What is the demand for natural food additives in the European market?

Europe’s large food and beverage industry needs natural additives for many applications. Consumers dislike artificial ingredients and have a preference for clean labels. This feeling has grown stronger due to recent EU bans on synthetic ingredients such as smoke flavourings and titanium dioxide. The EU now also requires a warning label for artificial dyes. This is pushing manufacturers to use natural alternatives, creating good opportunities for exporters of natural sweeteners, hydrocolloids, essential oils, oleoresins and colourants. Germany, France, the Netherlands, the United Kingdom, Spain and Italy offer the strongest market opportunities.

Sector description: natural food additives

Food additives are substances added to foods and beverages during manufacturing. They are used to keep products safe, enhance taste and improve appearance. The European Food and Safety Authority (EFSA) defines food additives as substances intentionally added to food for purposes such as sweetening, preserving and colouring. Food additives cannot be used as main ingredients or for direct consumption.

Many food additives occur naturally. Some are essential nutrients such as vitamins or minerals. However, all additives used in Europe must serve a function and pass safety tests before approval.

In the European Union (EU), all food additives are given an E number. Additives with an E number have passed safety tests and been approved by the EFSA.

In 2024, more than 300 substances were authorised as food additives in the EU. You can find the complete list of authorised additives in Annex II of Commission Regulation (EU) No 1129/2011 on the European Commission website.

Under EU legislation, there are 27 functional classes of food additives. The following groups are used most:

• Antioxidants: Prolong shelf-life by protecting food from oxidation;
• Colourants: Add or restore colour to foods;
• Flavourings and flavour enhancers: add flavour to foods;
• Emulsifiers, stabilisers, gelling agents and thickeners: form or maintain mixtures, give texture or increase thickness;
• Preservatives: Prolong shelf-life by protecting against micro-organisms;
• Sweeteners: Give foods a sweet taste.

This study focuses on natural sweeteners, emulsifiers, stabilisers, thickeners, gelling agents, flavours and food colourants. These ingredients offer the best opportunities for suppliers from producing countries.

Table 1: Main categories and applications of natural food additives

Source: ProFound, 2025

1. What makes Europe an interesting market for natural food additives?

Europe is the world’s most attractive market for natural food additive exporters from developing countries. The food and beverage industry is expanding and there are new rules to stop the use of synthetic ingredients. There is also strong consumer demand for clean label and organic products, and more and more people shift from animal to plant-based additives. This creates growing opportunities for natural colourants, preservatives, sweeteners and stabilisers. 

European food production expansion creates steady demand for natural additives 

The food and beverage industry is the largest manufacturing sector in the European Union, with a turnover of €1.196 billion. Food and drink account for 21.8% of household expenditure, making it a stable and essential market. Europe is also the world’s leading food exporter. They reached €196 billion in 2023, which is more than double the United States’ €93 billion. This strong production and export activity creates consistent demand for ingredients, including natural food additives.

Source: FoodDrinkEurope, 2025

Between 2022 and 2023, major European food exports showed considerable growth: 

• Chocolate by 12% (€7.3 billion);
• Bread and pastries by 12% (€8.5 billion);
• Cheese by 5% (€7.7 billion). 

These products rely heavily on additives to prolong shelf life and for colouring, flavouring and sweetening. Chocolate needs natural emulsifiers such as soy or sunflower lecithin, flavourings such as vanilla, and cocoa butter alternatives. Bakery products use natural colours from caramel, paprika, beetroot and turmeric, and thickeners such as carrageenan, agar and guar gum. Cheese production depends on stabilisers such as starch or guar gum and preservatives such as natamycin. So production growth directly benefits exporters of these natural additives.

The European market is also quick to respond to supply disruptions and switch to alternative sources. For example, in 2023 global sugar prices spikeddue to poor harvests in India and Thailand. In response, European imports of cane and beet sugar jumped 48%, to €2.1 billion, with manufacturers sourcing from Brazil, Mauritius and Ukraine. When traditional sources face challenges, European buyers actively seek reliable alternative suppliers. This adaptability creates opportunities for natural additive exporters.

Consumer preferences are speeding up this trend. Health-conscious consumers, particularly Generation Z (Gen Z), are driving demand for products with natural rather than synthetic ingredients. 45% of Gen Z shoppers prioritise healthy nutrition. One in 3 are willing to pay premium prices for healthier products. This has increased demand for clean label products that use natural instead of artificial additives.

Europe’s natural additives market offers expanding opportunities

The European food additives market was valued at approximately €8.6 billion in 2025. It is projected to reach around €40 billion by 2030, growing around 6% annually. Germany is leading this growth and is expected to reach €9 billion by 2027. This expansion is partly driven by the fast-growing convenience food sector, which was valued at €90 billion in 2025 and is growing 5.5% annually. Ready meals and finger foods have seen a 25% increase in European launches over the past five years. As more convenience products enter the market, demand for additives -  particularly natural additives - continues to rise.

For developing country exporters, the biggest opportunity is in the increasing shift from synthetic to natural additives. Under Regulation (EU) 1333/2008, natural colourants such as curcumin (E100) are approved. But synthetic alternatives have more restrictions. A 2007 Southampton University study linked six synthetic colours, including tartrazine (E102) and sunset yellow (E110) to hyperactivity in children. As a result, products containing any of these ‘Southampton Six’ must carry warnings that they ‘may have an adverse effect on activity and attention in children’. This regulatory pressure, combined with consumer demand for cleaner labels, is forcing manufacturers to reformulate their products. Ingredient formulators and brands are actively looking for natural alternatives to replace synthetic colourants, preservatives and flavours.

Artificial intelligence (AI) is speeding up this reformulation trend. AI and machine learning tools let manufacturers simulate how natural additives behave in different formulations before running expensive lab tests. Major food companies such as Nestlé already use AI models to predict additive performance, reducing R&D time by up to 30%. Tools such as TastepepAI generate novel natural flavour enhancers with built-in safety checks. AI also supports regulatory compliance by screening additives for potential risks, which is crucial in Europe’s strict regulatory environment.

Developing countries supply over half of Europe’s main natural additives

Europe imports large volumes of natural ingredients for use as food additives in food and beverages. Growing demand for natural additives is driving increased imports from both within and outside Europe, making it an attractive market for developing country exporters.

Natural food additives include many different products, all classified under their own HS codes. This makes it difficult to find overall import data for all additives. However, the trade data for key ingredients reveals clear opportunities.

Figure 2 below shows European import trends for four popular natural food additives:

• Natural colourants (HS code 320300);
• Gum arabic (HS code 130120);
• Orange oils (HS code 330112);
• Glycosides, including steviol (HS code 293890). 

These products represent high-volume natural additives with strong developing country supplies. Gum arabic is the most widely used natural emulsifier in food preparations. Orange oils provide versatile natural citrus flavouring across baked goods, confectionery, beverages, dairy and savoury applications. This makes them essential for European food manufacturers. 

In 2024, natural colourants were the largest category, at €761 million. They are followed by orange oils at €447 million, glycosides at €326 million and gum arabic at €277 million.

Source: ITC Trade Map, 2025

According to 2024 ITC Trade Map data, Europe accounts for approximately 50% of global imports of these additives. This makes it the world’s most important market. This dominance extends to other, similar natural additives, offering good opportunities for suppliers.

Between 2020 and 2024, all four categories grew by a lot: 

• Orange oil imports surged by 192%. This happened because of post-pandemic recovery in the flavour industry and increased use in beverages, plant-based foods and nutraceuticals. 
• Gum arabic nearly doubled (+88%). This is due to more demand for natural stabilisers in beverages, confectionery and the growing free-from and low-calorie product segments. 
• Natural colourants increased by 26%. This is supported by the EU’s continued shift from synthetic dyes towards plant-based alternatives such as paprika, turmeric and annatto. These offer heat stability, which makes them popular vegan alternatives to saffron in plant-based cheeses, savoury dishes and rice colouring. 
• Glycosides grew by 15%, despite temporary price corrections in 2023. This is because stevia continues to replace synthetic sweeteners in soft drinks and dairy.

Developing countries play a crucial and growing role in supplying Europe’s natural additives market:

• 57% of European glycosides (€186.5 million) was supplied by developing countries in 2024. Supply mainly came through China, with emerging contributions from Paraguay and Kenya. 
• Developing countries supplied 39% of orange oils (€175.4 million), led by Brazil, Argentina and Mexico. This highlights Europe’s structural reliance on Latin American citrus origins. 
• Gum arabic comes almost entirely from developing countries. They supplied 95% (€161.5 million) in 2024, mostly from Sudan and Chad. 
• Natural colourants had the fastest growth in developing country market share. The share rose from 14.3% in 2020 to 15.5% in 2024 (€117.9 million). This is due to supplies of paprika, turmeric and annatto from India and Peru.

Much of this trade flows through major European import hubs. These include the Netherlands (Rotterdam), Germany (Hamburg), France (Le Havre and Marseille) and the United Kingdom (Felixstowe). Here, additives are processed, repackaged and redistributed across the continent.

The data clearly shows that Europe’s market for natural additives from developing countries has strong potential and is expanding quickly.

Organic and clean label trends drive demand for natural additives

The European organic retail market reached €54.7 billion in 2023, growing steadily from €11 billion in 2004. Germany led with a projected value of €18.3 billion in 2025, followed by France (€12.4 billion), Italy (€4 billion), Spain (€3.1 billion) and Sweden (€3 billion). Between 2014 and 2023, organic retail sales rose strongly by 150% in France, 128% in Spain, 107% in Germany, 81% in Italy and 69% in Sweden.

More importantly for natural additive suppliers, organic products now have a major market share in the leading countries. These are: Denmark (11.8% of total retail sales), Switzerland (11.6%), Austria (11%), Sweden (7.8%), Luxembourg (7.2%) and Germany (6.3%). These high-income markets demonstrate consumers’ willingness to pay premiums for products that meet higher standards. This trend goes beyond organic certification to also include broader clean-label expectations.

Source: Statista, 2025

Among European consumers, there is increasing demand for products free from artificial additives, preservatives and sweeteners. This is known as the ‘clean-label’ trend. The market for clean-label ingredients is expected to reach €180 billion globally by 2035, with Europe remaining the frontrunner. In line with this, more than 75% of consumers in France, Germany, Italy, Spain and Poland actively avoid ultra-processed foods. These are industrially produced with multiple synthetic additives and ingredients rarely used in home cooking.

Supporting this shift from heavily processed to natural foods are consumer tools that increase transparency. The Yuka app, launched in France in 2017, now has 65 million users across 12 countries. It scans product barcodes and rates products on health impact, highlighting those with synthetic additives. Impact data shows that 94% of US Yuka users reject products with poor ratings, and 92% buy fewer ultra-processed foods. In response, French retailer Intermarché reformulated 900 products, removing 142 additives to improve Yuka scores. Similarly, in the UK, Dr Chris van Tulleken’s bestselling book Ultra-Processed People raised consumer awareness and influenced policy debates on food additives.

European consumers also still want convenience, but without compromising on health or naturalness. This overlap creates opportunities for clean-label, functional, on-the-go products made with natural additives. Meal replacement beverages exemplify this trend. 

Figure 4: Overlap between different macro-trends in Foodtech 

Source: Dealroom, 2025 

Products such as Kate Farms’ organic, plant-based drinks combine convenience with recognisable ingredients. Their formulations rely heavily on natural additives, including:

• Locust bean gum and sunflower lecithin (plant-based emulsifiers and stabilisers)
• Agave inulin and pea starch (natural thickeners and fibre sources)
• Rosemary extract (natural antioxidant)
• Plant extracts from turmeric, beetroot and blueberry (natural colourants and phytonutrients). 

Together, these natural additives create smooth texture and appealing taste and add nutritional value. It shows how plant-derived ingredients can replace synthetic ingredients in functional foods.

Plant-based claims come under strong scrutiny in Europe. Apps such as Fussy Vegan help consumers look up ingredient origins, creating pressure on manufacturers to use plant-derived rather than animal-derived additives. This is driving the shift from animal-based colourants such as carmine (derived from insects) to plant-based alternatives. 

The data supports this, as figure 5 shows, with European markets clearly shifting towards vegetable-based alternatives. The shift towards vegetable dyes is strongest in the UK, at 10.6%, followed by Germany (6%), France (4%) and Italy (2%). 

The Netherlands is a notable exception, showing a 37% shift towards animal-based dyes during the same period. This is likely because it is a major food processing hub that manufactures for export markets rather than domestic consumption. Manufacturers also prefer natural animal-based colourants (such as carmine) over synthetic plant alternatives to meet clean-label demands and technical requirements. This is because animal-based dyes have superior colour stability and performance in plant-based meat and dairy substitutes.

Source: ITC Trade Map, 2025

As an example, red Oreos contain carmine and cannot be labelled as vegan. Ingredient suppliers such as Imbarex actively educate manufacturers about natural plant-based substitutes that can replace carmine while meeting clean-label demands. Potential substitutes are ingredients such as beetroot powder, paprika oleoresin and annatto extract. 

European consumers favour organic, clean-label and plant-based over animal-based ingredients. They also reject ultra-processed foods. These overlapping trends position Europe as the most attractive market for natural additive exporters. 

2. Which European markets offer the most opportunities for natural food additives?

Germany, France, the Netherlands, the United Kingdom, Spain and Italy are Europe’s most attractive markets for natural additive exporters. These countries all have large import volumes, strong growth rates and strategic roles as processing and distribution hubs. Together, they account for most European natural additive imports and are driving clean-label innovation. 

Source: ITC Trade Map and Access2Markets, 2025

Table 2 below shows the import performance of four key natural additive categories in the six major European markets. For each product and country, the table shows:

• Value in 2024 (in million €);
• Percentage change in value between 2020 and 2024; 
• Volume in 2024 (in metric tonnes); 
• Percentage change in volume between 2020 and 2024. 

Germany is the leading importer by value of natural colourants and oils of orange, reflecting its strong role in food and flavour formulations. Meanwhile, France leads gum arabic imports, driven by its confectionery sector. In terms of volume, France leads in gum arabic and glycosides imports, Italy in natural colourants and Germany in oils of orange.

Table 2: Imports of selected natural additives in key European markets, 2020-2024

Source: ITC Trade Map and Access2Markets, 2025

Table 3: Organic market overview for selected countries, 2020-2023

Source: FiBL, 2025

Germany

Germany has Europe’s largest food and beverage market, reaching €245.9 billion in revenue in 2024, along with the world’s third-largest food export industry. High-income, health-conscious consumers and leadership in organic and plant-based foods create exceptional opportunities for natural additives.

Germany’s massive domestic consumption and manufacturing base create diverse demand for natural additives. Its food additive sector is growing steadily by around 3.3% annually. Germany has Europe’s largest organic food market (approximately €16 billion in 2023) and the continent’s biggest plant-based foods market. This makes it the main market for suppliers of natural, clean-label ingredients.

German consumers are very health-aware and quality-conscious. Consumers are becoming less willing to accept synthetic additives, pushing food manufacturers across all sectors to reformulate. Germany’s broad food industry, which spans meat processing, dairy, bakery, confectionery, beverages and alcoholic drinks, is working to replace synthetic preservatives, colourants and flavour compounds with natural alternatives. German bakers and snack makers such as Bäckerei Wolf and Minderleinsmühle are switching to plant-derived instead of artificial emulsifiers and fibres, and beverage makers like Bionade to natural colourants and flavours.

Germany plays an important role in the trade in essential oils and flavour extracts. It ranks as a top European importer of essential oils and oleoresins for foods and beverages. The country is Europe’s leading processing and flavour formulation hub.

Germany’s natural additives sector is actively innovating and consolidating. Symrise is a German flavour and fragrance giant with 70 years of industry experience. It has been expanding its natural ingredient portfolio, buying natural food colouring businesses and investing in areas such as plant protein flavour masking. Döhler operates vertically integrated supply chains for natural extracts. These range from fruit concentrates to botanicals. It also regularly buys specialty ingredient startups.

Germany’s market leadership makes it the dominant import country. It ranks first or second across all major natural additive categories in 2024:

• Germany is Europe’s largest importer of orange oil, with imports worth €207.3 million (+192% relative to 2020). Volumes grew 25% to 17,590 tonnes, nearly four times that of France. 
• Germany also ranks first in natural colourants, with imports of €127.8 million. Volumes rose 13% to 5,687 tonnes, making it Europe’s primary hub for colourant formulation.
• Glycosides imports reached €61.1 million (+71.5%), second only to France. Volumes nearly tripled to 3,437 tonnes, which is the highest absolute volume growth among all markets. 
• Gum arabic imports more than doubled to €38.3 million (+109%), ranking second after France, with 18% volume growth showing steady beverage and confectionery demand.

Another major company in Germany is Brenntag, active in multiple natural ingredients. Other important processors and traders include Silesia Aroma, Henry Lamotte Oils GmbH, ADM Wild Europe, Rüther Gewürze, Roeper and All Organic Treasures. 

France

France’s €220 billion food market was Europe’s second largest in 2024 and is defined by consumer emphasis on quality and naturalness. French consumers are cautious about artificial additives, and this is reflected in government and retail decisions.

Supermarket chain Super U has committed to removing or reducing 90+ controversial additives from store brands. This includes artificial colourants, preservatives and flavour enhancers. This is forcing suppliers to reformulate and use natural alternatives. For example with rosemary extract instead of BHA in crisps, or apple extract as acidifier. French shoppers favour short ingredient lists and recognisable ingredients, creating steady demand for clean-label replacements. France’s organic retail market, valued at €12.1 billion in 2023, has shrunk 5.8% since 2020 due to inflation pressures. But long-term demand for natural additives remains strong.

France’s most important food sectors – meat, dairy (with extremely high cheese and butter consumption), beverages and confectionery – all prioritise natural ingredients. The country is widely seen as the centre of the global flavour and fragrance industry, home to Givaudan-Naturex, MANE, Robertet and IFF, among others. One growth area is dairy flavours, with companies developing natural cheese and butter flavours for snacks, savoury breads and other processed foods. In beverages, natural botanicals such as herbal infusions, floral flavours (lavender, hibiscus) and citrus oils dominate in craft sodas, liqueurs and flavoured waters. Food tech incubators such as ToasterLab support startups to develop natural ingredient innovations.

France’s food industry and formulation expertise is reflected in substantial, stable import volumes across all additive categories in 2024:

• France dominates European gum arabic imports, reaching €127.5 million (+111%) and a volume of 61,796 tonnes, which is by far the highest of all European markets and more than double any other country. 
• France ranks first in glycosides imports, at €74.6 million (+4%) and 23% volume growth, leading European stevia demand. 
• Natural colourants reached €87.7 million (+29%), ranking third after Germany and the Netherlands. 
• Orange oil imports rose strongly to €45.5 million (+200%), placing France second after Germany and reflecting the country’s strength in the flavour and fragrance industry.

French traders of gum arabic include Nexira and Alland & Robert. The country’s leading importers of essential oils and oleoresins include Elixens, SNPM Huiles, Nactis, Robertet, Metarom and Anec France.

Netherlands 

The Netherlands is Europe’s primary gateway for natural food additives. Despite a small domestic market of 18 million people, its strategic location, excellent logistics infrastructure and large food processing industry make it an ideal manufacturing and redistribution hub for refined, high-value natural ingredients.

The Netherlands has a large food processing sector, with more than 9,155 companies and €114 billion in sales in 2023. The industry relies heavily on both local innovation and imported ingredients, with the additives market showing overall growth of around 3% annually. Major food sectors include dairy, bakery, confectionery and fast-growing plant-based and alternative protein segments.

The Netherlands’ organic retail market reached €1.6 billion in 2023, expanding 18.7% since 2020, faster than all other major European markets. Between 2019 and 2023, organic food sales increased by over 50%. This demonstrates growing demand for natural and organic ingredients. The Netherlands is emerging as a European leader in natural and organic additive solutions. Suppliers such as Holland Ingredients and Gourmet Ingredients are rapidly adapting to clean-label trends. 

The country is at the forefront of alternative protein development. Regulators have even approved pilot tastings of cultivated meat. This creates demand for specialty binders, natural flavour enhancers and fermentation-based additives. An example is black cumin seed oil, which has been studied for its antioxidant and preservative properties. Industry investment reflects this growth. For example, leading multinational ingredient company Cargill has invested €35 million to expand Dutch production capacity by 60%.

The country’s strategic position as Europe’s ingredient gateway is clear from its import patterns. These favour high-value, concentrated products over bulk volumes. In 2024: 

• Natural colourant imports increased to €106.7 million (+83%), ranking the Netherlands second in Europe after Germany. However, volumes fell sharply by 77% to 2,998 tonnes, a clear sign of the country’s focus on refined, concentrated products for re-export over bulk ingredients.
• Glycosides imports rose to €32.1 million (+82%), ranking it in fourth place. With volumes doubling to 658 tonnes, it had the lowest volumes but highest concentration by value. 
• Orange oils grew 99% to €24.8 million, ranking fifth. 
• Gum arabic reached €5.95 million (+18%), ranking last among major markets. Volumes declined 19% to 1,211 tonnes. 

This consistent value-versus-volume pattern across all categories highlights the Netherlands’ role as Europe’s gateway for premium, refined natural additives.

Delft-based DSM-Firmenich (formed by a 2023 Swiss-Dutch merger) dominates natural flavourings and clean- label solutions. Other important players include Corbion (natural fermentation-based emulsifiers), GNT Group/Exberry (food colourants), Van Wankum Ingredients (stevia imports) and the distributors Holland Ingredients and Caldic.

United Kingdom (UK) 

The United Kingdom leads Europe in clean-label formulations, with major retailers removing artificial additives from store brands since 2010. Post-Brexit regulatory freedom allows it to fast-track novel natural sweeteners, creating unique opportunities for natural additive suppliers.

UK consumers strongly associate clean label with natural ingredients and no synthetic chemicals, creating pressure for widespread industry change. Major supermarket chains such as Tesco and Sainsbury’s removed all artificial flavours and azo dyes from private label products from 2010 on. The UK’s organic retail market, valued at €3.4 billion in 2023, has grown 7.8% since 2020, boosting demand for certified natural additives.

The focus is now on preservatives and emulsifiers. Consumers are demanding natural alternatives to sodium benzoate. This has been banned in infant food, but is still often used in soft drinks, ice cream, sauces and baked goods. This creates opportunities for fermentation-based preservatives. These include things such as natamycin, cultured ingredients marketed as ‘fermented wheat flour’ in bakery applications, and soy or pea protein-based emulsifiers replacing mono-diglycerides.

The country’s beverage sector was transformed by the UK Soft Drinks Industry Levy. This levy was introduced in 2016 to promote reformulation and lead to a 46% reduction in soft drink sugar content between 2015 and 2020. Because of cost, many manufacturers initially used artificial sweeteners instead. But interest in natural alternatives is now boosting stevia adoption and trials of fruit extract blends. Post-Brexit regulatory freedom may speed approval of novel natural sweeteners such as allulose and monk fruit extract by the Food Standards Agency, perhaps by as early as 2026.

Post-Brexit regulatory freedom and the shift towards premium formulations is reshaping UK import patterns across all natural additive categories. In 2024: 

• Gum arabic rose strongly to €22.1 million (+83%), ranking third in Europe after France and Germany. Volumes reached 7,813 tonnes (+10%), keeping it important for the beverage and confectionery industries.
• Natural colourants increased to €65.7 million (+9%), ranking sixth. Volumes recorded a 16% decline, indicating a shift towards higher-value concentrated products. 
• Orange oil imports grew 69% to €27.8 million, ranking fourth. However, volumes fell sharply (-60%) to 1,421 tonnes, due to a shift towards concentrated flavour imports over bulk oils.
• Glycosides declined slightly to €25 million (-10%), ranking fifth. Volumes grew 28% to 609 tonnes.

Historic British sugar refiner Tate & Lyle has transformed into a global specialty ingredient supplier focused on natural sweeteners and fibres. The company bought Sweet Green Fields (stevia producer) and its London Innovation Centre helps manufacturers reformulate using cleaner ingredients. Natural colourant importers in the UK include Duracolor, Plant-Ex and ScotBio (developer of ScotBio Blue from spirulina). Oleoresin specialists include British Pepper and Spices, Treatt and House of Flavours.

Spain

Spain combines clean-label demand with robust domestic production of natural ingredients, making it a dynamic market for natural additives. The country leads Europe in processing seaweed extracts, food colourants and oleoresins, and is also a major re-exporter to other European markets.

Demand for natural ingredients is among the highest in Europe, with over 72% of Spanish consumers preferring food with clean-label natural additives. Spain’s organic retail market reached €2.7 billion in 2023. It grew 8.7% relative to 2020, making it the second-fastest growing major market in Europe. This is driving the reformulation of processed foods, which account for half of Spanish household food expenditure. Spain’s overall food additives market is projected to grow at 5.5% annually until 2031, with natural segments expanding faster.

Spain’s major food sectors – beverages, confectionery, processed meats (such as chorizo), sauces and dairy desserts – are using locally sourced ingredientsmore and more often. Spain is known for its paprika and saffron. These are traditional natural colourants used industrially in snacks and ready meals. Spain’s citrus cultivation supports a major flavour industry, with orange and lemon oils being used as natural flavourings in soft drinks, confectionery and meat products.

Spain has voluntary sugar reduction programmes, which aim at reducing high-sugar soft drink consumption. These have sped up the use of natural sweeteners. Spanish brands were early adopters of stevia. For example, Coca-Cola Spain launched stevia-sweetened beverages such as Aquarius shortly after EU approval. This trend is ongoing, with low-calorie beverages gaining more market share. Spanish consumers also respond well to plant-derived sweeteners over synthetic alternatives.

According to the European Food Safety Authority (EFSA), Spain’s functional food market has grown by around 15% a year since the COVID-19 pandemic. This creates opportunities for natural antioxidants, vitamins and fibre additives. Instead of synthetic preservatives, companies now use natural vitamin C from acerola cherry and tocopherol-rich extracts in juices and meats.

Recent industry consolidations demonstrate Spain’s strategic importance. Oterra’s 2021 acquisition of SECNA Natural Ingredients, a Valencia-based company specialised in anthocyanin colour extracts from grapes and carrots, strengthened Oterra’s foothold in Southern Europe’s natural colourant markets. UK-based Croda’s acquisition of Iberchem, a Murcia company, in 2020, shows strong confidence in the growth of Spain’s flavour market.

Spain’s role as both a major consumer market and a re-export hub creates different import dynamics in the natural additive categories. In 2024: 

• Glycosides reached €45.2 million (+7.1%), ranking third in Europe after France and Germany. Volumes increased strongly by 59% to 1,977 tonnes, showing strong adoption of natural sweeteners.
• Orange oil imports rose sharply by 213% to €19.3 million. This ranks Spain in sixth place, but with the second-fastest growth rate after Italy.
• Natural colourants reached €76.2 million (-10%), ranking fourth. However, volumes rose to 4,288 tonnes (+1.8%). This shows Spain’s role as a re-export hub where prices declined but overall product flow remained steady. 
• Gum arabic imports rose to €8.4 million (+51%), ranking fifth. Volumes were nearly unchanged, at 1,921 tonnes, showing stable beverage and flavour industry consumption.

PROCONA (SEIMEX Group) is a main natural colourant producer with a wide colour range. Other colourant specialists include Sancan (from meat to vegan categories) and Coralim. Oleoresin importers include Pimentón, Diego Pérez Riquelme e Hijos (acquired by La Margarita) and Evesa. Stevia traders include Azucares Prieto, Disproquima and EPSA Aditivos Alimentarios. Spain-based Roko leads European agar production, with Agar de Asturias also playing a significant role in seaweed extracts.

Italy 

Italy’s food culture is based on high-quality natural ingredients. This food culture is now merging with modern health trends to make it Europe’s fastest-growing natural additives market. The market’s projected annual growth of 6.5% between 2025 and 2030 outpaces other countries. It shows that Italian manufacturers are quickly responding to changing consumer preferences. Italy’s organic retail market reached €6.5 billion in 2024, growing 5.7% year-on-year. EU organic and food-law regulations continue to require the use of natural additives in organic products.

Italian consumers have long valued authenticity in food, but awareness of the health impacts of artificial additives has now risen sharply. Surveys show greater concern about synthetic preservatives and dyes in food staples such as baked goods, sauces and soft drinks. Many consumers now carefully read labels and actively avoid artificial additives. This has led many manufacturers to reformulate products using natural alternatives.

Italy’s most important food sectors – bakery, dairy, gelato, beverages and processed meats – are all switching to natural solutions. The country’s prominent aperitivo and beverage sector is a good example of this shift. Following EU bans on some artificial bitterants and colourants, Italian drinks have been reformulated using natural alternatives. For instance, vibrant red aperitifs now use carmine and paprika extracts instead of synthetic dyes. This drives demand for botanical ingredients such as natural quinine alternatives, herbal extracts for vermouth, and citrus oils.

The country’s sugar tax has been postponed until 2027. But Italian beverage and confectionery makers still need alternatives, and stevia is gaining popularity in soft drinks and iced teas. Italy was an early adopter of stevia, testing product approval in 2009 before the EU gave full authorisation. This helped place Italy at the forefront of innovation in stevia-sweetened products. Leading domestic sugar producer Cristalco now supplies natural stevia sweeteners to Italian brands.

The rapid transformation of Italy’s market is clear from massive import growth, with several categories showing Europe’s highest expansion rates in 2024: 

• Orange oil imports skyrocketed 654% to €44.2 million, ranking third in Europe. Volumes rose strongly by 202% to 3,178 tonnes, driven largely by the fragrance and flavour sectors. 
• Gum arabic rose 153% to €18.5 million, ranking fourth, and a volume of 5,199 tonnes (+58%).
• Natural colourants reached €72.9 million (+12%), ranking fifth in import value but first in volume, at 10,308 tonnes. This was almost double Germany’s import volume, reflecting Italy’s position as Europe’s largest natural colourant user for gelato, confectionery and beverage manufacturing. 
• Glycosides were worth less, at €16 million (+5%), ranking sixth among major markets.

Major multinationals are investing in Italy’s growth. ADM, Cargill, Kerry, DSM, Jungbunzlauer and Corbion are all active in Italy. Givaudan has strengthened its natural flavour portfolio through acquisitions of Italian companies. One of these is the Milan-based Giotti (specialised in natural flavours for beverages and frozen desserts). Italian distributor Giusto Faravelli is now focusing on natural and organic additive lines. Other key players include Aromata Group, D-Ingredients, Brenntag and Sensient. Major suppliers of natural sweeteners, particularly stevia, include Bio Mondo and Moralco.

3. Which products from developing countries have the most potential in the European natural food additives market?

The strongest opportunities are in natural sweeteners (stevia, natural syrups), hydrocolloids (gum arabic, guar gum, seaweed extracts) and natural flavours and colourants (essential oils, oleoresins, plant-based pigments). Developing country suppliers currently dominate or hold significant market share in these categories. Demand should grow steadily through 2030.

Natural sweeteners 

The European market for natural sweeteners has continued to grow. This is in response to consumer demand and regulator efforts to reduce sugar content in foods and drinks. The European soft drinks industry achieved a 10.8% sugar reduction between 2019 and 2023. It reached its target two years early, and aimed for a further 10% reduction by 2025. Product innovation reflects this shift, with the number of new sweetener-containing products growing from around 500 in 2007 to over 8,700 in 2023.

Specifically, European consumption is shifting towards natural instead of artificial sweeteners. Growing health concerns about synthetic alternatives, including recent research linking artificial sweeteners to mental decline, are boosting demand for plant-based options. The combination of regulatory pressure and consumer concern about artificial ingredients creates substantial opportunities for developing country suppliers of natural sugar alternatives.

Natural sweeteners from plant extracts and other natural sources are widely used in low-calorie beverages, sugar-free confectionery, yoghurts and sauces. Examples include stevia extract, sugar alcohols like erythritol and natural syrups such as date, agave, maple, yacón and coconut blossom. The stevia market in Western Europe alone was valued at €150-160 million in 2023 and is projected to double in the next decade, growing 7-10% a year.

Table 4: Examples of natural sweeteners approved for use in Europe

Source: European Commission, 2025 

Trade data also shows this growth trend. European imports of glycosides (HS 293890, which includes stevia) grew 14.8% between 2020 and 2024, reaching €326 million.

Source: ITC Trade Map, 2025

Table 5: European import volume of other glycosides, including steviol glycoside, from developing countries, 2020-2024, in million €

Source: European Commission, 2025 

Imports from developing countries were valued at €187 million in 2024, growing 21.3% from a share of 54.1% to 57.2% of total EU imports. China led with €135 million (72.3% of developing country supply), with volumes staying stable despite market fluctuations. Indian supplies saw massive growth of 310% to €20 million, mainly from expanding stevia production. At €20 million, Malaysia supplies were stable, while Moroccan imports rose 213%, to €13 million. Other suppliers include South Korea, Thailand and Chile.

Besides stevia, other alternative natural sweeteners also offer opportunities. Monk fruit extract’s basic form was deemed not novel by EU authorities in 2024, opening the way for its use. There is a growing niche market for coconut sugar from Indonesia and the Philippines, date sugar and agave syrup. This is thanks to their unrefined, healthier image. Industry innovations include companies such as BlueTree Technologies’ development of filtration processes lowering juice sugar content by 30% without added sweeteners. This qualifies products for ‘reduced-sugar’ labelling under EU breakfast directives.

The main challenge for product developers is still to match sugar’s taste and mouthfeel. However, European manufacturers are choosing natural, low-calorie sweetening alternatives over artificial options more and more often. 

Emulsifiers, stabilisers, thickeners and gelling agents

Natural hydrocolloids, emulsifiers, stabilisers, thickeners and gelling agents derived from plants, seaweeds or fermented sources are a high-potential category for developing country exporters. These additives are needed for texture and stability in foods. These foods can range from baked goods and dairy products to condiments and beverages.

Two trends are coming together to drive European demand for natural hydrocolloids. First, consumers want convenient processed foods with stable quality and long shelf life. Second, demand for clean labels is pushing manufacturers to replace artificial additives with recognisable natural alternatives. These two trends create strong opportunities for suppliers from developing countries, which produce many of these ingredients.

Developing countries are major suppliers of important natural hydrocolloids. These include: 

• Gum arabic
• Guar gum
• Locust bean gum
• Carrageenan (from red seaweed)
• Agar (also from seaweed)
• Xanthan
• Pectin
• Konjac

Table 6 shows products with growing markets and export opportunities.

Table 6: Examples of natural emulsifiers, stabilisers, thickeners and gelling agents allowed and used in Europe, listed by HS code

Source: European Commission, 2025 

Gum arabic 

Gum arabic is a plant gum obtained from acacia trees in Africa’s Sahel region. It is used as a natural emulsifier and stabiliser in beverages and confectionery and for flavour encapsulation. The European gum arabic market was valued at €216 million in 2024 and is expected to reach €384 million by 2033, demonstrating strong long-term growth potential. European demand has increased due to its use as a fat replacer in low-fat foods and as a vegan alternative to gelatine, in line with clean-label trends.

European imports nearly doubled between 2020 and 2024, reaching €256 million (+90%). Developing countries supplied €162 million in 2024, growing 93% and keeping a dominant 63% share. As ITC Trade Map data does not include Sudan, figures are sourced from Access2Markets and exclude UK imports. 

Source: Access2Markets, 2025 

Table 7: European import volumes of natural gum arabic from developing countries, 2020-2024, in million €

Source: European Commission, 2025 

Sudan is still the main supplier, with imports valued at €105 million (65% of developing country supply) and growing 70% despite regional instability. Chad ranks second, at €17 million, nearly doubling (+97%). Egypt emerged as a significant new supplier at €7 million, while Eritrea entered the market at €3 million. Nigeria and South Sudan are also suppliers.

Civil conflict in Sudan in 2023 severely disrupted exports. Rebel forces seized gum-producing regions, leading to smuggling and supply chain risks. By late 2023, Sudanese exports to the EU had dropped. Chad, Cameroon, South Sudan, Kenya, Egypt, Eritrea and UAE re-exports rose to fill the gap. Western buyers now increasingly demand conflict-free certification.

For suppliers that want to stand out, certification programmes such as FairWild offer clear market benefits. FairWild certification guarantees sustainable wild-collection practices, fair pay for collectors and full supply-chain traceability – all important to European buyers of natural food additives. This matters especially for botanicals used as flavourings, antioxidants or functional ingredients, such as wild thyme, winter savoury, water pepper and willow bark, which are often wild-harvested and increasingly checked for responsible sourcing. 

The FairWild system also shows where ingredients are in the certification process. It has an active network of operators, processors and traders. They help producers connect with established buyers and position their ingredients for premium European markets that value transparency.

Major ingredient companies such as Nexira and Alland & Robert buy refined, amber-coloured gum, process it into emulsifiers, and sell it to large consumer-goods companies. These companies have expanded their sourcing to Cameroon and Senegal to reduce risks linked to Sudan. This shift creates opportunities for producers in Nigeria, Tanzania and other acacia-growing regions to increase exports and join established European supply chains.

Guar and locust bean gum 

Guar gum (from guar beans) and locust bean gum (from carob tree seeds) are plant-based thickeners widely used in European sauces, ice cream, dairy and gluten-free baked goods. They provide viscosity, stabilise emulsions and improve texture. Europe depends heavily on imports, with India supplying around 70% of global guar gum and Mediterranean countries, including Morocco, supplying carob gum.

European imports of locust and guar gum grew 2.2% between 2020 and 2024, reaching €297 million. Developing country supplies came to €129 million in 2024, a strong rise of 55.7%. They also dramatically increasing their share of total imports from 28.5% to 43.4%. 

Source: ITC Trade Map, 2025

Table 8: European import volume of mucilages and thickeners derived from locust beans from developing countries, 2020-2024, in million €

Source: ITC Trade Map, 2025

India dominates with €96 million (74.5% of developing country ) and growth of 88.6%, largely from guar gum exports. Pakistan ranks second at €8 million, and China third at €5 million. Moroccan supplies grew 879% to €4 million, but this is probably because its 2020 baseline was unusually low. 

The COVID-19 pandemic caused a crisis in the locust bean gum market. Prices surged 800% due to poor carob harvests and spiking demand. This forced manufacturers to reformulate using cheaper alternatives including tara gum from Peru and more guar gum from India. Locust bean gum supplies recovered and prices normalised by late 2023. But the earlier instability permanently increased European interest in other natural gums as back-up options.

This creates opportunities for developing country suppliers. Indian and Pakistani guar gum exporters have expanded their business and Peruvian tara gum producers have gained permanent European market access. Chinese xanthan gum producers are benefiting from custom blends that replace locust bean gum in some applications.

Seaweed extracts 

Seaweed extracts, mainly carrageenan and agar from red seaweeds, are important in Europe as natural gelling and thickening agents. Carrageenan is used to stabilise dairy, plant-based milks and processed meats. Agar is valued in confections and desserts. Europe imports most of these extracts from developing countries in Asia and South America, with a limited volume of domestic production.

European imports of agar reached €72 million in 2024 (+1.5% since 2020). Developing countries supplied €42 million of these imports, increasing their share from 55.3% to 57.7%. 

Source: ITC Trade Map, 2025

Table 9: European import volume of agar from developing countries, 2020-2024, in million €

Source: ITC Trade Map, 2025

China dominates with €28 million (66.9% of developing country supply) and growth of 51.2%, largely from carrageenan and agar exports. Morocco follows at €8 million, while Vietnam grew 107% to €5 million and Indonesia 56% to €5 million. Chile’s exports fell by 55%. 

European demand for seaweed extracts is expected to grow, driven by rising demand for plant-based foods and ongoing demand for natural alternatives to synthetic thickeners. 

Natural flavours

The European flavour industry is valued at €3.5 billion annually and makes up around one-third of the global market. There is a growing market for natural flavour preparations that enhance or modify taste and aroma in foods. This is driven by consumer preference for recognisable ingredients, the expanding organic sector and cost-effectiveness.

European manufacturers add natural flavours in a range of categories including soft drinks, confectionery, yoghurts and savoury snacks. All flavourings must meet with strict safety rules under the EU Flavouring Regulation, with ongoing assessments to protect consumers.

Recent regulatory developments are speeding the shift towards natural alternatives. In April 2024, the European Union banned some artificial smoke flavourings widely used in the food industry. As a result of the ban, manufacturers had to reformulate and turned to natural solutions. This need for approved alternatives, along with consumer demand for clean labels, puts natural flavour suppliers from developing countries in a good position to gain growing market share in Europe. 

Essential oils 

Essential oils are concentrated volatile oils distilled from herbs, spices, citrus peels and flowers. They are used as natural flavouring ingredients in European beverages, confectionery and baked goods. Oleoresins, which are solvent-extracted spice concentrates containing both aroma and taste components, serve a double purpose in processed foods. Here they are also used as natural flavourings and colourants.

Table 10: Examples of essential oils used in the European food and drinks market, listed by HS code

Source: European Commission, 2025 

European imports of essential oils rose 35.4% between 2020 and 2024, reaching €2.3 billion. In 2024, developing countries’ supplies were worth €1.24 billion, growing 55.3%, while their market share rose from 46.0% to 52.7% between 2020 and 2024.  

Source: ITC Trade Map, 2025

Table 11: European import volumes of essential oils from developing countries, 2020-2024, in million €

Source: ITC Trade Map, 2025

Brazil leads with €201 million and growth of 146%, largely from orange and eucalyptus oils, and accounts for 16.3% of developing country supplies. India follows closely at €198 million (+16%), with a steady supply of mint and spice oils. Indonesia ranks third at €99 million (+47%), supplying clove, patchouli, nutmeg and citronella oils. Argentina’s supplies fell 37% to €89 million, despite historically strong citrus production. 

Peru saw the fastest growth (+523%), reaching €66 million, driven by rapid expansion from a low base and rising EU demand for natural, sustainably sourced essential oils. Peru also expanded exports of citrus and botanical oils. This includes Amazonian ingredients such as sacha inchi oil, used in food and cosmetics, and Curcuma longa (turmeric) essential oil, promoted as a ‘superfood’ ingredient. Two other factors further supported Peru's growth. The first is strong demand from major cosmetic and formulation centres such as France and Germany. Peru also has better export capacity and closer alignment with EU sustainability and traceability requirements.

The leading essential oils by global production volumes are citrus oils at 1 million tonnes, mint oil at 50,000 tonnes, clove oil at 30,000 tonnes and eucalyptus oil at 20,000 tonnes. 

The European spice oils and oleoresins industry is anticipated to grow 6.5% annually, from €6.2 billion in 2025 to €11.6 billion by 2035. Oleoresins are expected to lead with 57% market share in 2025. The oleoresins in highest demand are black pepper (used in meat products and savoury snacks), paprika (gives natural red-orange colour to soups, crisps and sausages) and turmeric (gives yellow colour and has health benefits). 

Demand is rising for several reasons. Health and wellness trends are pushing consumers to choose natural flavours in non-alcoholic drinks, flavoured waters and snacks. New regulations are also creating short-term opportunities. In April 2024, the EU banned eight artificial smoke flavourings. This was because safety assessments showed they had insufficient safety margins. Food companies must now remove these ingredients from sauces, snacks and processed meats, or replace them with natural alternatives. This means companies need to reformulate products using natural smoke extracts, spices and essential oil blends.

European flavour companies such as Symrise, Givaudan and DSM-Firmenich are increasingly forming direct sourcing partnerships with herb and spice growers in developing countries to secure high-quality, sustainable supply. This includes vanilla from Madagascar, citrus oils from Brazil and Mexico and capsicum oleoresin from India.

Natural food colourants 

Natural colourants offer strong export opportunities in the European market. European food manufacturers are actively seeking raw materials and extracts that meet performance, stability and safety requirements. Demand is increasing because consumers are rejecting artificial additives. Regulators are also pushing companies to use natural alternatives. As a result, the European natural food colourant market is expected to grow steadily in the coming years.

Table 12: Examples of natural pigments with colouring properties allowed in Europe, listed by E number 

Source: European Commission, 2025 

Food colourants are dyes, pigments or other substances that enhance or restore food colour. Natural colourants are extracted and purified directly from natural sources, including fruits, vegetables, spices and algae. They are available in the form of liquids, powders, gels and pastes to suit different food applications.

European imports of colourants rose 25.8% between 2020 and 2024, reaching €761 million. Developing countries supplied €118 million in 2024, growing 36% and increasing their share from 14.3% to 15.5% of total EU imports. This shows that most colouring matter imports come from European suppliers.

Source: ITC Trade Map, 2025

Table 13: European import volumes of colouring matter of vegetable or animal origin from developing countries, 2020-2024, in million €

Source: ITC Trade Map, 2025

China dominates with €66.6 million (56.5% of developing country supply) and growth of 25.7% compared to 2020. Peru is the second-largest supplier at €27 million. It is more than doubling its exports (+112%) thanks to paprika and annatto exports. 

Türkiye showed especially strong growth (+245%) to €7.5 million. This is due to rising EU demand for natural alternatives to artificial colours. Turkish producers also focus more and more on quality, traceability and sustainability in line with EU Green Deal and Farm to Fork objectives. Türkiye’s geographic proximity to Europe and competitive pricing also strengthen its position, especially for natural spice-based colour extracts. 

India’s exports grew 79% to €4 million. Other suppliers include Ecuador, Kenya, Brazil and Malaysia.

Major food manufacturers’ reformulation of products is creating demand for specific raw materials. In early 2025, Hershey announced plans to remove synthetic dyes from chocolate products, joining Mars, Nestlé and other global brands. This is speeding up European ingredient companies’ search for natural colour alternatives across the full spectrum.

High-demand raw materials include red and orange colourant sources such as paprika, annatto, beetroot and carrot concentrates, yellow sources such as turmeric and saffron, and new blue pigments from spirulina. A major gap remains in white colourants after the EU banned titanium dioxide (E171) in 2022. Doehler’s White Diamond alternative, made from rice starch and calcium carbonate, is increasing demand for suppliers of these materials.

ProFound – Advisers in Development carried out this study on behalf of CBI. 

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