The power of three: why the hype around Creatine, Xanthan gum and Lysine? [63rd Edition of the ADDITIVES Newsletter]

Welcome to the Partners!

Welcome back to our newsletter!

In the latest newsletter, we discuss the growing popularity of creatine, xanthan gum and lysine in the supplement sector. We also analyse the support of the German chemical industry with lower energy prices and the fall in polypropylene prices in Asia due to excess stocks and weak demand. On the other hand, the stability of the phosphonates market in Europe ensures price predictability towards the end of the year.

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

Creatine

As of October 2024, the creatine market remains strong, especially in the fitness and athlete communities. Known for its key role in increasing muscle strength, endurance and recovery, creatine continues to be a staple for athletes, bodybuilders and those engaging in high-intensity training. Current trends show that consumers are increasingly seeking creatine in convenient, mixable forms, such as powders and capsules, to meet a variety of lifestyle needs. In addition, the projected annual growth rate for creatine remains high at around 6.3 per cent, with demand being driven by individuals prioritising both sports performance and post-exercise recovery. Despite fluctuations in raw material costs, the global interest in fitness and strength sports ensures that creatine will remain in the spotlight for the foreseeable future.

We recommend reading the article: Dietary supplements for athletes. What can be found in their composition?

Xanthan gum

In the food and beverage sector, xanthan gum is recognised as an essential additive, known for its ability to improve texture, viscosity and stability. This natural thickening agent is in high demand in North America and Europe, particularly in gluten-free and plant-based products, where it plays an important role in improving texture and consistency. As consumers are becoming more demanding about product ingredients, the natural origin and versatility of xanthan gum make it very attractive. Despite a slight increase in production costs, its market is expected to grow steadily, with a 5% annual growth forecast driven by its use in innovative food products, cosmetics and even pharmaceuticals. As consumer interest in clean label products grows, xanthan gum continues to be an asset in formulations focused on quality and sustainability.

Lysine

The lysine market is booming in both the diet and wellness segments, with growing interest in amino acids that support holistic health. Lysine’s reputation is based on its key role in immune function, collagen formation and muscle health. As consumers increasingly prioritise wellbeing from the inside out, lysine supplements are gaining popularity, especially among those looking to improve skin health, support the immune response and enhance recovery after training. In particular, lysine has attracted attention in Asia and North America, where it is becoming a sought-after ingredient not only in supplements, but also in skin and hair care products. With an annual growth forecast of 5.7%, lysine is poised to become a key ingredient in both the dietary and cosmetic sectors, supported by a growing body of research into its wide-ranging health benefits.

We encourage you to read this interesting article: YOUR GUIDE TO E: How to use the 10 most popular food additives?

Europe

The German chemical industry is benefiting from the support of lower electricity prices, providing relief to companies affected by rising production costs. Meanwhile, demand for chemical products remains weak, affecting domestic and export orders, particularly in the pharmaceutical and construction sectors. Companies are expressing concern that energy relief alone may not be enough to completely neutralise the impact of the global slowdown on the chemical sector, which is important for the German economy.

Prices for phosphonates, the main ingredient in detergents and cleaning products, remain stable in Europe in early November. The balanced level of supply and demand protects the market from major price fluctuations, despite the global difficulties in the chemical sector. Manufacturers emphasise that the stability is due to proper production management and prudent purchasing. This calmness in the phosphonates market offers the chance of a stable end to the year, although rising energy costs in the region could affect prices next year.

Asia

November began in the Asian polypropylene market with declines, mainly due to excess inventories and weak demand in key industries. High production and rising inventory levels put pressure on prices, adding to economic uncertainty. In countries like China and India, polypropylene prices are falling and producers are taking steps to control inventories. Analysts predict that a rebound in the market may not occur until the first half of 2025 at the earliest.