Natural Food Preservatives Market to witness a CAGR of 7% during the period from 2022 – 2032

The natural food preservatives market is expected to be valued at USD 435.2 Mn in 2022 and is projected to reach USD 856.1 Mn by 2032, growing at a CAGR of 7% from 2022 to 2032.

Increased demand for convenience items and an increasing focus on the organic food items has resulted in a growing preference for foods with extended shelf life, resulting in an increase in demand for natural food preservatives across the board. 

Revenue from the sales of natural food preservatives – estimated to stand at US$ 484.2 Mn at the end of 2018 – is expected to reach US$ 796.5 Mn by 2028. One of the main factors boosting revenue growth in the global market is the rapidly increasing consumption of packaged and processed food. Urbanization and fast-paced lifestyles have altered the food habits of people, who find it convenient to consume packaged and ready-to-eat food products. Processed F&B products need to be preserved using appropriate techniques and safe ingredients to enhance shelf life and prevent the products from being spoiled. This has led to a rise in demand for natural food preservatives.

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The harmful impact of chemical ingredients used in the preparation and processing of food and beverage products is creating a shift in the F&B industry towards the use of natural food ingredients. Owing to the harmful health problems caused by chemical additives, F&B manufacturers are moving away from synthetic food preservatives and incorporating safer, natural food preservatives in their products. Further, imposition of stringent regulations by the governments of several countries across the globe against the use of synthetic food ingredients has led to a ban on synthetic food preservatives in the F&B industry. This is another key driver pushing revenue growth of the global natural food preservatives market.

Natural Food Preservatives Market Not Devoid of Challenges; Manufacturers Struggle to Contain Costs and Battle Latest and More Advanced Food Preservation Technologies

While using natural food preservatives is beneficial from the public health point of view, cost can be a big restraint to sustained growth of the natural food preservatives market. Natural food preservatives come at an elevated pricing over their synthetic counterparts, owing to the high costs of processing and producing natural preservatives. Several mid-sized and small players in the F&B industry confine their production to the use of synthetic and chemical-based preservatives due to the affordability factor. Manufacturers of processed and packaged food products are challenged to contain their production costs and this is a big revenue growth restraint in the global market for natural food preservatives.

Raw material pricing is another revenue puller. Natural food preservatives obtained from vegetables, fruits, and certain types of plants are priced according to the availability and production of raw material. Fluctuating prices of raw material impact operational efficiencies in the natural food preservatives market. Impact of unfavourable weather conditions on the availability of raw material further leads to inconsistent output, as most of the natural food preservatives are sourced from plants.

Key Segments

Global Natural Food Preservatives Market – By Source

  • Plant
  • Animal
  • Microbial
  • Mineral

Global Natural Food Preservatives Market – By Product Type

  • Microbial Derived
  • Nisin
  • Natamycin
  • Rosemary Extract
  • Botanical Extracts
  • Natural Acids
  • Salts

Global Natural Food Preservatives Market – By Form

  • Powder/Granules
  • Liquid

Global Natural Food Preservatives Market – By End Use

  • Bakery
  • Confectionery
  • Dairy Products
  • Yogurt & Sour Cream
  • Cheese & Butter
  • Soups
  • Beverages
  • Dairy-based
  • Plant-based
  • Juices
  • Snacks
  • Jams & Spreads
  • Meat, Fish, & Poultry Products
  • Sauces & Dressings

Global Natural Food Preservatives Market – By Region

  • North America
  • Western Europe
  • Eastern Europe
  • Latin America
  • Asia Pacific excluding Japan
  • Japan
  • Middle East & Africa

Another challenge being witnessed in the global market for natural food preservatives is the emergence of newer and more advanced food preservation technologies that might render traditional preservation techniques obsolete in the near future. Techniques such as High-pressure Processing (HPP) – a cold pasteurisation technique that increases shelf life of food products and Pulsed Electric Fields (PEF) – a non-thermal technique that protects food from microbial spoilage through electric pulses are fast gaining traction in the natural food preservatives market. Older methods of preserving food using natural plant-derived preservatives is slowly losing significance, and this is expected to restrain revenue growth of the natural food preservatives market to a certain extent.

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Key Questions Answered in the Report

  • How much is the natural food preservatives market current worth?

Currently natural food preservatives market is worth more than USD 406.7 Mn.

  • At what CAGR is the market expected to grow?

Natural food preservatives consumption is expected to grow at a CAGR of around 7% during the period 2022-2032.

  • How was the performance in the last five years?

In terms of revenue, natural food preservatives grew at a CAGR of around 6.1% during 2017-2021

  • What is boosting natural food preservatives sales?

The primary factor driving the growth of the natural food preservatives market is the rising demand for convenience items and an increasing focus on organic foods among people.

  • How are market players reacting to the new developments in the market?

Market players are opting for technological advancement, new product developments and production capacity expansion.

  • How much share does the top 5 companies hold?

The top 5 producers of natural food preservatives hold around 10-12% of the market share.

About FMI:

Future Market Insights (FMI) is a leading provider of market intelligence and consulting services, serving clients in over 150 countries. FMI is headquartered in Dubai, the global financial capital, and has delivery centers in the U.S. and India. FMI’s latest market research reports and industry analysis help businesses navigate challenges and make critical decisions with confidence and clarity amidst breakneck competition. Our customized and syndicated market research reports deliver actionable insights that drive sustainable growth. A team of expert-led analysts at FMI continuously tracks emerging trends and events in a broad range of industries to ensure that our clients prepare for the evolving needs of their consumers.

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