(Entertainment-NewsWire.com, June 21, 2024 ) The global food preservatives market size was valued at US$ 3.3 billion in 2022 and is poised to grow from US$ 3.4 billion in 2023 to US$ 3.9 billion by 2028, growing at a CAGR of 3.0% in the forecast period (2023-2028). Food preservatives are compounds that are added to food products to help them last longer and prevent deterioration. They aid in the inhibition of bacteria, fungus, yeasts, and other microorganisms that can cause foodborne sickness or degradation. Preservatives are widely utilised in processed and packaged foods, as well as some homemade and professionally produced goods.
The food preservatives industry is bound to rise with high demand for processed food, the rise in meat consumption, and rising demand for products with an extended shelf life. New innovations are taking place in the natural preservatives segment owing to the rise in demand for clean-labeled ingredients in the European and North American market. This is also fueling the overall growth of the industry.
Drivers: Growing demand for food products with an extended shelf life
With the rise in urbanization and employment globally, consumer lifestyles and eating habits have changed drastically. Consumers are thus looking for food products that are easy to prepare, consume, and have a longer shelf life. Food preservatives play a huge role in extending the shelf-life of food apart from keeping it fresh. Thus, with the rise in demand for food with longer shelf-life, the demand for food preservatives has increased in the food and beverage industry. This is because preservatives offers food manufacturers advantages in terms of storage efficacy and competitive pricing. Moreover, post COVID-19 pandemic, health consciousness has rose, which is also positively stimulating the growth of natural preservatives such as citric acid and rosemary extracts, thereby driving the overall market.
Restraints: Growing demand for organic food
Organic sales have grown exponentially over the decade, especially in North American and European countries owing to the influx of knowledge regarding good diet. The USDA (United States Department of Agriculture) prohibits organic foods from containing artificial preservatives, colors, and flavors. Organic food products are also consumed fresh by the consumers which limits the necessity of storing the food over longer period, hence no use of preservatives. Though the overall demand for organic foods is smaller than for non-organic food, the significant rise in the demand for organic food is capable to restrain the growth of food preservatives market.
Opportunities: Clean-label trend across global food markets
Recent surveys and research show a growing inclination of consumers towards reading product labels, and preferring clean food ingredients. This is because consumers these days are constantly looking to incorporate natural, fresh, wholesome, and balanced nutrition. Manufacturers in the food preservatives industry are thus focused to find out clean-labelled solutions and breakthroughs in the market. As a result, innovation around natural preservatives is spiking across the industry. Growing trend toward clean-label products is expected to create lucrative growth opportunities for market players to focus on the development of new formulations and new developments in the food & beverage industry.
Challenges: High price and limited availability of natural preservatives
There is limited availability of natural sources; natural preservatives such as nisin and natamycin are at least ten times heavier priced than chemical preservatives. Many natural preservatives are yet to be manufactured on a larger scale. The commercialization of manufacturing processes of natural preservatives is in a nascent stage. Good and reliable sources of high-quality natural preservatives are still being studied, and tests are conducted to check for efficacy. Therefore, until these challenges related to natural preservatives are acknowledged and resolved, the full growth potential of the food preservatives market is expected to be challenging to a certain extent.
Synthetic preservatives by type are estimated to account for the largest market share of the food preservatives market
Based by type, synthetic preservatives are estimated to account for the largest market share. Factors responsible for the wide-scale popularity of synthetic preservatives in the food preservatives market include their large-scale commercialization, easy availability, proven efficacy and cost-effectiveness. Less R&D investment, and low regulatory norms in the emerging Asia-Pacific economies is also contributing significantly in the large market share of synthetic preservatives.
By function, antimicrobials are anticipated to dominate the market during the forecast period
Based on function, the market is segmented into antimicrobials, antioxidants, and other functions. Antimicrobials are anticipated to dominate the market during the forecast period. There is a rise in demand for frozen food products. Packaged foods when kept over a period of time are highly prone to microbial spoilage owing to temperature, moisture, and pH changes. Usage of antimicrobials such as nitrites, nitrates, and sulfur dioxide prevents degradation of food. This is facilitating the dominance of antimicrobials in the food preservatives market.
North America is projected to be the largest region in the food preservatives market, in 2022; it is anticipated to grow at a significant CAGR
North America has always been an attractive and huge market for processed food industries due to large consumption of packaged and ready-to-eat foods. It is also among the biggest exporters of meat and meat products. These food products need incorporation of food preservatives which are responsible for their longer shelf-life. As a result with high demand for meat exports and processed food, the demand for food preservatives in the region is high. Moreover, North America has a well established food & beverage industry with the presence of leading players such as PepsiCo (US), McCain Foods Limited(Canada), Tyson Foods (US), among others.
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