Organic Food Preservatives

Food preservatives are substances added to prevent microbial contamination and to increase the shelf life of food. Natural or organic food preservatives have a higher gravity due to the shift in consumer preference for healthy, safe and natural food preservatives.

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    Organic Food Preservatives Suppliers

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    Organic Food Preservatives market report transcript

    Organic Food Preservatives Global Market Outlook

    • The global food acidulants/organic preservatives market is rising at a CAGR of 7.6 percent (2015–2020)
    • APAC and the US are the major producers and consumers, followed by Europe.

    organic-food-preservative-global-market-sizeProcurement Best Practices - Organic Preservatives

    Length of fixed-price contracts largely depends on the volume procured. Food & beverage companies engage in long-term contracts, and relatively smaller buyers from personal care and pharmaceutical industries are offered short-term contracts

    Contract Length
    Beverages is the largest buying segment of preservatives. Length of contract largely depends on the volume procured

    Supply Base
    Buyers split their procurement volume across 2–3 suppliers to leverage on tight competition and benefit from competitive pricing


    To reduce cost, maintain consistency in quality and to measure supplier performance, buyers generally procure from manufacturers

    Citric Acid MIP Calculation - Brazil

    • Price commitment between Brazil and Chinese citric acid suppliers was initiated in 2012 to avoid the definitive ADD imposed by the Brazilian government
    • MIP is calculated every quarter, depending on the price of sugar # 11 on the Futures Exchange New York (ICE), hence  knowledge about the MIP formula and its implementation cycle will be the key in formulating the strategy for citric acid procurement from China

    Market Analysis of Food Preservatives - Global

    • The food preservative market grows at a CAGR of 6.2 percent and is expected to increase in the approaching year
    • North America is the largest market for food preservative, followed by APAC and Europe
    • The APAC market is expected to witness a higher growth rate during the forecast period
    • Food preservatives can be segmented as synthetic and natural or food acids. The former group includes propionates, sulphates, sorbates, and benzoates. Natural or organic food preservatives are citric acid, lactic acid, acetic acid, tartaric acid, etc.
    • The organic preservative market is majorly driven by citric acid and lactic acid in food applications
    • Europe is expected to witness high growth of both natural and synthetic food preservatives
    • APAC is expected to show the highest growth over the forecast period, on the account of shift in consumer trend toward healthy and safe food, mainly in emerging countries, such as India, China, Indonesia, Taiwan, and Malaysia

    Market Analysis of Food Acids/Organic Preservatives - Global

    • The global organic preservative market is projected to reach $6.1 billion by 2020, growing at a CAGR of 7.6 percent
    • Increasing demand for processed foods and health conscious products is significantly propelling the growth in food & beverage industry, which, in turn, is driving the growth of the acidity regulators market at a steady rate
    • Organic food preservatives majorly function as gelling agents, flavor enhancers in confectionary products & beverages and most importantly as food preservative to extend the shelf life of food
    • Beverages is the largest segment in which food acids are used, followed by sauces, dressings, and condiments
    • Processed food forms the third largest segment in which acidity regulators are used as food additive
    • These organic acids are produced either by conventional method such as fermentation or by using modern technologies, namely methanol carbonylation and acetaldehyde oxidation

    Citric Acid - Global Food Preservatives

    Market Analysis

    • The global citric acid production is increasing at a CAGR of 4.4 percent, gaining support from the production growth in Asia
    • China, which accounts for more that 70 percent of the global production, is investing in capacity expansion, in order to increase its export market share
    • The global citric acid market is expected to increase in 2017 to 2.37 MMT, owing to the augmenting demand for citric acid in the end-use industries. Around 90 percent of the citric acid is produced through fermentation, 7 percent through extraction from citrus fruits, and the remaining 3 percent produced through chemical extraction
    • The need for acidulant in the food & beverage industry is a major demand sink for citric acid, consuming close to 75 percent of the citric acid produced, acidulant consumption by the food & beverage industry could increase in near future
    • Suppliers in the industry are focusing on increasing their production capacities to cater to the elevating product demand
    • Chinese players dominate the citric acid market, with the presence of few eminent players, such as Ensign, RZBC, and COFCO


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