Gum arabic is extracted from Acacia species, is classified as a natural emulsifier that is widely used across pharmaceuticals, food and beverages, cosmetics, and paints. It has an amber color and is sticky in nature. Moreover, it is also used as a thickening agent in the manufacturing of the chewing gums. Furthermore, it is also used as an additive in ceramic glaze and as a binder for the production of watercolor paints.
The global gum arabic market is estimated to account for US$ 344.6 Mn in terms of value and 1,27,215 Tons in terms of volume by the end of 2019.
Growing demand for natural gum arabic from food &beverage industry as a natural binder is primarily fueling the market growth of the gum arabic. It has stability in low pH environments and is key ingredients for beverages as it has low viscosity properties. It is also gaining huge demand on the account of its instant soluble solution properties which is used in the preparation of dry spray for powder encapsulation, which is further used in the encapsulation of aromas, and flavors.
Growing demand for gum arabic from other end-user industries such as paper manufacturing industry is projected to provide lucrative opportunities to the market of gum arabic. Various manufacturers are introducing modified gum arabic solutions in order to meet the rising demand from various end-user industries. Thus, growth is also attributed to a rise in the end-user industries across developing regions is expected to propel the market growth.
Easy availability of substitute for gum arabic as a binder such as synthetic binders are expected to hinder the market growth. Synthetic is inexpensive and does not require pre-hydration and can be used as an agent with lower foaming capability along with less sediment formation. Hence, the easy availability of substitutes is expected to restrict market growth.
For segment 1 information:
Europe region in global gum arabic market was valued at US$ 128.3 Mn in 2019 and is forecast to grow at a CAGR of 5.2% between 2020 and 2027. According to United States Department of Agriculture (USDA) 2017, European Union (EU) is one of the leading processed food exporter, with roughly twice the exports of the U.S. EU exports of processed food products reached US$ 91 billion in 2012, growing 28% over five years. This increase in demand for gum Arabic from processed food is expected to drive the growth of Europe region in gum arabic market.
For segment 2 information:
On the basis of application, Food & beverage segment dominated the global gum arabic market in 2019, accounting for 58.7% share in terms of value, followed by Pharmaceuticals & Dietary Supplements and Personal Care & Cosmetics, respectively. Gum arabic has higher benefits as compared to gelatin, starch, and other additives, which are used in beverages. Gum Arabic is comparatively a better stabilizing and emulsifying agent. manufacturers of edible flavors, concentrates, syrups and other beverages are using gum arabic as a functional ingredient in fruit-flavored water and beverages, soft drinks, smoothies, and soft-alcoholic drinks.
For segment 3 information:
On the basis of gum type, Acacia Senegal segment dominated the global gum arabic market in 2019, accounting for 58.3% share in terms of value, followed by Acacia Seyal. Acacia Senegal trees grow in all seasons and in all types of climatic conditions and soil textures. They can also be cultivated in drier parts of the world as they are drought tolerant.
Product innovation by major players is a trend in the market and this trend is expected to foster the market growth of gum arabic. For instance, in February 2019, Ingredion announced the addition of single hydrocolloids which include gum acacia, cellulose gum, and tara gum. The texturizers offer a greater breadth of ingredient functionality, including texture stability, emulsification, and protein protection. Such launch of an innovative product is expected to augment the market growth of gum arabic.
Agreements and partnerships among key manufacturers is a major trend in the market of gum arabic. This trend is expected to bolster the market growth of the gum arabic. For instance, in April 2019, Alland & Robert has entered into a joint venture with India-based Company Sayaji Industries Limited. Alland & Robert, focus on manufacturing and supplying premium quality acacia gum powder for the growing Indian market.
Few Recent Developments
In October 2018, Nexira and Synthite have entered into a partnership to produce acacia gum at Synthite’s manufacturing plant near Coimbatore in Tamil Nadu, southern India.
By Gum Type