Global additives market – what’s driving the change? [66th Edition of ADDITIVES Newsletter]

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Market dynamics are shifting, impacting key ingredients across industries. Citric acid faces pricing pressures despite strong demand, creatine monohydrate continues to grow with the fitness boom, and taurine sees rising interest in energy and nutrition. With evolving consumer trends and supply chain shifts, how will your business stay ahead?

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

Citric acid 

Citric acid is a widely used organic compound that plays a crucial role in various industries such as food and beverage, pharmaceuticals, and personal care. Recently, the market has seen fluctuations in prices, primarily due to increased production capacity and reduced demand. However, as we move into 2025, the global citric acid market is expected to grow, with projections showing a rise from $4.51 billion in 2024 to $4.88 billion in 2025, which reflects a compound annual growth rate (CAGR) of 8.2%. 

China remains the dominant producer of citric acid, accounting for around 70% of global output. Despite this, Chinese manufacturers are facing challenges, including rising production costs and declining demand, which have put pressure on their profit margins. The Chinese New Year also contributes to temporary slowdowns in production and shipping, further impacting the market. 

Despite these challenges, the outlook for citric acid in 2025 is still positive. Growth is expected to continue, driven by demand in key industries such as food, beverages, pharmaceuticals, and personal care. Additionally, the increasing need for cost-effective and sustainable solutions across these sectors is likely to support this growth. 

In conclusion, while the citric acid market faces pressures, such as lower prices and production cost increases, the overall forecast for 2025 remains optimistic, with demand expected to recover post-Chinese New Year, fueling continued industry expansion. 

We encourage you to read the interesting article: Citric acid – properties and applications in industry and animal nutrition

Creatine monohydrate 

Creatine monohydrate continues to see strong growth in popularity, with a 22% increase in interest over the past year, bringing the current search volume to around 802,000 searches per month. This surge reflects the ongoing demand for creatine, particularly in the fitness and sports nutrition sectors. As of 2025, the global creatine supplement market is projected to reach USD 2.71 billion, driven by growing health consciousness, increased participation in fitness activities, and creatine’s proven benefits for muscle strength and performance. 

Currently, sales prices in Europe are around €5 per kilogram, reflecting a stable market for this highly sought-after product. Creatine monohydrate is available in various forms like gummies and liquids are emerging, allowing brands to cater to evolving consumer preferences. As the market continues to expand, the demand for creatine monohydrate is expected to rise, driven by continuous improvements in manufacturing, consumer education, and the growing health and fitness movement worldwide.

Taurine

Taurine remains a key ingredient in multiple industries, including energy drinks, dietary supplements, cosmetics, and animal feed. As of early 2025, the global taurine market is valued at approximately USD 461 million, with expectations to reach USD 692.5 million by 2031, growing at a compound annual growth rate (CAGR) of 6.0%. The rising demand is driven by taurine’s benefits in enhancing physical performance, reducing fatigue, and its applications in heart health and blood sugar management. 

The taurine supplement sector continues to expand, with notable growth in powdered forms, which accounted for the largest share of the market. This format’s versatility allows it to be easily incorporated into energy drinks, protein shakes, and other functional foods. In North America, taurine-based products are seeing increased demand due to a growing focus on health and wellness, with the region holding over 30% of the market share in 2024. As consumer interest in taurine continues to grow, the market is set for steady growth, supported by its ongoing use in energy drinks, supplements, and emerging applications in skincare and haircare products. 

With taurine’s proven benefits and an increasing number of product innovations, including more convenient delivery methods and expanded consumer education, the market for this amino acid is poised to continue its upward trajectory. 

What else?

South Asia

The Council of Ministers of India has approved an increase in the ethanol procurement price for state-owned oil marketing companies (OMCs), effective from 1 November 2024 to 31 October 2025. The move is aimed at supporting the Ethanol Blended Petrol (EBP) Programme, which promotes blending of ethanol with fuel to reduce dependence on oil imports, foreign exchange savings and environmental benefits. Prices of ethanol extracted from C Heavy Molasses will increase from Rs 56.58 per litre to Rs 57.97 per litre.

The increase is aimed at ensuring that there is sufficient supply of ethanol to meet increasing blending targets in fuels. India has realised significant foreign exchange savings and reduced oil imports through this programme in recent years. The EBP programme, which promotes the blending of ethanol into fuel, has saved India more than $13 billion in foreign currency since 2014, reducing dependence on oil imports. The Indian government has set an ambitious new target of achieving 20 per cent ethanol blending in fuels by 2025, accelerating an earlier plan that set this level for 2030. New distilleries and infrastructure have been built under this programme, supporting both the agricultural sector and the biofuel industry in the country.

Europe

Spain has announced that it will allocate €400 million to help companies that did not receive funding in the EU Hydrogen Bank auctions. These auctions aim to allocate funds for the development of projects related to the production of green hydrogen, which will help achieve the European Union’s climate goals. Hydrogen is a key component of the energy transition and they are designed to support projects that will contribute to the development of the hydrogen market in Europe.

The additional funding from Spain will help companies that have not secured funding to continue their projects and develop hydrogen-related technologies. The investment aims to accelerate the country’s energy transition, reduce greenhouse gas emissions and promote green energy sources. Spain, as one of the leaders in green hydrogen investments, wants to strengthen its role in building a low-carbon economy.

Global

At the end of January 2025, aluminium alloy ingot prices in the U.S. and Germany increased by 0.6%, driven by rising import tariffs and escalating energy costs. In the U.S., newly introduced tariffs on aluminium imports pushed prices higher, while limited availability of scrap metal from the Middle East added to market volatility. Mexico is also facing uncertainty due to potential tariffs on aluminium imports from the U.S., further affecting trade flows.

In Germany, supply chain disruptions and high energy costs have forced producers to reduce output, tightening supply and increasing production expenses. The ongoing energy crisis in Europe has further amplified costs, making imports more expensive while boosting export demand.

Experts anticipate that aluminium alloy ingot prices will continue to rise in the coming months, influenced by ongoing supply chain constraints, fluctuating energy prices, and strong demand from the automotive and aerospace industries.