Emulsifiers - Procurement Best Practices & Sourcing Strategies

Procurement Market Intelligence Report

Emulsifiers – Procurement Best Practices & Sourcing Strategies

Emulsifiers Market – Executive Summary, Market Analysis, Industry Analysis, Supplier Analysis

1. Executive Summary
1.1. Global Market Overview
1.2. Contract Structures
1.3. COVID-19 Impact
1.4. Sourcing Location Watch
1.5. Supplier Watch
2. Market Analysis
2.1. Value Chains for Synthetic and Natural Emulsifiers
2.2. Global Market Outlook
2.2.1. Global Supply–Demand Analysis
2.2.2. Global Demand Analysis
2.2.3. Global Lecithin Trade Dynamics
2.3. Pricing Analysis for Argentina and the Netherlands
3. Industry Analysis
3.1. Industry Outlook (US, Europe, and Asia)
3.1.1. Porter’s Five Forces Analysis
3.1.2. Market Drivers for Innovations in the Emulsifier Industry
3.1.3. Innovations
4. Supplier Analysis
4.1. Supplier Analysis
4.2. Purchasing Process
4.3. Sustainability Initiatives and Best Practices

What is the present state of emulsifier production, and Which segments contribute to these statistics?


The most recent data from ELINT Market Research indicates that the world’s production of emulsifiers is 0.9 million metric tonnes (MMT). Mono and diglycerides (0.4 MMT), food lecithin (0.3 MMT), and other emulsifiers (0.2 MMT) are essential categories.


What key factors are propelling the emulsifiers market growth?


The rising usage of emulsifiers in various food products, including cereals, ready-to-eat meals, snacks, and more, is driving expansion in the global emulsifier industry.


Which regional force is likely to take a lead in the emulsifiers market throughout the forecast period?


The emulsifiers industry is anticipated to be led by the Asia-Pacific area, specifically by nations like China and India. This leadership results from expanding populations and growing emulsifier demand, particularly in culinary products like chocolate and confections.


Global Emulsifiers Market Size


Recent statistics from ELINT Market Research reveal a positive trajectory in the evolving emulsifiers market. Total production reached a considerable 0.9 million metric tonnes (MMT), according to their 2021 global food emulsifiers supply study. This comprehensive number covers global mono and diglyceride production (0.4 MMT), food lecithin production (0.3 MMT), and other emulsifier production (0.2 MMT). These numbers demonstrate the robust global demand for emulsifiers, indicating their vital role in many industries, particularly the food industry.


The Chinese food industry significantly drives this bullish outlook in the emulsifiers market. According to extensive industry research, the Chinese food market will grow steadily from 2022 to 2023, with prospects of continuing this upward trend in 2023-24. Notably, Chinese food businesses forecasted a startling revenue peak of approximately USD 1.5 trillion during 2022-2023, reflecting a notable yearly increase of 5.2% over the previous year. This considerable increase suggests a growing emulsifier market, crucial in increasing the quality and shelf life of different food products. The convergence of global production statistics and the great success of critical regions, mainly China, point to a bright and profitable future for the emulsifiers industry.


Market Definition


Emulsifiers, essential components in various applications such as food and drinks, pharmaceuticals, and personal care products, play a vital part in stabilizing and boosting the quality of these formulations. Companies are investing in R&D to create unique emulsifier solutions that meet the changing needs of varied end-users.


Emulsifiers Market Drivers


  • Awareness of Health and Wellness:


Customers are becoming more conscious of the health and well-being advantages of products containing emulsifiers. Emulsifiers aid in reducing fat content in food products and produce low-fat and low-calorie alternatives, consistent with the global trend towards healthier lifestyles.


  • Demand in the Food Industry:


Increased demand for processed and high-quality convenience foods is driving the emulsifiers industry. Emulsifiers increase food products’ texture, stability, and shelf life, allowing them to fulfill customer demands for high-quality, visually appealing foods.


  • Expanding Cosmetic and Personal Care Industry:

As regulatory standards evolve, notably in the food business, the emulsifiers market is encountering challenges. Many regulations are challenging for market actors to comply with because they must constantly adjust to changing norms and standards.


Emulsifiers Market Challenges


  • Volatility in Raw Material Prices:


Price fluctuations in raw materials primarily used to manufacture emulsifiers impact market stability. The industry must effectively deal with these oscillations to maintain competition and a continuous supply chain.


  • Stringent Regulatory Standards:


As regulatory standards evolve, notably in the food business, the emulsifiers market is encountering challenges. Compliance with many regulations is complex for market participants, who must constantly adapt to shifting norms and standards.


Emulsifiers Market Opportunities


  • Technological Advancements in Production:


Continuous technological advances provide a path to the development of new emulsifiers. Constant R&D efforts can result in the invention of better-functioning emulsifiers, opening up new market potential.


  • Increasing Demand for Natural and Organic Products:


The growing consumer choices for natural and organic products present a lucrative emulsifier opportunity. Natural emulsifiers can be produced and marketed by manufacturers to leverage this trend.


Emulsifiers Market Segmentation


  • Application: Based on application, the research report classifies the market into Food and Beverages, Pharmaceuticals, Personal Care and Cosmetics, and Others.


  • Type: According to type, the research report divides the market into Lecithin, Monoglycerides and Diglycerides, Sorbitan Esters, Polyglycerol Esters, and Others.


  • End-Use Industry: As per the end-use, the research report segments the market into Food and Beverage, Cosmetics and Personal Care, Pharmaceutical, and Others.


Regional Dynamics


In 2021, the global emulsifiers market exhibited significant regional dynamics. Due to a solid industrial base and a thriving food and beverage sector, the United States led the market with a 23% share. South Korea came in second at 22%, owing to rapid growth in the personal care and cosmetics sectors. The Netherlands, which finished second behind South Korea, was a vital European distribution hub. Germany got an 18% market share due to superior manufacturing skills, while France contributed 15%, indicating demand in food processing and medicines.


Thanks to a thriving industrial sector and rising processed food consumption, China led the export market with a 31% market share. Despite being a large importer, the Netherlands comprised 23% of global emulsifier exports, highlighting the country’s strategic importance. Along with being a significant importer, the United States exported considerably, accounting for 22% of total exports. Germany contributed 13% as an exporter, owing to superior manufacturing and innovation, while India contributed 11% due to its expanding pharmaceutical and food processing industries.


Global Demand by Emulsifier Type


In 2021, the global emulsifier demand landscape was diversified. With wide applications in food, pharmaceuticals, and personal care, glycerides led the market with a 46.3% share. Given its natural emulsifying properties in food and industry, lecithin accounts for 30% of the market. Stearoyl lactates comprise 8.8% of the total and are commonly usable in cosmetics. Sorbitan esters are widely utilized in medicines and personal care items and have a concentration of 2.5%. Other emulsifiers contributed 12.4% of the total, demonstrating industry-specific solutions. This segmentation shows the dynamic demand patterns in the emulsifiers market.


Trade Tariffs


Argentina adjusts its emulsifier rates based on strategic considerations: 5.7% from the Netherlands, 7.5% from India, and duty-free from Chile. The Netherlands has a free-trade framework with no tariffs for significant trading partners, including Germany, the United Kingdom, and France. Germany strategically imposes tariffs against the Netherlands at 0%, China at 6.5%, and the United States at 1.7%. The US encourages free trade by charging 0% tariffs to Canada and Mexico but a 5.7% levy to the Netherlands. India maintains a constant 5.7% tariff on the Netherlands, Ireland, and Italy, indicating strict trade policies.


Recent Activities in the Emulsifiers Market


  • Ingredion, a global leader in ingredient solutions, recently introduced a game-changing clean-label emulsifier. This innovative product corresponds to current market trends and enables food manufacturers to make convincing packaging claims that appeal to today’s health-conscious consumers.


  • Palsgaard, a well-known global emulsifier manufacturer, has increased its offering of sustainable emulsifiers in China. This decision aligns with the worldwide trend towards plant-based products, which is meeting the growing need in the food industry for sustainable and cruelty-free alternatives.


Emulsifiers Market Players


Key players in the emulsifiers market include Palsgaard, which is known for high-quality emulsifiers; Cargill, which has a diverse portfolio of emulsifying solutions; Beldom, which contributes innovative emulsification technologies; Adani Wilmar, which is committed to exceptional quality; Estelle Chemicals, which offers practical and reliable emulsifiers; and Lecico, which is increasing market competitiveness. These players work together to enhance technology and address the expanding demand for emulsifiers across sectors.

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