The market for hydrocolloids is expected to register a CAGR of over 6% during the forecast period. Major factors driving the market studied are growing demand for hydrocolloids in the food and beverage industry and increased R&D and innovations in hydrocolloids. On the flipside, unfavorable conditions arising due to the COVID-19 outbreak and adherence to international quality and standards are the major restraints hindering the growth of market.
- Growing demand of processed and convenience food products is expected to offer various opportunities for the growth of the market.
- By type, the gelatin gum segment is expected to dominate the market, owing to the increasing usage in the food and beverage industry.
- The North American region dominated the market across the world, with the largest consumption from countries, such as the United States and Canada.
Key Market Trends
Increasing Demand from the Gelatin Segment
- Gelatin is a natural ingredient and does not need any chemical modification. It is widely used in health supplements due to its high natural protein content and amino acids.
- Gelatin is extracted from animals, like cows, pigs and fish, and it has major applications in the confectionary sector for imparting texture.
- Gelatin is used as a gelling agent in emulsifiers.
- Furthermore, it is also used in meat products for water binding. It also finds application as stabilizer in food products, like candies, desserts, marshmallows, and ice creams.
- Gelatin also finds applications in instant sauces and soups and jelly products for fat reduction, creaminess, mouthfeel, and intense taste experience.
- The revenue of the global bread and bakery products segment is estimated to be USD 487,108 million in 2020, and it is further expected to register a CAGR of over 3%, which would increase the demand for gelatin, and consequently hydrocolloids, and it is likely to propel its market during the forecast period.
- Owing to the aforementioned factors, the hydrocolloids market is expected to grow rapidly over the forecast period.
The North America Region to Dominate the Market
- The North America region is expected to dominate the market for hydrocolloids during the forecast period. In countries, like the United States and Canada, owing to the presence of a major market for confectionery, bakery, convenience food, and packaged food products, the demand for hydrocolloids has been increasing in the region.
- Rising demand for convenience and functional food is expected to stimulate the demand for hydrocolloids. The function of the hydrocolloids as stabilizers in the bakery industry is expected to drive the demand for food hydrocolloids during the forecast period.
- In the United States, the increased awareness among consumers about healthy food and eating habits propelled the demand for low-fat and low-calorie food, which helped the hydrocolloids market in the region to grow at a brisk pace.
- The increasing commonness of obesity and cardiac diseases in the region boosted the demand for calorie-free, cholesterol-free, chemical-free, and natural food ingredients, like hydrocolloids, among consumers, which is projected to drive the market for hydrocolloids during the forecast period.
- Technological advancements and new product launches have made hydrocolloids available for wide range of applications in the food and beverage industry. The North American food hydrocolloids market is expected to register a CAGR of above 5% during the forecast period.
- Additionally, the growth in the confectionary industry in the United States is projected to further drive the hydrocolloids market during the forecast period. Revenue from the confectionary segment in 2020 is estimated to be USD 76,594 million, and it is further projected to register a CAGR of around 2% during the forecast period.
- Some of the major companies dominating the region are Ashland, CP Kelco U.S. Inc., and Cargill Incorporated.
- The aforementioned factors, coupled with government support, are contributing to the increasing demand for hydrocolloids during the forecast period.
The hydrocolloids market is fragmented with top players accounting for a marginal share of the market. Major companies in the market include Ashland, Cargill, Incorporated, CP Kelco U.S. Inc., DuPont, and Koninklijke DSM NV.
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