In 2022 & 2023, market players expected to sail in rough waters; might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain. Further, U.S. economy is expected to grow merely by 3% in 2022. Purchasing power in the country is expected to fell nearly by 2.5%.
On the other hand, European countries to see the worst coming in the form of energy crisis especially in upcoming winters!! Right after COVID-19, inflation has started gripping the economies across the globe. Higher than anticipated inflation, especially in western world had raised concerns for national banks and financial institutions to control the economic loss and safeguard the interest of the businesses. Increased interest rates, strong USD inflated oil prices, looming prices for gas and energy resources due to Ukraine-Russia conflict, China economic slowdown (~4% in 2022) disrupting the production and global supply chain and other factors would impact each industry negatively.
Researchers at East China Normal University suggest that solar cells treated with capsaicin were more efficient at turning solar energy into electricity.
They also found that the electrical, optical, chemical and stable properties of the compound made solar cells more effective, retaining more than 90 percent of their efficiency after 800 hours.
The global capsaicin market is estimated to garner a large amount of revenue and grow at a CAGR of ~4% over the forecast period, i.e., 2022 – 2030. The growth of the market can be primarily attributed to the increasing demand for capsaicin-spiced products such as chili pepper, and hot sauces including salsa and Tabasco sauce. Along with these, growing prevalence of musculoskeletal disorders is also expected to accelerate market growth in the near future, as capsaicin is widely used as an analgesic in topical ointments and dermal patches for relieving pain. According to the World Health Organization, approximately 1.71 billion people have musculoskeletal conditions worldwide. Among musculoskeletal disorders, low back pain causes the highest burden with a prevalence of 568 million people. Furthermore, since the last two decades, more and more women around the globe are adopting self-defense products, including pepper sprays, for safety purposes. In addition, leading market players are extensively becoming involved in developing innovative strategies for women protection by launching novel products, which in turn is projected to offer ample growth opportunities to the market in the upcoming years.
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The market is segmented by application into food, medicine, cosmetics, pesticides, and others, out of which, the medicine segment is anticipated to hold the largest share in the global capsaicin market. This can be accounted to the high usage of capsaicin in cream form for the temporary relief of muscle pains and minor aches. Apart from these, the product is highly effective when used as a medication for reducing the symptoms of several neuropathic conditions, including its utilization to make post-herpetic neuralgia drugs, which is also predicted to boost the growth of the market segment in the future. The food segment is also assessed to acquire a notable share during the forecast period ascribing to the rising use of capsaicin products to provide added spice to food, usually in the form of spices such as paprika and chili powder. Additionally, on the basis of product type, the 95% purity segment is evaluated to occupy the largest share by the end of 2030, which can be credited to the high volatility and excellent pungency of this type of capsaicin.
The chemical industry is a major component of the economy. According to the U.S. Bureau of Economic Analysis, in 2020, for the U.S., the value added by chemical products as a percentage of GDP was around 1.9%. Additionally, according to the World Bank, Chemical industry in the U.S. accounted for 16.43% to manufacturing value-added in 2018. With the growing demand from end-users, the market for chemical products is expected to grow in future. According to UNEP (United Nations Environment Program), the sales of chemicals are projected to almost double from 2017 to 2030. In the current scenario, Asia Pacific is the largest chemical producing and consuming region. China has the world’s largest chemical industry, that accounted for annual sales of approximately more than USD 1.5 trillion, or about more than one-third of global sales, in recent years. Additionally, a vast consumer base and favorable government policies have boosted investment in China’s chemical industry. Easy availability of low-cost raw material & labor as well as government subsidies and relaxed environmental norms have served as a production base for key vendors globally. On the other hand, according to the FICCI (Federation of Indian Chambers of Commerce & Industry), the chemical industry in India was valued at 163 billion in 2019 and it contributed 3.4% to the global chemical industry. It ranks 6th in global chemical production. This statistic shows the lucrative opportunity for the investment in businesses in Asia Pacific countries in the upcoming years.
On the basis of geographical analysis, the global capsaicin market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and the Middle East & Africa region. The market in the North America is estimated to grab the largest share and witness noteworthy growth over the forecast period on the back of the increasing number of fast-food chains and growing consumption of exotic foods in the region. In addition, well-established healthcare infrastructure and high medical spending in the region are also projected to drive the region’s market growth in the coming years. As per the Centers for Medicare and Medicaid Services, U.S. health care spending grew 4.6 percent in 2019, reaching $3.8 trillion or $11,582 per person. As a share of the nation's Gross Domestic Product, health spending accounted for 17.7 percent. Moreover, the market in Latin America is anticipated to gather a significant share during the forecast period owing to the largescale cultivation of some of the spiciest chilies around the world, and presence of climatic conditions in the region favoring the growth of different types of pepper.
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The global capsaicin market is further classified on the basis of region as follows:
Our in-depth analysis of the global capsaicin market includes the following segments:
Ans: The major factors driving market growth are increasing demand for capsaicin-spiced products worldwide and growing prevalence of musculoskeletal disorders.
Ans: The market is anticipated to attain a CAGR of ~4% over the forecast period, i.e., 2022 – 2030.
Ans: Acute health effects associated with the use of capsaicin are estimated to hamper the market growth.
Ans: North America will provide more business opportunities for market growth owing to the increasing number of fast-food chains and growing consumption of exotic foods in the region.
Ans: The major players in the market are Chenguang Biotech Group, Lonza Group, Bayer AG, Alchem International Pvt. Ltd., The Dow Chemical Company, and others.
Ans: The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by product type, application, and by region.
Ans: The medicine segment is anticipated to hold largest market size and is estimated to grow at a notable CAGR over the forecast period and display significant growth opportunities.