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The increasing demand for natural food preservatives and the rising consumption of organic foods are crucial growth drivers in the food preservatives market along the forecast period. The global food preservatives market was valued at US$2 bn in 2013 and is anticipated to reach US$2.5 bn by 2020 expanding at a CAGR of 3.5% during the forecast period 2014 – 2020.

The food and beverage processing industry has been primarily shaped by consumer preference for safe and hygienic foods. The need for preservatives, natural as well as synthetic, is fuelling the demand for food additives and ingredients that inhibit the growth of bacteria, fungi, and micro-organisms. In the process, they help prolong shelf life and enhance color, flavor, and texture of foods hence, preserve the natural characteristics of the foods. The food preservatives market is rapidly evolving and has witnessed a variety of interesting trends and competitive dynamics in major region such as North America, Europe, and Asia Pacific.

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Asia Pacific to Exhibit Impressive Growth; However, Scales tilting in favour of RoW

Geographically, the report segments the market into North America, Europe, Asia Pacific, and Rest of the World (RoW). Amongst these, currently North America leads the global food preservatives market and the growth is driven by increasing demand for hygienic foods, especially organic foods. The regional market is forecast to rise to US$921.6 mn by 2020 and is anticipated to reach US$921.6 mn before the end of 2020.

Asia Pacific is expected to witness a robust growth over the next five years driven by soaring demand for food products, especially convenience foods in countries such as Australia, China, and South Korea. However, RoW is expected to exhibit most significant growth along the forecast period.

Natural Food Preservatives to Witness Significant Demand

The global food preservatives market is segmented on the basis of applications, product type, and regions. In terms of product type, the global market was dominated by synthetic food preservatives in 2013. However, heightened health concerns of people worldwide have led manufacturers to address food safety issues.

The natural food preservatives segment is expected to witness impressive growth over the forecast period. The marked growth is attributed to the rising preference for natural foods over synthetic preservatives and continuous initiatives by manufacturers to produce foods that use natural preservatives. This is expected to create vast growth opportunities for the players in the food preservatives market. More research and development activities related to natural preservatives will open exciting opportunities for the market players.

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The global food preservatives market is majorly driven by the increasing consumption of convenience foods and the soaring demand for organic food products. The rising availability of convenience products, such as frozen foods and ready-to-eat dry products, worldwide adds momentum to the growth of the market. Coupled with this, the growing need for enhancing the shelf life of various perishable foods and making them safe and hygienic for combustion are expected to propel the demand for food preservatives.

Food preservatives are used in different processed and convenience food products such as snacks, processed meat, confectionery and cakes to prevent any spoilage due to bacteria and microbe. However, stringent government regulations related to food additives used as preservatives and an increasing number of chemicals compounds discouraged for their cariogenic effects are likely to hinder the market growth to some extent.