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Food Grade Calcium Chloride Market is driven by rising demand from Food And Beverage Industry

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Lucy Kart
Food Grade Calcium Chloride Market is driven by rising demand from Food And Beverage Industry

The global food grade calcium chloride market is predominantly driven by its increasing usage in the food and beverage industry. Food grade calcium chloride is extensively used as a chloride donor and neutralizing agent in various food applications including frozen foods, meat products, bakery products, confectionery products, packaged foods and much more. It acts as a processing aid in pickling vegetables, softening water used for cooking food and as a firming agent in canned foods to prevent uneven cooking. Food grade calcium chloride prevents bacterial growth, increases shelf life and provides high textural quality in multiple food items.

The Global food grade calcium chloride market is estimated to be valued at US$ 892.74 Bn in 2024 and is expected to exhibit a CAGR of 11% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the food grade calcium chloride market are TETRA Chemicals, OxyChem, Ward Chemical, Taiyuan Xinyufeng, Honghua, Huanghua, Tonglu Huixin, Hangzhou Jianfeng. Calcium chloride is widely used as a firming agent, coagulant and yeast food in various food processing applications. The growing consumption of packaged, processed and frozen foods worldwide has substantially boosted the demand for food grade calcium chloride in recent years. Rising health-consciousness and changing dietary patterns are also propelling the usage of calcium chloride as a nutrient supplement in functional foods and beverages. Major producers are expanding their production facilities globally to capture wider markets and cater to the burgeoning demand from food manufacturers across geographies.

Market Drivers

Food Grade Calcium Chloride Market Demand is primarily driven by the rising demand from the food and beverage industry. There is a surging consumption of processed and convenience foods along with functional beverages globally which has significantly boosted the usage of food additives like food grade calcium chloride. It prevents bacterial growth, acts as a coagulant and firming agent, regulates yeast activity and maintains acidity levels in various foods. Changing dietary habits and growing health-consciousness are also propelling the demand for calcium chloride as a vital nutrient carrier in functional foods. Wide ranging applications in dairy products, meats, bakery items, confectioneries and seafood are propelling the market growth.

Impact of geopolitical situation on Food Grade Calcium Chloride Market growth

The current geopolitical turmoil is impacting the Food Grade Calcium Chloride Market in several ways. The ongoing Russia-Ukraine conflict has disrupted global supply chains and export of key raw materials from the regions. Ukraine is a major producer and exporter of ammonium chloride, which is a vital raw material used in the production of calcium chloride. Since the conflict began in February 2022, ammonium chloride exports from Ukraine have been halted, leading to shortages and price rise of the chemical globally. This is negatively impacting calcium chloride manufacturers who face constraints in sourcing key inputs at reasonable costs.

Geopolitical tensions between major economies are also exacerbating existing trade restrictions and tariff wars. The rising anti-globalization sentiments have made export of calcium chloride more complex and costly for companies. Additionally, escalating energy prices due to sanctions on Russian oil and gas are increasing production costs for manufacturers. To overcome these challenges, businesses will need to diversify their sourcing bases, look for alternative raw material suppliers, and consider relocating or expanding existing production units to other stable and low-cost regions. Co-production collaboration with ammonium chloride producers can also help secure raw material supply. Companies may pursue strategic pricing without significantly burdening customers.

Geographical concentration of Food Grade Calcium Chloride Market

The Food Grade Calcium Chloride Market is highly concentrated in the North America region in terms of value. The US and Canada account for over 35% of global demand due to well-established food processing industry. Strong presence of dairy, bakery, meat processing players who are major end-users has augmented regional market growth over the years. Moreover, many tier-1 calcium chloride producers are headquartered in North America who cater to robust domestic as well as export demand.

Fastest growing region for Food Grade Calcium Chloride Market

Asia Pacific region is poised to witness fastest growth in the Food Grade Calcium Chloride Market over the forecast period. This is primarily attributed to increasing meat consumption, rising disposable incomes, and growing health consciousness among consumers in developing nations such as India and China which are propelling expansion of domestic food businesses. Additionally, these countries house nearly half of world's population which creates massive long-term demand potentials. Presence of favorable policies and investment to boost food processing sector will continue to boost region's market share in the upcoming years.

Get More Insights on this Topic- https://www.newswirestats.com/food-grade-calcium-chloride-market-value-insights/ 



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