The Australian food additives market is projected to record a CAGR of 2.7% during the forecast period.

  • The food additives market is largely driven by expanding the processed foods market, increasing penetration of organized retail sector, and rising demand for processed foods coming from the emerging markets.
  • Increasing disposable incomes, working populations, and busy lives are driving consumers toward the convenience food category.
  • However, growing consumer awareness on the adverse impacts of chemical additives is pressurizing the food and beverage industry to introduce the natural additives category. The complex regulatory environment is another major restraint in the market.



Key Market Trends

Rising Popularity for Clean Label Ingredients

Consumers demand clean labels on products to gain knowledge about the product that they are about to consume and at what level. Their interest in identifying the ingredients present in the food and beverage products has triggered the growth of the clean-label ingredient market. Consumers are highly concerned about the long-term effects of the ingredients they are consuming, in terms of nutrition content and their impact on health, environmental sustainability, sourcing, and social responsibility. This has triggered the increasing demand for the clean label ingredient market. They are trying to avoid consuming products that contain synthetic ingredients, despite the price difference, as various published studies indicate that natural ingredients help avoid hyperactivity disorders and behavioral issues in children, among other benefits.

Increased Utilization in Beverages

The use of preservatives in the beverage industry is to avoid the change in taste, the color of the drinks, and bitter aftertaste.? As soft drinks are high in water activity and some of them are rich in vitamins and minerals, they are an attractive environment for microbes.? The usually low pH of the soft drinks, carbonation, sugar content in some of them, and the addition of preservatives, help to inhibit the growth of microbes and bacteria.? The type of chemical preservatives that can be used in beverages depends on the chemical and physical properties of both the antimicrobial preservatives and the beverage type.

Competitive Landscape

The Australian food additives market is fragmented with the presence of numerous players. The key players are focusing on product innovation, expansion, partnership, and mergers and acquisitions to meet the needs of growing consumers. The major players in the market are Archer Daniels Midland Company, Corbion NV, Kerry Group, Tate & Lyle PLC, and International Flavors and Fragrances.

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