Global Preservatives Market Size Analysis Report - Market Share, Forecast Trends and Outlook (2024-2032)

Preservatives Market Growth

Increasing demand for natural food preservatives is driving the global food preservatives market growth. Preservatives are extensively utilised by the food and beverage industry for preventing antimicrobial/ fungal action and maintaining optimal food quality, pushing the preservatives demand growth. Moreover, food preservatives help minimise the volume of food waste by extending the shelf life of the product. Various scientific reports have demonstrated that nisin protein produced by transgenic (genetically modified) carrots can also be utilised as a natural food preservative in fruit juices.

Key Trends and Recent Developments

Demand for clean label products, use in liquid detergent manufacturing and using them as preservatives are factors that are shaping global preservatives market dynamics and trends.

July 2023

US-based bio-based ingredients startup BioVeritas has developed an effective clean-label mould inhibitor that removes the need for traditional, petrochemical-based ingredients without compromising taste. In so doing, it provides a solution to the long-standing challenge of balancing demands by consumers for non-petrochemical-based ingredients and end-products that deliver on taste and texture.

Demand for clean label products

A key trend in preservatives market is the increased consumer demand for clean labelled cosmetic products is one of the key global food preservatives market trends. Multiple manufacturers are incorporating propylene glycol, sorbitan caprylate, caprylyl glycol, and various other multifunctional preservative ingredients into cosmetic products to enhance their quality.

Manufacturing of liquid detergents

Preservatives are also significantly impacting the consumer goods industry by enabling the manufacturing of liquid-based detergents for cleaning purposes. Moreover, with the growing popularity of plant-based laundry products, which possess natural surfactants and do not utilise synthetic fragrances, the use of mild preservatives for quality preservation and convenience is also increasing.

Using preservatives as antioxidants

The increasing use of preservatives as antioxidants is also expected to drive the global preservatives market development. Preservatives prevent the discolouration of various food items. Moreover, by preventing the contact of commercially produced edibles with various air particles, they safeguard the quality and smell of food and beverages. As major market players strive to improve their product quality, the global preservatives market size is expected to expand in the coming years, opening up new preservatives market opportunities.

Preservatives Market Trends

Some of the key trends dominating the global preservatives market include the increasing demand for natural and organic preservatives from health-conscious consumers. Similarly, a greater emphasis is put on extending shelf-life quality and improving food safety since foodborne illness has begun to record a rise recently. The technological advances being made in preservative formulations and packaging drive innovative and efficient solutions, bolstering the preservatives industry growth. Besides this, regulatory pressures and the switch toward greener and more eco-friendly ingredients are shaping the market dynamics in such a way that firms are being compelled to switch over to greener alternatives and adhere to increased regulation.

Industry Outlook

Food and Beverage and Cosmetic Industries Propel the Demand for Preservatives in Global Market

It is expected that increased capacities in the food and beverages and cosmetics industries will support the global demand for preservatives.

Increased demand is also witnessed through the rise of e-commerce and online retailing, which is highly associated with extending shelf life and preservatives for the safe delivery of products. For the period between 2018 and 2025, huge growth was realized in the global e-commerce food and beverage markets, which has reflected major shifts in consumer behavior and changing market dynamics. Revenue in the food industry rose from USD 90.4 in 2018 to roughly USD 513.3 billion in 2025. The highest growth was in the year 2020, with a YoY growth of 51.6%, with revenues of USD 167.7 billion; this meteoric growth was driven by the COVID-19 pandemic, which accelerated what had started out as a slow but sure trend towards online shopping, considering most consumers were looking for an easier and safe way to get food amid the danger of this pandemic. The market has since posted continuous growth, which has now seen it rise to USD 274.1 billion US in 2022—finally, to reach USD 333.6 billion in 2023, USD 411.2 billion in 2024, and USD 513.3 billion in 2025. The fact growth has sustained means, increasingly, the change to e-commerce is becoming a permanent feature in consumer purchase behavior. This becomes a rising trend of the preservatives market globally.

This was estimated at least equal growth in the beverage market, rising from USD 90.5 billion in 2018 with the potential to reach around USD 343.6 billion by the year 2025. In the year 2020, the market indeed grew considerably, at a rate of 39.3% year-on-year, and it valued USD 154.1 billion. After this pandemic-driven surge, it continued to grow at a constant rate in the next years: revenues will hit USD 206.9 billion in 2021, USD 232.2 billion in 2022, and keep rising to USD 262.4 billion in 2023, USD 299.0 billion in 2024, and USD 343.6 billion in 2025. Steady increases indicate that consumers were consistently driven to purchasing beverages online by convenience and variety available through e-commerce platforms.

In the cosmetic industry, preservatives are used to minimize bacteria, fungus, and molds, such as others. For 2022, the regional gap of the production value was significant for the global cosmetic industry. The USA possessed the highest value of USD 102.2 billion, followed by Europe- the EU-27, Norway, Switzerland, and the United Kingdom—USD 92.7 billion, a compelling presence in the cosmetic industry as a whole. Within Europe, the EU-27 alone contributed USD 78 billion, reflecting the region's strong manufacturing capabilities, high-quality standards, and established brands. China's production value in the industry is at USD 74.8 billion. Japan and Brazil follow, with market values of USD 28.5 billion and USD 24.2 billion respectively. Market values of INR 14.8 billion and INR 11.6 billion for India and South Korea, respectively, are recorded as fast-growing markets with huge potentials.

Preservatives Industry Segmentation

“Global Preservatives Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Source

• Natural
• Synthetic

Market Breakup by Function

• Antioxidants
• Antimicrobials

Market Breakup by End Use

• Cosmetics
• Food and Beverages
• Pharmaceuticals
• Detergents
• Others

Market Breakup by Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Preservatives Market Share

Natural Preservatives Will Spur Growth In The Market Due To Healthier And Organic Products

As per preservatives industry analysis, the segment of natural preservatives is likely to grow in the direction of increasing demand for cleaner and healthier products and growing awareness about health problems arising from synthetic additives. Natural preservatives derived from plant extracts and essential oils fall totally within the trend toward organic and natural foods. Besides the benefits that entice consumers, such as lower allergens and a perceived better safety/eco-profile, the manufacturers are also inclined toward health/sustainability.

Preservatives prolong the shelf life of food, beverages, cosmetics, and many industrial products.

• Preservatives increase the shelf life of food and beverages, thereby reducing loss/wastage.
• Preservatives retard the growth of some harmful bacteria, mold, and yeast. Therefore, they chip in to food safety by cutting down the potential risk of foodborne diseases.
• Preservatives have also been applied to other non-food products like pharmaceuticals, cosmetics, and industrials.
• Innovations on preservative formulation and delivery systems enhance efficacy and safety hence driving the market growth rate, according to the preservatives market analysis. 
• The already established regulations and standards in most of the region, making sure they retain the quality and safety of usage of preservatives, also provide a framework by which the market's stability is upheld.

Public Fear Of Office Preservative Safety And Rise In Demand For Natural Products Can Reduce Manufacturers Profitability

• Public concern with the safety of artificial preservatives has a negative influence on the market.
• There is an increasing pressure in the synthetic preservatives market due to the demand for natural and clean-label products.
• Some of the available preservatives cannot effectively work against spoilage of all kinds, and others are known for either imparting an off-taste or changing the product's texture.
• Preservatives might prove costly to a minimal percentage of consumers prone to allergy-based cases.
• Consumer trust can be undermined in the marketplace due to spurious preservatives, impeding the market growth.

Increasing Demand for Natural Preservatives Encourages Innovation and New Product Development in Developing Markets

• Growing consumer preferences for natural and organic preservatives as awareness of health issues increases.
• R&D walks further to newer and more relevant solutions in preservatives—safer and more effective—keeping in mind the needs of consumers and the industry.
• Inherent in the growing population, and the increase in processed and convenience foods, is the need for preservatives.

Preservative Market Regional Analysis

With rapid economic growth, mounting urbanization, and an expanding middle-class population leading to increased intake of food and demand for packaged goods, more momentum for preservatives is likely to be found in the market of the Asia-Pacific region. In addition, increased awareness relating to the safety of food and extended shelf life benefits is pushing up the adoption of preservatives. The increasing food and beverage industries, coupled with technological advancements in food processing within the region, further underpin increased usage of both natural and synthetic preservatives while meeting consumer needs and standards prescribed by regulating authorities. Factors as these will enhance the preservatives industry in Asia Pacific.

Competitive Landscape

Key preservatives market players are engaged in scaling up their production capacities to meet the increasing demand for preservatives.  Various mergers and acquisitions occurring in the global preservatives industry indicate a thriving future for the market over the forecast period.

Ashland Inc., founded in 1924 and is headquartered in Wilmington, Delaware, provides a range of preservatives that include Vancide and Vansil series of products used in extending shelf life and microbial protection in personal care applications, as well as food applications.

Lonza Group Ltd., headquartered in Basel, Switzerland, Lonza Group Ltd. was founded in 1897, offers preservatives Proxel and Lonza antimicrobial solutions. Preservatives also help prevent food and beverage spoilage, while some preservatives are used to extend the food products' life span.

Clariant AG, an independent, Swiss-based specialty chemical company headquartered in Muttenz, Switzerland and founded in 1995, is also one of the companies providing preservatives such as the Lonzabac and Actipron series for personal care and food products. The products are designed to protect these products against microbial attack and prolong their freshness to meet customer and regulatory requirements.

Other key market players in the global preservatives market report are BASF SE, Lanxess AG, Kerry Group plc, Corbion NV, Eastman Chemical Company, Symrise AG, and Givaudan SA, among others.

Competitive Factors in the Global Preservatives Market

• There is a constant evolution of new and effective formulations for preservatives as consumer preference and regulatory requirements change.
• The degree of adherence to regional and international legislation, therefore, ensures both market access and consumer safety, which are major points of market competitiveness.
• High-quality and safe preservatives build consumer trust and loyalty, which are indispensable ingredients for long-term business success.
• Efficient production processes and cost-effective sourcing of raw materials will support competitive pricing without eroding profit margins, bolstering the preservatives market revenue.
• The established brand has a competitive advantage in winning and retaining customers based on a reputation for quality and reliability.
• Adoption of sustainable and eco-friendly practices may attract environmentally conscious consumers and meet emerging regulations.
• A strong distribution network will ensure that products are available on time and, by this, it will increase the outreach of a firm and become more competitive.
• Technical Support and Service: Technical support and customer service make a firm prominent and make firm clients become more attached to their firm.
• Partnerships with other firms, research institutions, and market stakeholders will enable a firm to have more innovations and market expansion.

Key Demand Indicators of Preservatives Globally

• Economic growth in developing markets results in increased purchasing power and changes in lifestyles, hence causing heightened consumption of foods, cosmetics, and pharmaceuticals that require preservatives, propelling the demand in the preservatives market. 
• Globalization of supply chains requires that the products be laced with preservatives to maintain the quality of products over lengthy periods taken for transportation and storage.
• Stringent regulatory food safety and quality standards require that the products be laced with approved preservatives, hence creating a demand based on compliance.
• Growth in consumer preference for natural and organic products prompts increase in demand for natural preservatives, perceived as safer and healthier.

Key Drivers for Price in the Global Preservative Market.

• Fluctuations in prices for raw materials used to produce preservatives—like synthetic chemicals or natural extracts—are directly reflected in the overall cost of the preservative, affecting the preservatives industry revenue directly.
• Energy cost, including cost of fuel and electricity, and cost of transporting raw materials and the preservatives themselves, together determine the overall cost differences of preservatives.
• Change in Labour cost, especially where the preservatives product is situated, would reflect in the production and thus affect the preservative pricing.
• If there is a high level of competition among players, it will create a drive to a downwards price whereas if there is a low price.