Global Hydrocolloids Market

Hydrocolloids Market Size Analysis

According to a research survey conducted by ChemView Consulting, in 2022, the Global Hydrocolloids Market was worth US$ 8.8 Bn and is expected to grow at a CAGR of 5.4% over the forecast period. The market is expected to hit US$ 13.4 Bn by 2030 end.

Hydrocolloids are gums added to foods to manage functional qualities such as thickening and gelling. Hydrocolloids are widely utilized in the cosmetics and pharmaceutical industries, as well as in the food and beverage industries as thickening agents, emulsifiers, stabilizing agents, and gelling agents.

Food hydrocolloids are derived from various sources, including plants, animals, synthetic, microbial, and seaweed.

Market Dynamic

What are the causes driving the rise in demand for Hydrocolloids?

The multifunctionality of food hydrocolloids, greater health consciousness, and demand for bakery and confectionery items are the primary factors driving market expansion

The expanding emphasis on health and nutrition, particularly the desire to reduce the worldwide burden of obesity, diabetes, and food allergies, is driving the demand for fat alternatives. Several stabilizers are now only manufactured as texturizers and emulsifiers, increasing the demand for food hydrocolloids.

The growing demand for food hydrocolloids in the dairy industry, widely utilized for thickening and stabilizing, will drive the market.

What are the opportunities in the Hydrocolloids Market?

A major market driver is the diverse range of hydrocolloid functions in the food business. The capacity of the products to bind with water and increase the qualities of food ingredients is the primary function that contributes to their widespread use in the food business.

Demand for healthy food products is projected to increase hydrocolloid demand, supporting the worldwide hydrocolloid market’s expansion. Demand for processed foods due to their convenience is projected to have a favorable impact on the market in the future.

What are the major challenges confronting the Hydrocolloids Market?

Thickening and gelling agents are food additives whose usage is governed by various rules and regulations. Regulatory organizations have done numerous studies to analyze the influence of these items on human health. Products are categorized according to their findings, and the Daily Intake Allowance (DIA) has been established. Several international organizations oversee food safety regulations. These organizations have direct or indirect control over how various chemicals and materials are used in food processing.

COVID-19 Impact

COVID-19 pandemic had a substantial global impact on practically all businesses. This pandemic has caused huge manufacturing shutdowns and supplies chain disruptions, affecting the economy. The global shutdown has also had an effect on farming techniques, which has had a significant impact on the supply of raw materials for hydrocolloids.

The ability of hydrocolloid dressing to avoid facial pressure and facial markings while wearing medical protective equipment during the COVID-19 pandemic has proven extremely beneficial to doctors and other front-line workers. Hydrocolloid is a semi-permeable material found as a layer within a film or foam pad that adheres to the skin and is typically used for wound healing. It is accomplished through the use of a hydrocolloid dressing.

Segment-Wise Analysis

Why are Gelatin-type Hydrocolloids expected to grow at the fastest CAGR?

The gelatin segment is expected to dominate the mark throughout the forecast period. A large increase in the global overweight and obese population has been a major influencing factor, expected to considerably contribute to the hydrocolloid market size throughout the forecast period.

Food makers are focusing on food additives that can help minimize fat, salt, and sugar levels without affecting food’s texture, taste, or aroma.

Why is the Meat and Poultry segment likely to grow rapidly throughout the forecast period?

Hydrocolloids improve beef and poultry products’ cooking yield, texture, and slice qualities. Carrageenan is used in meat and poultry products to retain moisture and natural textural qualities while improving product viscosity. Agar, on the other hand, aids in the lowering of fat content in meat products. Gelatin is extensively used in meat products to improve the appearance and gel the liquids in processed hams. At the same time, xanthan gum is utilized in meat products as a thickening and stabilizer. Alginate increases the texture and quality of meat products. Pectin and locust bean gum serve as fat substitutes in meat and poultry products, while guar gum acts as a binder and lubricant in various meat products. Gum Arabic is a thickening and stabilizer.

Why will the Bakery & Confectionary segment dominate the Hydrocolloids market during the forecast period?

Food hydrocolloids are commonly used in the bakery and confectionery industries to keep food fresh and to prevent staling. These compounds aid in storage by enhancing water retention capacity and decreasing the production of ice crystals during frozen storage. Furthermore, they do not affect the flavor or smell of baked or confectionery products and are low in fat.

The market is expanding due to increased demand for goods such as drinks, pasta, cakes, gravies, bread, and pastries, which are witnessing significant growth due to customer demand for indulgence, convenience, and authenticity.

Which source segment dominates the Hydrocolloid market during the forecast period?

Because of the widespread availability of animal by-products as raw materials for manufacturing hydrocolloids, the animal source sector is projected to emerge as the most extensively used source. It is made from the skin, bones, and hides of animals such as cows, pigs, and fowl. It is recommended since it encourages the full usage of animals produced for meat, contributing to zero waste management.

Why is the United States such a large market for Hydrocolloids?

The United States is a major market for hydrocolloids. Given the country’s food habits and eating habits, there is a specific demand for the chemical for oil and fat reduction. It works as a barrier for oil and fat in breaded/fried foods that are widely consumed in the United States.

Calorie-dense fat and oil can be substituted with what is essentially structured water by employing hydrocolloids. As a result, consumers would like products low in oil and fat, achievable with the proper use of hydrocolloids. The country’s hydrocolloid market is likely to expand further as the number of health-conscious consumers grows.

Which country has promising opportunities in the Asia-Pacific Hydrocolloids market?

Food hydrocolloids are one of the fastest-growing markets in the Asia-Pacific region, with China accounting for the lion’s share. China is a major producer and user of food hydrocolloids, with sectors ranging from personal care to food and beverage to gas and oil.

In addition, China is regarded as one of the world’s largest manufacturers of seaweed hydrocolloids.

Competition Analysis

The market’s leading players are working on R&D to develop new products and address the growing demand for processed and convenience foods. Key corporations are adopting strict practices and the clean label trend due to stringent laws to reduce the environmental impact of production.

The market is fragmented, with various companies present across the value chain. However, only a small number of large multinational corporations are capable of introducing advances. These large global corporations also collaborate with little enterprises that have a foothold on the home market. These agreements strive to create distinctive selling features that these large market participants may utilize globally.

Some of the key developments that have taken place in the Hydrocolloids Market include:

• In August 2019, CP Kelco announced its development of gellan gum production capacity in the United States. CP Kelco is undertaking a large investment to boost capacity at its Okmulgee, Oklahoma, biogums production facility in response to ongoing global demand.
• In February 2021, Tate & Lyle PLC launched the Tate & Lyle Nutrition Centre. This new digital gateway provides quick access to authoritative knowledge on ingredients that might help address public health concerns. The center houses expert views, research, and teaching materials for food and beverage corporations, scientists, and health experts.

A list of some of the key suppliers present in the market are:

• Cargill Incorporated
• CP Kelo US Inc.
• Koninklijke DSM N.V.
• Archer Daniels Midland Company
• Fuerst Day Lawson
• Ingredion Incorporated
• Rico Carrageenan
• Ashland Inc.
• Hispanagar, S.A
• Kerry Group plc
• Others

Market Segments Covered in Report

By Type:

• Gelatin
• Carrageenan
• Xanthan Gum
• Alginates
• Agar
• Pectin
• Gum Arabic
• Locust Bean Gum
• Other Types

By Source:

• Plant
• Animal
• Microbial
• Seaweed
• Synthetic

By Application:

• Bakery and Confectionery
• Meat and Poultry Products
• Beverages
• Dairy Products
• Sauces and Dressing
• Other Applications

By Function:

• Thickener
• Stabilizer
• Coating Material
• Fat Replacer
• Gelling Agent

By Region and Country:

• North America (U.S., Canada)
• Latin America (Brazil, Mexico, Rest of Latin America)
• Europe (Germany, Italy, France, UK, Spain, Netherlands, Norway, Russia, Rest of Europe)
• Asia-Pacific (China, Japan, South Korea, India, Indonesia, Thailand, Vietnam, Australia & New Zealand, Rest of Asia-Pacific)
• Middle East (Saudi Arabia, Turkey, UAE, Rest of Middle East)
• Africa (South Africa, Nigeria, Egypt, Rest of Africa)

Global Hydrocolloids Market 2022-2030: Report Coverage and Highlights

• Assessment of the historical and current market size (2017-2021), market projections (2022-2030), and its contribution to the parent market
• Key drivers, restraints, opportunities, and key emerging trends impacting market growth
• Predictions on critical supply, demand, and technological trends and changes in consumer behavior
• Value chain analysis (list of manufacturers, distributors, end-users, average profitability margins, etc.)
• Segment-wise, country-wise, and region-wise market analysis
• Competition mapping, market share analysis, key strategies adopted by top players, and competitive tactical intelligence
• Key product innovations and regulatory framework
• Covid-19 impact on the market and how to navigate
• Strategic market analysis and recommendations on crucial winning strategies