Food Preservatives Market Label Type (Conventional, Clean Label), By Function Type (Anti-oxidant, Anti-microbial, Others) By Application Type (Dairy Products, Snacks, Meat & Poultry Products, Beverages, Bakery Products, Others) By Geography, Size, Share, Global Industry Analysis Report, Forecast, 2021-2030

Industry Report and Statistics

The global food preservatives market will witness a robust CAGR of 5%, valued at $3 billion in 2021, expected to appreciate and reach $4.65 billion by 2030, confirms Strategic Market Research. North America possessed a substantial market share of more than 30% in 2021. To stop things from decomposing due to microbial growth or unfavorable chemical changes, preservatives are substances or chemicals added to products, including food, drinks, pharmaceutical medications, biological material, cosmetics, wood, and other products. Preserving is typically done in one of two ways: chemically or physically. Chemical preservation involves incorporating chemical substances into the final product. Physical preservation comprises procedures like drying or refrigeration. Preservative food additives lower the risk of foodborne illnesses, lower the amount of microbiological deterioration, maintain freshness, and maintain nutritional value. UV-C radiation, Dehydration, freeze-drying, and chilling are a few physical methods for food preservation. Techniques for chemical and physical preservation can occasionally be combined. Since the Stone Age, people have used preservatives. For instance, phenols and other compounds in smoked meat helped prevent rot. Food preservation has advanced significantly throughout the years and has boosted food security.

Although the use of preservatives other than color additives, conventional oils, salts, etc., in food, was started during the nineteenth century, it wasn't until the twentieth century that it became widely used. Although some methods add benign bacteria or fungi to the meal, food preservation tactics include food processing techniques that stop the development of microorganisms like yeasts and decrease the fat oxidation that leads to rancidity. Food preservation helps to reduce food waste, which is a crucial step in lowering production costs, boosting the effectiveness of food systems, enhancing food security and nutrition, and promoting environmental sustainability. As per reports published by the U.N. Environment Programme (UNEP), in 2020, 17 percent of the food that was available to consumers was wasted, which is about 10% less than the previous year.

Key Industry Drivers - An Increase in The Demand for Food with A Long Shelf Life; Increased Occurrence of Food-Borne Disease.

• Longer workdays have significantly altered consumer lifestyles and, as a result, eating habits. These changes now require food products that offer convenient consumption and longer shelf life. As a result, the importance of food preservatives in the food and beverage industry is growing. The food processing sector has been positively impacted by the rising demand for goods with longer shelf lives. Through thorough research and analysis, it can be stated that the use of food preservatives has increased the shelf life of food by around 15 percent. In addition, it can be stated that the sale of packed food globally increased by a percentage of 3 from the year 2020-2021. The well-established effectiveness of preservatives has revolutionized food delivery methods, allowing for competitive pricing, and raising the value of food as a whole. Organic products are in high demand from consumers who care about their health, so food producers are more likely to use natural preservatives. As a result, producers create natural preservatives like rosemary extracts, effectively preserving food and products while enhancing their flavor.

• The market for food and beverages is seriously threatened by food-borne illness. About 0.6 billion consumers worldwide contract a food-borne illness each year, and 4.2 lakh people die, as revealed in a report by The World Health Organization (WHO). Ineffective preservation methods and ingredients can result in food-borne illnesses caused by bacteria, viruses, & microbes. Consumers desire food products that are efficiently maintained due to the rising incidence of food-borne illnesses and increased awareness of the need to lead a healthy lifestyle. There are numerous chemical preservatives that work well for preservation. With the expansion of technology, research, and development, businesses are turning to natural preservative ingredients to appeal to customers who want organic and natural food items. This shift is acting as a driving factor for the global food preservatives market.

Restraints - Non-Availability of Natural Preservatives Despite Rising Demand for Organic Products

• The choice of natural food preservatives over artificial ones is proving to be a hurdle within the F&B industry, despite their critical role in ensuring quality and shelf-life extension. Consumers believe organic products are healthier than those preserved with artificial preservatives. The need for natural food items is growing, which has increased the significance of natural preservatives. The consumer preference for foods with fewer chemical preservatives is opening up new vistas of opportunities for natural preservatives like nisin and natamycin. In the United States, organic preservatives are used with additives over foods, including dairy and frozen foods. Natural preservatives are gradually expanding their range of applications to include baked goods, meat, & convenience foods. Natural preservatives like nisin & natamycin are at minimum ten times more expensive than artificial preservatives; hence their availability is limited. On a broader scale, several natural preservatives are yet to be produced. Natural preservative production processes have not yet been commercialized. The share of natural preservatives in the world market for food preservatives will rise predominantly once they are broadly promoted. Various studies and tests are being conducted to determine good and trustworthy resources of high-quality natural preservatives to protect food quality.

Opportunities - Developing Markets in Urban Areas; Demand Natural Food Preservatives.

• The demand from households and workplaces for foods with a higher shelf life is growing competitively in emerging areas, where habits and cultures are changing quickly, leading to a higher preference for ease. As people look for quick and simple but nutritious solutions, fast food will gradually distinguish itself from junk food. Moreover, for children, parents will increasingly prefer clean-label products. Finding naturally occurring ingredients with a high nutritional value may represent a big opportunity for the market. Urbanization and globalization have grown throughout time, increasing literacy rates and exposure to industrialized nations through foreign media, international employment opportunities, and travel. As a result, the attitudes and tastes of urban residents have changed. Other trends influencing the changing lifestyles include the rise in the number of working women and the predominance of nuclear double-income households, particularly in urban regions. As per reports by International Labour Organization, the labor force of women expanded by almost two times equalling to 3.5 percent per annum. The data for 2020 states that 1/3rd of the women between the ages of 20 and 59 are currently employed. The participation gap between men and women dramatically shrunk. The demand for ready-to-cook and ready-to-eat food has expanded due to busy lifestyles and shifting consumer habits.

• As the demand for natural food products rises, the need, as well as the demand for organic preservatives, has increased. A new market opportunity has also been generated for natural preservatives like nisin and natamycin due to customer demand for products with fewer chemical preservatives. In the United States, natural preservatives are now completely used in various types of foods like sausages, and they are still used in conjunction with artificial preservatives in applications like dairy and frozen foods. The use of natural preservatives in convenience meals, meat, and baked items is constantly growing. 

Market Analysis Of Different Segments Covered in the Report

Based on Label Type

• Conventional

• Clean Label

Based on Type

• Natural

o Rosemary Extracts

o Chitosan

o Edible Oil

o Vinegar

o natamycin

o Others

•  Synthetic

o Benzoates

o Sorbates

o Propionates

o Others

Based on Function Type

• Anti-oxidant

• Anti-microbial

• Others

Based on Application Type

• Dairy Products

• Snacks

• Meat & Poultry Products

• Beverages

• Bakery Products

• Others

Regional Coverage Analysis

• North America

o Mexico

o Canada

o United State

• Europe

o France

o Spain

o Germany

o Italy

o U.K.

• Asia Pacific

o Australia

o China

o Japan

o India

Central & South America

• Federative Republic of Brazil

Middle East & Africa

• Republic of South Africa

Label Type Analysis & Insights

In 2021, conventional accounted for more than 65.0 percent of total income. Traditional food preservatives can be used separately or in conjunction with other preservation methods. Anti-oxidants, which function as oxygen absorbers, & anti-microbial preservatives, which stop the growth of bacteria or fungi, make up most of the conventional preservatives. Due to various outbreaks, notably Escherichia coli infections, product recalls significantly increased in the U.S. and other countries. Similar to this, according to reports by World Health Organization (WHO), in January 2021, the SARS-CoV-2 contamination of ice cream in China has caused customers to become more vigilant about the provenance of food goods & consequently, product labeling. The market is divided into conventional & clean label products based on label type. Due to a shift in consumer attention toward reliable and easier-to-understand ingredients, the clean label sector is anticipated to grow the fastest over the projected timespan. Clean label preservatives are being quickly adopted by the food industry to enable food formulators to fulfill the need for a label-conscious customer base. To meet consumer demand, manufacturers have produced a clean label line that is suitable for food formulation. To address the demand for products with clean labels, many manufacturers are implementing innovative formulation techniques for the creation of organic products. In particular, Corbion has created an enzymatic technology that safeguards bread items during processing, handling, and distribution so they maintain the desired level of long-lasting freshness. The market has seen notable growth for clean-label food items due to the development of novel clean-label preservatives.

Type Analysis & Insights

In terms of value, synthetic type represented the greatest revenue share in 2021 at approximately 65.0 percent. The synthetic variety is frequently utilized since it is affordable and simple to make. Market segments include synthetic & natural products based on type. Sorbates, out of all chemical categories, had the highest market share in 2021 because of their extensive use in meat, poultry, and dairy products. Benzoates, Nitrites as well as propionates are other popular synthetic kinds. As an illustration, the Department of Food Science & Technology in Brazil created a capillary electrophoresis method in July 2021 to find the sorbate and benzoate levels in tomato sauce, ketchup, and mustard. To increase effectiveness, propionates, benzoates, and sorbates are frequently combined. Due to their higher permitted limit and applications, such as preservation at higher pH, baked products, snacks, and other confectionaries, propionates are becoming more and more popular. Natural preservatives are in higher demand due to regulatory organizations supporting their use in processing and rising consumer concerns about their health. The natural goods category is predicted to dominate the market over the forecast period due to customer demand for items with clean labels. In North America and Europe, rosemary oil is a common natural preservative. There was also a sizable oil market in the Asia Pacific region. This is explained by the fact that it is frequently used in pickling meat & seafood, pickling vegetables, and preparing food. Due to its widespread use in pickling & food preparation, edible oil has a sizable market share among other natural preservative kinds.

Function Analysis & Insights

Anti-microbial preservatives had a market share of more than 75.0 percent in 2021. Anti-oxidants are the second most popular preservative in the world market after anti-microbials. Sorbates, benzoates, and other substances are regarded as safe in the United States and function as anti-microbial preservatives. In addition, Butylated hydroxytoluene, commonly referred to as dibutyl hydroxytoluene, is a valuable compound for its antioxidant qualities. The market is divided into anti-oxidant & anti-microbial segments based on function. To stop the formation of mold, sodium propionate, as well as calcium propionate, are added to baked as well as confectionery goods. Rosemary acid extracts and edible oils are a couple of natural anti-microbial substances derived from plants or animals. The expansion of microbes like Escherichia coli, Staphylococcus Aureus, Salmonella, and Aeromonas hydrophila is slowed by the metabolites found in these substances. In addition to other synthetic food preservatives, sulfites are employed in the brewing sector as anti-microbial agents. Moreover, Polyphosphates and citric acid are commonly used as legal food additives to speed up food processing or enhance the taste of numerous meals, especially meat & fish products. SMR research indicates that anti-microbial preservatives are used in food, with a conservative estimate of 63,151 tonnes consumed globally in 2020. In Brazil, India, Russia, China, & South Africa, we predict that by 2030, usage of anti-microbial agents will rise by 67%, nearly tripling globally, thereby propelling the overall growth. The transition to large-scale farms where the use of anti-microbial agents is prevalent and the rise in demand for livestock products in middle-income countries are likely to be the causes of this surge. Since customers are now conscious of the advantages of additives and choose goods high in anti-oxidants, anti-oxidants are one of the crucial ingredients in food labeling. Ascorbic acid, rosemary extract, green tea extract, and acerola all have anti-oxidant qualities and are frequently used to stop food oxidation.

Application Analysis & Insights

In 2021, the biggest sales volume and share, more than 30.0 percent, was accounted by meat and poultry in the global food preservatives industry. The demand is driven by the global expansion of the poultry, processed meat, & seafood industries throughout the forecast period. Food preservatives are utilized in a wide range of items, such as dairy, frozen goods, seafood, meat & poultry, drinks, candies, and oils and fats. Due to microbial deterioration, bakery items have a short shelf life, resulting in financial damage and a negative impact on the food product's qualitative attribute. Thyme, cinnamon, and Lemongrass have become popular natural substitutes in bakery applications. Because of the industry's growth in the Asia Pacific region, the drinks & beverage category is anticipated to experience the quickest increase over the projected period. Drinkable preservatives fall into one of three categories: anti-oxidants, antibacterial agents, or anti-browning agents. For instance, ascorbic acid, which is also a reducing agent, has anti-oxidant and anti-browning properties. One of the main factors affecting the cheese's shelf life is mold development on its surface. The three food preservatives that are most frequently employed in dairy products are natamycin, sorbate, and benzoate. The chemicals are used to prevent a variety of microbes from growing. With increased consumption, food preservative use is anticipated to rise in the dairy business.

Region Analysis & Insights

In 2021, North America's revenue share was over 30.0 percent, which was the highest. An increase in the usage of food products in the United States, Canada, and Mexico propelled the North American market. The development is anticipated to be aided by existing bakeries and a rise in processed meat consumption. The main driver of European market expansion is the drinks and food sector. The United States, Japan, Australia, China, and Saudi Arabia are Europe's leading export destinations for the food and beverage sector. Meat, seafood, dairy, and beverages such as alcoholic beverages, soft drinks, and dairy products make up the bulk of the products exported. Thus, higher exporting of food from Europe is anticipated. It's projected that during the following several years, the rise in the Asia Pacific market will be aided by the rising working population and consumers' demand for ready-to-eat foods. With a predicted CAGR of 6.3% over the course of the projection period, Asia Pacific is anticipated to become the region with the quickest growth. Countries in Central & South America have some of the fastest-growing industries for the consumption of meat and beverages. Brazil and Peru are the two countries with the fastest-growing soft drink consumption. Over the projection period, it is anticipated that the Region's need for anti-microbial agents will be driven by the beverage industry's strong rise.

Food Preservatives Market Competitive Landscape Analysis

The market was characterized by a sizable number of producers of synthetic preservatives. However, new players have entered the market due to the growing demand for organic preservatives. Manufacturers worldwide include Celanese Corporation, BASF SE, and ADM. The need for organic food is progressively rising due to rising health consciousness among consumers and rising readiness to pay more for high-quality goods. As a result, several natural food producers have entered the market, further escalating the rivalry. Manufacturers of natural food preservatives worldwide include Kemin Industries, Inc., Royal DSM N.V., and Galactic S.A. Leading businesses in the worldwide food preservation industry include:

• Kerry

• Cargill, Inc.

• Galactic S.A.

• Kemin Industries, Inc.

•  Corbion N.V.

• ADM

• Celanese Corporation

• Tate & Lyle

• BASF SE

Recent Developments:

• On 3rd August 2022, a new app was introduced by the researchers of the University of Burgos, which can examine food with toxins that cause cancer. Researchers have created a color-changing film that consumers may apply to processed meats to find out what's within. Nitrate and nitrite preservative levels are rapidly analyzed by taking a picture. They give sausages or bacon their distinctive flavor but can also create substances that might cause tumors. This innovation made it easy to identify toxins in food which was not possible previously.

• On 3rd August 2022, a pioneer in the luxury salmon jerky industry, UFisheries, announced that it targets female consumers as they prepare to enter Singapore. Although UFisheries is established in the United States and is one of the pioneers in using salmon instead of beef or pork to make jerky, Julie Wong, the founder of UFisheries, actually belongs from Singapore and hopes to take the company back to her native land.

•  On 12th May 2022, in order to substitute nitrite in processed meat, Givaudan introduced NaNino+, a patent-pending blend of plant-based chemicals and natural flavorings. Natural ingredients were used in its design, which offers a satisfying, all-encompassing culinary experience with good taste, color, and freshness. Due to rising consumer demand for healthier options and growing media emphasis on nitrites, processed meat producers are looking for clean-label solutions to naturally prevent the ingestion of nitrites.

• On 22nd January 2022, Silk fibroin was applauded as an "excellent option" as a way to maintain crop freshness, reduce food loss and guarantee food safety. It has great mechanical qualities and is edible, odourless, tasteless, and transparent once applied as a coating but has a low penetration to water vapor & oxygen.

•  Adding several new phage-robust culture rotations to DSM's cheese preservation offering was announced in July 2021. With the new cultural influences, cheese makers may take advantage of a system of culture rotation that is even more effective, assuring dependable and regular cheese production and the best possible phage management.