The consumption of packaged and processed foods is steadily rising, which is one of the primary drivers driving revenue growth in the global industry. People's eating habits have changed as a result of urbanisation and fast-paced lifestyles, and they now prefer to consume packaged and ready-to-eat food items. To extend shelf life and avoid spoilage, processed food and beverage goods must be preserved with the right methods and ingredients. The natural preservatives market has seen an increase in demand as a result.

The natural food preservatives market is anticipated to reach USD 856.1 Mn in 2032, increasing at a CAGR of 7% from 2022 to 2032, and be valued at USD 435.2 Mn in 2032.

The harmful impact of chemical ingredients used in the preparation and processing of food and beverage products is creating a shift in the F&B industry towards the use of natural food ingredients. Owing to the harmful health problems caused by chemical additives, F&B manufacturers are moving away from synthetic food preservatives and incorporating safer, natural food preservatives in their products. Further, imposition of stringent regulations by the governments of several countries across the globe against the use of synthetic food ingredients has led to a ban on synthetic food preservatives in the F&B industry. This is another key driver pushing revenue growth of the global natural food preservatives market.

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 Natural Food Preservatives Market Not Devoid of Challenges; Manufacturers Struggle to Contain Costs and Battle Latest and More Advanced Food Preservation Technologies

While using natural food preservatives is beneficial from the public health point of view, cost can be a big restraint to sustained growth of the natural food preservatives market. Natural food preservatives come at an elevated pricing over their synthetic counterparts, owing to the high costs of processing and producing natural preservatives. Several mid-sized and small players in the F&B industry confine their production to the use of synthetic and chemical-based preservatives due to the affordability factor. Manufacturers of processed and packaged food products are challenged to contain their production costs and this is a big revenue growth restraint in the global market for natural food preservatives. Raw material pricing is another revenue puller. Natural food preservatives obtained from vegetables, fruits, and certain types of plants are priced according to the availability and production of raw material. Fluctuating prices of raw material impact operational efficiencies in the natural food preservatives market. Impact of unfavourable weather conditions on the availability of raw material further leads to inconsistent output, as most of the natural food preservatives are sourced from plants.

Another challenge being witnessed in the global market for natural preservatives is the emergence of newer and more advanced food preservation technologies that might render traditional preservation techniques obsolete in the near future. Techniques such as High-pressure Processing (HPP) – a cold pasteurisation technique that increases shelf life of food products and Pulsed Electric Fields (PEF) – a non-thermal technique that protects food from microbial spoilage through electric pulses are fast gaining traction in the natural food preservatives market. Older methods of preserving food using natural plant-derived preservatives is slowly losing significance, and this is expected to restrain revenue growth of the natural food preservatives market to a certain extent.

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