September 1, 2009

3 Min Read
L-Carnitine: Getting Noticed in a Challenging Market

by Christopher Shanahan, Food Industry Analyst



The global weight management ingredients market is tremendously dynamic, spanning a breadth of market segments and ingredients including appetite suppressants, fat-burners, fat-blockers, carbohydrate blockers and metabolism regulators. Hot products and applications vary by region. One with great potential, given effective marketing muscle, is L-carnitine.

L-carnitine is a vitamin-like GRAS (generally recognized as safe) ingredient that naturally occurs within the body, helping to convert fatty acids into metabolic energy, fuel vital organs and increase lean muscle tissue. The body can only produce 10 percent of its required L-carnitine, making dietary intakewhether through food or dietary supplementsa must for many individuals. Supplementation is especially important for those who experience above-average stress related to strenuous exercise, obesity, pregnancy, poor diets, and those suffering from various diseases. Deficient levels of L-carnitine can lead to energy declines, lower performance standards and decreased ability to effectively lose weight.

The global market for L-carnitine was valued at US$76 million in 2008, growing at a compound annual growth rate of 4.5 percent from 2004 to 2008. In 2008, the global revenue share of L-carnitine tartrate was 63.2 percent. Base L-carnitine, a highly hygroscopic ingredient used only in liquid formulas, had a 24.5-percent share of global market revenues. The global market revenue share of L-carnitine fumarate accounted for a relatively small share (3.6 percent), while other L-carnitine compounds, such as acetyl L-carnitine, made up the remainder of global market revenues (4.5 percent). Chart 1 shows the L-carnitine market demand shares by key market regions in 2008.


Global L-Carnitine Market: Units Shipped Demand Shares by Key Regions (2008)

Source: Frost & Sullivan

Key: APAC - Asia Pacific; EU - European Union; ROTW - Rest of the World; US - United States


Industry Challenges

Despite the scientific benefits of L-carnitine, consumer awareness of those benefits is relatively low. Specifically, this product has received little exposure relative to other functional products, such as omega-3 essential fatty acids (EFAs) and probiotics. Its current level of marketing activity remains very niche and oriented toward business-to-business promotions including trade shows, newsletters and clinical research. In addition, L-carnitines health benefits are not directly noticeable in comparison to other ingredients such as creatine. Vendors of L-carnitine must therefore increase effective marketing for this promising ingredient; otherwise, growth in the L-carnitine market will continue to be constrained.

Also challenging the market is the increasing threat of new entrants into the L-carnitine market. Chinese manufacturers continue to enter the market despite the relatively low number of potential buyers. Currently, the U.S. market for L-carnitine is concentrated among few key market players. However, Chinese manufacturers are increasingly able to supply L-carnitine with higher quality standards at lower prices (by as much as 30-percent less in price) due to lower production costs and increasing production capacity. In 2008, Chinese manufacturers produced more than 1,300 metric ton of L-carnitine for the global market, which is more than 45 percent of global production.

The good news? Consumer awareness of the value of dietary supplements continues to rise due to increasing interest in health, fitness and diets. L-carnitine, which can be promoted for its use in weight management, post-exercise recovery, delayed onset of fatigue and optimization of performance, is poised to take advantage of increasing demand. However, this ingredient has always played a niche role with little recognition in its present markets and has been dominated by only a few ingredient suppliers. Heightened attention toward effective marketing of L-carnitines health benefits is likely to positively impact market demand and ensure recognition of L-carnitine as a key product in the weight management ingredient market.



Christopher Shanahan is a food industry analyst with Frost & Sullivan (Frost.com); contact him at [email protected] .

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