The global hydrocolloids market size was valued at US$ 10.18 Billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 4.8% from 2023 to 2030. Growing health consciousness among consumers and increasing demand for natural products are major factors that are driving growth of the market. The food industry is increasingly becoming sustainable, and manufacturers are turning to natural ingredients to reduce the environmental impact of food production. Environmental regulations and strict production standards have also encouraged the adoption of clean-label products. This, in turn, has propelled demand for hydrocolloids.
Global Hydrocolloids Market Drivers:
- Growing demand from food and beverage industry: Growing demand from the food and beverage industry is a prime factor driving growth of the hydrocolloids market. Hydrocolloids are widely used as stabilizers, thickeners, fat replacers, coating agents, and gelling agents in the food industry. It is used to prepare frozen desserts, frozen meals, processed meat, sauces and dressings, various beverages, dairy products, fruit preserves (jam and jelly), and confectionery. In meat products, it is used to reduce the fat content in order to enhance the taste of the meat product.
- Increasing focus of key players to expand production capacity of hydrocolloids: Growing health consciousness among consumers and increasing demand for natural products are other factors that are driving growth of the market. In the cosmetic industry, they are often used in place of synthetic chemicals with similar properties. So, growing demand for natural-based products is expected to augment market growth.
Global Hydrocolloids Market Opportunities:
- Increase usage of hydrocolloids in pharmaceutical: The use of hydrocolloids in pharmaceutical formulations is expected to drive the market in the coming years. These products have numerous benefits, including reduced dosages, reduced side effects, and extended drug release. The pharmaceutical industry holds potential opportunities for the hydrocolloids market.
- Boosting Research & Development and innovation: Increasing Research & Development and innovation in hydrocolloids is also expected to provide major growth opportunities in the near future. Several firms are involved in Research & Development for various hydrocolloids, such as pectin, etc., and products through the combination of various ingredients in order to explore new properties. At present, firms such as UNITEC FOODS Co. Ltd. have been researching ingredients across various vectors such as manufacturing process, form, and shape, resulting in new properties and applications.
Global Hydrocolloids Market Trends:
- Natural hydrocolloids are gaining market share.: Natural hydrocolloids are gaining traction in the market. They are derived from plants such as cellulose gum, pectin, and locust bean gum, as well as from animals or microbes. Locust bean gums are widely used in processing foods such as ice cream, cheese, chocolate, meat products, and others. Gum Arabic is another naturally derived hydrocolloid that is mostly used in frozen desserts.
- Key players are focusing more on expanding production capacity: The increasing focus of key players on expanding production capacity of hydrocolloids in order to meet the growing demand across end-user industries is another major trend observed in the market. For instance, in March 2020, CP Kelco announced an investment to expand pectin production capacity at its Limeira, Brazil, facility by approximately 10 percent. This expansion came into effect in 2020.
Global Hydrocolloids Market Restraints:
- Adherence to international quality standards and regulations: Adherence to international quality standards and regulations is expected to hinder market growth. Hydrocolloids such as carrageenan, gelatin, xanthan gum, pectin, and alginates are produced and used through the employment of various strict regulations. For instance, carrageenan and processed Eucheuma seaweed in the European Union are listed in Annex 1 of the European Parliament and Council Directive 95/2/EC on Food Additives Other Than Colors and Sweeteners, as amended, and assigned E-numbers of E407 and E407A (EU, 1995, 1998). Moreover, xanthan gum is recognized as a food additive under the provisions of the U.S. Food and Drug Administration regulations (21 CFT 172.695) for use as a stabilizer, thickener, or emulsifier.
- Unfavorable condition arise due to Covid-19 outbreak: Unfavorable conditions that arise due to the COVID-19 outbreak are expected to hamper market growth. For instance, according to Diagnostic and Statistical Manual of Mental Disorders (DSM), the demand for hydrocolloids was impacted in 2020 by a drop in the overall demand for on-the-go foods and beverages as a result of COVID-19.
Global Hydrocolloids Market Segmentation:
Figure 1. Global Hydrocolloids Market by Source in 2022
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The global hydrocolloids market report is segmented into source, type, application, and region.
- Based on source, the market is segmented into natural and synthetic. Out of which, natural is expected to dominate the global market over the forecast period, and this is attributed to the growing number of health-conscious consumers worldwide. Also, growing demand for clean label products is contributing to segment growth
Figure 2. Global Hydrocolloids Market by Region in 2022
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- Regionally, Asia Pacific region is expected to dominate the global market over the forecast period, driven by a rapidly expanding population and growing end-use sectors, including food and beverages. Moreover, the growth of the market is also fueled by low-cost skilled labor and developments in biotechnology. Moreover, the increasing popularity of processed foods is further projected to propel regional market growth.
- North America is also expected to gain significant growth over the forecast period owing to the increasing sales of retail food and beverage stores. For instance, according to the US Census Bureau, the annual sales of retail food and beverage stores in the country accounted for US$865.1 billion in 2020, compared to US$773.6 billion in 2019. Sales are likely to rise in the coming years, considering the increasing demand, which is likely to boost demand for the hydrocolloids from various food and beverage applications.
Hydrocolloids Market Report Coverage
|Market Size in 2022:
|US$ 10.18 Bn
|Historical Data for:
|2018 to 2021
|2023 to 2030
|Forecast Period 2023 to 2030 CAGR:
|2030 Value Projection:
|US$ 14.82 Bn
- By Region: North America, Europe, Asia Pacific, Latin America, Middle East and Africa
- By Source: Natural, Synthetic
- By Type: Gelatin, Starches, Pectin, Xanthan, Carrageenan Alginates, Carboxyl methyl Cellulose Guar Gum, Other Types
- By Application: Bakery and Confectionery, Meat and Poultry Products, Beverages, Sauces and Dressings, Dairy Products, Other Applications
ADM, AGARMEX SA DE CV, Ashland, Cargill, Incorporated, CP Kelco US Inc., Dupont, DSM, Fufeng Group, Ingredion Incorporated, NOREVO GmBh, Silvateam SPA, and Tate & Lyle
- Growing demand from food and beverage industry
- Increasing focus of key players to expand production capacity of hydrocolloids
|Restraints & Challenges:
- Adherence to international quality standards and regulations
- Un favourable condition arise due to Covid-19 outbreak
Global Hydrocolloids Market: Key Developments
- In September 2020, Hydrocolloids, Inc. (“WHI”), a pioneer in the Philippine seaweed industry and a major carrageenan supplier from the Philippines, acquired Cargill’s stake in the joint venture in Philippine bio-industries, Inc. (“PBI”). PBI is the first fully automated refined carrageenan facility in Asia, producing highly refined carrageenan and carrageenan blends for the food industry.
- In October 2021, CP Kelco announced the launch of GENU Pectin YM-SAL 200, an improved stabilizing solution for long shelf-life buttermilk with the saltier taste that consumers prefer.
- In September 2021, CP Kelco announced the expansion of its distribution agreement with IMCD to serve the growing market in Mexico. IMCD will be the company’s strategic distributor in Mexico across all market segments of food, plus consumer and industrial (C&I) applications, for CP Kelco’s unique portfolio of hydrocolloid and fiber solutions, including GENU Pectin, KELCOGEL Gellan Gum, GENU Carrageenan, KELTROL Xanthan Gum etc.
- In October 2022, Nexira announced to launch the native locust bean gum texturizing range. This product can be used in non-dairy formulation to fulfill the consumer expectation for sensory experience and clean-label plant-based food and beverages.
Global Hydrocolloids Market: Key Companies Insights
The global hydrocolloids market is highly competitive. This is attributed to the continuous launch of new technologies due to ongoing Research & Development and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on a regional and global basis. Some of the key players in the global Hydrocolloids market are ADM, AGARMEX SA DE CV, Ashland, Cargill, Incorporated, CP Kelco US Inc., Dupont, DSM, Fufeng Group, Ingredion Incorporated, NOREVO GmBh, Silvateam SPA, and Tate & Lyle
*Definition: Hydrocolloids are used in many foods, including drinks, desserts, and cereals. They are often mixed with non-solvents such as corn syrup, alcohol, and sugar. Hydrocolloids are substances that have the ability to give foods the proper texture and form.