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Report overview
The Global "Food Grade Precipitated Silica Market" was valued at US$ 301.2 million in 2024 and is projected to reach US$ 405.9 million by 2030, exhibiting a Compound Annual Growth Rate (CAGR) of 5.1% during the forecast period (2024-2030).
The market for food-grade precipitated silica is expanding steadily due to the growing need for it as a thickening, stabilising, and anti-caking agent in the food and beverage sector. Precipitated silica finds extensive usage in applications like beverage powders, powdered food items, and food additives. Growing consumer demand for packaged and processed foods, which call for better shelf life and texture, has an impact on the industry. Additionally, there has been a rise in the use of food-grade precipitated silica due to the increased emphasis on regulatory compliance and food safety. The industry's leading players are concentrating on raising production levels, enhancing product quality, and creating cutting-edge silica solutions to meet the changing demands of food producers around the world.
Highly Dispersible Silica (HDS) is expected to hold the highest market share in the global food grade precipitated silica market.
Highly Dispersible Silica is preferred in food applications because of its superior properties, particularly its ability to disperse easily in powdered formulations without forming clumps. This makes it highly effective as an anti-caking agent in a wide range of food products, such as powdered milk, spices, and seasonings. HDS is also more efficient at enhancing flow properties in dry food formulations, which is crucial for food manufacturers aiming to improve processing and packaging efficiencies.
The widespread use of HDS across various food applications contributes to its higher market share. Its ability to maintain food quality by preventing moisture absorption and clumping has made it the go-to choice for food processors globally, especially in the growing market for processed and packaged foods. Additionally, manufacturers often prefer HDS due to its better performance in maintaining the texture and consistency of powdered and semi-liquid food products.
Food Ingredient to hold the highest market share: By Application
Due to the widespread usage of precipitated silica as a thickening, stabilising, and anti-caking agent in a variety of food products, such as seasonings, drinks, powdered meals, and dairy powders, the Food Ingredients section of the market is dominant. The need for chemicals that extend shelf life, improve flow characteristics, and preserve texture has increased dramatically as consumer demand for packaged and processed foods rises, particularly in urban and industrialised areas. Additionally, producers have been forced to use premium food-grade silica in their formulations due of regulatory requirements for food safety and quality.
However, despite its growth, the Animal Feed category still holds a lesser share. In animal feed formulations, precipitated silica is utilised as an anti-caking and flow enhancer to maintain uniform texture and minimise clumping. Even though the animal feed industry is significant, it has a significantly less need for food-grade precipitated silica than the food ingredients industry, due to the latter's far larger volume requirements and wider range of applications.
The need for processed foods, improvements in food technology, and regulatory frameworks are some of the factors driving the variations in growth trends that the global market for food grade precipitated silica exhibits among different regions.
North America, particularly the United States, holds a significant share of the global market. The use of food grade precipitated silica in food compositions is fuelled by the robust demand for packaged and processed foods as well as the strict food safety regulations imposed by organisations such as the FDA. Sustained demand is facilitated by major food manufacturers and technological developments in food production. The established food sector in the area is driving up demand for premium ingredients like precipitated silica.
Europe is a significant market for food-grade precipitated silica, with the UK, France, and Germany being the most adoptive nations. Precipitated silica with high purity that is acceptable for food use is encouraged by the region's well-established food processing industry and stringent laws governing food additives, such as those enforced by the European Food Safety Authority. The desire for food additives that extend food shelf life and improve texture without sacrificing safety is also being driven by the growing popularity of natural and clean-label products in Europe.
There are many major companies in the highly competitive food grade precipitated silica industry that are fighting for market dominance through capacity development, innovation, and strategic alliances. Prominent enterprises including Evonik Industries, Solvay, PPG Industries, and W.R. Grace & Co. rule the industry because of their well-established supply chains, cutting-edge technology, and solid connections with important food producers across the world. These businesses make significant investments in R&D to develop more specialised solutions that are suited to food processors' changing needs, like enhanced dispersion and performance in a range of food applications.
Market participants are also leveraging mergers, acquisitions, and strategic partnerships to expand their market presence and enter new geographic regions. For example, major players have been increasing their production capacities in regions like Asia-Pacific, where demand is surging due to the expanding food processing industry. In this competitive environment, product quality, pricing strategies, and regulatory compliance play critical roles in determining market leadership.
September 17th 2024, Evonik aims to generate €1.5 billion additional sales with new innovation strategy. “Our new innovation strategy shows how sustainable products and solutions will be supporting Evonik’s future growth even more strongly, and, at the same time, reducing our customers’ ecological footprint,” says Harald Schwager, deputy chairman of Evonik’s executive board.
December 15th 2023, Evonik announced the acquisition of Thai Peroxide Co., Ltd.With the acquisition, which closed on 15 December, the global peroxides producer is expanding its offer of specialty-grade hydrogen peroxide and peracetic acid in the fast-growing Asia Pacific market
Oct, 2021, PPG Industries Inc. and Oriental Silicas Corporation (OSC) announced a strategic agreement. For certain grades of PPG silica materials used by tyre manufacturers in the Asia-Pacific area, OSC of Greater China serves as the sales representative. This aided the business in introducing cutting-edge products and increasing service capabilities for both current and potential tyre customers in the Asia-Pacific region.
Food grade precipitated silica is primarily used by the food and beverage industries. It is widely used in many different food products, such as powdered meals, spices, seasonings, dairy products, and drinks, as an anti-caking agent, thickener, and stabiliser. Its acceptance is fuelled by the rising demand, particularly in metropolitan areas, for processed and convenience foods. Precipitated silica is an essential component in food formulations since manufacturers depend on it to preserve product quality, extend shelf life, and guarantee constant texture. The necessity for premium, food-grade additives like precipitated silica is further pushed by this industry's emphasis on food safety and adherence to legal requirements. The food processing industry is one of the mainstays of the global economy with a value addition of USD 1.7 trillion (2019E). United States of America (USA), China, Germany, Netherlands and Japan are the top markets for the global processed food industry.
Growing consumers demand for clean labelled food as well as technological advancement
Many significant trends are currently influencing the food grade precipitated silica market and will continue to do so in the future. A notable development is the growing customer desire for safer and healthier food options, which is driving up demand for natural and clean-label food goods. Due to this change, businesses are increasingly looking for premium additives that adhere to strict safety regulations. As a result, food grade precipitated silica, which is renowned for its purity and usefulness, is becoming more and more popular. In response to increased environmental concerns, businesses are also putting a lot of emphasis on sustainability in the market by working to develop biodegradable products and eco-friendly production methods.
Innovations aimed at increasing the performance of precipitated silica in a variety of applications, such as optimising dispersion and flow properties in food formulations, are another important factor in technological breakthroughs. Furthermore, as these regions increasingly adopt processed foods to fulfil the needs of a growing urban population, the rise of the food processing industry is propelling emerging markets, especially in Asia-Pacific. All things considered, these patterns point to a changing market environment where quality, safety, sustainability, and innovation are major factors propelling the food grade precipitated silica industry's expansion.
Increasing consumers inclination towards health and wellbeing
The market for food-grade precipitated silica is driven by a number of important factors that support its expansion. consumers' increasing need for quick and simple meal choices that preserve quality and freshness is a major driver of the demand for processed and convenience foods, especially in urbanised areas. This trend forces food producers to improve the texture, stability, and shelf life of their products by adding useful ingredients like precipitated silica. Second, the demand for precipitated silica is rising as a result of manufacturers being forced to prioritise the usage of premium food-grade additives that meet safety requirements due to strict food safety rules and standards across the globe.
Furthermore, as customers' concerns about health and wellbeing have grown, there has been a shift towards natural ingredients and cleaner labelling, which has forced producers to look for additives that satisfy these tastes. Since food grade precipitated silica is utilised to maintain consistent quality and enhance feed product flow qualities, the growing animal feed sector also drives up demand for it. Finally, the creation of more specialised and efficient silica products is being made possible by technological developments in formulations and production processes, which is driving the growth of the market. All of these factors point to a strong market for food-grade precipitated silica in a range of food and beverage-related applications.
Fluctuation in price of raw materials
There are a number of obstacles that might hinder the food grade precipitated silica market from expanding. Precipitated silica manufacturing costs can be affected by the volatile raw material prices, which is one of the main obstacles. Because silica comes from natural sources, supply instability brought on by mining limits, environmental rules, or geopolitical issues may result in higher costs, which in turn may have an impact on market pricing and profitability.
Manufacturers are further challenged by the strict regulatory framework governing food additives. Adherence to diverse food safety rules necessitates major investments in quality assurance and testing procedures, which might range greatly throughout areas. It might be challenging for smaller producers to achieve these requirements, which would limit their ability to compete and participate in the market.
Furthermore, consumers are becoming more conscious of ingredient transparency due to the growing trend towards plant-based and clean-label products. This could force food producers to look for less processed additives or substitutes for silica, which could shrink the demand for food-grade precipitated silica. Last but not least, the existence of alternatives, such as naturally occurring anti-caking agents or silica substitutes in particular applications, may further limit market expansion because certain manufacturers may favour these options due to their alleged health benefits or regulatory advantages. When taken as a whole, these limitations show the difficulties the food grade precipitated silica business faces navigating a changing market.
The report includes Global & Regional market status and outlook for 2017-2028. Further, the report provides breakdown details about each region & countries covered in the report. Identifying its sales, sales volume & revenue forecast. With detailed analysis by Types, Application. The report also covers the key players of the industry including Company Profile, Product Specifications, Production Capacity/Sales, Revenue, Price, and Gross Margin 2017-2028 & Sales with a thorough analysis of the market’s competitive landscape and detailed information on vendors and comprehensive details of factors that will challenge the growth of major market vendors.
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