Food additives market sees growth with increasing global consumption
Consumption, production, and demand for food additives such as antioxidants, emulsifiers, sweeteners, preservatives, and thickeners is growing during a challenging time for the food industry, with increased pressure and importance on procurement teams maintaining effective cost-margins. It's important to understand to understand this market as it adds a layer of complexity to the overall pricing picture for food products.
Key food additives facts and market drivers include:
- World consumption of food additives is projected to grow at an average annual rate of 2.4% per year during 2020-2025
- China, the Middle East and Africa, the Indian Subcontinent, Southeast Asia, and Central and Eastern Europe are expected to see above-average growth because of rising living standards, increased urbanization, and growing demand for processed foods
- In 2020, the food additives market globally was valued at USD 26.2 billion
- China will become the largest consumer of food additives by 2025, with a total market share of almost 24%
- Increased demand for plant-based foods and beverages will stimulate the consumption of certain additives
- Changing policy and regulation operating at a local and regional level
- Rising cost of sourcing food commodities and their ingredients
- Increased shipping costs and shifts in demand and consumer behavior
- Pressure on supermarkets and food convenience companies to source food commodities at better rates to protect profit margins.
- Materials and ingredients used in some commodities are experiencing medium to long-term cost rises.
- Food retail sector may or may not choose to pass on these costs to end consumers
Read our recent white paper, China is set to be a major player in the food additives market in terms of both production and consumption for more details, data, projections, and overall outlook on the global consumption of food additives.
This article was published by S&P Global Commodity Insights and not by S&P Global Ratings, which is a separately managed division of S&P Global.
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