Market Trends of Ascorbic Acid Industry
Increasing Demand from Fortified/Functional Food and Beverage Application
With the rising number of health-conscious individuals, the demand for fortified food and beverage is also increasing. Consumers, primarily in developed and developing countries like the United States, India, China, and Germany, are increasingly reaching for nutrient-based and other products containing functional ingredients to ward off illnesses or help with existing health issues. Ascorbic acids are vital ingredients used in functional food & beverage products. Due to its extensive range of applications as a preservative, flavoring agent, taste enhancer, or taste modifier in confectionery, sauces, bread, and other products, they are anticipated to have significant expansion in the future. The demand for fortified beverages and other foods and beverages is also rising, which supports the growth of the ascorbic acid market. Since more people are becoming aware of ascorbic acid's advantages, it is anticipated that the impact of these drivers will increase dramatically. The demand for fortified food and beverage has led companies to incorporate ascorbic acid into their products. For instance, in 2021, Krating Daeng, a brand of TCH Group, collaborated with DHC, the leading food supplement producer in Japan, catering to the Vitamin C demand in Thailand. Also, various government initiatives are being taken to increase the consumption of fortified food and beverages, especially in developing countries like China and India. For instance, China's Ministry of Health promotes the intake of fortified food due to growing health concerns relating to age, myopia, and other diseases, thus driving the demand for ascorbic acid in the region.
Asia-Pacific Emerges as the Largest Market
The consumption of ascorbic acid in Asian countries, primarily in India, China, and Japan, is expected to grow rapidly due to the cost-effective manufacturing facilities in these countries. This factor has paved the way for manufacturers to penetrate the functional food and beverage sector with innovative bioactive ingredients, including ascorbic acid. The growing demand for health and dietary supplements in the region is also expected to fuel the market's growth over the forecast period. Deficiencies of significant micronutrients like iodine, Vitamins A and C, iron, folate, and zinc are prevalent in Asian countries, making the region a lucrative market for Vitamin C manufacturers and suppliers worldwide. The region is witnessing growth in personal disposable income and supportive government policies, adding to the growing demand. The growth of the pharmaceutical industry is prominent in the regional market, which drives the demand for ascorbic acid. For instance, according to the India Brand Equity Foundation, the Indian pharmaceutical market grew from 13.7% in July 2020 to 17.7% in August 2021.
