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

Supplier 

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