Natural Food Preservatives Market - Forecast(2023 - 2028)

Natural Food Preservatives Market Overview

The Natural Food Preservatives Market size is estimated to reach $1.1 billion by 2027. Furthermore, it is poised to grow at a CAGR of 3.5% over the forecast period of 2022-2027. Natural preservatives are naturally derived additives that are used in a variety of items, including snacks, bread, confectionery, meat, fish, poultry, and others, to maintain the natural properties of food and extend its storage shelf life. Natural food preservatives are also utilized to prevent spoiling during shipment. Freezing, boiling, smoking, pasteurizing, pickling, and others are some of the methods used for food preservation. Sugar and salt were the first natural food preservatives that effectively suppressed microbial development in food. Food preservatives are also used to extend the shelf life of food by preventing the growth of microorganisms such as yeast and slowing down the oxidation process. Food additives are linked to a person's health as well, without them, germs and other contaminants can impact one's health and lead to foodborne illnesses, often known as food poisoning. The demand for food preservatives is skyrocketing as the snack and packaged food market evolves as these industries need significantly high self-life for their products. Further, lactic acid and chemical compound derivatives such as isothiazolinone are commonly used preservatives as they have antibacterial characteristics. Spoilage of fresh meat & poultry is a financial burden to producers and consumers, therefore, the use of natural preservatives increases which in turn accelerates the market growth.

The rising consumption of processed or convenience food and the growing trends of adopting organic food products are some of the factors driving the Natural Food Preservatives Industry forward in the projected period of 2022-2027. 

Natural Food Preservatives Market Report Coverage

The report: “Natural Food Preservatives Market Forecast (2022-2027)", by Industry ARC covers an in-depth analysis of the following segments of the Natural Food Preservatives Market.

By Type- Natural, and Synthetic
By Product Type- Salt, Sugar, Oil, Honey, Citric Acid, Vinegar and Others.
By Function- Antimicrobial, Antioxidants and Others
By Application- Meat & Poultry, Seafood, Snacks, Bakery, Dairy, Fruits and Vegetables and Others.
By Geography- North America (U.S., Canada, Mexico), Europe (Germany, United Kingdom (U.K.), France, Italy, Spain, Russia, and Rest of Europe), Asia Pacific (China, Japan India, South Korea, Australia, and New Zealand, and Rest of Asia Pacific), South America (Brazil, Argentina, Chile, Colombia and Rest of South America), and Rest of the World (the Middle East, and Africa).

Key Takeaways

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Natural Food Preservatives Market Segmentation Analysis- By Type

The Natural Food Preservatives market based on type can be further segmented into Natural, and Synthetic. Natural held a dominant market share in the year 2021. There is high demand for natural food additives as food companies shift away from synthetic ingredients and consumers look for products with natural ingredients. Natural preservatives like vinegar are made from the fermentation of sugar and water solutions and are effective natural preservatives. The acetic acid in vinegar kills microbes and stalls food spoilage. Pickling is a common method of using vinegar as a preservative and also adding flavor to foods. Natural preservatives like citric acid are predominantly used in beverages and also as an acidifier in foods. Apart from the well-known natural preservatives, plant extracts such as rosemary are increasingly used, especially for meat, poultry, and frozen meat application segments. As people become more health-conscious, there is a sharp increase in demand for organic and chemical-free foods. Manufacturers are using more natural preservatives due to concerns about environmental sustainability, which has sped up growth.

However, Synthetic is estimated to be the fastest-growing, with a CAGR of 4.5% over the forecast period of 2022-2027. Synthetic food preservatives are a class of chemical compounds used in the food industry to prevent spoiling, discoloration, and pollution caused by bacteria and other diseases or organisms that cause illness. Changing lifestyles and growing food trade worldwide has resulted in increasing food conservation demand. Various government bodies and private industries maintain adequate regulations to maintain a high standard of preservative food quality, thereby, driving the segment growth.

Natural Food Preservatives Market Segmentation Analysis- By Application

The Natural Food Preservatives market based on the application can be further segmented into Meat & Poultry, Seafood, Snacks, Bakery, Dairy, Fruits and Vegetables, and Others. Meat & Poultry held a dominant market share in the year 2021 and is also estimated to be the fastest-growing, with a CAGR of 4.9% over the forecast period of 2022-2027. The increase is owing to the tremendous consumption, as a large portion of the world's population is not vegetarian. Individuals' disposable income or purchasing power is increasing as a result of globalization and trade expansion, and as a result, consumers' buying behavior is changing, and more people can afford to make such purchases. On the other hand, as meat has such a short shelf life, preservatives are required. Meat preservatives help to control spoilage by inhibiting the growth of microorganisms, slowing enzymatic activity, and preventing the oxidation of fatty acids that promote rancidity. BHT and tocopherols are two major preservatives found in meat, poultry, and egg products (vitamin E). Whole wheat, rice germ, and vegetable oils are high in vitamin E. Vitamin E help to keep oils from going rancid. Citric acid and propyl gallate are two more preservatives found in beef. Sodium nitrite is a preservative found in cured meats, bacon, and ground beef. When sodium nitrite is added to meat or fish, it eliminates toxins and reacts with the proteins. Meat processors' solutions to improve shelf life and flavor can also assist minimize infections like E. coli, hence enhancing the segment revenue.

Natural Food Preservatives Market Segmentation Analysis- By Geography

The Natural Food Preservatives market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. In 2021, North America held a dominant market share of 37% as compared to its other counterparts. The North American market is being driven by elements including the vast population and growing demand for authentic ethnic flavors, the rising popularity of convenience meals, and expanding knowledge of the therapeutic benefits of food preservatives. Manufacturers are increasingly using food preservatives to extend the shelf life of their products owing to increase demand for convenience and processed foods. Furthermore, as North America is a significant supplier of fruits, the demand for preservatives rises. The market for natural preservatives has been pushed by awareness of many hazards connected with artificial preservatives. In terms of the commercialization of food items and ingredients, North America has highly controlled policies. Manufacturers have reaped the benefits of such rules by introducing innovative preservatives with minimal or no adverse impact on human health. According to USDA, in 2020, the United States topped the list of countries that consume beef. As per the same source, the United States consumed 21 percent of the 130 billion pounds of beef consumed worldwide. Furthermore, owing to the rich economies of North American countries such as Canada and the United States, there is a significant demand for easy meals, hence expanding the regional growth.

Natural Food Preservatives Market Drivers

The Rising Consumption of Processed or Convenience Food Drives The Market Growth.

Busier lifestyles and changing consumption patterns have led to an increase in demand for processed, ready-to-cook, and ready-to-eat food further surging the growth of the natural food preservatives market. The demand for dinnertime solutions among today's consumers is fast expanding, as consumer meal consumption habits are significantly changing. Many consumers are willing to spend money in the ready-to-eat market since they do not have the time or skills to make food at home. As a result, the need for convenience food retail has soared. Convenience food is tertiary processed foods or foods which are designed to save consumers time in the kitchen, reduce costs owing to spoilage, and reduce costs using economies of scale. Some convenience foods can be consumed instantly or some after the addition of some water, heating, or thawing. The rapid urbanization, improving consumer lifestyle, and high disposable income, are increasing the demand for on-the-go convenience foods. In addition, factors such as the growing millennial population, increasing population of working women, busy work schedules, and on-the-go consumption habits enhance the growth of natural food preservatives. According to the National Association of Convenience Stores, the sales of convenience food increased at a rate of 7% in 2019 which further increases the demand for natural food preservatives.

The Growing Trends of Adopting Organic Food Products Enhance Natural Food Preservatives Industry.

The growing health consciousness of the general public has resulted in an increase in demand for a healthier option that rises the use of natural preservatives. According to the United States Department of Agriculture, the sales of organic food soars by 12.4% in 2020. Consumers are becoming more health-conscious owing to the harmful effects caused by the presence of chemical pesticides in food products. The toxicity of chemical pesticides in food products can cause cancer, hormone disruption, and birth defects. According to a UN report, around 200,000 people die every year owing to the toxic effects of pesticides in food products. This is causing consumers to shift their focus towards organic food products. Companies in the organic food market are focusing on the introduction of new product categories and varieties. Organic food manufacturers are coming up with new and innovative organic food products in the form of ready-to-eat snacks, cookies, organic tea, pulses, spices, edible flowers, frozen waffles, medical plants, herbs, and organic juices. Owing to such factors, the usage of natural food preservatives rises in organic products.

Natural Food Preservatives Market Challenges

Health Risks Associated with Natural Food Preservatives may Impede Market Growth

Preservatives have become an important part of manufacturing organizations’ stocks to keep food fresh, taste well, and last longer. The market for preservatives is being driven by rising demand for easy or ready-made foods. However, various health risks associated with such diets are expected to stifle overall improvement. Synthetic preservatives like sodium propionate, potassium, and calcium propionate have been linked to cardiac problems, lung problems, immune system abnormalities, and cancer. Furthermore, cancer rates have been increasing globally. Owing to the adoption of the western lifestyle, improper dietary habits, dairy, processed foods, food additives, non-vegetarian diets, chemical pollution, constipation, and lack of exercise surge the cases of cancer as the use of preservatives increases in processed food. According to the World Health Organization, about 10 million deaths occurred from cancer and therefore the use of preservatives reduces among the manufacturers which in turn restrains the market growth. Moreover, The Centers for Disease Control and Prevention (CDC) estimate that foodborne illnesses cause 48 million illnesses, 128,000 hospital admissions, and 3,000 fatalities annually in the United States, which restricts the food preservative ingredients usage and thus limits the market revenue.

Natural Food Preservatives Industry Outlook

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Natural Food Preservatives Market. The top 10- Natural Food Preservatives Market companies are-

1. Akzo Nobel N.V.
2. Danisco A/S
3. Cargill Incorporated
4. Univar Inc.
5. Koninklijke DSM N.V 
6. Brenntag Solutions Group, Inc.
7. Tate & Lyle
8. Kemin Industries, Inc. 
9. Galactic 
10. Hawkins Watts Limited

Recent Developments

• In September 2021, Cargill has entered into an agreement to acquire Arkema's epoxides business, which includes a facility in Blooming Prairie, Minnesota, as the market for bio-based industrial solutions continues to expand. After the investment closes, Cargill will have complete production capabilities for bio-based plasticizers and polyols, allowing the company to offer its industrial clients natural substitutes for conventional petroleum-based additives.

• In July 2021, DSM has announced the updating phage-resistant culture rounds to its Dairy Safe cheese biopreservation investment. Cheese producers benefit from a much more robust culture rotation system, helping to ensure stable and accurate cheese production as well as beneficial phage management, with the cultural experiences.

• In July 2021, Tate & Lyle announces that it has reached an agreement with KPS Capital Partners, LP ("KPS") to sell a controlling interest in a new company and its subsidiaries ("NewCo"), which includes its Primary Products business in North America and Latin America as well as its interests in the joint ventures with Almidones Mexicanos S.A de C.V. ("Almex") and DuPont Tate & Lyle Bio-Products Company, LLC ("Bio-PDO"). After normal adjustments and transaction fees, Tate & Lyle anticipates gross cash proceeds of approximately US$1.3 billion (c.£0.9 billion), translating to net cash proceeds of approximately US$1.2 billion (c.£0.9 billion).

Relevant Titles

Dried Processed Food Market- Forecast (2022-2027)

Report Code- FBR 0241

Organic Food and Beverages Market- Forecast (2022-2027)

Report Code- FBR 0036

Fruits and Vegetables Market- Forecast (2022-2027)

Report Code-AGR 97508

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