Food additives are used to enhance the taste, texture, colour while maintaining the nutritional content in foods. Food preservatives are a growing segment in the food additives market as they are used to prevent spoilage and decomposition which takes place in food products due to microbial reactions. The Food preservatives market is expected to reach US $2.9 billion by 2021 with an estimated CAGR of 3.5%.
The preservatives market is largely driven by demand for convenience and packaged foods by the burgeoning population and rising urbanization rates. However, the major constraint is the increased awareness on the ill effects of synthetic ingredients and growing consumer demand for fresh and natural foods. Companies are seeing this as an opportunity to innovate and provide solutions in the form of natural and functional ingredients.
Food preservatives are classified as natural and chemical preservatives, with chemical preservatives currently accounting for a large market share. Region wise, North America forms the largest segment, with US region dominating the market. The estimated CAGR for the North American region is 2.7%. This is followed by Asia-Pacific market which is the fastest growing segment due to growing preference for packaged and processed foods.
The major players in the market are Brenntag, PuracBiochem, Cargill and Kerry group. The strategies used by companies is investments in in Research and Development to innovate products under the natural preservatives segment to meet the growing consumer preference.