Business Insights of the Dicalcium Phosphate Market

Dicalcium phosphate is another example of leavening agent and a source of calcium enrichment which is widely used in the baking industry. It is also coded as E341 in some food packagings. It is very slow to react and commonly combined with faster reacting leavening agents such as baking soda. During the baking process, it is used to adjust the final pH of the product. It also provides surface cracking on the baked product by liberating gas in the final steps in baking. E341 is made by reacting calcium chloride and phosphoric acid. Applications of E341 include breakfast cereals, enriched flour and noodle products.

Cereal

Breakfast Cereal

Interestingly, dicalcium phosphate is also used in the feedstock for poultry. It is mixed together with animal feed to enhance their nutrients intake. This promotes the nurture and growth of the animals.

Phosphate market

The dicalcium phosphate market for feed phosphate is projected to reach USD 5.8 Billion by 2020, growing at a CAGR of about 3% from 2015 to 2020. In 2014, Asia-Pacific was the largest as well as the fastest-growing market for feed phosphate products, followed by North America and Europe. China alone accounted for 23.5% of the world feed phosphate consumption in 2014. The dicalcium phosphate market is driven by the increasing income of the middle-class section and the growing demand for dicalcium phosphate in meat and dairy products.

In terms of the demand for dicalcium phosphate (food grade), it is expected that its demand is proportional to the demand of baking soda as both are typically used together in the baking industry or even in the production of cereal products. However, the demand for cereals vary from country to country. In Singapore, breakfast cereals registered current value growth of 4% to reach S$49 million. It is the preferred choice for breakfast in the hectic country because it requires little preparation time and it contains high nutrients. Nestlé Singapore Pte Ltd maintained the leading position with a 30% value share in 2015. The company has a strong presence in children breakfast cereals with a 6% value share for its productsincluding Koko Krunch, Honey Stars, and Milo etc. Thus, the dicalcium phosphate market in Singapore would be positive.

However, the case is different in North America. By 2020, the breakfast cereals market is expected to grow by less than 1% globally and shrink by over US$1 billion in North America. This is no good news for cereal companies that once enjoyed their sound position atop the breakfast food empire.

Therefore, one can deduce the role of dicalcium phosphate in the food industry both in baking and in animal feed. Will the demand change over time? As of now, it can only be said that the demand for dicalcium phosphate varies from countries to countries, with different lifestyles having varying demand for E341.

Meanwhile, stay tuned for our next update! For more information, log on to http://food-chemicals.com/ for a diverse range of chemicals present in our database.

 

By: Zaki

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