Electrolytic iron is pure iron, which is produced by using electrolytic process. Electrolytic iron has superior magnetic properties and are therefore used in magnet ores. The high purity of iron makes it suitable for use in various end-use industries such as pharmaceuticals, manufacturing, cosmetics, and others.
The global electrolytic iron market is estimated to account for around US$ 36.6 million, in terms of value, in 2019 and it is expected to exhibit a CAGR of 4.6% during the forecast period (2020-2027).
The electrolytic iron market growth is expected to be driven by increasing demand from various industries such as electronics, pharmaceuticals, and food & beverages. The electrolytic iron is pure form of iron and consists over 99% iron content. Iron deficiency is a major nutritional disorder. The food grade electrolytic iron has bio-availability and is considered as a major ingredient for food fortification. There is increasing demand for electrolytic iron from animal feed industry, owing to increasing demand for affordable animal proteins and increased productivity yield. Furthermore, there is also a huge demand from pharmaceutical industry for electrolytic iron, as the pharma companies are increasing the production of iron supplements to fulfill the market demand.
The electrolytic iron market is expected to witness huge growth opportunities, as the purest form of iron is finding applications in metallurgy industry for the manufacturing of magnetic alloys, high-density structural parts, pharmaceutical industry, food ingredients & packaging, and also for removal of sulfur impurities from gaseous fuels.
Among regions, Europe region is expected to witness significant growth in the electrolytic iron market over the forecast period. The growth of the market is driven by increasing healthcare expenditure by governments of countries such as the U.K. and Germany. The presence of several large pharmaceutical manufacturers in the region is also expected to drive the market growth. High purity electrolytic iron is preferred majorly by the active pharmaceutical ingredients manufacturers and bulk drugs manufacturers. The electrolytic iron also acts as a reducing agent in pharma reactions.
The electrolytic iron market has huge growth opportunities with its adoption in infant cereals. The infant cereals fortified by electrolytic iron are included as a meal for the infants. These cereals have a favorable effect on the nutritional status and are beneficial in preventing iron deficiency anemia. As per the U.S. regulation (21 CFR: 107.100), iron-fortified infant formula should contain between 0.15 and 3.0 mg of iron per 100 kcal of formula. These dry infant cereals and foods generally use electrolytic iron and provide roughly 45 percent of the U.S. Recommended Daily Allowance for infants per serving.
Electrolytic Iron Market - Impact of Coronavirus (Covid-19) Pandemic
The mining activities for iron and steel falls under the provisions of essential commodities act. Owing to this, the companies engaged in the production of electrolytic iron are still operational. However, due to lockdown in numerous economies across the globe due to coronavirus pandemic, there is a drastic short-term decrease in demand for electrolytic iron from end-use industries such as cosmetics. Owing to this, many companies are forced to stop the production and shut down the blast furnaces. However, due to stoppage in production activities, the electrolytic iron manufacturing companies had to incur huge costs for.
Key players operating in the global electrolytic iron market include Beijing GaoYe Technology Co., Ltd., Blyth Metals Ltd., Dr. Fritsch, Hoganas High Alloys LLC, Industrial Metal Powders Pvt. Ltd., JFE Steel Corporation, NetShape Nutrition Pvt. Ltd., OMG Americas, Inc., Shanghai Zhiye Industry Co., Ltd., and Toho Zinc Co., Ltd. among others.