India Food Additives Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 6.50 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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India Food Additives Market Analysis
India's food additives market is anticipated to register a CAGR of 6.5% during the forecast period.
- The multifunctionality of additives such as starches and hydrocolloids is driving the demand for food additives in the market. These additives are used in various segments of the food manufacturing process, from structuring food and beverage to enhancing nutrition profile and flavor, which makes them highly desirable for food companies.
- Food additives play a crucial role in improving the taste and aroma of food, preserving it, increasing its shelf life, and coloring it. Synthetic or natural food additives are added to food to enhance its taste, texture, or appearance. The demand for convenience and processed food is also a significant driver of market demand.
- Food color is an essential factor as it affects how food is perceived and tasted. Colorants are added to food and beverages to create an attractive appearance. They can also enhance the color of foods that may have deteriorated due to food processing, making them more desirable to consumers.
- To establish common safety standards, various organizations such as the Food and Drug Administration (FDA) and the World Health Organization (WHO) have introduced General Standard for Food Additives (GSFA), thus increasing the popularity of food additives in the country.
- India is the largest milk producer in the world, and the demand for flavored milk, recombined milk made from milk powder, and chocolate milk drive the demand for additives such as food flavors in the dairy industry. Additionally, additives such as emulsifiers, especially E4701, which is a derivative of a mono diglyceride, are used in the ice cream industry to provide functional properties such as viscosity, stability, and fat reduction.
India Food Additives Market Trends
Natural Flavors Has an Increased Demand in the Market
- India boasts one of the largest food processing industries globally, and its market for processed foods is rapidly growing, making it a promising area for food additives. As consumers become more health-conscious and aware of food safety concerns, the demand for natural food additives has increased. This shift in consumer preferences has led to a greater interest in products derived from natural sources, such as fruits and vegetables.
- The country's vegetable production has also increased, creating a fertile ground for manufacturers to derive natural food additives like colorants from them. For instance, in 2021, the total vegetable production in India accounted for around 200.45 million metric tons. With the increase in clean-label flavor demand, particularly in developing countries such as India, the market for natural food flavors is expected to expand further. Consumers prefer simple and clean labels, pushing food companies to incorporate natural additives.
- Many superfoods, such as black rice, acai berries, and maqui berry powder, contain anthocyanins that act as a natural food dye. The positive perception of the term "natural" and the high functionality of superfoods have been the driving force behind the increasing demand for natural food additives in the country.
Beverage Applications Held A Prominent Share
- The beverage industry in India has experienced significant growth in recent years, primarily due to the increasing demand for convenience and the preference of the millennial population. The rising demand for tropical flavors in non-alcoholic beverages like carbonated drinks, juices, and flavored water has led to an upsurge in the use of food additives in the country. The presence of major players in the market, especially in the carbonates segment, has contributed to the growth of the industry. Carbonates accounted for about 19% of the soft drink market share in India in 2021, according to Varun Beverages.
- Food additives such as flavors, colors, sweeteners, and enzymes are commonly added to the beverage industry in India. Enzymes like cellulase, alpha-amylase, and beta-glucanase are used in the brewing industry to enhance malt separation, extraction yield, beer filtration, and stabilization. The use of additives has improved the application of these products in the beverage industry, thus driving their sales.
- Consumers in India are becoming increasingly health-conscious, leading to a rise in the demand for natural ingredients and clean-label products. Players in the beverage industry are responding by incorporating additives with fewer chemical traces, leading to the growth of natural ingredients and clean-label products. For instance, Stevia, a natural sweetener, is widely used in beverages like teas, coffees, soft drinks, flavored waters, and alcoholic beverages. Stevia is an excellent alternative to sugar, providing a sugar-like taste with no calories, 100% natural origin, and being tooth-friendly, non-fermenting, highly soluble, pH, heat, photo (light), and shelf-stable.
- Moreover, manufacturers of color ingredients are expanding their product portfolios by adding new natural color products to meet the growing demand for natural food colors and clean-label food in beverage products. Carotenoids are also extensively used as natural colors in manufacturing beverages like cider, malt beverages, and water-based flavored drinks. Overall, the beverage industry in India is growing, driven by the demand for convenience, health consciousness, and natural ingredients.
India Food Additives Industry Overview
India's food additives market is highly competitive and is dominated by major global players, but it is also fragmented with various other players present. The key players in the market include Cargill, Incorporated, BASF SE, International Flavors & Fragrances, Inc., Koninklijke DSM N.V., and Ingredion Incorporated. These market leaders have an advantage in the market due to their wider range of product offerings and strong distribution channels.
To stay competitive, major players in the market are launching new commodities, which can help boost sales and attract consumers, ultimately enhancing their brand value. Additionally, companies are expanding their production capacities and opening innovation centers to source and develop new flavors from regional sources, as well as introduce new flavor ingredient lines.
India Food Additives Market Leaders
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Cargill, Incorporated
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BASF SE
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Ingredion Incorporated
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International Flavors & Fragrances, Inc.
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Koninklijke DSM N.V.
*Disclaimer: Major Players sorted in no particular order
India Food Additives Market News
- October 2021: Mane Kancor Ingredients Private Limited, a company offering food colors, opened its new, highly equipped, and modern innovation center at Kochi in Kerala, India.
- September 2021: Indian company, Divi's Nutraceuticals, launched CaroNat, a naturally-sourced food ingredient intended for the dark yellow to orange coloration of a variety of foods and beverages, including the dairy industry.
- January 2021: GNT International partnered with and appointed Anshul Life Sciences to distribute its Exberry coloring foods across India. The company claimed that the agreement follows the publication of a notification of a new standard for coloring foods by the Food Safety & Standards Authority of India (FSSAI) on 29th December 2020.
India Food Additives Market Report - Table of Contents
1. INTRODUCTION
- 1.1 Study Assumptions and Market Definition
- 1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
- 4.1 Market Drivers
- 4.2 Market Restraints
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4.3 Porter's Five Forces Analysis
- 4.3.1 Threat of New Entrants
- 4.3.2 Bargaining Power of Buyers/Consumers
- 4.3.3 Bargaining Power of Suppliers
- 4.3.4 Threat of Substitute Products
- 4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
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5.1 Type
- 5.1.1 Preservatives
- 5.1.2 Sweetner
- 5.1.3 Sugar Substitutes
- 5.1.4 Emulsifier
- 5.1.5 Anti-Caking Agents
- 5.1.6 Enzymes
- 5.1.7 Hydrocolloids
- 5.1.8 Food Flavors and Enhancers
- 5.1.9 Food Colorants
- 5.1.10 Acidulants
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5.2 Application
- 5.2.1 Dairy & Frozen
- 5.2.2 Bakery
- 5.2.3 Meat & Sea Food
- 5.2.4 Beverages
- 5.2.5 Confectionery
- 5.2.6 Other Applications
6. COMPETITIVE LANDSCAPE
- 6.1 Most Adopted Strategies
- 6.2 Market Share Analysis
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6.3 Company Profiles
- 6.3.1 Cargill, Incorporated
- 6.3.2 Kerry Group PLC
- 6.3.3 Tate & Lyle PLC
- 6.3.4 Ingredion Incorporated
- 6.3.5 Koninklijke DSM N.V.
- 6.3.6 Corbion NV
- 6.3.7 Novozymes A/S
- 6.3.8 BASF SE
- 6.3.9 Sunshine Chemicals
- 6.3.10 International Flavors & Fragrances, Inc.
- 6.3.11 Divis Laboratories
- 6.3.12 Mane Kancor Ingredients Private Limited
- *List Not Exhaustive
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
** Subject To AvailablityIndia Food Additives Industry Segmentation
Food additives are substances added to food to maintain or improve its safety, freshness, taste, texture, or appearance.
India's food additives market is segmented by type and application. By type, the market is segmented into preservatives, sweeteners, sugar substitutes, emulsifiers, anti-caking agents, enzymes, hydrocolloids, food flavors and enhancers, food colorants, and acidulants. By application, the market is segmented into dairy & frozen, bakery, meat & seafood, beverages, confectionery, and others.
For each segment, the market sizing and forecasts have been done on the basis of value (in USD million).
| Type | Preservatives |
| Sweetner | |
| Sugar Substitutes | |
| Emulsifier | |
| Anti-Caking Agents | |
| Enzymes | |
| Hydrocolloids | |
| Food Flavors and Enhancers | |
| Food Colorants | |
| Acidulants | |
| Application | Dairy & Frozen |
| Bakery | |
| Meat & Sea Food | |
| Beverages | |
| Confectionery | |
| Other Applications |
India Food Additives Market Research FAQs
What is the current India Food Additives Market size?
The India Food Additives Market is projected to register a CAGR of 6.5% during the forecast period (2024-2029)
Who are the key players in India Food Additives Market?
Cargill, Incorporated, BASF SE, Ingredion Incorporated, International Flavors & Fragrances, Inc. and Koninklijke DSM N.V. are the major companies operating in the India Food Additives Market.
What years does this India Food Additives Market cover?
The report covers the India Food Additives Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the India Food Additives Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
India Food Additive Industry Report
Statistics for the 2024 India Food Additive market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. India Food Additive analysis includes a market forecast outlook 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
