by A) Market Overview:
The global Food Grade Calcium Chloride Market is estimated to be valued at US$679.4 million in 2021 and is expected to exhibit a compound annual growth rate (CAGR) of 6.8% over the forecast period (2021-2028), as highlighted in a new report published by Coherent Market Insights. Food-grade calcium chloride is a vital ingredient used in various food and beverage applications due to its multiple benefits, such as food preservation, enhancement of texture, and maintenance of freshness. With the rising demand for food preservation techniques, the market for food-grade calcium chloride is witnessing significant growth.
B) Market Key Trends:
One key trend driving the market growth for food-grade calcium chloride is the increasing adoption of food preservation techniques. In the food industry, maintaining the freshness and quality of products is of utmost importance. Food-grade calcium chloride acts as a natural preservative, inhibiting the growth of bacteria and preventing spoilage. It is commonly used in the preservation of fruits, vegetables, and canned goods. The growing concern among consumers regarding the quality and safety of food products has led to an upsurge in demand for effective preservation solutions, thereby driving the market for food-grade calcium chloride.
For example, in the meat and poultry industry, food-grade calcium chloride is used to inhibit microbial spoilage, prolong shelf life, and maintain the texture of products. It helps in minimizing discoloration and maintaining juiciness, ensuring that the meat remains fresh and visually appealing for an extended period.
C) Porter’s Analysis:
– Threat of new entrants: The threat of new entrants in the food-grade calcium chloride market is currently low. The market is characterized by high entry barriers, including stringent regulatory requirements and the need for substantial capital investment to set up manufacturing facilities.
– Bargaining power of buyers: The bargaining power of buyers is moderate. While buyers have access to multiple suppliers, they face challenges in finding reliable sources with consistent quality and competitive pricing. Moreover, the perishable nature of food necessitates timely delivery, giving leverage to suppliers.
– Bargaining power of suppliers: The bargaining power of suppliers is moderate to high. The limited number of established suppliers and the specialized nature of production provide them with some control over pricing and product quality.
– Threat of new substitutes: The threat of new substitutes in the food-grade calcium chloride market is low. Alternatives such as sodium chloride do not offer comparable benefits in terms of food preservation and texture enhancement.
– Competitive rivalry: The competitive rivalry in the market is moderate, with several key players actively competing. However, product differentiation and technological advancements allow companies to carve out their market share.
D) Key Takeaways:
1. Market Size: The Global Food-Grade Calcium Chloride Market Demand is expected to witness high growth, exhibiting a CAGR of 6.8% over the forecast period. The increasing demand for food preservation techniques, coupled with the multiple benefits offered by food-grade calcium chloride, is driving market growth.
2. Regional Analysis: North America is the fastest-growing and dominating region in the food-grade calcium chloride market. The region has a well-established food and beverage industry, strict food safety regulations, and a growing consumer inclination towards quality and freshness.
3. Key Players: Key players operating in the global food-grade calcium chloride market include 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.
In conclusion, the food-grade calcium chloride market is experiencing substantial growth due to the increasing demand for food preservation techniques. The market offers immense opportunities for players to provide innovative solutions that enhance food quality, shelf life, and visual appeal. As the food industry continues to prioritize safety and freshness, the demand for food-grade calcium chloride is expected to rise steadily in the coming years.
