The size of the food additives market in North America was worth USD 15.74 billion in 2023. The North American market is expected to grow at a CAGR of 5.3% from 2024 to 2029 and be worth USD 21.46 billion by 2029 from USD 16.57 billion in 2024.
Food additive is incorporated in a finished product to improve protection against harmful bacteria and other kinds of microbes to prolong shelf life. It also imparts characteristics such as flavor, color, and taste in foodstuff and increase its nutritional content.
The market for Food additives in North America is mainly driven by the growing demand for packaged products, including ready-to-eat meals, appetizers, and frozen meals, which is resulting in manufacturers increasing their production capacity. The gradual rise in the demand for convenience foods in the countries of North America is promoting the food additives market in North America. The busy lifestyles of people in the U.S. are resulting in the increased use of additives for preservation, flavor enhancement and texture improvement in processed foods.
The bakery and confectionery industry is thriving in North America and contributing to the increasing demand for food additives such as emulsifiers, stabilizers and preservatives to enhance product quality, texture and shelf life, which is one of the factors propelling the regional market growth. The awareness and the demand for clean label products is increasing across the North American region, which is influencing the food manufacturers of the U.S. to use natural additives like plant-based preservatives and colorants and is supporting the growth of the food additives market in North America.
Furthermore, factors such as technological advancements in food processing technologies, rising awareness about food safety and quality standards in the U.S., rising interest in health and wellness in the U.S., growing foodservice sector such as restaurants, cafes and fast-food chains and increasing demand for functional ingredients are driving the growth of the food additives market in North America.
But, the market growth is regulated due to U.S. regulatory providing stringent laws to determine the safe additives, and also on the amount of consumption and quality on the food grade used in the additives.
The flavors segment accounts for the largest market share followed by the sweeteners segment in the market by type. The demand for food additives in beverages accounted for the largest share, while the sauces, dressings, spices, and condiments segment is projected to be the fastest-growing segment.
North America is the biggest market in terms of market share worldwide. Its increased distribution and transportation of food products require a high usage of food additives, furthering the increase in trade for food additives.
The U.S. had the largest share of the North American market in 2023 and the U.S. is expected to remain dominant in the North American region throughout the forecast period. The lead of the U.S. market is majorly attributed to the increasing demand for convenience foods, processed snacks and ready-to-eat meals as these food items heavily depend on food additives for flavor enhancement and preservation.
Canada is another noteworthy regional segment for food additives in North America and is estimated to grow steadily during the forecast period.
Companies that play a dominating role in the North American food additives market include E.I. DuPont, Archer Daniels Midland Company, Cargill Incorporated, CHR. Hansen Holding A/S, Kerry Group Plc and BASF SE.
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