Which trends offer opportunities or pose a threat on the European natural food additives market?

The European natural food additives market should keep growing in the coming years.  Health-conscious consumers, increased consumption of packaged foods and stronger preference for clean-label food are main drivers for this growth. Consumer transparency tools such as ingredient-scanning apps and social media have boosted this demand, with Generation Z researching products online before buying them. Large investments in R&D to develop innovative products have also increased market growth. At the same time, due to instability in natural food additive supply chains, such as vanilla and gum arabic, European formulators and manufacturers need to seek alternative ingredients from other regions. 

2. A rising role for natural food additives as dual-functional ingredients

Natural additives are used more and more as dual-functional ingredients in the food industry. These additives enhance flavour and appearance and provide benefits such as preserving freshness and extending shelf life. One example is rosemary extract, which has become popular for its natural preservative properties. Rich in antioxidants, rosemary helps prevent oxidation in food products. This keeps them fresh for longer without the use of artificial preservatives.

This trend is the result of growing demand for clean-label products. Today, more consumers are focused on natural and healthier food options. They prefer products with ingredients they recognise and trust. Artificial preservatives and additives are often viewed with suspicion, leading food manufacturers to explore natural alternatives. Rosemary extract is one of many natural ingredients now being used to fulfil functional roles in food production.

Beyond preservation, natural additives serve multiple purposes. For example, beetroot powder is used as a natural food colourant and also as a source of antioxidants and nutrients. This dual functionality allows manufacturers to market visually appealing products that also contribute to the health benefits consumers seek. Similarly, turmeric is a natural colourant with anti-inflammatory properties, making it a popular choice for functional foods.

Natural sweeteners are also gaining prominence as dual-functional ingredients. Monk fruit extract comes from a small sub-tropical melon indigenous to East and South-East Asia. It is a 100% natural, clean-label, zero-calorie alternative to sugar and artificial sweeteners. In 2024, EU authorities classified monk fruit extract’s basic form as ‘not novel’, creating opportunities for its wider use across European food products. This approval allows manufacturers to reduce sugar content while maintaining sweetness, responding to health concerns as well as taste preferences.

Another major area where natural additives are making an impact is in replacing synthetic flavour enhancers. Ingredients like yeast extracts and mushroom-based additives are being used to enhance umami flavours in processed foods. These natural enhancers offer a healthier option than artificial flavourings like monosodium glutamate (MSG). This shift aligns with the broader trend of “better-for-you” products, where food manufacturers reduce synthetic ingredients and add natural ones. For example, Biolev by Levapan has developed salt reduction solutions using fermentation-derived ingredients. These enhance umami taste while reducing sodium by 30%. Their approach combines natural taste enhancers with functional benefits. It allows manufacturers to meet health guidelines and consumer expectations at the same time.

Natural fibres, such as chicory root or psyllium husk, are also becoming popular as functional additives. These fibres improve the texture and stability of food products and offer digestive health benefits. This makes them appealing to consumers who want foods that contribute to their overall well-being. Incorporating these natural ingredients allows brands to market their products by highlighting health advantages alongside functionality.

Consumer apps that provide instant ingredient transparency are driving the shift from heavily processed foods to natural products. Yuka, a French app launched in 2017, exemplifies this trend, with 65 million users across 12 countries. The app scans barcodes and rates products on health impact, highlighting synthetic additives. Similar competitors such as Fooducate (focusing on nutritional value) and Open Food Facts (focusing on ingredient data) offer comparable barcode scanning and suggestions for healthier alternatives. These apps greatly influence buying decisions. After downloading the Yuka app, 94% of US users reject poorly-rated products and 92% reduce their ultra-processed food purchases. French retailer Intermarché reformulated 900 products in response to consumer demand driven by such tools, removing 142 additives to get better Yuka scores.

Natural additives, often labelled "naturally preserved" or "plant-based colourants, " allow companies to be more transparent about their ingredient lists. This appeals to health-conscious consumers and supports the growing movement toward sustainability and environmental-friendly purchasing. Many natural additives are derived from renewable plant sources. This further boosts their appeal in a market that values sustainability.

3. Rising demand for ethnic food

The European ethnic food market presents great opportunities for natural food additive exporters. Consumers look for more authentic global flavours more and more often. This leads to more demand for the essential oils, oleoresins, natural colours and functional ingredients needed to make these products. Ingredients like agar, commonly used as a gel texturiser in Asian foods, are also important natural food additives for ethnic dishes.

The European ethnic foods market was valued at €16.7 billion in 2024. It is projected to reach €32 billion by 2033, growing 7.1% annually. This growth is partly the result of immigration, which is creating multicultural communities and cultural curiosity among educated consumers. Tourism is also exposing Europeans to global cuisines. The UK is known to have a large ethnic food market, due in part to the country’s large multicultural population. Ethnic cuisines have also become popular in France, especially the various South American, Asian (Korean, Thai and Indian), and African cuisines. The rise of ethnic restaurants and street food stalls in France is one of the main reasons for the greater appreciation for global cuisines.

Technology advances in food processing and packaging have extended shelf life and improved safety. This makes ethnic food distribution across Europe easier. The European Innovation Council’s 2024 Tech Report highlights innovations, such as plant-based biomanufacturing, that are expanding product variety and authenticity. Europe has become a global leader in food innovation, with EIT Food investing over €3 million across 350+ companies in the past seven years. This is driving new product development in the ethnic food sector. While its core mission is centred on European business creation, EIT Food also has a Global Outreach Programme that support access to global markets and collaboration with countries, including emerging economies. 

The frozen ethnic food segment is experiencing particularly strong growth as consumers seek convenient, healthy meal options. Advanced freezing technologies now preserve authenticity and nutritional value. This makes frozen ethnic dishes an attractive choice for time-pressed Europeans wanting global flavours at home.

Natural food additives have a wide range of applications. Here are two examples of products from the UK: 

• Blue Dragon’s Nasi Goreng Meal Kit uses soybean flavouring for authentic taste, paprika extract for traditional colouring and xanthan gum as a stabiliser for the right consistency. 
• Belazu Rose Harissa Paste uses paprika extract for natural red colour, rose flavouring for Middle Eastern flavour and citric acid as an acidity regulator. 

Table 1: Common natural additive applications, by world cuisine 

Source: ProFound, 2025 

4. Unstable supply chains make buyers diversify

The EU food industry is compelled more and more to diversify its sourcing strategies. This is in response to ongoing supply chain instability driven by global events. Factors such as climate change, logistics crises, and geopolitical conflicts heavily impact the production and distribution of food ingredients. It can lead to increasing costs and disruptions in the production and supply of food ingredients.

Food manufacturers and product formulators try to strengthen their sourcing by diversifying their supply chains. The unstable environment poses threats to exporters of natural food additives. But this situation also creates opportunities to enter new markets as the demand for reliable and varied sourcing options grows. By addressing these needs and proving themselves a reliable and stable supplier, exporters can become important partners in building resilient supply chains in the EU food industry.

Diversification of gum arabic in the ‘gum belt’ 

For example, Sudan is the world´s largest producer of gum Arabic, a product derived from the Arcadia tree. Sudan has lived through many years of political conflict and humanitarian and climate crises. Logistics in and out of Port Sudan have been blocked because of ongoing conflicts, which interrupted supply chains. For these reasons, prices for gum Arabic have skyrocketed. As a result, European suppliers have been looking for alternative sources to purchase gum Arabic from other countries in the so-called gum belt. 

Though Sudan remains the dominant gum arabic supplier to Europe, at €105 million in 2024 (55% of developing country supply), alternative suppliers have emerged. According to ITC Trade Map data:

• Chad has nearly doubled exports to a value of €17 million (+97% growth), becoming the second-largest supplier;
• Egypt entered as a major new source, with €7 million annually;
• Nigeria expanded from €164,000 to €3 million;
• Eritrea (€3.5 million) and South Sudan (€1.6 million) now make important contributions to European supply.

This diversification demonstrates how political instability creates openings for emerging suppliers while reducing buyers’ dependence on a single source.

New vanilla production hubs challenge Madagascar’s dominance 

While Madagascar remains the dominant vanilla supplier globally, price instability and climate shocks have sped up the rise of alternative production centres in Uganda, Indonesia and Sri Lanka. 

For example, between 2020 and 2024, Ugandan vanilla oleoresin exports increased by 4.5% to approximately 10 tonnes as buyers sought supply security. The following factors are making Uganda more attractive to European buyers looking for consistent, high-quality vanilla supply: 

• Double cropping provides year-round supply, compared to Madagascar’s single annual harvest; 
• Favourable growing conditions yield beans with some of the highest natural vanillin content globally; 
• Reduced exposure to the cyclones and extreme weather events that regularly impact Madagascar. 

Regional instability in essential oils drives sourcing shifts 

Another example can be found in the supply chains of essential oils, such as geranium or rosemary. Political instability in their main producing regions also widely affects the supply of these products.

Egypt produces around 60% of global geranium oil, making the industry highly dependent on a single origin. Regional conflicts, including Red Sea shipping disruptions and the Syrian crisis, have created logistics challenges and price volatility. Rosemary oil also faces concentration risk, with Tunisia and Morocco accounting for 70% of global production. Morocco’s severe drought conditions have impacted wild-harvested rosemary crops, and both North African producers faced border closures during COVID-19 that disrupted supply. 

This geographic concentration means that weather events, political instability and logistics problems in a few countries can affect global availability and prices.

Shea butter and climate change impacts 

Besides political instability and supply chain vulnerabilities, global climate change also has a major impact on natural food additives' harvests and stable supply. For example, climate change in the Sahel region has affected shea harvests in the past few years. The effects of climate change in the Sahel are expected to only grow more severe in the future, leading to more insecurity. 

Several initiatives by larger European importers of shea products aim to fortify the sector by providing training and introducing improved farming techniques to deal with the changing climate. 

• Bunge’s “Where Life Grows” programme provides training and improved farming techniques to preserve the shea landscape and secure long-term supply. 
• AAK’s Kolo Nafaso supply chain in Burkina Faso focuses on fair pricing, training and community development to empower women shea collectors. At the same time, it also implements sustainable harvesting practices to ensure long-term shea tree preservation.
• Alland & Robert works to preserve the Sahel environment. It has several regional projects to support local communities and assure the availability of acacia trees to obtain natural gums. 

5. EU regulations favour the usage of natural food additives

EU regulatory approaches to food safety, sustainability, and social impact, will create new opportunities for the use of natural food additives from developing countries in the European food and drink industry. 

So far, the EU regulatory approach to food safety has been important to the growth of the natural food additives market. For example, the European Food Safety Authority has banned titanium dioxide (E171) as a food additive due to genotoxicity concerns. A full ban on its use in foods took effect in August 2022.

These evaluations have led the European food industry to ban certain food colourants. This is more an more often the case for non-natural colours such as tartrazine and Sunset Yellow. These have been used to colour drinks, baked goods and confectionery. Due to these increasing regulatory limits, natural alternatives from fruits, vegetables, and other plants are being adopted in Europe for all colours and food categories.

Besides this, the EU regulatory framework aims to reduce the potential impact of sugars on human health. This leads to policies and legislation favouring the use of alternatives like natural sweeteners. For example, several EU member states have introduced tiered sugar and soft-drink taxes (higher tax for higher sugar content) as an incentive to reformulate beverages and reduce sugar contents. This shift is already happening, with UNESDA reporting that European soft drink companies are on track to cut added sugars by 33% between 2019 and 2025. 

Also, the demand for sustainable sourcing is being strengthened and further extended among companies due to developments on the regulatory front. This includes the Corporate Sustainability Reporting Directive (CSRD), the Corporate Sustainability Due Diligence Directive (CSDDD) and the Deforestation Regulation (EUDR). These require companies to report and act on human rights, environmental and traceability issues in their value chains. 

Sustainable buying has become an important expectation of all supply chains in the European food industry and beyond. EGD regulations such as the Farm-to-Fork Strategy, the Chemicals Strategy for Sustainability, and the Biodiversity Strategy expect companies to assume and play an important role in building a sustainable economy and society. Together with the Green Claims Directive, which will require full documentation of environmental claims, these new regulations will impact the food additives industry in multiple ways. European companies' requirements may affect exporters as part of their global supply chains. These regulations create opportunities for exporters to produce food sustainably in developing countries where the impact on the environment and communities is often the most noticeable.

6. Increasing industry and consumer demand for sustainable products

Sustainability and transparency are now inseparable in the European market. Between 2018 and 2023, food and beverage launches with ethical or environmental claims increased by 13.8%, with Europe leading and accounting for more than half of all new products in this category. The fastest-growing product category with ethical claims was dairy substitutes, ahead of confectionery, hot drinks, soft drinks, and bakery. Alongside this growth, 76% of European consumers now demand better visibility of product certifications and sourcing. Consumers want to know ingredient origins, growing practices and community impacts, and not just to see certification logos.

Generation Z (born 1997–2012) drives the demand for sustainable and ethical products. About 10% of this group stated that they would even be willing to pay up to 50% more for sustainable food and drinks. This generation is highly aware of environmental and social issues and expects brands to be transparent about their practices. As Gen Z's buying power grows, businesses that do not prioritise sustainability risk losing their appeal.

Despite this clear demand, major barriers remain. According to the 2023 F&B Food and Industry Report, the main barriers for food and beverage manufacturers are the following: 

• 60% of the brands have difficulties in sourcing ingredient partners;
• 49% of the brands do not have enough supplier transparency beyond their main suppliers;
• 42% reported that confusion about the labelling of sustainable food is challenging for them;
• 39% did not have enough resources to search for compliant suppliers.

This gap between demand and supply creates opportunities for natural food additive suppliers. Exporters who combine sustainable production practices with transparent communication can fill this market need. However, certification alone is no longer enough. European buyers want suppliers to actively show their sustainability story. This includes how they grow products, who they work with and how they support local communities. All this must be done in a transparent manner with quantitative indicators and reporting tools to guarantee accuracy and allow for ongoing improvement.

Leading companies demonstrate how transparency strengthens sustainability credentials.

• Fuji Oil Europe implements its Tebma Kandu sustainability strategy in Ghana, working directly with women-led shea cooperatives. In March 2025, the company donated a 300 metric tonne warehouse to cooperatives in Fumbisi, its largest-ever donation, providing storage and aggregating services that strengthen partnerships and increase women collectors’ incomes.
• Arbor Oils of Africa, based in Kenya, has built a competitive advantage through sustainable harvesting and socially-responsible supply chain investments.

Importantly, suppliers who practice ‘building in public’ create even stronger connections with buyers. Doselva is an example of this. They work with farmers in Nicaragua who grow high-value spices using regenerative practices. Founder Jefferson Shriver regularly shares transparent updates on Doselva’s impact and farmer relationships on LinkedIn. Their website showcases programmes such as Doselva Insumos, which provides seed and input financing to farmers growing sustainable crops. This openness makes it easier for European buyers to communicate sustainability credentials to their own customers.

Video 1: Organic ginger and turmeric supplier Doselva storytelling

Source: Jefferson Shriver YouTube Channel, 2025

DACE (Vietnam) takes a different but equally effective approach to transparency. Their website shows how their work creates real community benefits, from education programmes for farmers’ children to healthcare initiatives and women’s empowerment projects. DACE demonstrates the direct connection between their agricultural practices and local community development. This makes the social dimension of sustainability immediately visible. Besides this, they also show all their certifications (BioSuisse, Naturland, GLOBALG.A.P., Organic, Fair for Life), combining storytelling with verifiable credentials. 

The European market rewards suppliers who integrate sustainability and transparency as core business practices rather than add-ons. Buyers have to demonstrate responsible sourcing to their own customers. So suppliers who make this easy through documentation, visual storytelling and certifications have a competitive advantage. 

7. The plant-based food market is growing

Plant-based eating has become mainstream across Europe, with 39% of Europeans now following a flexitarian, pescatarian, vegan or vegetarian diet. Adoption varies widely by country: 

• Germany leads, with 39% of its population identifying as flexitarian;
• Portuguese consumers are most open to trying cultivated meat (60%);
• The UK has the largest vegetarian segment, at 9%;
• Austria leads in veganism, at 5%.

Importantly, 51% of European meat eaters reduced their annual meat intake in 2023. Germany, France and Italy lead this shift.

This shift is partly due to strengthening consumer confidence in plant-based alternatives, with 46% of Europeans trusting these products more than they did in 2021. This growing acceptance is supported by major institutional backing. Europe is investing more than €2.17 million to promote plant-based foods. One way it does this is through initiatives supporting farmers in legume production. But it is also expanding plant-based catering options, training health professionals to promote plant-based nutrition and developing policy recommendations for plant-based action plans.

As more Europeans choose plant-based foods, there will be more opportunities for exporters of the natural food additives listed in the table below. 

Table 2: Common natural food additives used in plant-based products 

Source: ProFound, 2025

The top product categories for plant-based formulations are pizza, which experienced an average annual growth of 

Overcoming taste and texture challenges has been critical to plant-based market growth. Early vegan products often failed to meet consumer expectations. But innovative companies are now bridging this gap through advanced processing technologies and natural ingredients. 

Swiss start-up Planted, founded in 2019, showed at Anuga how they are using fermentation technology rather than additives to create products closely replicating the taste and texture of meat using only natural ingredients. Their products rely on natural food additives including cane sugar, yeast extract for umami flavour and beetroot concentrate for natural colouring. This clean-label approach meets growing demand for recognisable, plant-derived ingredients in plant-based meat alternatives.

Figure 1: Planted 100% plant-based steak 

Source: Planted, 2025 

In 2022, 69% of European consumers said that it is important for alternative meat sources to be naturally formulated. As a result, the plant-based food industry needs more natural ingredients such as vanilla, which is a very important flavour enhancer in plant-based alternatives. Moreover, hydrocolloids are gaining in demand as major ingredients for plant-based products such as burgers. They are produced from plants or seaweed and help bind the vegetable proteins used in plant-based products. 

Reflecting this sector’s growing importance, Anuga 2025 introduced ‘Anuga Alternatives’, a dedicated trade show specifically for alternative proteins. This was the first time Anuga created a separate section for alternative proteins. 

8. Rising demand for clean-label food products

Consumers in Europe are showing a growing preference for clean-label foods. They want to move away from lengthy ingredient lists that often contain synthetic food additives. Clean-label foods contain minimal, natural ingredients with clear, easy-to-understand labels and are free from artificial additives, preservatives, and unnecessary processing. 

Manufacturers now list ingredients more transparently on product labels. For example, specifying ‘beetroot concentrate’ for red food colouring alongside (or instead of) E number identification. This makes ingredients instantly recognisable to consumers.

Figure 2. Nakd clean-label snack bars

Source: Albert Heijn, 2024

Research from Ingredion shows that clean-label products are set to dominate the European food and beverage industry. They are expected to make up over 70% of portfolios in 2025 and 2026, up from 52% in 2021. According to the study, 99% of European manufacturers consider clean-label products essential to their business strategy, with 87% already putting them on the market. The study also shows that adopting clean-label strategies leads to higher product quality, improved brand reputation, and greater appeal to new customers.

The clean-label trend creates both opportunities and challenges. While it responds to concerns about synthetic ingredients, demand for shorter ingredient lists can sometimes lead to removal of natural additives from formulations. However, regulations on the use of ingredient names (such as ‘beetroot concentrate’) instead of E numbers is helping to promote the use of natural additives.

Common terms found on clean-label products include: 

• GMO-free;
• Natural;
• No additives/preservatives;
• Organic. 

Manufacturers use these labels to attract health-conscious consumers who associate synthetic additives with artificial, less healthy foods. Clean-label products also appeal to consumers with ingredient allergies or sensitivities.

Natural food additives are preferred to synthetic ingredients as they often meet clean-label standards. With the growing demand for clean-label food, the need for specific functional food additives is also rising.

For example, natural food additives like rosemary extract, turmeric, and chicory root fibre are becoming popular alternatives to synthetic ingredients. Rosemary extract is used as a natural preservative, replacing synthetic options like BHA and BHT to extend the shelf life of oils and processed meats. Turmeric is a natural colourant, offering a bright yellow hue as an alternative to synthetic dyes while providing potential health benefits and preservation. Chicory root fibre is a natural source of dietary fibre, replacing synthetic fibres in food products. 

An example of this is American company B.T.R. NATION. They manufacture clean-label, plant-based protein bars containing chicory root fibre as a prebiotic ingredient and organic rosemary extract as a natural preservative. The bars also contain other whole food ingredients such as cashew butter, almond butter, pea and almond proteins and monk fruit extract for sweetness. B.T.R. Nation meets consumer demand for products that both are nutritionally functional and have recognisable, natural ingredients with no artificial additives or preservatives.

9. Social media reshapes food choices and drives demand for natural ingredients

Social media has become the main source of information about food for young European consumers. It changes how they find products and make buying decisions. Consumer demand for recognisable, clean-label ingredients promoted online creates opportunities for natural food additive suppliers.

Nearly three-quarters of Gen Z get meal inspiration from social media, which is double the number that rely on traditional cookbooks. Platforms such as TikTok (84%) and Instagram (75%) dominate how this generation plans what to eat. This digital-first approach to food discovery means Gen Z sees ingredient information, product reviews and health claims mainly on social media rather than through traditional advertising and food labels.

This generation’s online food education pushes their buying decisions towards products with transparent, natural ingredients. Gen Z consumers who see plant-based recipes, clean-label products or natural ingredient explanations online actively seek those products in stores. 

This trend extends beyond Gen Z to parents seeking better food options for their children. Educational information about food ingredients and their health impacts has gained widespread attention. For example, the book Ultra-Processed People became very popular in the UK, helping everyday consumers understand what is in their food and how it impacts their health. Social media rapidly spreads this type of educational content, creating awareness about artificial additives and driving demand for natural alternatives.

In Poland, a study of social media’s impact on food purchasing decisions and dietary attitudes among 1,099 consumers showed considerable effects on buying decisions, as well as clear gender differences. 

Furthermore, social media and influencers are promoting initiatives like Veganuary, which has led to a surge in plant-based product development, especially in January. Influencers also highlight visually appealing dishes and beverages, often featuring vibrant colours, which boost consumer interest. 

However, a lack of restrictions and regulations on content can lead to misinformation. The European Union’s Digital Fairness Act aims to address this by regulating social media influencers’ product recommendations and requiring transparency in sponsored content. These rules will likely increase demand for natural products by putting online influencers under stricter requirements to verify claims.

Plant-based products are gaining attention on social media. Many consumers find inspiration for new food and beverage products through these channels, with food apps becoming more popular. 47% of European consumers scan plant-based product codes to check their ingredients. Shoppers are looking for labels that feel "closer to nature" more and more often.

Social media has also become an important way for brands to engage with customers. For example, German baby food company Hipp collaborates with influencers to share production processes and product experiences.

10. Consumers look for convenience and ready-to-eat products

The global convenience foods market is projected to grow from €512 billion in 2025 to approximately €815 billion by 2034, expanding 5.3% annually. Europe holds the largest regional share, at 41% in 2024. The European ready-to-eat (RTE) food market alone was estimated at €87 billion in 2025, with expected growth of 6.31% annually to €118 billion by 2030.

Natural food additives are seeing a growing market with products supporting individual well-being and consumers’ challenges in everyday life. Non-meat products, non-alcoholic beverages, and ready-to-eat products, including snacks and sauces, are gaining popularity. All these products require the right combination of taste, texture, colour, and flavour. This makes the use and right combination of natural food additives essential.

Since the COVID-19 pandemic, companies have continuously invested a lot in the innovation and development of ready-to-eat meals and convenience food products. This trend reflects catering to time-limited consumers who prioritise convenience in their food choices. As busy lifestyles become the norm, consumers seek products that offer quick and easy meal solutions and allow for personal customisation more and more often.

The combination of convenience and ethnic food trends creates opportunities. For example, Freja Foods’ Chicken Ramen Instant Bone Broth (founded in the UK but made in Norway), uses natural flavourings including yeast extract, garlic, ginger, onion and pepper extracts for authentic Asian flavours in quick-preparation format. This shows how natural additives contribute to convenient ethnic foods without compromising authenticity.

Compared to home-cooked meals, ready-to-eat meals and convenience food products contain more food additives with functional properties like colouring and conservation. More and more manufacturers opt for natural food additives instead of synthetic alternatives.

The shift towards convenience is driving similar growth in the frozen foods market. EU demand for frozen foods is expected to increase from €65 billion in 2025 to €108 billion by 2035, an average annual growth rate of 5.3%. Consumer behaviour supports this trend: In 2024, 43% of consumers globally preferred eating at home, seeking restaurant-quality meals without restaurant prices. Advanced freezing technologies can now effectively preserve taste, quality and freshness, and consumers recognise freezing as a natural preservation method. This growing acceptance of frozen products containing natural additives aligns with clean-label demands.

Figure 3. Ready-to-eat meal

Source: Beyond Meat, 2024

11. The European organic market is large and promising

The European organic food and beverage market was valued at €134 billion in 2024 and is projected to reach €260 billion by 2029, growing 14% annually. Europe is the second-largest market for organic products globally, behind the United States. In 2023, organic product sales reached €54.7 billion in Europe, with Germany leading at €18.3 billion.

More importantly for natural additive suppliers, organic products now represent a large market share in leading countries: 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 ’consumer willingness to pay premiums for products that meet higher standards.

Source: Statista, 2025

The European organic food market was valued at €54.6 billion in 2024 and is projected to reach €94.2 billion by 2030, growing at 11.52% annually. After experiencing a 2.2% decline in 2022 due to inflation, demand for organic products is recovering strongly. In Germany, Europe’s largest organic market, sales are expected to grow 2.4% to €4.2 billion in 2025. As inflation eases, the European organic market offers growing opportunities for exporters focused on healthier, sustainable options.

Pesticide residue in food is among the main food safety concerns among Europeans. Consumers want to avoid pesticides and other chemicals in the products they consume. 81% of consumers believe organic agriculture uses better environmental practices, follows stricter rules on pesticides, fertilisers and antibiotics, and delivers higher quality than conventional food products. Many are also concerned about the environmental impact of conventional farming and want to support organic production methods. This trend among consumers is boosting sales of organic and clean-label products.

There are strict rules regarding additives that can be used in organic-labelled foods. Only around 40 synthetic substances can be used in organic packaged food, and only after being reviewed by independent and government experts. This means that all other additives must be of natural and organic origin.

These restrictions create great opportunities for natural food additive suppliers. Main segments include:

• Organic vegan and plant-based foods requiring natural colours, flavours and textures; 
• Organic beverages requiring natural preservatives and colourants;
• Natural antioxidants for shelf-life extension;
• Organic-certified colours from fruits, vegetables and plants. 

One example of a company that leverages the organic demand trend is Kelvin Natural Mint PVT Ltd. They supply peppermint, spearmint, piperita oils, menthol crystals, and eucalyptus oil; many of its essential oils are organic-certified quality.

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

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