Dive Brief:
- Mordor Intelligence LLP released a new report, China Food Acidulants Market-Growth, Trends and Forecast (2015-2020). The global acidulants market is projected to reach more than $6.1 billion by 2020, growing at a CAGR of 7.6%. Some of the large players in this market are ADM, Brenntag, Cargill, Hawkin Watts, and Tate & Lyle.
- In 2013, Asia Pacific was at the top of the food acidulants market with a market share of more than 32%. The Asia Pacific market is projected to reach $2.11 billion by 2020, with a CAGR of 8.8%. China is a dominate market in the Asia Pacific region.
- Acidulants, also called food acidity regulators, are one of the fastest growing food additives. They regulate the acidity of a finished food product by stabilizing the pH level. They also work as gelling agents, add flavor to certain confectionary products, serve as a preservative and act as a taste modifier in beverages.
Dive Insight:
The key reason for high growth in the acidulants market in Asia Pacific countries in general, and China in particular, is the increasing middle class. The rising wealth drives the demand for processed foods and beverages. Other factors that affect the Asia Pacific market are challenges with cold storage chains and consumer demand for enhanced-nutrition products.
According to the Mordor report, emerging Chinese companies, especially those producing citric acid, threaten the dominance of Western companies. Some countries have nascent regulatory checks on imports that may increase. The report postulated that to meet the capacity requirements, manufacturers need to adopt technologies to improve their production processes.