR) of 3.8% during 2024-2032. The growing demand for processed and packaged food, rapid expansion of the global food supply chain, escalating consumer awareness about food safety, widespread product utilization to reduce food waste, and rising online grocery shopping are some of the major factors propelling the market.

Global Food Preservatives Market Analysis:

• Major Market Drivers: The increasing global demand for processed and packaged foods owing to the rising convenience and busy lifestyles is leading to food preservation market demand. The growing consumer awareness regarding food safety and shelf-life extension is contributing to the demand for preservatives. Technological advancements in food processing and preservation techniques are also fueling the market growth. The expansion of the global food supply chain necessitates the use of preservatives to maintain food quality and prevent spoilage during transportation and storage. Changing food consumption patterns and the rising fast-food industry significantly contribute to the market expansion.
• Key Market Trends: Shifting consumer preferences toward natural organic food products is driving the demand for natural preservatives over synthetic ones which is boosting the market trends. The rising health consciousness among consumers also impacts the market as there is a growing demand for products with clean labels and minimal processing. Moreover, regulatory policies and food safety standards play a crucial role, as they dictate the type and number of preservatives that are used. Advances in food technology and preservation methods influenced the market trends by introducing more efficient and less intrusive preservation techniques which is further expected to fuel the food preservatives industry forecast.
• Competitive Landscape: Some of the major market players in the global food preservative industry include Albemarle Corporation, Archer Daniels Midland Company, BASF SE, Cargill Incorporated, Celanese Corporation, Corbion N.V., Dupont De Nemours Inc., Galactic S.A., Jungbunzlauer Suisse AG, Kemin Industries Inc., Koninklijke DSM N.V., and Tate & Lyle PLC., and among others.
• Geographical Trends: North America accounted for the largest region in the food preservation market. The advanced food and beverage sector in the region relies heavily on preservatives to enhance product shelf life, catering to the demand for convenience. The region is at the forefront of food technology and preservative research, driving market growth with innovations in both natural and synthetic preservatives. Strict food safety regulations are further boosting the use of approved preservatives, which is ensuring the growth of the market.
• Challenges and Opportunities: The food preservatives market faces challenges such as the rising trends towards natural and organic food, food safety regulations, and increasing awareness about the potential health risks associated with certain preservatives such as allergies or sensitivities. However, factors such as the rising demand for natural and clean label products, technological advancements offering new methods for extending shelf life without traditional preservatives, the expansion of the global food market, and the need for longer shelf life in exported goods, along with increasing consumer interest in sustainability are creating opportunities for the market growth.
   

Food Preservatives Market Trends /Drivers:

The growing demand for processed and packaged foods

The heightened demand for processed and packaged foods is a significant factor driving the food preservatives market. According to the Department of Agriculture, processed foods are any raw agricultural commodities that have been cleaned, washed, cut, mild, heated, chopped, pasteurized, cooked, blanched, frozen, canned, dehydrated, dried, mixed, or packaged, anything done to them that alters their natural state. This may include adding preservatives, nutrients, flavors, and other food additives, or substances approved to utilize in food products like sugar, salt, and fats. Consumers are increasingly seeking convenient, ready-to-eat (RTE) meals that suit their busy lifestyles. Furthermore, work schedules are becoming more demanding, which is increasing the reliance on processed foods, such as frozen dinners and snack items. These emerging trends are compelling food producers to incorporate preservatives to extend product shelf life and preserve taste, flavor, texture, and nutrients. Besides this, the rising urbanization across the globe is diminishing consumer’s access to fresh produce, leading to an increased dependency on preserved food products. According to The United Nations, today, 55% of the world's population lives in urban areas, a proportion that is expected to increase to 68% by 2050. Projections show that urbanization, the gradual shift in residence of the human population from rural to urban areas, combined with the overall growth of the world's population could add another 2.5 billion people to urban areas by 2050, with close to 90% of this increase taking place in Asia and Africa. This is further driving the food preservatives market share. Additionally, grocery stores and supermarkets are also stocking up on a variety of these products to meet consumer demands, thus contributing to the market growth.

The rapid expansion of the global food supply chain

The rising expansion of the global food supply chain is a key driver for the food preservatives market. The rapid globalization is facilitating the import and export of food products at an unprecedented scale. This development requires a robust preservation system comprising natural and synthetic preservatives to maintain the quality of food items during long transit periods, prevent spoilage, and ensure that the products reach consumers in optimal condition. Besides this, the global movement of food products is further complicated by varying climatic conditions and transportation modes, such as sea freight and air cargo, each presenting its unique preservation challenges. As a result, effective and efficient food preservatives are indispensable in the complex and far-reaching global food supply chain. According to the US Department of Agriculture, USDA and the Food and Drug Administration are closely monitoring the food supply chain for any shortages in collaboration with industry and their federal and state partners.

The escalating consumer awareness about food safety

The heightened consumer awareness about food safety is a significant factor influencing the food preservatives market. According to the World Health Organization (WHO), food handlers and consumers need to understand how to safely handle food and practice the WHO's five keys to safer food at home, or when selling at restaurants or local markets. Consumers are becoming more informed about the nutritional content of their food, the sourcing of ingredients, and the methods used for preservation. In addition, the advent of social media and easy access to information provides consumers with essential knowledge about potential health risks associated with spoiled or contaminated food. This awareness is facilitating the demand for food products that not only have a longer shelf life but are also safe to consume. Furthermore, regulatory authorities across the globe are providing comprehensive guidelines regarding the permissible levels of preservatives in various food products, thereby enhancing consumer trust. It encourages food producers to comply with international safety standards and label their products transparently.

Food Preservatives Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global food preservatives market report, along with forecasts at the global, regional, and country levels for 2024-2032. Our report has categorized the market based on type, function, and application.

Breakup by Type:

• Natural 
  • Edible Oil
  • Rosemary Extracts
  • Natamycin
  • Vinegar
  • Others
• Synthetic 
  • Propionates
  • Sorbates
  • Benzoates
  • Others
     

Synthetic dominates the market

The report has provided a detailed breakup and analysis of the market based on type. This includes natural (edible oil, rosemary extracts, natamycin, vinegar, and others) and synthetic (propionates, sorbates, benzoates, and others). According to the report, synthetic represented the largest segment.

Synthetic food preservatives are dominating the market as they are more cost-effective to produce compared to natural preservatives, which makes them economically attractive for manufacturers aiming to keep production costs low. Additionally, they have a longer shelf life and greater efficacy in inhibiting microbial growth due to their concentrated potency. Furthermore, synthetic preservatives are easier to standardize and scale, owing to their consistent quality, which ensures that they meet regulatory requirements and quality benchmarks. In addition, they are highly versatile and can be used in various food products, such as baked goods, dairy, and meat products. Moreover, the presence of well-established scientific research work supporting the safety and efficacy of several synthetic preservatives is contributing to the food preservatives industry growth.

Breakup by Function:

• Anti-Microbial
• Anti-Oxidant
• Others
   

Anti-microbial hold the largest share in the market

A detailed breakup and analysis of the market based on function has also been provided in the report. This includes anti-microbial, anti-oxidant, and others. According to the report, anti-microbial represented the largest segment.

Anti-microbial is dominating the market as it is highly effective in slowing the growth of harmful bacteria, yeasts, and molds, thereby significantly extending the shelf life of food products. Furthermore, anti-microbial preservatives align well with stringent food safety regulations, which builds consumer trust and ensures a consistent demand. Besides this, they are versatile and can be used in a wide array of foods, such as dairy, bakery items, meat, and beverages. Additionally, the advancements in food science and technology, which have led to the development of more effective and safer anti-microbial agents, are contributing to the market growth. Moreover, the growing trend of packaged, ready-to-eat (RTE), and convenience foods, which require effective anti-microbial preservatives, is supporting the market growth.

Breakup by Application:

• Meat and Poultry
• Bakery
• Dairy
• Beverages
• Snacks
• Others
   

Meat and poultry hold the largest share in the market

A detailed breakup and analysis of the market based on application has also been provided in the report. This includes meat and poultry, bakery, dairy, beverages, snacks, and others. According to the report, meat and poultry accounted for the largest market share.

Meat and poultry are dominating the market as they are highly perishable and susceptible to microbial spoilage, making the use of preservatives essential for extending shelf life and ensuring food safety. Additionally, the global consumption of meat and poultry is consistently increasing due to dietary preferences and cultural factors, which is facilitating the demand for effective preservation techniques to ensure that the products reach consumers in optimal condition. Furthermore, the imposition of stringent regulatory requirements surrounding meat and poultry products, compelling manufacturers to use approved preservatives to meet safety standards, is positively influencing the market growth. Moreover, the recent advancements in preservation technologies, including natural and clean-label solutions, that are encouraging the meat and poultry industry to adopt newer, safer preservatives are catalyzing the food preservatives market demand.

Breakup by Region:

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America 
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

North America exhibits a clear dominance, accounting for the largest food preservatives market share

The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share.

North America has a highly developed food and beverage (F&B) sector, which necessitates the extensive use of preservatives to extend the shelf life of products and meet consumer demands for convenience and longevity. Additionally, the advancements in food technology and research in the region that are fostering innovation in preservatives, both natural and synthetic, are contributing to the market growth. Besides this, North America hosts some of the leading companies in the food preservative industry that are actively involved in the development of novel products. Furthermore, the increasing disposable income of the regional populations, allowing consumers to opt for premium products that often use advanced or natural preservatives, is strengthening the market growth. Apart from this, the imposition of stringent food safety regulations in the region, which mandates the use of approved preservatives, is creating a positive food preservatives market outlook.

Competitive Landscape:

Leading players are investing in research and innovation to create new, effective, and safer preservatives that meet evolving consumer demands and regulatory guidelines. Furthermore, companies are engaging in mergers, acquisitions, and partnerships to expand their geographical footprints, diversify their product portfolio, and increase revenue streams. Besides this, they are focusing on sustainability by sourcing raw materials responsibly, optimizing manufacturing processes, and developing biodegradable or recyclable packaging solutions. Moreover, top companies are actively involved in educational and marketing campaigns to inform both the industry and consumers about the safety, efficacy, and advantages of their products. In addition, they are streamlining their supply chains and optimizing their distribution networks to ensure swift response to market demands and mitigate any potential disruptions.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

• Albemarle Corporation
• Archer Daniels Midland Company
• BASF SE
• Cargill Incorporated
• Celanese Corporation
• Corbion N.V.
• Dupont De Nemours Inc.
• Galactic S.A.
• Jungbunzlauer Suisse AG
• Kemin Industries Inc.
• Koninklijke DSM N.V.
• Tate & Lyle PLC.
   

Recent Developments:

• In September 2022, BASF SE started offering eco-friendly neopentyl glycol and propionic that are biodegradable and used for preservation in food and feeds.
• In April 2021, Jungbunzlauer Suisse AG expanded its citric plant to meet the rising demand for citric acid and citrates.
• In June 2023, Celanese Corporation signed a definitive agreement with Mitsui & Co. to form a food ingredient joint venture under the name Nutrinova.

Food Preservatives Market Report Scope:

Key Benefits for Stakeholders:

• IMARC’s industry report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the food preservatives market from 2018-2032.
• The research report provides the latest information on the market drivers, challenges, and opportunities in the global food preservatives market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the food preservatives industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.