Hydrocolloids Market Analysis | 2024-2032

“The Hydrocolloids Market was US$ 11.2 billion in 2023 and is likely to grow at a strong CAGR of 5.4 % in the long run to reach US$ 15.3 billion in 2032”.

Market Dynamics

Introduction

The hydrocolloids market is considered to be the part of the industry that deals with the manufacture, distribution, and sale of hydrocolloids, which are substances that make solutions more viscous when water is introduced. These substances are widely used in various industries for example: food and beverage, pharmaceutical, cosmetic, and textile which have unique properties like stabilizing, thickening, gelling, and emulsifying.

Hydrocolloids are widely used in the food industry as additives to contribute to the desired attributes of flow, viscosity, and shelf life of products such as sauces, dressings, bakery items, and dairy products.

Market Drivers

The demand for hydrocolloids is determined by the following factors: consumers' interest in ready-made foods and healthy diets, as well as the latest developments on the production technology side. Prominent participants within this market are either multinational giants or niche companies that address the needs of organizations in a specific area.

The hydrocolloids market has a number of key drivers that spur the demand and growth which has them stay in the industry. Among the principal factors is that the food and beverage industry is experiencing growth, and hydrocolloids are highly sought after for their interesting functional properties. As high demand for processed items and convenience foods arise, hydrocolloids serve an important task in providing sensory attributes like mouthfeel, texture, and stability as well as extending shelf life.

Also, the expanding consumer trend of natural and clean-label ingredients stimulates plant-based hydrocolloids, the substitutes for artificial additives on the market. In addition, technological improvements in extraction and production procedures have helped to increase the efficiency as well as the economic impact of the manufacturing of hydrocolloids significantly, which has had a great impact on market growth.

Besides, the finding of therapeutic uses of hydrocolloids in medicine, particularly in pharmaceuticals, cosmetics, and other industrial sectors contribute to the expansion of the market size.

Recent Market JVs and Acquisitions:

• In September 2021, Ingredion opted for a new strategic distribution contract with Batory Foods, and this enabled Ingredion to cement its foothold in the midwest of the United States comprising the central and western regions.
• By February 2021, the IFF and the DuPont N&B business had completed the merger. The joint venture company, the name of which will be IFF, will be responsible for its management.
• In September 2020, WHI, a prominent of seaweed business in the Philippines and carrageenan supply giant from Philippines moved to secure the share of Cargill that was jointly possessed in PBI.

Segments Analysis

“Gelatin is expected to remain the dominant type in the market during the forecast period”.

• The global hydrocolloids market is segmented into gelatin, xanthan gum, carrageenan, alginates, agar, pectin, guar gum, locust bean gum (LBG), gum Arabic, carboxymethyl cellulose (CMC), microcrystalline cellulose (MCC)
• Gelatin is industrially important because it has many practical applications that are used in food and beverage manufacturing, pharmaceuticals, and cosmetics. The possibilities are numerous. It is a key gelling agent, stabilizer, thickener, and emulsifier involved in different types of products.
• Gelatin has an old story for use in the food industry and it is an obvious fact that it is the familiar ingredient in many products. Because of its familiar design and proven capability, it often becomes the number one choice of manufacturers.
• Gelatin is classified as GRAS (generally recognized as safe) and the ingredient also has had a long and open acceptance by consumers as a natural product.
• Gelatin offers outstanding functional characteristics like gelling, binding, and water retaining in turn, becoming unavoidable component in wide range of food and pharmaceutical products.
• Collagen is the basic ingredient of gelatin which is why it is an excellent source of protein. With the rising demand for high in protein foods and supplements, gelatin is always the precious ingredient for use.

By Application Type

“Food & Beverage is expected to remain the dominant and fastest-growing application in the market during the forecast period”.

• The market is segmented into food & beverage, cosmetics & personal care products, pharmaceuticals.
• Increased need for processed and convenience foods which are brought about by fast-paced lifestyle and the rising urbanization is the main driving force of the growing use of hydrocolloids in the food industry. Hydrocolloids constitute significant additives in food processing for functionality and stability across the storage periods.
• Hydrocolloids provide a multiplicity of functionalities in food and drink products such as thickeners, gelling agents, stabilizers, emulsifiers and creation of the desired mouthfeel. This is how the consumer can relate with the food product and improve its appeal.
• Consumers are more and more aware of products that contain natural or organic ingredients which do not fall into the conventional category. Natural hydrocolloids including plant gums and seaweed extracts, also known as phylocollagen, reflect this growing trend and become a must-have for the food makers.
• Food product manufacturers do not rest on their achievements but continue developing new products and services for consumers to cater for changing tastes and market trends. Hydrocolloids permit a wide degree of flexibility for the formulation of the food products which could be in the form of new flavors, textures or even completely different formats for the food products.

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By Function Type

“Stabilizers are expected to remain dominant function in the market during the forecast period”.

• The global hydrocolloids market is segmented into thickeners, stabilizers, gelling agents, fat replacers, coating materials, and other functions.
• Stabilizers remain a vital ingredient in the journey to increase the stability and consistency of food and beverage products. They help to prevent the phase separation, sustain texture, and enhance the quality of formulations, gaining the reputation of undeniable component of almost any kind of formulations.
• With the expanding taste for processed and convenience foods, especially in the urbanized areas, maintaining product integrity through processing, storage, and distribution the demand of stabilizers have considerably increased.
• The stabilizers possess a multiple of qualities which make them ideal for use in diverse food and beverage applications like dairy products, sauces, dressings, confectioneries, bakery items, and even beverages. The fact that stabilizers can multi-perform makes them a number one choice for companies that tend to produce multifunctional ingredients.
• With consumers becoming more selective in ingredients like clean label and natural stabilizer derivatives, the production of plant gums, seaweed extracts, and pectin is gaining momentum. As customers become more health-conscious, the producers are addressing this need by fortifying their formulae with natural stabilizers.

By Source Type

“Animal are expected to remain the dominant source in the market during the forecast period”.

• The global hydrocolloids market is segmented into botanical, microbial, animal, seaweed, and synthetic.
• Animal-derived hydrocolloids like gelatin are a great source of functional properties, such as gelling, stabilizing, thickening, and emulsifying properties. These features make them irreplaceable in food, pharmaceutical, and cosmetic use and inculcate their supremacy in the market.
• Gelatin which comes from animal origin has been a popular ingredient in the food industry for many years and is an integral part of many products. Its popularity and strong performance within the hydrocolloids industry make it the leading choice among manufacturers, which helps it to sustain its leadership role in the hydrocolloids market.
• Undergoing research and innovation have prompted the creation of more effective ways of extracting and purifying these animal-derived hydrocolloids, thus, improving their functionalities, purity and application versatility. Moreover, these new technologies cement their position as the most sought-after animal-based hydrocolloids in the market.

Regional Analysis

“North America is expected to remain the largest market for global hydrocolloids during the forecast period”.

• North America possesses a well-established food and beverage section with a high demand for hydrocolloids. A large population, varied dietary preferences, and a proclivity for convenience foods are heavily hydrocolloids of texture, stability, and shelf-life extension.
• North America is the frontrunner of hydrocolloid technology which is one of the most advanced research and development sectors. The regions continue to have more and more improvements in the fields of extraction, processing techniques and ingredients functionality, which is indeed leading to the creation of hydrocolloids products tailor made to meet the growing needs of the food and beverages industries.
• North America’s hydrocolloid regulations have long been established and span the use of hydrocolloids within food and beverage application areas. Clarity in the regulations and standards guarantees the safety and quality of hydrocolloid ingredients, which is a comforting factor for users and manufacturers. Through regulatory predictability, market expansion is guaranteed and innovations in the industry can be expected.

Key Players

Most of the major players compete in some of the governing factors including price, service offerings, regional presence, etc.

The following are the key players in the global hydrocolloids market (Based on Dominance)

• International Flavors & Fragrances Inc.
• Ingredion
• Cargill, Incorporated
• Kerry Group Plc
• Associated Archer Daniels Midland Company
• Palsgaard A/S
• Darling Ingredients Inc.
• DSM
• Ashland
• Tate & Lyle
• Nexira

Note: The above list does not necessarily include all the top players in the market.

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Research Methodology

• This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s global hydrocolloids market realities and future market possibilities for the forecast period.
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• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
• We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

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