Asia Pacific Food Additives Market

Asia pacific is a populous region and the increasing calorie intake per capita is leading to substantial increase in the global food production. In the processed and packaged foods, ensuring food safety and quality starting from transportation to farm to fork and storage facilities is a major concern. To meet this demand, food additives are used. Food additives which are used to enhance the taste, color, texture of food, same time maintaining the freshness and nutritional content, are expected to cross US $50 billion by 2020 & Asia-Pacific is growing at a CAGR of 5.6% from 2015 and 2020.

Asia Pacific region has led to the rise of interest in the food additives market due to its growing population. As economies rise and emerge, food demand will continue to shift towards Asia in the near future. The increasing disposable incomes of the burgeoning middle class is driving the shift towards convenience and processed foods, thus escalating the need for food, thereby need for food additives. Consumers are majorly driven by increasing exposure to packaged food and beverages. Growing urbanization of the rural population and rising organized market in rural segments of developing economies of Asia support this.

One more major driver in the food additives market is the growing supply chain complexities/inefficiencies in the food and beverage industry - transportation costs, last mile reach for food products, storage facilities, as a part of companies' expansion strategies are growing, which is increasing the complexities in the farm to fork value chain. This emphasized on the use of food additives to reduce the spoilage and wastage costs. However, the restrain is in the slow urbanization rates in spite of an uptick in demand. Also, as many countries follow the standard regulatory approved additives, thus making the process complex to register to new additives by companies. Japan and Australia are matured markets, and are seeing growing demand for natural additives. China and India are the fastest growing segments, and lack of regulation facilities have led to these countries becoming dumping ground for artificial food additives.

The food additives market is segmented by type viz. Preservatives, Food flavors and Flavor enhancers, Antioxidants, Sweeteners, Emulsifiers, Anti Caking agents, Enzymes, Fat replacers, Acidulants and others (texturizer, shelf life stabilizers, etc). Food Additives find major applications in Fruits & vegetables, Bakery & Confectionary, Dairy & Frozen products, Oils & Fats, Savory snacks, Meat poultry & Sea food products.

Acceptance of convenience and package foods in the Asia pacific regions is seeing demand, for food and beverage additives, from populous countries like India, China, and South Korea. Thus, making APAC the fastest growing food additives market; growing at a CAGR of x.x% from 2015-2020. The major players in the market are Cargill Inc, Tate & Lyle, DSM, Kerry Group, Ajinomoto, Novozymes, International Flavors and Fragrances, Ashland Specialty Ingredients, etc. The strategies being adopted in the Food additives industry is in the Innovation category under the development of natural food additives and functional food ingredients to meet the customer demand.