Food preservatives market to hit $2.8 billion by 2020

CHANGING consumer trends and preferences are redefining the global food preservatives industry. The market, which is influenced by the food and beverage processing sector, is forecast to grow to US$2.8 billion from 2015 to 2020 at a CAGR of 2.4%.

MarketsandMarkets’ new report titled "Food Preservative Market by Type (Natural & Chemical), Function (Antimicrobial, Antioxidant), Application (Oil & Fat, Bakery, Dairy & frozen, Snack, Meat, Poultry & Seafood, Confectionery, Beverage), & Geography - Global Trend & Forecast to 2020," presents current and upcoming trends in the industry (brief).

Responding to the need to prevent food spoilage and guarantee product safety for consumers, the food preservatives market continues to evolve, heralding new preservation methods and a wide range of chemical and natural preservatives. To meet today’s technological demands, industry players are working to improve the properties of preservatives toward enhancing their adaptability to different kinds of products.

Although North America currently dominates the global food preservatives market, the Asia-Pacific region is experiencing the biggest CAGR.

Growing preference for healthy eating, in particular natural and organic foods, and rising demand for convenience food products are shaping the food and beverage sector in the Asia-Pacific. Ingredients suppliers in the region are becoming more optimistic about growth as economies show positive signs of recovery and   industrialization continues. Increasing demand for processed foods and a greater preference on the part of consumers for quality products also contribute to this positive outlook.

Rising awareness about the health hazards of chemical preservatives on one hand, and the health benefits of natural alternatives on the other will also determine market developments. Limited sources and the high cost of natural preservatives could restrain their adoption.

Meanwhile, the industry in North America is driven by the U.S. market. In Europe, commodities such as synthetic anti-microbial and other food preservation additives rose in popularity because of their ability to prolong product shelf-life. These preservatives, however, will continue to grow depending on technology improvements and effective delivery system aimed at curbing undesirable effects on food products.

MarketsandMarkets used secondary sources to determine geographical and application split, which are verified through primary respondents. It factored in demand in different regions and estimated the market share of the different regions. For the market estimation, it used various parameters such as the number of players, demand trends, supply trends, and the extent of research activity in a particular region.