Published: Jul, 2016
As the demand for anti-aging products is increasing, players in the global antioxidants market have been presented with a lucrative opportunity for boosting their sales in the global market, states TMR in a recent report. The global increase in meat consumption is also creating a major growth opportunity for antioxidant manufacturers. Though the global market is dominated by a few key companies with similar channels for distribution and pricing strategies, but at the regional level the competition is intensely competitive due to the presence of local raw material dealers.
At the regional level, the Asia Pacific market is taking the lead due to the collaborations that the leading companies are taking up with the local manufacturers in this region. In the Asia Pacific region, China is one of the major markets and Kemin Industries Inc. is leading with a company share of 10.2% in the market. It is followed by Kalsec and ADM. These top three companies hold a cumulative share of 17.9% of the total market share in China.
The antioxidants market in the global level is extremely cost sensitive. Hence, the manufacturing companies’ need to turn up with new innovations. The key players in the market are coming up with new plans to increase their revenue share in the market. For instance, Aland Nutraceutical Co. made collaborations with other companies in the industry to manufacture minerals, supplements and vitamins and also generate revenue. The level of competition is more intense in the regional level than in the global market as only few international players dominate the global market. This kind of investment and collaboration with local raw material dealers as well as other companies is expected to bolster the growth of the antioxidants market in the global as well as regional level.
In order to maintain their stand in the global anti-oxidants market, companies will have to ease their pricing policies and branding techniques, states TMR. The high cost of raw materials is intensely affecting the market profitability of anti-oxidants companies. Also, regulatory policies by regional and national governing bodies, which have banned specific antioxidants to be sold and used in the market, will limit the overall expansion of the global anti-oxidants in certain regions. The growth of the market depends on how focused the suppliers are on cost reduction as there can be a significant threat of backward integration from buyers.
Anti-Aging Product Demand to Boost Market for Anti-Oxidants
The increasing demand for anti-aging products across the globe is largely accredited to the growth of the anti-oxidants market. Vitamin C and glutathione are the most used antioxidants as they protect the cytoplasm of cells and are used in most of the anti-aging products. . Other antioxidants include uric acid, vitamin E, vitamin A and beta carotene. The antioxidants found in cosmetics are alpha tocopherol acetate and tocopherl. They help in the increasing the content of vitamin E in the skin.
Global demand for anti-aging products has witnessed a huge rise in the past few years owing to the rapid rise in the world’s aging population. The rising population of elderly people, combined with the rise in disposable incomes, especially in developing regions, is expected to boost sales of anti-aging products over the period between 2014 and 2020. If these factors exist persistently, the antioxidants market will witness favorable expansion in the next few years.
Lack of Awareness, Negative Statements by Experts, and Strict Government Regulations to Hinder Market’s Growth
Some of the major challenges faced by the global antioxidants market include lack of awareness among consumers about the several benefits of these elements, negative statements by experts regarding the potential side effects of antioxidants, and strict government rules for the circulation and use of the products having antioxidants. Negative comments by expert organizations, such as the claim by American Heart Association in 2008 that antioxidants are ineffective in protecting the heart’s health, are considered to be a hindrance in the global sales of antioxidants.
Apart from these, the government policies for safer use of antioxidant will also hamper the growth of this market in the next few years. Rigid test policies set up by the governments are expected to slow down the circulation of the antioxidants in certain regional markets. These factors together are expected to hamper the market growth of antioxidants in the next few years. North America is going to be a challenge for the manufacturers of anti-oxidants as the regulatory policies there are rigid in terms of the verification of the antioxidants.
The leading regions in the global antioxidants market are reported to be Asia-Pacific and North America, as they lead in the numbers with growing life expectancy, strong agricultural background and increase in per capita income. The growing demand for dietary and health supplements, and rise in the demand for packaged foods is expected to contribute to the elevated demand for antioxidants in the Asia-Pacific in the next few years. Asia Pacific held a leading share of 39.90% in the global antioxidants market in 2014.
In revenue terms, the global market of antioxidants is reported to rise at a CAGR of 5.6% in the forecast period of 2014-2020. It is expected to reach US$3,111.5 million by 2020, as reported by TMR.
The review has been based on the findings of a TMR report titled “Antioxidants Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2014 - 2020”.
Antioxidants Market: By geography
- North America
- Asia Pacific
- South Korea
- Rest of the World
Antioxidants Market: By Type
- Natural Antioxidants
- Rosemary Extracts
- Vitamin A
- Vitamin C
- Vitamin E
- Synthetic Antioxidants
- Butylated hydroxyanisole (BHA)
- Butylated hydroxytoluene (BHT)