Preservatives Market Continues To Grow Owing To the Increase of Food Processing Industry in Nations across the World, More Female Workforce, and Busy Lifestyle of Consumers

 

Preservatives are mainly used in pharmaceutical drugs, paints, beverages, food products, and cosmetics to prevent microbial growth and undesirable changes in the chemical and physical properties of the item. They help prolong the shelf life of food and are usually used in, food additives, flavorings, vegetables, and meat. Furthermore, some preservatives that are commonly used in different food sectors also have been used in other sectors. For instance, the use of vitamin E and other preservatives found in plants helps preserve the seeds and oil for longer time period. One of the most common preservatives that are used in foods is sulfates or sulfur dioxide. These are derivatives of organic substances and they play an important role in keeping the foods fresh and preserving their texture.

Market Dynamics                                  

The factor driving growth of the market is the increased demand for processed food across the globe. Owing to an increased amount of female workforce and a busy lifestyle there is a growing demand for processed food. Processed food contains preservatives to maximize the shelf life and to retain flavors. Preservatives are used mainly in snacks, bakery products, confectioneries, and meat, dairy, and poultry products. According to India Brand Equity Foundation (IBEF), the Indian food processing industry holds a 32% share of the nation's total food market and is one of the largest sectors in India. This industry contributes 14% of India's Gross Domestic Product (GDP), 13% of exports, and 6% of the total industrial investment.

However, the surge in imports and export prices and increasing preference for fresh products are proving to be the main restraints hindering growth of the preservatives market. Stringent regulations put forward by governmental bodies across the globe related to the usage of preservatives in foods and considering the negative health impact is another main restraining factor for the market. Despite their usage in various pharmaceutical drugs and foods, preservatives result in a number of health issues such as heart diseases, hyperactivity, and cancer. The U.S. Food and Drug Administration (FDA) has implemented several guidelines regarding the use of preservatives in medicine and food. According to U.S. FDA, a chemical preservative should meet the purity requirements mentioned in regulations in 21 CFR 172, or in the Food Chemicals Codex. Moreover, nations such as the U.K, Norway, France, Austria, and Finland have also banned the use of artificial food colorings while Canada and the U.K. have already banned the usage of Olestra, which a preservative that is used as a fat substitute.

This market is distributed in five regions that include North America, Europe, Asia Pacific, Middle East, and Africa, and Latin America. Among these, Asia Pacific is expected to hold a bigger share of the preservatives market, owing to growing demand for ready-to-eat foods and increasing amount of retail industry in the region. The market in Europe and North America is estimated to witness significant growth in the market owing to the prevalence of numerous retail outlets and the busy lifestyle of consumers, which is resulting in a growing inclination towards ready-to-eat foods.

Competitive Analysis

Major players operating in the global preservatives market include Cargill Incorporated, Corbion N.V., Kerry Group, Chr. Hansen A/S, BASF SE, Archer Daniels Midland Company, Celanese Corporation, and E. I. du Pont de Nemours and Company.

In January 2019, Symrise AG, a manufacturer of fragrances and flavors, launched the first benzyl alcohol-based preservative along with SymSave H, SymOcide BHO for personal care products and cosmetics.