Hydrocolloids Market

Growing demand in the food industry is driving market growth

The rising demand in the food industry is driving the market CAGR for hydrocolloids. The wide range of features of hydrocolloids in the food industry is a key to market boost. The capability of hydrocolloids to bind water and enhance the properties of food ingredients is the property that is increasing its application in the food industry. Rising demand for healthy food products and the convenience offered by processed food are anticipated to boost the demand in the market. Hydrocolloids are mainly used in a wide range of food formulations to improve the shelf-life and quality.

They can alter the rheology of the food system, like viscosity and texture, which improves the sensory properties of food. Hence, hydrocolloids are key food additives to perform a specific function. The hydrocolloids impart thickness and stickiness to the aqueous dispersion, and some of the polymers are known to form gels. The textural properties of food items like brittleness or elasticity, spreadability or longevity, and creaminess or chewiness vary depending on the type of hydrocolloids being used. The other senses like mouth feel opacity and taste, also depend on the hydrocolloids used.

Hydrocolloids are widely used in food & beverage products as thickening, gelling, stabilizing, coating, and emulsifying agents. The gum Arabic, locust bean gum, tara gum, gaur gum, methylcellulose, konjac mannan, and others are hydrocolloids that give a thickening property. The gelling that is used by the company is carrageenan, agar, pectin, alginate, cellulose, and gellan gum. The increasing establishment of food & beverage manufacturing units and the rising customer spending on sophisticated and convenience food product is boosting the market.

Hydrocolloids have the ability to alter the flow properties of liquids, and it has the gelling ability and property to make oil droplets emulsification and inhibition of ice re-crystallization, which increases their demand in the food industry. The seaweed-derived hydrocolloids have created a notable impact in the hydrocolloids industry as it is available in abundance, nutritionally rich, lower cost, and property of not impart any noticeable taste. The seaweed hydrocolloids are used as a texture enhancer in food products like gelling in a jam, thickener in dairy products, and many more. Thus, driving the Hydrocolloids market revenue.

The Global Hydrocolloids Industry is significantly influenced by the rising demand for functional foods, which are perceived to offer health benefits beyond basic nutrition. Hydrocolloids serve as vital ingredients in the formulation of these products, providing texture, stability, and enhanced nutritional profiles. As consumers increasingly seek foods that support health and wellness, the incorporation of hydrocolloids in functional food products becomes essential. This trend is expected to drive market growth, contributing to the anticipated increase in market value to 10.9 USD Billion in 2024. The alignment of hydrocolloids with health-oriented consumer preferences positions them favorably within the evolving food landscape.

Sustainability emerges as a pivotal driver within the Global Hydrocolloids Industry, as both consumers and manufacturers prioritize eco-friendly practices. The shift towards sustainable sourcing of raw materials, such as plant-based hydrocolloids, aligns with global efforts to reduce environmental impact. Companies are increasingly adopting sustainable production methods, which not only appeal to environmentally conscious consumers but also comply with regulatory standards. This focus on sustainability is likely to enhance the market's growth potential, as it fosters innovation in hydrocolloid applications across food, cosmetics, and pharmaceuticals. The commitment to sustainability may also attract investments, further propelling the market forward.

The Global Hydrocolloids Industry experiences a notable surge in demand for natural food additives, driven by consumer preferences for clean label products. As health-conscious consumers increasingly seek alternatives to synthetic ingredients, hydrocolloids derived from natural sources such as plants and seaweed gain traction. This trend is reflected in the market's projected value of 10.9 USD Billion in 2024, with expectations to reach 18.6 USD Billion by 2035. The shift towards healthier food options is likely to propel the growth of hydrocolloids, as they serve essential functions in food formulation, including thickening, gelling, and stabilizing, thereby enhancing product appeal and safety.

The Global Hydrocolloids Industry benefits from expanding applications in the pharmaceutical sector, where hydrocolloids are increasingly utilized in drug delivery systems and wound care products. Hydrocolloids such as gelatin and xanthan gum play crucial roles in formulating controlled-release medications and enhancing the bioavailability of active ingredients. The growing emphasis on patient-centric healthcare solutions drives the demand for innovative hydrocolloid-based products. As the pharmaceutical industry evolves, the integration of hydrocolloids is expected to contribute to the market's growth trajectory, aligning with the projected increase in market value to 18.6 USD Billion by 2035.

Technological innovations in the production of hydrocolloids significantly influence the Global Hydrocolloids Industry. Advances in extraction and processing techniques enhance yield and quality, allowing manufacturers to meet the growing demand for diverse hydrocolloid types. For instance, improved methods for extracting alginate from brown seaweed have led to higher purity levels, making it more desirable for food and pharmaceutical applications. These advancements not only optimize production efficiency but also contribute to the market's projected CAGR of 4.93% from 2025 to 2035. As technology continues to evolve, it is anticipated that new hydrocolloid formulations will emerge, further expanding their applications across various sectors.

By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The Asia Pacific hydrocolloids market area dominates this market, owing to an increase in demand for processed foods and fast food. The functional and clean-labeled outlook of the product led to an increase in adoption, and the rising population and demand for natural food ingredients have surged the hydrocolloid market in this region. China's hydrocolloids industry contributes the largest market share in this region.

Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil. 

Figure 2: Hydrocolloids MARKET SHARE BY REGION 2022 (%)  

Source: Secondary Research, Primary Research, Market Research Future Database, and Analyst Review North American Hydrocolloids market accounts for the second-largest market share due to the rising demand for low-calorie food products and the trend of consuming fortified convenience food products. Further, the US hydrocolloids held the largest market share and Canada hydrocolloids industry held the significant share in the market in the North American region The European Hydrocolloids Market is expected to grow at the fastest CAGR from 2023 to 2032. This is due to the food industry’s rise and extensive utilization of natural ingredients in food products.

Moreover, the UK’s market of hydrocolloids held the largest market share, and the German Hydrocolloids was the fastest-growing market in the European region. The South American hydrocolloids market is driven due to incorporation into the food industry as a clean-label food additive. The Middle East and Africa's leaning towards ready-to-eat food products and convenience food is driving the hydrocolloids industry.

Leading market players are investing heavily in research and development in order to expand their product lines, which will help the Hydrocolloids market grow even more. Market participants are also undertaking a variety of strategic activities to expand their footprint, with important market developments including new product launches, contractual agreements, mergers and acquisitions, higher investments, and collaboration with other organizations. To expand and survive in a more competitive and rising market climate, the Hydrocolloids industry must offer cost-effective items.

Manufacturing locally to minimize operational costs is one of the key business tactics used by manufacturers in the Hydrocolloids industry to benefit clients and increase the market sector. In recent years, the Hydrocolloids industry has offered some of the most significant advantages to the food and beverage industry. Major players in the Hydrocolloids market, including Ingredion, Cargill Incorporated, Kerry Group plc, Associated Archer Daniels Midland Company, CP Kelco US. Inc., BASF, Nexira, Ashland, TIC Gums INC., DuPont Inc., and others, are attempting to increase market demand by investing in research and development operations.

Cargill Inc. is a 150years old American privately held food corporation that has helped farmers grow more by connecting them to broader markets. They are constantly developing products to provide the consumer's needs seeking for advance nutrition, food safety, and sustainability. They help the partners manage the risk and develop a new product that provides nourishment. With new technology and insights, it serves as the trusted partner for food, agriculture, financial and industrial customers in more than 1525 countries.

In July 2021, Cargill Inc. announced an investment of $45 million in adding soluble fibers to its European portfolio of sweeteners, texturizers, and starches in Poland. Furthermore, in February 2021, it introduced a new label friendly WavePure seaweed powder for food manufacturers. This product is extracted without chemical modification and produced from native seaweed. Cargill is the first to develop large, commercial-scale quantities of this versatile ingredient available to its European customers.

In December 2020, CP Kelco introduced GENU Pectin YM-FP-2100, a clean-label-friendly ingredient that gives a medium-to-high viscosity in the fruited drinking yogurt and ease of pump ability at the fruit preparation stage. CP Kelco is a nature-based ingredient solutions company with 90 years of experience working with food, beverage, consumer, and industrial product manufacturers globally. They use ingredients innovation and problem-solving to develop customized solutions that give regional insights, meet the manufacturer's goal and address consumer needs. The product includes gellan gum, xantham gum, carrageenan, diutan gum, and refined locust bean gum.