Food preservatives are additives that are included in food products to stop oxidation or microbial growth-related deterioration. Food preservatives are crucial for increasing the shelf life of food items, preserving their quality, and avoiding food spoilage. The purpose of preservatives is to prevent the growth of bacteria, fungi, and other hazardous microbes. Preservatives can be either natural or synthetic.

The market for food preservatives in 2021 was USD 3 billion, and by 2030, it will be worth USD 4.65 billion, growing at a 5% CAGR during the forecast period. 

Common food preservatives include salt, sugar, citric acid, potassium sorbate, and sodium benzoate. People are becoming more mindful of their health, and there is a growing global need for safe and nutritious food. As a result, the industry is seeing an increase in demand for food preservatives.

Market Dynamics

Drivers

Recently, consumers are more inclined to choose meals that are ready to eat and have a long shelf life. In order to increase shelf life, food preservatives are becoming more and more popular in such products. Consumers are gravitating toward food products that are safe to ingest as their concerns about food safety and security grow. As a result, the market is growing as a result of rising demand for natural food preservatives.

The development of novel and inventive food preservatives due to advancements in food processing and packaging technologies has increased the availability and potency of food preservatives and stimulated the market's expansion. The need for food preservatives is driven by customers' increased spending on packaged and processed foods as their disposable income levels rise. Additionally, food preservation lowers food waste, landfill waste, and other environmental footprints.

Restraints

Several food preservatives also pose a risk to the health of consumers. For instance, the meat-preserving chemicals sodium nitrate and sodium nitrite have been linked to an increased risk of cancer. Some people develop allergies to food preservatives, which can result in severe responses like hives, swelling, and breathing difficulties. Preservative usage can potentially impair the nutritional content of food products by causing nutrient loss in food.

Opportunity 

The need for and demand for organic preservatives have grown along with the desire for natural food items. Due to consumer desire for goods with fewer chemical preservatives, a new business opportunity has also been created for natural preservatives like nisin and natamycin. In the United States, natural preservatives are now fully utilized in various food products, such as sausages, and they continue to be combined with chemical preservatives in dairy and frozen food products. Natural preservatives are increasingly being used in convenience foods, meat, and baked goods.

Market Segmentation 

By Type

The synthetic preservatives segment held the largest market share of nearly 66% in the year 2022. This preservative functions as an antioxidant that increases food acidity lowers moisture content, slows down ripening, and inhibits the growth of microbes, all of which assist in extending the shelf life of fast meals. This market's expansion is driven by the rising demand for synthetic food preservatives in the meat and poultry, food, and snack industries.

By label Type

In 2022, the conventional segment led the entire market with a revenue share of nearly 63%. Conventional preservatives are crucial for extending food's shelf life. Drying, chilling, pasteurization, and fermentation are some of the traditional methods for food preservation.

This segment market is expanding due to growing consumer desire for natural and additive-free food items. A product with a clean label is typically free of chemical additions, has an understandable ingredient list, and has undergone natural processing.

By Function 

In 2022, the antimicrobial preservatives category ruled the industry with a share of nearly 76%. This preservative is crucial for protecting food, medicine, and other organic materials from bacteria. Methyl, Ethyl, Propyl, Sorbic Acid, and Butyl Parabens are examples of this type of preservative.

By Application

With a 35% market revenue share in 2022, the meat and poultry segment dominated the industry. The segment is growing due to the increasing demand for meat and fish. In meat & poultry, food preservatives like sodium lactate and potassium lactate are highly sought after since they extend shelf life and combat bacteria.

Regional Analysis

North America was the biggest market in 2022, with a revenue share of 34%. The largest share is due to the rising demand for safe food items and the desire to prevent food waste. Due to rising health hazards, consumers in developed nations like the US, Canada, and Mexico favor natural foods that have undergone little processing. 

Due to rising demand in the food sectors and for dairy products, the Asia Pacific region will develop at the quickest CAGR during the forecast period.

Key Players 

· Cargill, Inc.

· Kerry

· Galactic S.A.

·  Corbion N.V.

· Kemin Industries, Inc.

· ADM

· Tate & Lyle

· Celanese Corporation

· BASF SE

The market for food preservatives in 2021 was USD 3 billion, and by 2030, it will be worth USD 4.65 billion, growing at a 5% CAGR during the forecast period. The demand for frozen foods with longer shelf lives and convenience foods has increased the demand for food preservatives.

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