A recent TMR report states APAC is increasingly fuelling worldwide demand, leading to more collaborations between major companies and local manufacturers.
Such links up are vital, says the report, to offset intense price competition in the antioxidants market.
“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 “
It adds that Hong Kong firm Aland Nutraceutical Co, which was acquired by DSM last year, is one such company already collaborating closely with other companies.
“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,” adds the report.
In order to maintain their position in the global antioxidants market, many companies will have to ease their pricing policies and branding techniques, states TMR.
Rise in income
However, with demand for anti-ageing products, most noticeably in APAC, growing rapidly, there is plenty of scope for future growth.
“The rising population of elderly people, combined with the rise in disposable incomes, especially in developing regions, is expected to boost sales of anti-ageing products over the period between 2014 and 2020. If these factors exist persistently, the antioxidants market will witness favourable expansion in the next few years,” TMR states.
“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 Asia Pacific.”
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$3,111.5m by 2020, added TMR.
The insights were based on the findings of a TMR report titled “Antioxidants Market - Global Industry Analysis, Size, Share, Growth, Trends and Forecast, 2014 – 2020”.