Closing the year with a bang – a summary of the additives market in 2024! [65th Edition of the ADDITIVES Newsletter]

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As 2024 draws to a close, we’re here with a quick look back at the year’s biggest highlights in the additives market. From key trends to major events, we’ve captured everything that shaped the industry. Our experts break down the top three products – lysine, tryptophan, and vitamin C – and the trends and challenges that made them stand out.

We’re excited to share that in 2025 we’ll return with a fresh look and new insights. But first, let’s revisit the moments that defined 2024!

The products of the year

Lysine

In the first half of the year, the lysine market struggled with higher energy and raw material costs, such as maize, which translated into reduced availability of this amino acid in Europe. As a result, prices rose by 12% in the first quarter compared to 2023, and the following months brought further price tensions, particularly in the third quarter when logistics disruptions exacerbated supply problems. At the same time, the livestock sector saw an increase in production in China and Eastern Europe, which further increased demand for lysine. Nonetheless, a gradual slowdown in demand growth was noted in Western markets due to the increasing popularity of alternative protein sources.

Tryptophan

The tryptophan market was also characterised by volatility in 2024, mainly due to production problems in China and reduced exports to Europe and North America. The first half of the year saw price increases of 8%, with prices rising a further 5% in the third quarter, driven by increasing demand for more efficient amino acids in feed. Producers in developing countries, particularly in Southeast Asia and Latin America, have been increasing their consumption of tryptophan in response to the expansion of fish farming and growing awareness of the nutritional value of premium feeds. At the same time, consumersare attachingincreasing importance to sustainable food production, which is encouraging further growth in the importance of thisraw material.

Vitamin C

In the vitamin C market,stringent environmental regulations and rising energy costs have reduced production, affecting supply in Europe, where imports play a dominant role. Vitamin C prices rose by more than 15% in the first quarter and reached a record high in the third quarter, increasing by 58.2% year-on-year. The high prices were a consequence of increasing demand for dietary supplements and functional foods, especially in view of the rise in seasonal infections. Consumers in Europe and North America increasingly opted for products fortified with vitamin C, both as supplements and food additives. The popularity of this vitaminis alsogrowing due to its use as a natural preservative and antioxidant in the food industry.

The year 2024 brought numerous challenges that significantly impacted the additives market, shaping both production and distribution worldwide. Geopolitical events, logistical issues and economic changes affected raw material availability and production costs, ultimately impacting prices and market stability.  

One of the most dramatic events was the spring series of disruptions to global trade routes. The hijacking of the transport vessel MV Abdullah by Somali pirates for 32 days caused concern in the logistics industry. High ransom costs and delivery delays have driven up the price of raw materials used for additive manufacturing. Similarly, February’s drought in the Panama Canal cut the capacity of this important route in half, causing delays and forcing companies to seek alternative routes, which in turn significantly increased transport costs. In March, the Suez Canal again became an arena of crisis when the container ship Ever Given blocked the route, causing thousands of delayed deliveries around the world.  

These problems coincided with a general rise in freight prices in the first half of the year, which was particularly felt by European companies. Rising transport costs, coupled with geopolitical tensions in Ukraine and the Middle East region, further destabilised global supply chains, making access to key raw materials difficult. Companies were forced to invest in alternative sourcing and optimise their logistics chains.  

In the US, a major event was the November presidential election, which was won by Donald Trump. The outcome of the election influenced the shape of US trade policy, which in turn could have far-reaching implications for the global additive market. Changes in trade relations between the US and China, including potential changes in tariffs, could affect the cost and availability of raw materials imported from Asia.  

In Europe, although the logistics sector attempted to adapt, rising transport costs and delays were felt throughout the year. Companies have had to show a great deal of flexibility to maintain stability in production and supply, often opting to work with local suppliers.  

Stay ahead of the curve! The future of the additive market is evolving, and we’ll be back in the New Year with even fresher insights, groundbreaking trends, and essential analysis. Don’t miss a beat – what will 2025 bring?