Additives Alert: price peaks and valleys [58th Edition Foodcom ADDITIVES Newsletter]

Hello Partners!

Welcome back to our Newsletter!

Global markets present diverse trends across key commodities. While choline chloride and L-Valine face declining prices due to oversupply and weakened demand, the creatine market is on the rise, driven by growing interest in health and food sectors. Additionally, Guar Gum prices see a surge due to strong demand and speculative trading. Meanwhile, Canadian bioindustrial innovation benefits from significant government funding, supporting sustainable agricultural practices and bioindustrial technologies. These market dynamics reflect the complex interactions of global supply, demand, and economic factors.

Let’s take a look at what else is happening on the market!

Products of the Week!

Choline chloride

In August 2024, global prices for choline chloride experienced a notable decline, driven by weak demand from key sectors such as nutraceuticals and healthcare, coupled with oversupply in the market. The manufacturing sector in Asia, particularly in China, faced significant challenges due to decreased domestic and international demand, leading to reduced production activities and further price drops. Additionally, in Europe, falling consumer confidence, particularly in Germany, contributed to reduced spending on products like choline chloride. In the United States, the Federal Reserve’s high-interest rates slowed economic activity, further dampening demand for choline chloride and maintaining downward pressure on prices.

L-Valine

The market for amino acids, especially Valina, is showing signs of weakening, mainly due to falling freight rates and lower raw material costs. These factors have led to lower Valina prices for the third quarter, although prices for current supplies remain stable. Slowing global demand for Valina, combined with economic uncertainty, has put additional pressure on prices. While the price drop creates opportunities for savings for the agriculture and nutrition sectors, experts warn that the market remains vulnerable to fluctuations related to geopolitical and environmental factors, which could affect future stability.

Creatine

As of August 2024, the global creatine market continues its rapid growth, with the value expected to reach $621 million by 2030. The market is growing at a compound annual growth rate (CAGR) of 1.3%. Key factors driving growth are the growing interest in creatine in the health, pharmaceutical and food sectors, where creatine-based products account for about 76% of the total market. Creatine 200 mesh products have the largest market share, accounting for about 69% of total creatine sales. The leading regions in terms of demand for creatine are North America, Europe and Asia-Pacific, with China and the US leading the way. One important trend in the market is the growing demand for organic and vegan creatine options, reflecting increased consumer awareness and preference for natural products.

NEWS

Guar Gum prices surge in global markets

Global Guar Gum prices experienced a significant rise in August 2024, influenced by strong demand and active speculative trading. According to the Indian National Commodity and Derivatives Exchange (NCDEX), a notable increase in futures trading was observed, particularly for contracts due in the following months, underscoring trader confidence and market optimism. This upsurge follows a temporary decline in prices last week, but the market has shown resilience with prices rebounding robustly. The rise is further supported by the expanding applications of depolymerized Guar Gum in various sectors, signaling a bullish trend as the market responds to both immediate demand and speculative interests.

$6.59 Million boost for Canadian Bioindustrial Innovation

Peter Fragiskatos, Member of Parliament for London North Centre, announced a substantial investment of up to $6.59 million for Bioindustrial Innovation Canada (BIC) through the AgriScience Program – Clusters Component of the Sustainable Canadian Agricultural Partnership. This funding will support BIC’s initiatives in developing bioindustrial technologies and sustainable agricultural practices. The Bioproducts Cluster, led by BIC, focuses on converting agricultural by-products into bioenergy, biofuels, and biomaterials, such as ethanol and biodegradable plastics. This effort aims to transition to a renewable-based economy, reduce greenhouse gas emissions, and create new economic opportunities, reinforcing Canada’s position as a leader in sustainable technologies.