The Food Grade Calcium Chloride Market is estimated to be valued at US$ 774.94 Mn in 2023 and is expected to exhibit a CAGR of 6.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Food grade calcium chloride is used as a firming agent, coagulant, yeast nutrient and curing agent in various food and beverage products. It helps in firming and lengthening the texture of fruits and vegetables while preventing deterioration. Calcium chloride also acts as a neutralizer in baked foods and confectionery products. It enhances the volume, texture and crispness in baked goods. The growing demand from dairy, meat and seafood processing industries is propelling the growth of food grade calcium chloride market.
Market key trends:
One of the key trends in the food grade calcium chloride market is its increasing usage in meat food processing industry. Calcium chloride is used as a brine accelerator in meat products like ham, bacon and sausages. It enhances water retention and improves texture, juiciness and firmness of processed meats. Moreover, calcium chloride plays a critical role in seafood processing by preventing spoilage. It inhibits the growth of foodborne pathogens and extends the shelf life of seafood. The rising demand for processed and ready-to-eat food has been fueling the consumption of calcium chloride. Furthermore, growth in dairy industry especially production of cheese and yogurt has boosted the food grade calcium chloride market.
Porter’s Analysis
Threat of new entrants: The food grade calcium chloride market is moderately concentrated with the presence of established players. High capital requirements for infrastructure and high switching costs for buyers pose a significant barrier for new entrants.
Bargaining power of buyers: Buyers have moderate bargaining power. Price sensitivity is high as food grade calcium chloride has few substitute products. However, buyers have limited influence over pricing due to the specialized nature of the product.
Bargaining power of suppliers: The food grade calcium chloride market has a concentration of raw material suppliers. Suppliers have moderate bargaining power due to their control over key raw materials and technologies required.
Threat of new substitutes: There exists a moderate threat from substitute products. Substitutes include lime, sodium chloride and magnesium chloride. However, substitutes offer limited functionality or have restrictions on usage.
Competitive rivalry: The market is marked by fierce competition between key players. Players compete based on product quality, brand image, and pricing.
SWOT Analysis
Strengths: Established production facilities and global presence of key players. Food grade calcium chloride has wide applications in food processing and as a nutritional supplement.
Weaknesses: Fluctuating raw material prices can impact production costs. Quality and safety issues may arise due to inconsistent supply chains.
Opportunities: Increasing meat consumption is driving demand for calcium chloride as a preservative. Rising usage in winter road maintenance activities presents new growth prospects.
Threats: Stringent regulations pertaining to usage levels and impurities pose compliance challenges. Environmental concerns regarding waste disposal limits growth opportunities.
Key Takeaways
The Global Food Grade Calcium Chloride Market Size is expected to witness high growth, exhibiting CAGR of 6.8% over the forecast period, due to increasing demand from food processing and animal feed industries. North America dominates the global market currently, followed by Asia Pacific and Europe. The Asia Pacific market is projected to grow at the fastest rate during the forecast period due to the expanding processed food market in China and India.
Key players operating in the food grade calcium chloride market are Solvay S.A., Tokuyama Corporation, Occidental Petroleum Corporation, Ward Chemical Ltd., Tata Chemicals Ltd., TETRA Technologies, Inc., Zirax Limited, Weifang Yuze Chemical Co., Ltd., Mey Chern Chemicals Sdn Bhd., Anmol Chemicals Group, TCI Sanmar Chemicals S.A.E., and Weifang Haibin Chemical Co., Ltd. These companies are focusing on new product development and expansion strategies to strengthen their market position.
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