☀️ Summer is here, beverage sales are soaring!Is your production line ready?
As the temperature rises, the body loses more water, and the demand for water and energy supplements increases significantly. Carbonated drinks and vitamin-rich juices have undoubtedly become hot-selling products in summer, and convenience stores and supermarkets are full of all kinds of refreshing drinks. According to relevant market data, the retail sales of beverages reached 156.4 billion yuan from January to June this year, a year-on-year increase of 5.6%, far exceeding the 3.7% of the total retail sales of other consumer goods. Behind the best-selling drinks, citric acid, as an important food additive, has made an indispensable contribution – it not only gives the drinks a refreshing sour taste and balances the sweetness, but also can extend the shelf life by adjusting the acid-base environment, so that consumers can feel thirst-quenching and become the “invisible seasoning” in the summer beverage market.
If you are a food and beverage manufacturer, now is the golden time to stock up on citric acid! Why? Let’s find out.
⏳ Fluctuation of raw material supply: uncertainty at the source
The production of citric acid is highly dependent on major raw materials such as cassava and other agricultural products, but there are significant differences in production conditions, policy environment and supply chain maturity in various cassava producing areas. Taking the African producing areas (Nigeria, Congo, etc.) as an example, the weak basic irrigation facilities and frequent droughts have led to sharp fluctuations in production and unstable supply; in the South American producing areas (Brazil, Colombia, etc.), this year, due to the influence of El Niño, some areas have abnormal rainfall, which seriously affects the quality of cassava starch. In contrast, Thailand, as the world’s third largest cassava producer, has shown its unique advantages: its stable tropical climate provides an ideal environment for cassava cultivation, and with modern planting technology, it can achieve a stable annual output of 5 tons/rai (about 3.75 tons/mu), which is more than 40% higher than that of African producing areas.
📉 Fluctuation at the source? Thailand’s low tariffs ensure supply and reduce costs
Compared with other producing areas, Thailand’s citric acid exports have significant tariff advantages for the US market, giving it a competitive advantage in the global supply chain. Taking African production areas (Nigeria and other places) and South American production areas (Brazil and other places) as examples, their citric acid exports to the United States are subject to a basic tariff rate of 5%. However, according to the US-Thailand trade agreement, Thailand only needs to pay a preferential tariff of 1.5%, saving 3.5 percentage points of tariff expenditure compared with these production areas. This tariff difference can be directly converted into a landed price advantage. The continuous tariff preference enables Thai citric acid to maintain a long-term competitive advantage in the US market and become a more cost-effective choice for international buyers.
If you are preparing to purchase citric acid, anhydrous citric acid, potassium citrate and other products, please consult Xitrical for the latest quotes and industry consultations – as the only Thai citric acid factory in Asia, we have a stable production capacity to guarantee shipments. At the same time, relying on Thailand’s policy advantage of low tariffs on the United States, I believe that it will be able to significantly reduce your procurement costs!
Whatsapp: +66 88 185 7272
Tel: +66 88 185 7272
E-mail: info@xitrical.com
