Market Size of Australia Food Additives Industry
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 2.90 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Australia Food Additives Market Analysis
The Australian food additives market is valued at USD 2.4 billion and is projected to register a CAGR of 2.9% during the forecast period.
- The food additives market is primarily driven by the expanding processed food market and the increasing penetration of the organized retail sector. Growing disposable incomes, working population, and busy lives move consumers toward convenience food. However, increasing consumer awareness of chemical additives' adverse impacts is pressuring the food and beverage industry to introduce the natural additives category. The complex regulatory environment is another major restraint in the market.
- Moreover, the high rate of diabetic patients in the country has led to the growth of alternative sweeteners such as sucralose due to their beneficial factors. As per the Australia Institute of Health and Welfare data, in 2021, an estimated 1 in 20 around 1.3 million Australians were living with diabetes. Various studies have depicted that sucralose has limited to no effect on factors like carbohydrate metabolism and insulin secretion. Moreover, the exceptional stability of sucralose helps food manufacturers and consumers use it virtually anywhere sugar is used, including cooking and baking processes. The sucralose market is expected to grow with the drastic price reduction due to excessive supply from international players. Granulated sucralose sweeteners are used as a spoon for spoon replacement for sugar.
Australia Food Additives Industry Segmentation
Food additives are substances added to food products to maintain or improve their safety, freshness, taste, texture, or appearance.
The Australian food additives market is segmented by type into preservatives, sweeteners and sugar substitutes, emulsifiers, enzymes, hydrocolloids, food flavors and enhancers, food colorants, and other types. The market is segmented based on application into bakery and confectionery, dairy and frozen products, beverages, meat products, and other applications.
The market sizing has been done in value terms in USD for all the abovementioned segments.
| Type | |
| Preservatives | |
| Sweeteners and Sugar Substitutes | |
| Emulsifiers | |
| Enzymes | |
| Hydrocolloids | |
| Food Flavors and Enhancers | |
| Food Colorants | |
| Other Types |
| Application | |
| Bakery and Confectionery | |
| Dairy and Frozen Products | |
| Beverages | |
| Meat Products | |
| Other Applications |
Australia Food Additives Market Size Summary
The Australian food additives market is experiencing growth driven by the expanding processed food sector and the increasing reach of organized retail. As consumers lead busier lives with rising disposable incomes, there is a growing demand for convenience foods. However, this trend is countered by increasing consumer awareness regarding the potential adverse effects of chemical additives, prompting a shift towards natural alternatives. The market faces challenges from a complex regulatory environment and the high prevalence of diabetes, which has spurred the demand for alternative sweeteners like sucralose. This sweetener's stability and minimal impact on carbohydrate metabolism and insulin secretion make it a popular choice for both manufacturers and consumers, particularly as its availability increases due to international supply.
The demand for clean-label ingredients is on the rise as consumers become more conscious of the nutritional content and health impacts of the food they consume. This trend is supported by various health organizations advocating for natural ingredients, which are believed to offer benefits such as preventing hyperactivity disorders in children. The beverage industry also relies heavily on preservatives to maintain the quality and safety of drinks, with a significant use of flavors, colors, and sweeteners. The market is characterized by the presence of numerous players, including major companies like Archer Daniels Midland Company, Corbion NV, and Tate & Lyle PLC, who are focusing on product innovations and strategic partnerships to cater to evolving consumer preferences.
Australia Food Additives Market Size - Table of Contents
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1. MARKET DYNAMICS
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1.1 Market Drivers
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1.1.1 Increasing Demand For Convenience & Processed Food
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1.2 Market Restraints
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1.2.1 Increased Consumer Awareness On Side-Effects Of Chemical Additives
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1.3 Porter's Five Forces Analysis
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1.3.1 Threat of New Entrants
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1.3.2 Bargaining Power of Buyers/Consumers
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1.3.3 Bargaining Power of Suppliers
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1.3.4 Threat of Substitute Products
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1.3.5 Intensity of Competitive Rivalry
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2. MARKET SEGMENTATION
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2.1 Type
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2.1.1 Preservatives
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2.1.2 Sweeteners and Sugar Substitutes
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2.1.3 Emulsifiers
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2.1.4 Enzymes
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2.1.5 Hydrocolloids
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2.1.6 Food Flavors and Enhancers
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2.1.7 Food Colorants
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2.1.8 Other Types
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2.2 Application
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2.2.1 Bakery and Confectionery
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2.2.2 Dairy and Frozen Products
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2.2.3 Beverages
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2.2.4 Meat Products
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2.2.5 Other Applications
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Australia Food Additives Market Size FAQs
What is the current Australia Food Additives Market size?
The Australia Food Additives Market is projected to register a CAGR of 2.9% during the forecast period (2024-2029)
Who are the key players in Australia Food Additives Market?
Archer Daniels Midland Company, Corbion NV, Tate & Lyle PLC, Kerry Group and International Flavors and Fragrances are the major companies operating in the Australia Food Additives Market.
