23rd Edition of Foodcom ADDITIVES Newsletter
Although many are already entering a pre-Christmas state of slight numbness and work slowdown, the most successful market players are well aware that any time is a good time to do business. It’s all the better during the period when others are letting off a little steam. That’s why a lot has been happening lately in the highly active additives market. Without a doubt, these are changes worth following.
Perhaps we are witnessing truly unique events. Among other things, work is underway to create the world’s largest… insects farm. New cooperations are announced and confirmed by official resolutions. There is also no shortage of challenges for the sector or even the industry as a whole – we recently witnessed one of the largest oil spills in the United States in recent years, and avian flu, which is basically ravaging the world, is not easing. So, as always, read on – you’ll learn more.
Everyone is asking themselves one question these days, no matter what product they are interested in: What will the year 2023 look like? Of course, no one knows the definite answer, but experts who watch the market closely draw conclusions, see trends and can predict certain changes in the market. We share some of these conclusions in this edition of the newsletter.
The most significant development related to Vitamin C today is Royal DSM’s consideration of a major production cut at its manufacturing facility in Jiangshan, China. According to available information, the changes are to take place immediately and a return to more intensive production will be considered after the upcoming Chinese New Year. The planned slowdown in production is a consequence of the current unsatisfactory prices for this raw material for the manufacturer, which make production at the Chinese plant downright unprofitable. At the same time, the manufacturer argues that the raw material produced at other locations will ensure continuity of supply.
The Chinese market is of great importance for Citric Acid. The main factor currently influencing the situation of the commodity in the region is the dynamic development of the pandemic COVID -19. The current growing interest in Citric Acid in China is mainly due to the intensive activities of the pharmaceutical industry. Also not to be unmentioned is its widespread use in the manufacture of detergents, rust removal products, and food and beverages. The current strong demand also gives rise to a very positive outlook for the future.
Xanthan Gum is used in food and beverage production as well as in the cosmetics and pharmaceutical industries. The largest market share for this raw material is held by beverage and food manufacturers. Future forecasts indicate that the market for Xanthan Gum will grow in terms of both demand and production.
L-Lysine HCL is a commodity that is unique in many ways. It is essential for the proper functioning of the body. There are many natural sources of L-Lysine HCL. Its consumption accelerates the healing of injuries, and its deficiency, in turn, increases the risk of injury occurrence. Due to its unique properties and relatively high availability, L-Lysine HCL has great potential to become one of the most popular products on the market of food raw materials.
Ferric Chloride 40%
Ferric Chloride is another commodity whose market is expected to grow significantly in the near future. The main indicator for such predictions is its stable growth so far. Its widespread applications in wastewater treatment, drinking water production, cosmetics and pharmaceutical products suggest dynamic growth.
In the longer term, experts predict that the Sodium Hypochlorite market will see fluctuating trends, while 2023 will likely be marked by inflation and supply chain uncertainties, as was the case this year. The main challenges that those involved in the Sodium Hypochlorite market will need to prepare for are regulatory changes related to growing environmental awareness, fluctuations in raw material prices related to the geopolitical situation, and expected turbulence in the broader economy.