Global Powdered Natural Food Additives Market Research Report - Segmented By Source (Plants, Animals, Insects); Function (Emulsifiers, Colouring Agents, Preservative, Flavouring Agents, Sweeteners, Stabilizers, Fiber Enrichment, Others); End-User (Beverages, Bakery and Confectionary, Dairy and Frozen Desserts, Sauce and Dressings, Others); and Region - Size, Share, Growth Analysis | Forecast (2023 – 2030)

Global Powdered Natural Food Additives Market Size (2023 – 2030)

Global Powdered Natural Food Additives Market is estimated to be worth USD 26.05 Billion in 2022 and is projected to reach a value of USD 40.59 Billion by 2030, growing at a CAGR of 5.7% during the forecast period 2023-2030.

Food additives are compounds that are added to food to retain flavour or improve taste, appearance, or other sensory aspects. This enables the storage of longer-lasting goods such as bacon, sweets, and wines. Some food additives, such as salt (in meats such as bacon or dried salmon) and sugar (in marmalade) have been used for generations to preserve food.  Food additives are only justifiable when they serve a technological requirement, do not mislead customers, and have a well-defined technological function, such as preserving nutritional quality or increasing food stability. With the introduction of processed foods in the second part of the twentieth century, several additives, both natural and artificial, were added. Chemical substances taken from plants, animals, or minerals are natural additives. A few examples of powdered natural food additives include garlic powder, turmeric powder, onion powder, fruit powder, ginger powder, cinnamon powder, moringa powder, etc.

These additives form an important part of the food and beverage industry. With the rising demand of products, the additives are largely used across various sectors. Additionally, they provide a lot of health benefits. During the forecasted period, the market is all set to see significant growth.

Global Powdered Natural Food Additives Market Drivers:

Functional health benefits associated with the consumption of clean food help in driving market growth.

The addition of food additives helps in nutritional boost. For instance, turmeric powder contains compounds which have anti-inflammatory properties; beetroot powder is rich in nitrates helping with cardiovascular health; psyllium husk powder has fibres aiding in digestive health. Some additives are known to cause relaxation, mood enhancement, better metabolism, blood sugar control, improve energy levels, and digestion. These factors play a role in boosting market growth.

Advantageous properties of additives help in uplifting the market demand.

Powdered natural additives help in colour enrichment, flavour enhancement, better taste, longer shelf life, preservation, and improvement in texture, and require minimal processing. Additionally, they have no chemicals which cause harmful effects on the human body. Furthermore, they are environmentally friendly and promote a sustainable lifestyle.

Global Powdered Natural Food Additives Market Challenges:

Few powdered natural food additives can cause allergies leading to serious repercussions. Some of them have been associated with side effects like headaches, nausea and dizziness. Moreover, scale-up technologies require proper training and education which can be a barrier. Furthermore, the technologies used to process can cause hamper the growth because of the complexity.

Global Powdered Natural Food Additives Market Opportunities:

The demand for consumption of healthy and clean food is seeing a significant rise. Plant-based food and veganism have seen a notable ride. Product innovations, research and developmental activities, Government schemes, company collaborations and partnerships, and investments are presenting the market with an ample number of opportunities. Furthermore, food additives derived from natural sources are less expensive and affordable creating numerous opportunities in the market.

COVID-19 Impact on the Global Powdered Natural Food Additives:

The pandemic affected the market growth. Lockdown, movement restrictions, and social distancing were the new norm. This affected the supply chain, logistics, transportation and import-export trade. The closure of restaurants, hotels, and manufacturing units, and the shortage of labour further caused a toll. Furthermore, regulatory and certification challenges became a barrier. However, post-pandemic, the industry saw a notable growth rate due to online food ordering, relaxation of rules and regulations, and shifting consumer preference towards the consumption of healthy food.

Global Powdered Natural Food Additives Recent Developments:

• In October 2022, Sensient Technologies Corporation announced the expansion of Sensient’s natural colour production capabilities at the company’s River Street facility in Kingston, Ontario. Sensient invested more than 400 thousand dollars in advanced natural colour dispersion equipment to meet the growing demand for higher-performing natural colours.

• In June 2022, Cargill announced the signing of an agreement to acquire Delacon, the developer of plant-based phylogenetic additives to advance the market presence of natural, plant-based feed additives on a global scale, and meet changing consumer preferences of what animals are fed and how food is produced.

• In February 2022, food technology startup, Gavan created natural blue colourings for hot and cold drinks via a proprietary technology. Derived from spirulina, this new natural blue held up under high heat processing and in low pH, enabling full pasteurization along with delivering high performance and high stability.
• In December 2020, Tate & Lyle acquired Stevia Company Sweet Green Fields. The deal was expected to strengthen Tate & Lyle’s sugar reduction and clean label offerings while extending its presence in the Asia Pacific region.

GLOBAL POWDERED NATURAL FOOD ADDITIVES MARKET REPORT COVERAGE:

Global Powdered Natural Food Additives Market Segmentation:

Global Powdered Natural Food Additives Market Segmentation: By Source

• Plants

• Animals

• Insects

Plant-based powdered natural food additives are the largest and fastest-growing segment based on source in the powdered natural food additives market. This is mainly due to the rising vegetarian and vegan population, nutritional and functional qualities, availability, affordability, demand, and popularity from ancient times. Furthermore, the trend towards the consumption of clean-label food and sustainable options helps in the generation of more revenue and profits.

Global Powdered Natural Food Additives Market Segmentation: By Function

• Emulsifiers

• Colouring Agents

• Preservative

• Flavouring Agents

• Sweeteners

• Stabilizers

• Fiber Enrichment

• Others

Sweeteners are the largest growing segment in the powdered natural food additives market. Sweeteners like stevia and monk fruit extract have gained significant prominence due to lesser calorie and sugar intake. With rising cases of diabetes and a larger population inclining towards healthy sugar alternatives, this segment is expected to further boost its growth. Flavouring agents were the fastest growing segment in the powdered natural food additives market owing to their authenticity and recognizable flavours. Herb extracts, vanilla extract, and citrus extract played a notable role. Additionally, the health benefits further raised the growth rate.

Global Powdered Natural Food Additives Market Segmentation: By End-User

• Beverages

• Bakery and Confectionary

• Dairy and Frozen Desserts

• Sauce and Dressings

• Others

Bakery and confectionery is the largest growing end-user segment in the powdered natural food additives market. To improve the quality of bakery products, colouring agents, sweeteners, and preservatives are frequently used. This enhances the shelf life, appeal, flavour, and nutritional value driving market growth. Beverages are the fastest-growing end-user segment due to the different flavour options, flavours, consumer trends, and higher consumption frequency.

Global Powdered Natural Food Additives Market Segmentation: By Region

• North America

• Europe

• Asia Pacific

• Middle East & Africa

• South America

Asia Pacific is the largest and fastest-growing region in the powdered natural food additives market. This is due to rapid urbanization, changing consumer preferences, economic growth, cultivation, and expanding food and beverage industry. China is one of the top leading countries in the Asia Pacific due to population, Government initiatives, cultural significance, and economic growth. Japan, South Korea, and India are among the key players as well. North America and Europe are emerging regions holding a notable share in the market because of rising demand for clean-label food, transparency, and shifts in consumer trends. Countries like the USA, Canada, Germany, the UK, and France are significant North American and European countries in this market.

Global Powdered Natural Food Additives Market Key Players:

1. Archer Daniels Midland Company

2. Kerry Group

3. Ingredion

4. Robertet

5. Chr. Hansen

6. Cargill

7. Symrise

8. Dohler

9. Sensient Technologies

10. Firmenich