Global Market Outlook on Emulsifiers

  • The global production of emulsifiers has been rising at a CAGR of 2.07 percent over a period of five years. Production in 2016–17 is estimated at 0.816 MMT, a rise by ~2 percent as compared to the previous year, driven by demand 
  • The key factors driving the growth include application in bakery and confectionery as a substitute for enzymes, health awareness, and preference for convenience foods by consumers
  • Demand from Asian regions, such as China, India, Indonesia, Malaysia, and Vietnam, is expected to rise by a CAGR of 7.5 percent from 2015 to 2020

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  • Emulsifier export prices are expected to witness a downward trend in the future months. Large buyers, who choose fixed- price long-term contracts (>6 months), should negotiate the length of their contracts to three months to leverage on falling prices and achieve significant cost savings. Small and mid-sized buyers could opt for spot buying from November 2017
  • Prices are expected to start increasing from August 2017 from its lowest point. This month could be the best price-lock period for longer contracts for the successive months
  • Emulsifier export prices are expected to witness a downward trend in the future months. Large buyers, who choose fixed-price long-term contracts (>3 months), should negotiate the length of their contracts to six months, leverage on falling prices and achieve significant cost savings. Small and mid-sized buyers could opt for spot buying from September 2017 
  • Prices could start rising from February 2018 from its lowest point. This month could be the best price-lock period for a longer contract for the successive months, viz., a six-month contract until July 2018

 

Global Supply–Demand Analysis - Food Emulsifiers

  • The global production of emulsifiers is estimated at ~0.8 MMT and is projected to grow at a CAGR of 4.5 percent in the next five years 
  • Demand for PGPR has risen because of its application as a substitute for cocoa butter as emulsifier in the chocolate manufacturing process
     
  • The global food emulsifier business is estimated to be around $2.3 billion in 2015 and could grow at a CAGR of 5.5 percent from 2015 to 2.9 billion by 2020 
  • The demand for di-glycerides as food emulsifiers has almost been stable over the past few years 
  • While the overall demand has been stable, in particular, demand for PGPR emulsifier has risen, due to its substitutability with cocoa butter in the chocolate manufacturing process 
  • Companies, like Hershey, Nestle, have adopted PGPR, replacing cocoa butter in the manufacturing. More players are expected to adopt this in the near term, which can increase the demand further 

Global Demand Analysis - Class and Type of Food Emulsifiers 

Synthetic emulsifiers account for ~70 percent of the market share. Mono, diglycerides, and derivatives constitute the largest segment, possessing ~46.3 percent of the market share, with Lecithin accounting for the second largest share at ~30 percent

Global Demand Analysis - Food Emulsifiers by Region and Segment

  • Europe accounts for ~25 percent of the global demand for emulsifiers as a region, while APAC is exhibiting rapid growth in demand at a projected CAGR of 7.5 percent, due to factors, like economic growth, population increase, and high disposable income 
  • Food emulsifiers account for ~32.8 percent of the global emulsifier demand. Within this segment, mono, di-glycerides and derivatives are the dominant segments