21st Edition of Foodcom ADDITIVES Newsletter
The holiday season is upon us, and the December festivities represent a significant expense in many families’ budgets each year. Many do their best to make this the most magical time of the year. Extraordinary. The latter has already begun to come true. In recent days, it has been reported in the media that participation in this year’s meetings with Santa Claus in the UK has become so expensive that organizers are offering families to pay for participation in the event… in installments.
Elsewhere in the world, celebrating is no easier. Analysts and experts warn that this year’s Thanksgiving dinner in the United States will be 20% more expensive than the one a year ago. Supply chain disruptions, rising feed costs and the war in Ukraine are cited as the main reasons – but we do not have to explain that to you.
The situation of the industry also remains difficult. Yes, we know, you are already tired of hearing about it. Believe us, we are too. Nevertheless, it is very important, because all the problems we have been talking about for months continue to negatively impact production, supply chains and commodity trading. From the perspective of the current difficult times, we have taken the liberty in this Edition of our Additives Newsletter to take a look into some of the products’ future. Spoiler: it’s not that bad.
With us, you’ll never miss a thing!
The global Vitamin C market was valued at $1.3 billion in 2021 and is currently forecast to reach $1.8 billion by 2028, growing at a CAGR of 6.1% during the forecast period 2022-2028. The overall outlook for the Vitamin C market in the coming years appears positive. Recently, both the price of Vitamin C and the demand for it have increased due to various reasons. Causes include increased public awareness of the importance of Vitamin C to human health, the lifting of a 20-year restriction on private vitamin companies by the Chinese government, and the use of the substance in more industries, including as a material for 3D printing and as a food and beverage additive.
The market situation for Citric Acid was dynamic in the past quarter, with the price in the U.S. market initially falling, only to rise again later. In the Asia-Pacific region, commodity prices fell due to the easing of restrictions related to the COVID -19 pandemic, which limited supply disruptions for the product originating from China. Both suppliers and buyers from China and India had full inventories, further depressing prices. Simultaneously, the European market experienced the correlations typical of this time of year. There was enough product on the market to meet buyers’ needs, which stabilized prices. Due to the lower number of transactions later in the quarter, prices started to fall.
Experts predict significant growth for the Xanthan Gum market in the coming months. The reason for this is the increasing use of the substance as a moisture-binding emulsifier and as a natural thickener for emulsions and washing systems. The use of Xanthan Gum as an alternative to eggs in foods and beverages is also becoming more common. Xanthan Gum is gluten-free and vegan, so it can be consumed by people who have very restrictive meal composition requirements. The market for this raw material is driven by the rapid growth of the prepared foods sector and growing consumer awareness of the benefits of a nutritious diet. The unique properties of Xanthan Gum are driving its consumption and use in various industries worldwide.
The latest forecasts predict that the market for Lysine Hydrochloride (HCL) will grow in the near future, thanks in part to the increasing use of this substance in the treatment of various diseases. In addition, protein powders, vitamin and mineral drinks, processed meats, breakfast cereals and other processed foods will be responsible for the increase in demand for L-Lysine HCL in the future. L-Lysine HCL is also used in the production of animal feed, including for pigs, chickens, goats and sheep, cows and buffaloes. It is expected that this sector will also develop more and more intensively, which will be reflected in a specific demand for L-Lysine HCL.
Ferric Chloride 40%
The Ferric Chloride market is driven by increasing demand for wastewater reuse and high demand from the industrial sector. The substance is also an essential ingredient in water treatment processes, so it is almost certain that interest in it will increase in the near future. The price of the product has fallen recently, so it is worthwhile to be interested in the current sales offers for Ferric Chloride, as long as the terms of the deal promise to be very favorable.
Sodium Hydroxide 50%
Sodium Hydroxide is another commodity that is predicted to grow rapidly in the near future. One of the main factors contributing to the dynamic growth of interest in this substance is the booming construction sector, which in turn is leading to increased interest in paints, for the production of which Sodium Hydroxide is used. Caustic Soda is also used in the production of aluminum, which is used in construction, structures, transportation, containers and packaging, among other applications. A great demand for Caustic Soda comes from countries in the process of industrialization, such as India, South Korea, China, Indonesia, Thailand, Brazil, Argentina and Mexico.
Sodium Hypochlorite is another interesting substance used in many industries, for example, as a bleaching agent or oxidizing agent. The product is used for odor elimination, disinfection, water treatment, textile manufacturing and in agriculture. The extensive use of Sodium Hypochlorite in various products and process categories means that forecasts for the future remain optimistic. This is because no matter how difficult the market situation is, people will need agricultural products or treated water, which means there will always be a demand for Sodium Hypochlorite.