The food preservatives market size is expected to advance at a CAGR of 3.8% during 2022–2030, to reach USD 4,175 million by 2030. This can be driven by the high demand and continuous adoption of packaged edible products and the ease of availability of such items on various e-commerce platforms.
Moreover, the preservatives demand is propelled by the implementation of government policies promoting the use of natural preservatives, which is a step toward addressing health and environmental concerns. As per the UN, approximately 17% of the entire food produced gets wasted at the global level. Also, the need for these products is rising across the world, due to the changes in customer lifestyles, increased food exports and imports, a rise in individuals’ willingness to pay a high price for healthy edibles, and an augmented preference for fresh products.
Furthermore, preservatives ultimately solve a major problem of food wastage and prove to be a sustainable solution for the rising temperature of the planet. According to a research study of a food rescue organization in Australia, one-third (around 1.3 billion tons) of all food produced gets wasted. Therefore, the demand for preservatives is increasing to reduce wastage and meet the food demand.
The food preservatives market is also propelled due to the increase in the usage of processed food, as it is easy to prepare or can be consumed directly. Also, the popularity of these ready meals especially among working-class people is increasing, which, in turn, boosts the demand for preservatives. The trend is more common among the GenZies, students staying in hostels, and bachelors, due to their hectic routines. Moreover, the ‘on-the-go’ snacks are associated with easy handling and consumption, and these snacks require enhanced shelf life, which, in turn, offer lucrative opportunities to industry players.
North America captures a substantial market share. This is due to the high demand for packaged and ready-to-eat food products and their increased availability across the region. The government’s hefty investments in enhanced food safety are crucial for the entire food supply chain. For instance, in June 2021, the U.S. government invested more than USD 4 billion to strengthen the critical food supply chain. The new effort is expected to support food production, upgraded processing, better distribution and aggregation, and industry opportunities, which, in turn, are expected to propel the demand for food preservatives in the coming years.
The clean label category is expected to witness a significant CAGR of around 4% in the forecast period. This can be due to the shifting focus of consumers on trusted and healthy food products. The clean-label preservatives are rapidly adopted by the food industry, as these additives help meet the necessities of formulators to cope with the needs of label-conscious customers. Further, various companies have introduced these preservatives, which are compatible to safeguard edible products. For example, Corbion introduced an enzyme technology that ensures the safe distribution, processing, and handling of bakery products, and also helps in enhancing their shelf life and keeping freshness stable.
The major food preservatives market players are Cargill Incorporated, DSM, ADM, Kerry Group Plc, Kemin Industries Inc., Jungbunzlauer Suisse AG, Celanese Corporation, International Flavors & Fragrances Inc., Foodchem International Corporation, and BASF SE.