Natural Preservatives for Fruit Drinks Market size is forecast to reach $10.26 billion by 2025, after growing at a CAGR of 3.70% during 2020-2025. Packaged food has become widely popular these days because of busy life schedule of the people. Hence it has become the top most priority for the producers to develop food items that has better shelf life. As a result of this growing demand for packaged food has led demand for natural preservatives for fruit drinks in the market. Natural preservatives such as salt, sugar, alcohol etc. have exceptional properties that can improve the shelf life of the fruit drinks which in turn drives the natural preservatives for fruit drinks market.
Natural Preservatives for Fruit Drinks Market Segment Analysis – By Type
Salt segment held a significant share in natural preservatives for fruit drinks market in 2019. This was attributed to salt being easily available, cheap, and one of earliest forms of food preservation used throughout the world. However, citric acid segment is expected to grow at fastest CAGR. Citric acid is found naturally in citrus fruits. It is widely used in carbonated drinks and as an acidifier in foods. The market of aerated drinks is growing exponentially; therefore, the market for citric acid is also expected to grow at a substantial rate.
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Natural Preservatives for Fruit Drinks Market Segment Analysis – By Application
Beverage segment held a significant share in natural preservatives for fruit drinks in 2019 growing at a CAGR of 4.10% during the forecast period. The booming beverage industry is majorly uplifting the consumption of ingredients including preservatives which is most likely to foster the market growth. The properties of drinks such as high water activity demand the irreplaceable use of preservatives in the beverage industry is to avoid the change in taste, the colour, and bitter aftertaste. Moreover, with the rise in demand for functional beverages, the market for natural preservatives is gaining momentum. Manufacturers are embracing innovation for gaining position in the market by incorporating the organically sourced preservatives in the product formulation.
FDA, in particular, has relaxed the nutrition labeling of products which is expected to aid in increasing the distribution of packaged foods by restaurant operators leading to the optimum supply chain of products to consumers. Furthermore, food safety testing and processing industries are expected to function at full capacity owing to consumers stock-piling goods during the COVID-19 lockdown.
Natural Preservatives for Fruit Drinks Market Segment Analysis – Geography
North America dominated the natural preservatives for fruit drinks market with a share of more than 39%, followed by Asia Pacific and Europe. North America is a major exporter of fruits, thus increasing the demand for preservatives. Awareness related to several risks associated with chemical preservatives has driven the market for natural preservatives. North America has highly regulated policies with respect to the commercialization of food products and ingredients. Such regulations have offered lucrative growth opportunities for manufacturers to introduce novel preservatives with minimum or no side-effects on human health.
Natural Preservatives for Fruit Drinks Market Drivers
Preference of natural products by the consumers
Rising health consciousness amongst people is one of the major factors that they are focusing on consuming natural food items. They keep a strict eye over the things they are consuming. Since chemical and inorganic food preservatives pose various side effects like low immunity, slow metabolism, and indigestion people are focusing on natural food preservatives for fruit drinks. One of the crucial factors that is attracting food manufacturers to use natural food preservatives is its easy availability. They can be prepared easily with the ingredients that can be availed easily in the market. This makes the manufacturing highly cost effective. As a result, of these attributes, fruit drinks manufacturers are using natural food preservatives in their products.
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Natural Preservatives for Fruit Drinks Market – Challenges
One of the restraining factors for natural preservatives for fruit drinks market is that preservatives are banned in some parts of Europe, as these chemical preservatives are harmful. They may cause serious health issues like asthma, stomach cancer, allergies and brain damage. Increase in demand for organic fruit drinks restrains the natural preservatives for fruit drinks market growth as they often do not contain any preservatives. Constantly fluctuating prices of raw materials such as vegetables, plants, and fruits have a visible impact on the growth of the natural preservatives for fruit drinks market.
Technology launches, acquisitions and R&D activities are key strategies adopted by players in the natural preservatives for fruit drinks market. Major players in the natural preservatives for fruit drinks market are Koninklijke DSM N.V., Cargill, Inc, Kemin Industries, Inc., Archer Daniels Midland Company, Tate & Lyle PLC., BASF SE, Corbion NV, Galactic SA, Biosecur Lab (Foodguard), and ITA 3 S.r.l. among others.
Product Launch/ Acquisition
In April 2016, Galactic introduced a new product in the market by the name of Galimax Flavor V-50. It is a preservative, which would be suitable for many salad types such as pasta salads and vegetable salads.
In May 2016, Kemin opened a new quality control laboratory, warehouse, and logistics office in Belgium. This helped the company to serve its customers better by adding value to its products.
In July 2015, Univar acquired the assets of Chemical Associates Inc. (US). The strategic acquisition was expected to help the company in enhancing its market presence by entering into various new market segments in food, personal care, and other industries. This would help in expanding its existing products portfolio in the US.
The market is driven by the increasing demand for clean label solutions, rising consumption of processed and packaged food, and complexity in the supply chain in the food industry.
The increasing penetration in the organized retail sector is likely to drive the food preservative market, particularly in natural preservatives for fruit drinks market.
North America dominated the natural preservatives for fruit drinks market.
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