China Set to Lead L-Carnitine Market

SAN JOSE, Calif.China is taking over the L-carnitine market becoming one of the largest  producers in the world with a production capacity of about 48 percent in 2008, according to a new report L-Carnitine: A Global Strategic Business Report," from Global Industry Analysts Inc. High-quality standards, low prices and increasing manufacturing capacity are rapidly becoming the hallmark of Chinese producers, thereby posing a threat to other established players in the United States, European and Japanese markets.

The U.S. market, driven by issues of obesity and related diseases, is still the largest market for L-carnitine products. Europe and Asia-Pacific markets trail behind as other critical L-carnitine markets worldwide. Asia-Pacific, powered by rapid growth in China is forecast to accelerate expansion rate to a robust compound annual growth rate (CAGR) of 5.5 percent through 2017.

L-carnitine, a specific kind of amino acid, has found extensive application in production of several kinds of energy drinks, drugs and functional foods, such as weight-reducing capsules, effervescent tablets, chewing tablets, drinks and infant milk powder among others. The energy and sports drinks and nutritional powders and drinks segments are two of the largest end-use markets for L-carnitine.

Government regulations with regard to the sales and promotion of L-carnitine differ from country-to-country across the world, and success and usage rates vary accordingly. Despite the undeniable health benefits, several doubts are increasingly being raised by scientists and regulatory authorities regarding the false and hyped health benefits of L-carnitine and its derivatives. In certain cases, L-carnitine health claims portrayed by the concerned manufacturers were found misleading based on false advertisements and public misinformation. In several developed markets such as Europe, consumers and regulatory bodies are pushing for greater authentication and scientific validation to back the numerous wellness and health claims of foods, drinks or supplements.

Short-term market prospects are also dampened by factors such as low consumer awareness and understanding, inadequate brand promotion by manufacturers and positioning of L-carnitine as a niche market product.