Gellan gum market is estimated to be valued at USD 277 Mn in 2024, growing at a CAGR of 7% over the forecast period (2024-2031). The market has witnessed significant growth owing to the increasing usage of gellan gum as a thickening, gelling, and stabilizing agent in the food industry. Furthermore, gellan gum has also observed a rising demand from the pharmaceutical sector on account of its versatile properties such as thermo-reversibility and ability to form clear robust gels.
The growth of the global gellan gum market is driven by the increasing usage of gellan gum in the food industry as a thickening and gelling agent. Gellan gum is widely used in various food products, such as desserts, dairy products, beverages, etc., due to its excellent gelling properties. Moreover, gellan gum helps improve the texture, mouthfeel, and taste of food products without compromising on mouthfeel experience.
The growth in the pharmaceutical industry also offers potential growth opportunities. Gellan gum is used extensively in pharmaceutical formulations such as tablets, capsules, and oral suspensions on account of its ability to form thermo-reversible gels. Furthermore, gellan gum enhances the bioavailability and stability of active pharmaceutical ingredients during their administration through the oral route.
Growing Food and Beverage Industry is driving the Demand for Gellan Gum
The global food and beverage industry has seen steady growth over the past few years and is expected to continue on this positive growth trajectory. Gellan gum is widely used as a stabilizer, thickener, and gelling agent in various food and beverage products such as desserts, sauces, soups, etc. Properties like gel strength, clarity, and stability at varied pH levels have made gellan gum a preferred hydrocolloid in the industry. The expanding packaged food market and rising demand for convenience foods where gellan gum acts as an important ingredient is projected to significantly boost the gellan gum market. Various product innovations by food companies incorporating gellan gum will further fuel the market growth.
Increasing Usage of Gellan Gum in Personal Care Products is Another Major Growth Driver
Gellan gum has emerged as a popular ingredient in personal care products due to its ability to form unique gel structures, provide viscosity, and act as an effective stabilizer. It is commonly used in products like hair gels, creams, lotions, toothpastes, and others. The thriving personal care industry coupled with rising health and hygiene awareness among consumers is driving significant demand for gellan gum. Its bioavailability, non-toxic nature, and versatility make it comply with stringent regulations for personal care formulations. Many new product launches in the skincare and haircare segments using gellan gum will propel the market growth in coming years.
Price Volatility of Raw Material Impacts Manufacturing Costs
Gellan gum is extracted from fermentation of Sphingomonas elodea bacteria. The prices of raw materials used in fermentation like glucose syrup and nutrient broth fluctuate regularly based on various supply-demand factors. Any increase in raw material costs leads to hike in gellan gum prices for end users. This price volatility poses as a major challenge for gellan gum manufacturers to maintain stable production costs. It also restricts manufacturers from undertaking large scale capital projects for capacity expansion. Fluctuating foreign exchange rates further impact the import of critical raw materials in some regions. These uncertainties associated with raw material costs can negatively impact the growth of the gellan gum market.
Intense Competition from Alternative Hydrocolloids
Gellan gum faces stiff competition from other commonly used hydrocolloids like xanthan gum, guar gum, alginates, carrageenan, etc. in various end-use applications. These alternative hydrocolloids offer comparable functionalities at a lower price point. Based on specific formulation and processing requirements, product developers may prefer substituting gellan gum. Additionally, certain natural polymers also mimic some key properties of gellan gum. This product substitution poses a major threat to the market. Manufacturers have to focus on differentiating gellan gum through novel applications and variants with superior performance attributes to sustain competitive edge.
Expanding Asia Pacific Market Offers Huge Opportunities
The Asia Pacific region dominated the global gellan gum market in the past and is expected to retain its leading position over the forecast period. This growth can be attributed to vibrant food processing and personal care industries across developing economies like China and India. Rapid urbanization, rising living standards and growing health awareness are fueling the demand for gellan gum in these countries. Various multi-national food companies have also established manufacturing bases in Asia Pacific to tap into the vast market potential. With economic developments and population growth, the requirement for gellan gum is projected to surge exponentially in Asia Pacific creating huge opportunities for manufacturers.
Developing Novel Applications Will Unlock New Avenues
While gellan gum enjoys wide usage in established application areas, product developers constantly strive to extend its usage to newer domains. Successful development of innovative applications will open up untapped opportunities. Research is ongoing to explore gellan gum's suitability for specialized formulations in industries like pharmaceuticals, nutraceuticals, 3D bioprinting, etc. Combining gellan gum with other polymers to create hybrid hydrogels with enhanced properties also holds promise. Further clinical research supporting its benefits may pave the way for new healthcare products.
*Link: https://www.coherentmarketinsights.com/market-insight/gellan-gum-market-2205
Key Developments
- In 2021, Deosen Biochemical (Ordos) Ltd. introduced a new product known as high acyl gellan gum. This innovative offering represents a significant advancement in the field of food additives and gelling agents. High acyl gellan gum is a modified form of gellan gum, which is derived from natural sources such as bacteria.
- In 2021, CP Kelco launched new, dual-function gellan gum solution for formulating dairy alternative beverages
- In 2021, Jungbunzlauer launched TayaGel Gellan Gum
Key Players
CP Kelco, Dancheng Caixin Sugar Industry Co. Ltd., Zhejiang Tech-Way Biochemical Co., Ltd, Hangzhou Gellan Solutions Biotec Co., Ltd., Hebei Xinhe Biochemical Co., Ltd., Meron Group, Inner Mongolia Rainbow Biotech Co. Ltd., Fufeng Group, Vizag chemical, Brova Limited, Opal Biotech, DSM, H & A Canada Inc., Dancheng Caixin Sugar Industry Co. Ltd, and Zhengzhou Cinogel Biotech Co., Ltd.