The global food additives market is estimated to account for USD84.2bn in terms of value by the end of 2027, witnessing a CAGR of 5.30%, according to Coherent Market Insights.
Increasing consumption of convenience food due to the hectic lifestyle of consumers is expected to provide lucrative growth opportunities to the market. Expanding retail industry is another major factor expected to uplift growth of the market in the near future. According to Trading Economics, Retail sales in the US unexpectedly increased 0.7% in September of 2021, following an upwardly revised 0.9% surge in August.
Rapid growth in the processed food industry is accelerating growth of the market. According to the India Brand Equity Foundation, the Indian food processing industry accounts for 32% of the country’s total food market, one of the largest industries in India and is ranked fifth in terms of production, consumption, export, and expected growth. It contributes around 8.80 and 8.39% of Gross Value Added (GVA) in Manufacturing and Agriculture respectively, 13% of India’s exports, and 6% of total industrial investment.
Food additives are artificial materials added to food in order to improve taste, look, texture, or any other physical or chemical sensory qualities. Some additives have actually been used for thousands of years as a part of the effort to improve the taste of food, such as salt, vinegar, sugar, or smoke, to name a few. The most commonly used food additives include coloring, preservatives, flavorings, soy sauce, and wheat germ. One of the ingredients used in many snack foods, such as potato chips, is Ethoxyquin, a colorless and translucent substance that is added by manufacturers in order to provide a rainbow-changing look to their products. Food additives can also be used in packaged foods such as soda and juice. In addition to adding food additives in a food product, manufacturers of cosmetics products, including hand lotion, creams, and facial scrubs, often add color, flavor, and a pH balance to their products as well.