The development of L-Arginine in the functional food market

As a semi-essential amino acid with diverse physiological functions such as improving cardiovascular health and enhancing exercise endurance, L-arginine is showing a clear growth trend in the functional food market driven by multiple factors including the upgrading of health-conscious consumption and technological advancements. Meanwhile, it is embracing development opportunities across various fields, with detailed analysis as follows:

Development Trends

Sustained Market Expansion with Leading Growth Rates

Both the global and Chinese markets for L-arginine in functional foods are maintaining rapid growth. In 2023, the market size of L-arginine in China’s food additive sector reached 980 million yuan, and it is expected to exceed 1.3 billion yuan by 2025. Globally, the L-arginine market is projected to approach 1.8 billion US dollars in 2025, with a compound annual growth rate (CAGR) of 6.8% from 2026 to 2030, among which functional foods serve as one of the core drivers. The sports nutrition segment, in particular, is experiencing significant growth—L-arginine addition levels in protein powders and energy supplements are continuously increasing, with the niche market achieving a 35% annual growth rate.

Continuous Segmentation and Expansion of Application Scenarios

Beyond the traditional sports nutrition field, L-arginine’s application scenarios are extending to multiple segmented populations. For the aging group, its use in functional foods targeting cardiovascular health support is on the rise. For young consumers, anti-aging compound formula foods containing L-arginine are seeing booming sales on e-commerce platforms—for instance, NAD+ precursor compound products with L-arginine have an average monthly sales volume exceeding 500,000 bottles. Additionally, its penetration rate in meal replacement foods, functional beverages, and other categories is steadily increasing, with product forms becoming increasingly diverse.

Green and Efficient Production Technologies

Greenization and high efficiency have become the mainstream directions of L-arginine production. Biofermentation has gradually replaced traditional chemical synthesis—globally, fermentation-based production accounted for over 85% in 2023. In China, through genetic engineering modification of strains, the titer per fermentation tank has exceeded 120 g/L, reducing production costs by 18%. Synthetic biology technologies will be further optimized in the future: by 2025, the capacity share of biosynthetic routes in China is expected to exceed 85%, and the production conversion rate will rise from 65% in 2015 to a higher level, both lowering costs and complying with environmental protection policies.

Younger Consumer Base and Online-Oriented Channels

The consumer group for L-arginine functional foods is no longer limited to middle-aged/elderly people and professional athletes. The proportion of users aged 25–40 has increased from 43% in 2021 to 58% in 2023, with young consumers’ growing demand for fitness and anti-aging driving product popularization. In terms of channels, online platforms are gaining prominence—the sales share of live-streaming e-commerce surged from 18% in 2022 to 34% in 2023, with the GMV of related products on platforms like Douyin exceeding 380 million yuan. Online channels have become the core venue for product promotion and sales.

Growth Opportunities

Policy Support Creates a Favorable Development Environment

China’s 14th Five-Year Plan for Bioeconomy Development lists the amino acid industry as a key supported sector. In 2024, China’s National Medical Products Administration (NMPA) included arginine in the Catalogue of Key Monitored Chemical APIs, promoting the standardization of production processes. This provides guarantees for the raw material supply and compliant production of L-arginine functional foods. Meanwhile, the Catalogue of Health Food Raw Materials specifies the recommended daily intake of L-arginine, promoting the standardization of product formulas, supporting the standardized development of the industry, and reducing enterprises’ compliance risks.

Broad Incremental Space in Export Markets

As a major producer of L-arginine, China accounts for 62% of global total production, boasting strong export advantages. In 2023, China’s L-arginine export market grew by 31% year-on-year, mainly targeting Southeast Asian and European markets, with export unit prices increasing by 14% compared to 2020. In the future, with the rapid development of the functional food market in regions like Southeast Asia and the improved technological premium capacity of Chinese products, customized functional food raw materials and end products for overseas markets will become new growth engines for enterprises—for example, export volume to the Southeast Asian market is expected to achieve a 45% annual growth rate.

High-Value-Added Products via High-Endization and Compound Formulation

Currently, the average price of food-grade arginine is 85 yuan/kg, while pharmaceutical-grade products range from 120 to 150 yuan/kg, offering significant profit margins for high-end products. Enterprises can focus on developing high-purity (≥99.9%) L-arginine functional foods, whose market share is projected to increase from 28% in 2023 to 38% in 2025. Additionally, compounding L-arginine with other nutrients has become a trend—such as sports formulas combined with creatine and vitamins, or compound products integrated with anti-aging ingredients—which can enhance product competitiveness and tap into the high-value-added market.

Rising Industry Concentration Benefits Leading Enterprises

The concentration of the L-arginine industry is continuously increasing, with China’s top five manufacturers accounting for 68% of the market share. The CR5 is expected to rise to 78% by 2025. Leveraging large-scale production and technological advantages, leading enterprises can not only stably supply high-quality raw materials but also integrate upstream and downstream resources, deeply bind with downstream functional food enterprises, launch customized raw materials or jointly develop end products, further consolidating their market positions.