The global food additives market size is expected to reach USD150.48bn by 2028, as it will to expand at a CAGR of 5.5%. The growing consumption of packaged food products is anticipated to drive the market, according to a new study by Research and Markets.
Rising consumption of ready-to-eat, ready-to-cook, and meal replacement food and beverages are expected to fuel the demand for food additives. For instance, according to the survey results published by the Food Standards Agency in May 2021, approximately 81.0% of survey respondents in the UK confirmed buying processed food products from April 2020 to March 2021. Food additives are commonly added to these products to enhance their appearance and mouthfeel.
The report states that manufacturers of food and beverage products are formulating their products with botanical ingredients due to shifting consumer preference towards plant-based diets. Plant-derived products often impart unpleasant or bitter after taste leading to an unappealing mouthfeel. Demand for food additives has surged as they are used as flavors, sweeteners, hydrocolloids, and preservatives to enhance taste and texture and increase the shelf life of such products.
The COVID-19 emergence disrupted the global supply chain in 2020 and led to limited demand for food additives from the foodservice industry. For instance, Givaudan reported that its ‘Taste & Wellbeing’ segment that is engaged in the business of flavor ingredients witnessed lower demand from foodservice and out-of-home food end users in 2020. However, this segment witnessed an increased demand for immunity-boosting products, juice-based beverages, culinary solutions, nutritional bars, and savory and snacks.