Summary of Research Findings

We have estimated the market size of the food additives and functional food ingredients by volume (distribution volume) and by value. In FY2022, the distribution volume (as a total of 11 items, i.e., sweetener, flavor agent, food quality improver, thickening stabilizer, food coloring, emulsifier, acidulant, food enrichment, preservatives/shelf-life improvers, antioxidant, and condiment) was estimated at 3,204,000 metric tons (101.5% of the previous fiscal year), and the market size (as a total of 12 items including the 11 items above plus enzyme) was valued at 1,290,400 million yen (123% on a same basis), based on based on the shipment volume of manufacturers. For FY2023, the market is projected to grow to 3,220,000 metric tons by volume (100.5% on a same basis) and 1,265,300 million yen by value (98.1% on a same basis).

The distribution volume is growing steadily as a whole, against the backdrop of a recovery in the demand for additives used in beverages, as well as in foods for food services and food souvenirs, which declined considerably during the pandemic. Quite a few items expanded the market size by value (based on the shipment value at manufacturers) in FY2022 due to a spike in prices of raw materials and energy. However, as stabilization of the inflation is anticipated, the market is projected to show marginal decrease for FY2023.

Noteworthy Topics

Rising Demand for Preservatives/Shelf-life Improvers

In view of the preservatives/shelf-life improvers market for FY2022, it remained flat by distribution volume but increased by value (based on the shipment value at manufacturers). In recent years, the demand for shelf-life improvers containing sodium acetate or glycine had been robust. Demand for some preservatives/shelf-life improvers, such as those used in bento boxes, that fell during the pandemic are now recovering. Coupled with the price rise of raw materials for food additives and functional food ingredients, the recovery is seemingly contributing to the market expansion.

While reduction of food waste gains momentum as a way of meeting various Sustainable Development Goals (SDGs), use of preservatives/shelf-life improvers is garnering attention as one of its solutions. In addition, “2024 issues” in logistics industry, which may lead to longer transportation time, is also another factor that may give a rise to food preservation. Against these backgrounds, the market of preservatives/shelf-life improvers is expected to follow a growth trajectory hereafter.

Research Outline