Hydrocolloids Market Research Report - Global Forecast till 2027

Hydrocolloids Market: Information by Type (Gelatin, Carrageenan, Guar Gum, Pectin, Xanthan Gum, Gum Arabic/Acacia Gum, Alginates, Agar and others), Source (Natural and Synthetic), Application (Food & Beverages [Dairy & Frozen Desserts, Bakery & Confectionery, Beverages, Creams, Dressings & Spreads, Meat, Poultry & Seafood Products and others] and Others) and Region (North America, Europe, Asia-Pacific and Rest of the World) - Forecast till 2027

ID: MRFR/F-B & N/0677-CR | August 2019 | Region: Global | 138 Pages         

Hydrocolloids Market

Hydrocolloids Market is projected to register a CAGR of 5.65 % and reach a value of USD 14.20 billion by 2030

Segmentation

By Type Gelatin Carrageenan Guar Gum Pectin Xanthan Gum Gum Arabic/Acacia Gum Alginates Agar Others
By Source Natural And Synthetic
By Application Food & Beverages Others
By Region North America Europe Asia Pacific

Key Players

  • Cargill Incorporated
  • CP Kelco US Inc.
  • Dupoint
  • Koninklijke DSM N.V.
  • Archer Daniels Midland Company
  • Kelco
  • Hispanagar
  • IngredionIncorporated

Drivers

  • Raised demand for healthy and natural ingredients in several food products
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Hydrocolloids Market Overview


The MRFR report suggests that the global hydrocolloids market is estimated to attain USD 26,937.1 Million by the end of forecast period. Furthermore, the report predicts that the market will thrive at a healthy CAGR of over 5.50% during the review timeframe.


A colloid refers to the blend of non-crystalline substances comprising molecules or microscopic particles of one substance diffused through a second substance. This includes emulsions, sols, and gels where the particles cannot be separated ordinarily and do not settle. Hydrocolloids are termed as the colloid system with dispersed colloids in water based on the amount of water that can occur in various states that are gel or sol. Popular examples of hydrophilic substances are cellulose, starch, sugar, and salt. They are functional ingredients, widely used as thickeners, stabilizers, and emulsifiers. The global market for hydrocolloids has registered enormous growth in recent times. The market's growth is mainly credited to the increased demand for natural and healthy ingredients in various food products and beverages across the globe. Furthermore, factors such as the growing demand for convenience food products, the increased R&D of the products, changing lifestyle and healthy ways, increase in population, and increased innovations are also projected to impact the market's growth in the assessment era positively. On the other hand, the volatility of raw material prices, unclear labeling leading to uncertainty, intense market competition, and regulatory implications are anticipated to restrict the market's growth.


COVID-19 Analysis on Hydrocolloids Market:


The COVID-19 pandemic had an immense impact on the way of life across the world. From a business perspective, the fight is from both ends be it economy or health. This led to a forced recession in the manufacturing market. The pandemic and the eventual halt in the manufacturing activities had an impact on the supply availability of a variety of renewable chemicals.


Since the supply was restrained by certain manufacturers but the demand and supply have been increased that has stabilized the market. The driven areas on the market segment have changed the food habits and eating practices of the consumers and have uplifted the market during the pandemic as well.


North America: Hydrocolloids Market Value (USD Million), by Type, 2017 & 2024  Hydrocolloids Market


Source: MRFR Analysis


Hydrocolloids Market Dynamics:


Drivers


The growth of the global hydrocolloids market is driven by the raised demand for healthy and natural ingredients in several food products and beverages. It is estimated that about 35% of Americans are consuming convenience food products thrice a week and it is projected that about 40% of the future population will continue to consume convenience food products in the coming times said by the leading food journal. In the 1960s the expenditure on convenience foods was 53% and it has reached up to 70% in the 2000s. The Hydrocolloids Market is largely driven by the increased R&D of the products for the consumers and innovations that increased the market for hydrocolloids as well.


Hydrocolloids obtained from natural sources are



  • Seaweed

  • Plants

  • Animals

  • Microorganisms


Opportunities

The consumer preferences and the demographics are changing in terms of lifestyle and healthy ways towards everyday living. In emerging countries, there is a high demand for convenience and processed foods. With the increase in population, the market size has been enhanced in the seen forecast.


Restraints

The cost of the raw material changes seasonally and it impacts the manufactures at a higher level. In Spite of such barriers in the cost, the production has not been hampered in delivering the best quality and quantity in the market. International bodies like National Food Safety and Quality Service (SENASA), Canadian Food Inspection Agency (CFIA), US Food and Drug Administration (FDA), World Health Organization (WHO), and Committee on the Environment, Public Health and Food Safety (EU) regulate food safety. Directly or indirectly the usage of chemicals is done so their organizations are handling food and beverage processing. The food & beverage ingredient is really critical. The additive has no market or function in food when the approvals are not done by the appropriate organization for the specific chemical in the food & beverage ingredients.

Recent Development



  • November 2021- a prominent leader in acacia fiber and natural plant-based ingredients for the nutrition, food, and health industries, Nexira, has announced Unipektin Ingredients, a Switzerland-based company focusing on natural hydrocolloids.

  • September 2021- a portfolio company of SK Capital Partners, Tilley Co., has announced the acquisition of a distributor and blender of specialty hydrocolloids, Ingredient Solutions, Inc. Ingredient Solutions product portfolio are made using renewable plants and algae.


Hydrocolloids Market Challenges



  • Intense Market Competition

  • Unclear labeling leading to uncertainty


Regulatory Implications


This is attributable to the growing consumption of convenience foods which uses hydrocolloids to reduce the fat content by dispersing water and act as a fat replacer in food products


Hydrocolloids Market Segment Overview:


Hydrocolloids Market By Product





    • Gelatin

    • Xanthan Gum

    • Carrageenan

    • Alginates

    • Pectin

    • Guar Gum

    • Gum Arabic

    • Carboxymethyl

    • Cellulose, Agar

    • Locust Bean Gum

    •  

    • Hydrocolloids Market By Type

      • Thickening

      • Gelling

      • Stabilizing

      • Others 





  • By Application

    • Food & Beverage

    • Dairy and Frozen Products

    • Bakery

    • Personal Care & Cosmetics

    • Pharmaceutical

    • Meat and Seafood Products

    • Oils and Fats

    • Confectionery




Regional Analysis on Hydrocolloids Market :



  • North America

    • The U.S.

    • Canada



  • Europe

    • Germany

    • The U.K.

    • France



  • Asia Pacific

    • China

    • Japan

    • India



  • Latin America

    • Mexico

    • Brazil

    • Middle East & Africa




Competitive Landscape for Hydrocolloids Market :


With the presence of several players in the market, the market for hydrocolloids has become highly competitive. Amongst the several players, the basic strategy to lead in the market is to focus on developing innovative solutions that address the taste, texture, and nutritional profiles of processed foods and finally extending the shelves of the final products that will reach the customer. As of now, DowDuPont and Cargill hold significant shares in the market. Below is the list of some major market players:



  • Cargill Incorporated

  • CP Kelco US Inc.

  • Dupoint

  • Koninklijke DSM N.V.

  • Archer Daniels Midland Company

  • Kelco

  • Hispanagar

  • IngredionIncorporated


Recent Developments on Hydrocolloids: North America Is The Largest Market Segment

One of the largest markets for food hydrocolloids having a high demand for oil and fat reduction is due to the changes in food habits and eating practices of the consumers. The future of the market in North America is expected to be positive with the growing trends of awareness and consciousness among the population. The major types of hydrocolloids used in the North American food market are gellan gum, xanthan gum, guar gum, locust bean gum, and pectin, among others. The growing confectioneries in the US market have made an exponential rise. The raw material has been purchased at high prices so Gellan Gum is expected to grow in the market in the next few years.

High Demand For Gelatin Gum Gelatin is a  different type of hydrocolloid and it is derived from Collagen that is an animal protein. It is extracted from cows, pigs, or fish further the extraction of Gelatin is affected by the age and the type of collagen of the source. Gellan gum is one of the most important types of hydrocolloids in the food market industry. It is added in health supplements due to its high protein and amino acid contents. If we consider confectionery products, dairy products, jelly desserts, and meat products.



  • In December 2019, DuPont’s Nutrition and Biosciences business segment merged with International Flavors & Fragrances (IFF) (US). The deal was made and was closed with $45.5 million. These mergers will boost the global market and will enhance and strengthen the product portfolio to provide a wide variety of range in the food and beverage industry.



  • In November 2019, companies have expanded for the manufacturing of various specialty ingredients. Ingredion Inc. has inaugurated a new plant of Allulose in Mexico.



  • In September 2018, heavy amounts were invested in the APAC region to grow specialty food ingredients for which Ingredion has invested $60 million that helped the company to expand the business in the market.



  • In April 2018, the food application laboratories and customer-facing facilities were expanded by Tate and Lyle in Mexico City. it helps the manufacturers to meet the consumer preferences for healthier and tastier food & beverages.



  • In October 2018, Synthite Industries (India) got a partnership agreement by Nexira to produce acacia gum near Coimbatore, Tamil Nadu at Synthite’s manufacturing plant.


Report Overview:


The overall market for hydrocolloids has marked a change from the year 2016 till now and it is expected that by 2024 - 2026 Asia Pacific region will rise in the percentage of the market size in the said forecast. There are numerous participants across the value chain and their presence fragmented the market. Big MNCs are also collaborating with small-scale companies and that has made a stronghold in the domestic market. There are collaborations that have aimed for unique selling points within the big market players that gave leverage on a global scale.



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Frequently Asked Questions (FAQ) :

The global Hydrocolloids market is expected to touch a value of USD 26,937.1 million by 2024.

Hydrocolloids market is expected to display a CAGR of 5.50% from 2019 to 2024.

Huge demand for convenience and natural food products can drive the global hydrocolloids market.

Hydrocolloids market growth can be hampered by disagreements between producers and suppliers of hydrocolloids.

Tate & Lyle PLC, Archer Daniels Midland Company, DowDuPont, Kerry Group PLC, Ingredion Incorporated, DSM NV, Cargill, Incorporated, Darling Ingredients, Inc., Ashland Global Holdings, Inc., and Brenntag AG are major players of the global hydrocolloids market.

Kelco, Hispanagar, S.A., Koninklijke DSM N.V., Ingredion Incorporated, Ashland Inc., Kerry Group, Jungbunzlauer Suisse AG, and FMC Corporation are the key players.

Europe dominated the hydrocolloids market with a share of 31.1% in 2019.