Published On : March 2018
Global Food preservatives Market Research Report - Forecast to 2023
Food makes up for the most vital part of humans which facilitates proper body functioning and metabolism. With the changing global scenario and increasing health awareness, consumers have become highly health conscious and protect themselves from any kind of disease risk. However, on the contrary, the world witnesses a higher percentage of the millennial population. Fast paced lifestyle of this group has strongly influenced their food consumption pattern. Based on the primary research and interviews carried out by Market Research Future, it was identified that consumers falling under this category have more inclination towards consumption of convenience food products than the traditionally cooked ones. One of the major reasons behind it is that these “ready-to-eat” meals tend to save the cooking time and provide almost the similar amount of nutrition. Food preservatives are the additives which help in increasing the shelf-life of the “processed food” including convenience packed and frozen foods and keep them safe for a longer duration of time. However, the rising trend of healthy food consumption has lead to consumers choosing their food wisely owing to which the market of food preservatives is experiencing slow growth.
Natural or Synthetic Preservatives- What’s dominating?
Research shows that the market share of synthetic food preservatives is higher than that of natural food preservatives since preservations by the previous are more effective than that of the natural food preservatives. Natural food preservatives are generally used as traditional food preservatives. However, they do not elongate the shelf-life of the product to a much greater extent. Natural preservatives include acids, antioxidants, sugar, salt, and oils extracted from natural sources such as plants, herbs and spices, microorganisms, and others. Increasing awareness among the consumers about the demerits of consumption of harmful chemical preservatives has led to an increased demand for natural preservatives. Hence, key players in this industry are shifting their focus towards the production of natural preservatives to meet the consumers’ demand. Additionally, it is also noteworthy that the cost of natural preservatives is higher than the synthetic preservatives. Furthermore, the shelf-life extension capacity of the natural preservatives is also less than the counterpart but consumers have raised the demand for these based on the health concerns associated with synthetic food preservative consumption.
However, manufacturers have been using synthetic food preservatives based on their high effectiveness and easy production backed up by low production cost. Synthetic preservatives are used in most of the packed food products including beverages, meat products, bakery and confectionery, and others. The drift of manufacturers towards the natural food preservatives is observed to become more prominent over the period, 2017-2023. Manufacturers of natural food preservatives are projected to generate high revenues during the assessment period based on the current scenario.
Consumption of “on-the-go” meals is high in North America and so is the consumption of food preservatives. The region dominates the global food preservatives market and is estimated to hold a lion’s share during the corresponding period. A significant contribution of the region in the global market is marked by the presence of established players in the region. North America is concentrated with renowned players such as Cargill, Inc., Kemin Industries, Inc., Archer Daniels Midland Company, Brenntag Inc., and Celanese Corp which have their significant contribution in the food preservatives market.
Furthermore, Asia Pacific region is also identified to be the fastest growing region with profound contribution from countries including China, India, Vietnam, Australia, and Japan. China is leading the region not only in terms of production but also because of the presence of giant manufacturers of food preservatives in the country. Increasing population and GDP growth of India makes its market more lucrative. New players who want to enter into the food preservatives market are targeting Asia Pacific region to expand their consumer base. With increasing population and never-ending demand for packaged and frozen food, the need for food preservatives to sustain its organoleptic property and spoilage will keep increasing.
Based on the market analysis, it was identified that the key players in the global food preservatives market are focusing more on escalating their production capacity of natural preservatives. Likewise, new players who want to enter this competitive market are focusing more on the R&D sector to enter with unique and novel- natural preservatives. This strategy followed by them will create product differentiation and will also gain consumers attention based on the current trend of consumption of food products with chemical-free natural food additives. Established players, on the other hand, are focusing more on new product launch and expansion of their geographical presence through acquisitions and mergers to further strengthen their business portfolio.
In conclusion, the food preservative market is identified to be profitable for players who want to shift from synthetic to natural food preservative production. The major reason behind this is the escalating market for “clean-label” food products and the increasing demand for chemical-free food additives which has a direct impact on the food preservatives market.