The Global Magnesium Stearate Market size is projected to grow at a CAGR of 6.3% during the forecast period.
Magnesium stearate is a white powdery mixture of magnesium salts of fatty acids that are obtained from edible oils. It is insoluble in water and is considered as an inorganic chemical compound that has a molecular formula of Mg (C18H35O2)2. Consumption below 2500 mg per day is considered a safe limit for magnesium stearate.
The compound has chemical properties such as insolubility, softness, and is known to have low toxicity. Growing demand for magnesium stearate from various end-use industries is creating upswings for the market growth. For instance, it is used primarily in the pharmaceutical industry in the manufacturing of dietary supplements, powders, and capsules. It finds applications in various food products, such as confectionary's and baking products, among others.
Food and beverages are one of the fast-growing industries globally. With the increasing millennial population and globalization, new foods from one region are readily available in most parts of the world. Growing social media penetration and disposable incomes are further nudging people to try out new foods and beverages.
Food and beverage is a leading industry in Europe and is one of the most important contributors to the European economy. The food and beverage industry contributed around USD 1.24 trillion in terms of annual turnover, and that was around 2. 1% of the GVA added to the economy. As per FoodDrinkEurope, the total external trade in the year 2018 was around USD 121 billion, of which Europe contributed more than 18%.
Increased investment in the research and development activities, which was around USD 3.2 billion, drives the regional market growth. This will help in coming up with new and improved food products, which will further increase the trade surplus for the region.
The global chemical sales were valued at about USD 3721 billion in the financial year 2018.
The chemical industry plays an important role in the global economic landscape and economic growth and transformation of various economies globally. The chemical industry has been seeing unprecedented growth. The plastic industry is witnessing increased demand for the manufacturing of PPE kits amid the pandemic.
There has been resurgent investment in the research and development activities in the chemical industry to meet the various targets of the United Nations Sustainable Developmental Goals (SDGs) and also align with the various climate change objectives. With the increasing penetration of A.I. and Big data, the chemical industry is set to witness exceptional growth in the year to come in terms of new chemical discoveries.
As per Oxford Economics, the total contribution of the chemical industry to the world GDP was approximately USD 5.7 trillion in the financial year 2018, and the total investment in research and development activities was around USD 50 billion. This underscores the potential of the chemical industry in the coming years. Magnesium stearate finds increased application in the chemical industry as an emulsifier and additive.
These days' people, globally, are becoming more conscious of their grooming habits, and both men and women are specific about their skincare routines. The personal care products find a lot of inspiration from Asia-Pacific economies such as South Korea and Japan that are known to set the trend for new cosmetics and personal care products. Furthermore, rising pollution in cities is giving rise to new and improved anti-pollution skincare products.
Economies in transition, such as India and China, have also seen an increase in the demand for personal care products in recent years. According to the India Brand Equity Foundation (IBEF), India has around 23 out of the global 30 most polluted cities. Also, consumers in the country are moving towards environment-friendly, natural, and organic skincare products, which is further creating a fillip for the personal care product market.
Increasing acquisition activities and investments in the region due to favorable policies by the government for foreign direct investments, coupled with the easy availability of labor, drives the Indian market of personal care products. For instance, as per the IBEF, L'Oreal is seeking an acquisition in the cosmetic industry and has made its first acquisition of the Indian based skincare brand Cheryl's Cosmeceuticals and is further eyeing more investments in the region.
However, the recent COVID-19 pandemic has created a global disruption in the supply chain, creating a blip in the financial markets. This has led to the lowering of consumer spending on personal care products in the short run, which is likely to have a short-term impact on the market. However, with various economical packages announced by various governments, the demand is likely to revive after the initial hiccup
Asia-Pacific is the biggest region in terms of geographical expanse and the fastest-growing region economically. The region is experiencing high growth due to favorable investment conditions and positive governmental steps in terms of policies and automatic FDI routes being made available to foreign players. China and India have Purchasing Power Parity (PPP) in the top three countries globally. Magnesium stearate finds application in the processed food and pharmaceutical industry.
Asia-Pacific's food industry is poised to witness high growth in the coming years, owing to the higher consumption of baked products and chocolates and confectionery items and the strong presence of a number of emerging economies, such as China, India, Malaysia, Indonesia, and Thailand. Furthermore, the rapidly growing population and urbanization, increasing disposable incomes, and surging presence of supermarkets are likely to contribute to the processed food industry. The region is home to several economies that have a thriving food processing industry. For instance, Thailand is one of the biggest food exporters in the SEA region, with around 1,500 large to medium food companies based in the country.
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