The Global Calcium Propionate Market is projected to register a CAGR of over 3% during the forecast period (2021-2026).
However, in many countries across the world plants that process meat has become a hotspot for COVID-19 infections, bringing attention to the health and safety of traditional meat and resulted in a decrease in meat consumption. By April 2020, the CDC (Centers for Disease Control and Prevention) had received data on COVID-19 cases from 19 of the 23 states in the United States that had reported at least one case related to this industry; there were 115 meat or poultry processing facilities with COVID-19 cases, with 4,913 workers diagnosed. This resulted in a decrease in demand and consumption of Calcium Propionate in the meat industry. Furthermore, the global sales of bakery products were above average, even though the supply of bakery was insufficient, as many bakeries had to close due to labor shortages. Due to all the mentioned factors, the calcium propionate market is negatively affected by COVID-19.
- Over the medium term, the growing demand for calcium propionate from the food and beverage industry is driving the demand of the market studied.
- On the flip side, growing demand for preservative-less food products and the detrimental impact of COVID-19 on the market are the major factors hindering market growth.
- Europe dominated the market with a significant share and Asia-Pacific is estimated to expand at a healthy rate during the forecast period.
Key Market Trends
Increasing demand from Food and Beverage Sector
- Calcium propionate is widely used as a food preservative to extend the shelf life of food by interfering with microorganisms' growth and reproduction. It is used in various eatable products such as bread, tortillas, pizza dough, pastries, breakfast cereals, pasta, and noodles, dried and condensed milk, flavored milk, dairy-based spreads, cheese, some processed meats, certain processed fruit and vegetable products, dairy, egg, and fat-based desserts, such as puddings, frosting, and confections. Additionally, calcium propionate is also used in sports drinks, diet foods, and beverages for preservation.
- The growing meat industry in recent years and increasing consciousness for the proper storage of meat due to the current spread of COVID-19 is likely to attract the demand for preservation like calcium propionate in the coming years.
- According to Food and Agriculture Organisation, the Asia region has around 136.06 million metric tons of meat produced in the year 2019. Also, it is predicted that the growth in consumption of meat will increase to 12% by 2029 around the world.
- The demand for processed and ready-to-eat foods, like burgers, hot dogs, toast, pizzas, cakes, and other such products is rising across the world, as the increasingly time-pressed consumers have embraced the convenience of freezer and microwave cooking. Such demands are expected to positively impact the consumption of preservatives like calcium propionate in the forecast period.
- The global food and beverage industry has been witnessed significant growth over the past few years due to the increasing population worldwide. This growth of the food and beverage industry is a major driving factor for the market studied.
- The revenue generated by the global food and beverage industry has increased from USD 100,297 million in 2017 to USD 155,488 million in 2019.
- The growing demand for food safety worldwide and increasing consumer demand from Asian countries like India, China, Indonesia, and Malaysia is driving the food processing industry and thereby the demand for preservatives in food processing.
- This is expected to provide a boosting factor for calcium propionate for preserving the processed food and increasing its shelf life.
Asia-Pacific to Witness Fastest growth
- The major manufacturing and consuming hubs of the food additive market globally are Europe, North America, and Asia-Pacific. Calcium propionate is used in numerous applications in the pharmaceutical, food & beverage, and animal feed industries due to its antimicrobial properties.
- The growing pharmaceutical industry in Asia-Pacific is further increasing the demand for calcium propionate from the medical and pharmaceutical sectors.
- Additionally increasing demand for animal feed is also boosting the market demand in Asia-Pacific from countries such as China and India. The demand for food derived from animals across the world has been increasing at a fast pace. The surge in this demand has been fulfilled by commercial livestock production and their associated food chains.
- China is one of the leading markets for products like calcium propionate in the agriculture sector. The agriculture industry in China is responsible for producing 18% of the world's cereal grains, 29% of the world's meat, and 50% of its vegetables. Overall, the country is responsible for creating roughly 20% of the world's food, making it the largest agricultural economy globally..
- Japan has the world's third-largest pharmaceutical industry. The domestic market is looking forward to increasing exports, and international companies seek opportunities to invest in and access the large, well-funded healthcare system. An aging population and broad access to healthcare drive the healthcare sector in the country, which is further expected to drive the demand for calcium propionate during the forecast period.
- In May 2019, the Korean government declared bio-health as a national vision and aimed to capture 6% of the global medical device and pharmaceutical market. The government also planned to increase exports of medical devices and pharmaceuticals to USD 50 billion and boost bio-health as one of the country's five important export industries by 2030.
- Owing to all these factors, Asia-Pacific region is expected to witness growth in demand for the calcium propionate market.
The market studied is partially consolidated among the major players. Some of the key players in the market include Agailenobel, Niacet, Henan Chemsino Industry Co.,ltd, PURATOS GROUP, and Fine Organics, among others.
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