Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Definition of Market/Industry:
Gum arabic is obtained from Acacia trees which are mainly cultivated in Africa, Sudan, Chad, and Nigeria. It is used as a binding, thickening, and stabilizing agents across the various end-user industry such as cosmetics& personal care industry, pharmaceuticals, and food and beverages.
The global Gum arabic market accounts for US$ 344.6 Mn in terms of value and 1,27.215 Tons in terms of volume by the end of 2019.
Rising demand for natural gum Arabic as a natural dietary fiber which helps in lowering the blood cholesterol and controlling the sugar levels in the blood are augmenting market growth.
Growing demand for high dietary fiber content products among health-conscious consumers is expected to boost market growth. Also, growing geriatric populations around the globe are again anticipated to foster the market growth of gum Arabic
The rising demand for gum Arabic from the pharmaceutical industry in the formulation of anti-bacterial creams that are expected to foster market growth. Moreover, rising demand for gum Arabic as a suspending, binder, and film-forming agent in the production of tablets is again expected to accelerate the market growth of gum Arabic
Europe region dominated the global gum Arabic market in 2019, accounting for 37.2% share in terms of value, followed by Asia Pacific and North America, respectively.
Figure 1. Global Gum Arabic Market Revenue Share (%), By Region, 2019
Uncertain climatic changes are expected to hamper the supply of the gum Arabic. Moreover, the fluctuating price of gum Arabic is another major factor projected to hinder the market growth over the forecast period.
Political instability in Somalia and Sudan regions is projected to restrict the sale of the gum Arabic. This is expected to restrict the market growth of gum Arabic over the forecast timeframe.
Gum Arabic Market Report Coverage
||Market Size in 2019:
||US$ 344.6 Mn
|Historical Data for:
||2016 to 2019
||2020 to 2027
|Forecast Period 2020 to 2027 CAGR:
||2027 Value Projection:
||US$ 502.9 Mn
- U.S., Canada, Brazil, Argentina, Mexico, Rest of Latin America, U.K., Germany, France, Italy, Spain, Russia, Rest of Europe, China, India, Japan, ASEAN, South Korea, Australia, Rest of Asia Pacific, Middle East, Africa.
- By Gum Type: Acacia Senegal, Acacia Seyal
- By Application: Food and Beverages (Beverages, Jams and Jellies, Bakery, Confectionery, Dairy Products), Pharmaceuticals & Dietary Supplements, Personal Care & Cosmetics, Paints & Inks, Others
Nexira International, AEP Colloids Inc., Kerry Group Public Limited Company, Tic Gums Inc., Polygal AG, Alland Et Robert S.A, Caragum International S.A, IMPORTERS SERVICE CORP, C.E. Roeper GmbH, Mountain Rose Herbs, Inc.
- Rising demand for natural gum Arabic as a natural dietary fiber
- Rising demand from pharmaceutical industry in the formulation of anti-bacterial creams
|Restraints & Challenges:
- Political instability in Somalia and Sudan regions
- Increasing substitutes
Growing demand for gum Arabic products with clean labeling due to rising preferences for natural ingredients is projected to serve major growth opportunities. Due to rising demand for natural ingredients, various manufacturers are focusing on procuring food ingredients and raw material that are naturally derived. Thus, growing demand for gum Arabic products with clean labeling is expected to fuel the market growth of the gum Arabic.
Expanding scope of gum Arabic in dentistry is expected to provide potential opportunities to the market of gum Arabic. It is a complex polysaccharide that has a neutral pH consisting of mixed magnesium, calcium, and potassium which promote dental re-mineralization. Moreover, it also has some antimicrobial activity which is further fueling its demand across the dentistry industry. Hence, the growing demand for gum Arabic from dentistry is expected to augment the market growth.
Figure 2. Global Gum Arabic Market – Opportunity Analysis
For any segment information:
On the basis of Gum Type, Acacia Senegal segment was valued at US$ 201.1 Mn in 2019 and is expected to grow at a CAGR of 5.2% between 2020 and 2027.
Market Trends/Key Takeaways
Various manufacturers are focusing on promoting their brand in the market and this is a major trend in the market of gum Arabic. Growing demand for organic gum Arabic due to rising awareness regarding the health benefits of the organic gum is further expected to augment the market growth of the gum Arabic. Moreover, increasing disposable income of consumers across developing countries is further expected to fuel the market growth of gum Arabic.
The growing demand for dairy products such as ice-creams, yogurts, and other dairy products is expected to propel the market growth of gum arabic. It is widely used as an encapsulation stabilizer in the production the dairy products. Moreover, expanding e-commerce along with the growing number of various domestic vendors is are further expected to fuel the market growth of the gum arabic over the forecast timeframe.
Figure 3. Global Gum Arabic Market Revenue Share (%), By Gum Type, 2019
Gum Arabic Market - Impact of Coronavirus (Covid-19) Pandemic
Amidst the global pandemic (Covid-19) crisis and lockdown across nations, the consumer food & beverage industry has been witnessing high demand for household staples, healthy food items, and consumables with longer shelf lives. The companies in food & beverage industry are facing low consumption of their products and supply chain challenges. The companies are focusing on altering their supply chains with the objective of adapting to the present business environment. The changes in consumer buying behavior may have serious implications on the growth of the Gum Arabic market in the short term.
- Nexira International
- AEP Colloids Inc.
- KERRY GROUP PUBLIC LIMITED COMPANY
- Tic Gums Inc.
- POLYGAL AG
- ALLAND ET ROBERT S.A
- CARAGUM International S.A
- IMPORTERS SERVICE CORP
- C.E. Roeper GmbH
- Mountain Rose Herbs, Inc.