With the presence of Free Trade Agreements (FTAA) amongst several countries, globalization has had a significant impact on food choices and health. Countries are now visibly sharing food tastes while making cross-border investments in food-related enterprises. This has contributed to the innovation and growth of the food and beverage industry across the world. Food products are now being increasingly exported and imported to different countries, largely contributing to the overall revenue earned by the food and beverage industry annually. According to the International Trade Centre, miscellaneous edible preparations consisting of sauces, ice creams, extracts, bakery raw materials, coffee, and others worth $77 billion were imported in different countries across the world. This is reflective of the humongous size of the food and beverage industry, the demand of which will continue to grow at an unprecedented rate. The growth of this industry has contributed to the rise of the food and beverage additives market. Food additives are generally used for enhancing or preserving the flavor of food and beverage products. Though a large number of food additives are chemically derived in the present production scenario, the human population has used additives since ancient times. Pickling, fermenting, salting, and other common food processes have been carried out in the past with natural ingredients that are making a comeback as a part of the organic food trend. An increasing number of consumers are demanding the usage of naturally derived preservatives in their food products since chemically-derived additives have sometimes been reported to harm human health. In the upcoming years, the growth of the food and beverage additives market will be primarily driven by increasing consumer demand for packaged food and ready to eat meals, while also by food globalization. In 2018, the food and beverage additives market revenue stood at $105 billion and will grow with an estimated CAGR of 3.7% during the forecast period of 2019-2025.

North America Emerging as the Geographical Leader of the Food and Beverage Additives Market

According to IndustryARC’s research, North America earned the highest revenue regionally in the food and beverage additives market in 2018. The region had a share of 32% out of the total revenue earned by the market in the same year. This region experiences dynamic migration activities are owing to an eminent job and education opportunities. The U.S. has more immigrants than any other country in the world. According to the Yearbook of Immigration Statistics of 2016, 1.18 million lawful permanent immigrants were residing in the U.S. as of 2016. An immigration influx is an opportunity for the expansion of cultural diversity. With an increase in immigrants, North American countries are experiencing the development of a composite culture where people get to experience food tastes of different cultural backgrounds.

Furthermore, the North American population has also readily embraced food products of the modern diet. The growth of the North American sweet and salty snacks market is a prime example of this trend with annual earned revenue in 2018 evaluated at $74 billion. Several kinds of food and beverage additives such as citric acid, colorants, preservatives, flavorings, and others are used in the production of sweet and salty snacks. These factors have provided the necessary impetus to the food and beverage to grow and prosper in the upcoming years.

Industries and Markets Contributing to Food and Beverage Additives Market Growth

·  The Emulsifiers Market- Emulsifiers are food additives that play a key role in the production of food condiments. Without these emulsifying agents, two immiscible liquids cannot be mixed. These emulsifiers are especially employed in the bakery industry where emulsifiers are used as both dough softeners and strengtheners. Some of the common emulsifiers are lecithin and sorbitan monostearate. The emulsifiers market earned a revenue of $35 billion in 2018 and will continue to contribute to the growth of the food and beverage additives market.

·   The Food Colors Market- Since a large number of the working class is consistently short on time for cooking home-cooked meals, the food and beverage industry key players are under pressure for making food more visually appealing. This has contributed to the growth of the food colors market as food colors are additives used for improving the aesthetic appearance of food. Besides, a lot of cafes and restaurants are delving into multi-colored concoctions that require more food colors, thus elevating the growth of the food and beverage additives market growth. The food colors market will grow with a CAGR of 7% during the forecast period 2018-2023.

·    The Frozen Food Market- Approximately food worth $680 billion is either wasted or lost annually throughout the world, according to the Food and Agriculture Organization of the United Nations. This reason has primarily contributed to the growth of the frozen food market. Preservatives are additives that are increasingly used in the preservation of frozen foods that have entered the convenience foods category. Consumers are highly reliant on these foods for their increase in shelf life and innovative techniques such as cryogenic freezing and the individually quick frozen technology. The frozen food market earned a massive market revenue of $225 billion in 2018, thus contributing to the growth of the food and beverage additives market.

Food and Beverage Additives Market: Competitive Landscape

The main focus of key players operating in the food and beverage additives market would be to invest more financial resources in increasing the production of additives that have been made organically. These companies include Kerry Group, E.I. DuPont, Symrise, Archer Daniels Midland, Sensient Technologies, Cargill, Royal DSM NV, CHR. Hansen Holding, Tate & Lyle, Firmenich SA, Givaudan SA, and BASF.

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