The global food additives market appears to be highly fragmented, not only in terms of competitors, but also in terms of diversity of products. Several major players operating in the global food additives market are focusing their energies on mergers and acquisitions. For example, in 2012, Elephant Atta, a prominent flour brand in the U.K., was acquired by Associated British Foods plc. Archer Daniels Midland Company acquired Specialty Commodities Inc. in August 2014, and in October of the same year, it acquired WILD Flavors GmbH. These acquisitions will enable the firms to enlarge their consumer base, penetrating to newer, unexplored markets, thereby earning more profits.
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Another key strategy employed by these companies is the expansion of their respective product portfolios. Archer Daniels Midland Company introduced a new additive that has zero calorie content and can be consumed with any food, including beverages, dairy, and bakery products. Ajinomoto Co., Inc., which ranks first among market players in terms of revenue generation, launched two new products in 2014 in order to maximize its share in the food additives market.
In 2014, the global market for food additives was pegged at US$31.4 bn. It is slated to grow at a considerable pace, displaying a CAGR of 3.40% between the forecast period of 2015 and 2021, attaining a revenue worth US$39.8 bn by the end of 2021.
Demand for Flavors and Enhancers Higher than that of Other Product Segments
Among the numerous product segments of the global food additives market, flavors and enhancers were at the headmost, driven by growing inclination towards healthier food options. This segment is projected to grow at a CAGR of 2.9% over the forecast period 2025-2021, attaining a revenue share worth 32.4% by the end of 2021.
Based on geography, the global food additives market has been segmented into North America, Asia Pacific, Europe, and Rest of the World. Europe appeared at the forefront of the regional scene, accounting for a major share in the global market. The key drivers of the food additives market in this region are high demand for new flavors and tastes in various processed food products, apart from the need for natural food ingredients and increasing prevalence of obesity. The global food additives market in Asia Pacific is expected to rise substantially, as the popularity of processed food and fast food has been paramount in recent times. Asian countries such as India have been exhibiting high preference for food items that make use of food additives in order to enhance the taste and appearance of the products.
Flourishing Food Industry to Promise Growth
The steadily advancing food and beverage industry is expected to assist the global food additives market to reach new heights, according to the findings of Transparency Market Research (TMR). The increasing demand for high quality food products – as the per capita incomes of people keep growing – is likely to drive the global food additives market. Also, as there are no proper substitutes for food additives and as they play a pivotal role in several application industries, the demand for food additives will surge on a global scale. Rising sense of health awareness among consumers has been reflected in the growing demand for functional food ingredients. This will also contribute towards expansion of the market.
On the other hand, the growth of the global market for food additives might get obstructed on account of quality control of products, supply chain management, and inflation. However, the negative impact of these factors will be neutralized by the consistent growth of the synthetic additives segment.
The information presented in this review is based on a Transparency Market Research report, titled, “Food Additives Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2015 - 2021”.
Key segments of the Global Food Additives Market
Global Food Additives Market by Product Type:
- Flavors and Enhancers
- Food Preservatives
- Fat Replacers
Global Food Additives Market by Source:
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