The hydrocolloids market is expected to experience significant growth between 2020 and 2032, with a compound annual growth rate (CAGR) of 5.36% and a projected market value of USD 13.30 billion by 2032. This growth is largely driven by the increasing awareness of the benefits of clean-label additives like hydrocolloids and the rising demand for convenience foods. According to Fortune Business Insights' latest report, "Hydrocolloids Market Size, Share & Industry Analysis, By Type (Xanthan Gum, Carrageenan, Guar Gum, Gelatin, and Others), Source (Microbial, Animal, Seaweed, and Others), Application (Food & Beverages, Pharmaceuticals, and Cosmetics & Personal Care), and Regional Forecast, 2020 – 2032," the market was valued at USD 9.07 billion in 2019.
Hydrocolloids are used for various applications, including encapsulating flavors, creating edible coatings, and preventing crystallization. They are also recognized for their health benefits, such as providing dietary fiber while being low in calories. Consumers increasingly seek foods with exceptional texture, taste, and other sensory qualities. Additionally, the demand for products with natural ingredients and nutrients is driving the expansion of the hydrocolloids market.
What does the Report Provide?
The market study offers both qualitative and quantitative analysis of various factors influencing market growth, including key drivers and limitations. It provides insights into geographical trends across multiple regions, contributing to the market's expansion. The study also covers the competitive landscape, highlighting leading companies and their strategies for partnerships, product innovation, and collaboration to drive market growth.
Additionally, the research includes an examination of market trends and industry developments expected to fuel growth between 2020 and 2027. Various research methodologies, including Porter's Five Forces analysis, have been employed to gather comprehensive information and insights.
DRIVING FACTORS
Increasing Demand for Convenient Food Products to Aid Growth
Increasing consumer awareness of the benefits of clean-labeled food products is likely to boost the adoption of additives like hydrocolloids. The nutritional advantages of these clean-label products are expected to drive demand and accelerate their global adoption. Additionally, rising health concerns associated with high-fat foods such as pizza and burgers are encouraging healthier eating habits. These trends are expected to sustain and potentially accelerate the growth of the hydrocolloids market in the coming years.
SEGMENTATION
Food & Beverages Segment to Hold Major Market Share
According to application, the food and beverage market is anticipated to increase significantly in the upcoming years. This can be attributed to various sources, including the global increase in demand for natural and nutrient-dense food products containing hydrocolloids.
REGIONAL INSIGHTS
Asia-Pacific to Remain Dominant; Presence of Manufacturing Units to Promote Growth
During the forecast period, the Asia-Pacific region is expected to lead the global hydrocolloids market, outperforming other regions. This dominance is attributed to the presence of numerous hydrocolloid production facilities across countries such as China, Indonesia, Thailand, and India. In 2019, the GDP of the Asia-Pacific region was USD 3.44 billion.
Meanwhile, North America is projected to experience significant growth between 2020 and 2027. This expansion will be driven by the increasing demand for fortified convenience food products, which is expected to boost the adoption of hydrocolloids in the region.
COMPETITIVE LANDSCAPE
Prominent Companies Focus on Facility Expansion to Amplify Their Market Positions
The global hydrocolloids market has become increasingly concentrated, with a few large companies dominating the sector. These leading businesses are expanding their manufacturing capabilities and developing innovative hydrocolloids to cater to the rising demand for functional food products. Additionally, major players are employing strategies such as collaborations, new product launches, and mergers and acquisitions to accelerate market growth over the forecast period.
Industry Development:
November 2018: J.M. Huber Corporation's subsidiary CP Kelco announced that it has increased its pectin production capacity in Denmark by around 15%. The company wants to improve its standing in the international market and meet the growing demand for clean-label ingredients in functional foods.
List of the Companies Profiled in the Global Market for Hydrocolloids:
- Kerry Group plc (Tralee, Ireland)
- Koninklijke DSM N.V. (Heerlen, Netherlands)
- Cargill, Incorporated (Minnesota, United States)
- Archer-Daniels-Midland Company (Illinois, United States)
- DuPont de Nemours, Inc. (Delaware, United States)
- Ashland Global Holdings Inc. (Delaware, United States)
- M. Huber Corporation (New Jersey, United States)
- W Hydrocolloids, Inc. (Philippines)
- Ingredion, Incorporated (Illinois, United States)
- Tate & Lyle plc (London, United Kingdom)
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