Hydrocolloids Market

Hydrocolloids Market Growth Analysis, 2028

The global hydrocolloids market size was valued at USD 11.2 billion in 2023 and is poised to reach USD 14.5 billion by 2028, growing at a CAGR of 5.4% from 2023–2028.

One of the most often utilized additives in the food sector is hydrocolloid. In addition to serving as gelling agent, thickener,emulsifier, fat substitute, and stabilizer, it is also used as flocculating agent, clarifying agent, whipping agent, and clouding agent.

Moreover, hydrocolloids are used to create edible films, encapsulate flavors, and inhibit crystallization. Also, it is now known that hydrocolloids have a wide range of functions in the field of health, including the provision of dietary fiber with less calories. Foods with superior texture, taste, and other organoleptic features have always been desired by consumers. Consumers who are concerned about their health are now demanding more natural and nutritious food products. And it turned into one of the key factors that fueled the growth of the hydrocolloids industry.

The need for fat substitutes is rising since there is more emphasis placed on nutrition and health, particularly the need to stop the growth of diabetes, obesity, and food allergies. The demand for stabilisers has increased as a result of the development of numerous stabilisers that are used only as emulsifiers and texturizers. Xanthan gum is used to thicken Italian dressings, while light mayonnaise uses guar and xanthan gum as fat replacements to increase viscosity.

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Hydrocolloids Market Growth Insights

Drivers: Multifunctionality of hydrocolloids to lead to wide range of applications

Among various biopolymers, hydrocolloids are widely utilized in food technology. To increase quality and shelf life, hydrocolloids are frequently employed in food formulations. In a variety of food products, including soups, salad dressings, gravies, toppings, sauces, jellies, jam, restructured foods, marmalade, and low-sugar per calorie gels, hydrocolloids have been widely employed. They can also be used to prevent the production of sugar and ice crystals in ice cream and to manage the flavur release. These substances aid in enhancing food texture and moisture retention in the baking sector, which helps to delay starch retrogradation and, therefore, raises the overall quality of the items during storage.

Recently, some hydrocolloids are being used due to their polymeric structure as fat replacers to obtain low-calorie products. Hydrocolloid additions enhance the production of gluten-free bakery products by giving the dough better texture, thickening, and water retention. When xanthan gum is employed in gluten-free bread made using a starch mixture of rice flour, corn starch, and sodium caseinate, the desired results on rheological testing are obtained. Thus, during the review period, the increasing demand for gluten-free bakery products is anticipated to further drive the demand for hydrocolloids in food.

Restraints: Stringent regulations and international quality standards

It is observed that there are no clear universal guidelines regarding the usage of individual ingredients in the end products. Regulations and guidelines vary from region to region. This has resulted in additional costs for production for manufacturing region-specific ingredients. Furthermore, the amount of hydrocolloids that can be used in food items is rigorously controlled. The health of people may be negatively impacted by excessive hydrocolloids. The way hydrocolloids are used in food will affect health. Each hydrocolloid makes a relatively minor contribution, and the health advantages of these substances cannot be distinguished from those of other non-digestible carbohydrates. Manufacturers may be constrained by a variety of rules. The most recent regulations, directives, as well as any other applicable national laws and regulations of that country, must be checked in order to have a complete understanding of the approved and prohibited hydrocolloids, as well as the precise approved applications, dosage, and conditions of use in a given country.

Opportunities: Emerging markets in Asia Pacific and Africa

The production, exploitation, and upkeep of precious resources are under increased pressure from the expanding world population. Low-income customers are being impacted by high food prices as a result of high energy prices and growing raw material costs. Water scarcities are adding to the pressure on food supplies, especially in Africa and Northern Asia. Large-scale production of hydrocolloids in the region, coupled with advances in science and technology, helping in extending the shelf life of foods, may provide a suitable option for small and medium-scale food & beverage manufacturers for integrating clean label ingredients in their products. This is anticipated to help in augmenting the hydrocolloids market size.

Challenges: Intense competition and product rivalry due to similar products

The hydrocolloid market is highly competitive, comprising a significant number of leading and small players. A majority of the emerging players in the market are located in the Asia Pacific region and offer a variety of products. With the increase in demand for natural, clean-labeled food and cosmetic products, key players in the market are focusing on R&D investments to launch different hydrocolloids, which would cater to the requirements of the customers. For instance, in October 2022, Nexira announced the launch of native locust bean gum texturizing range. These products can be used in non-dairy formulations to fulfill consumer expectations for sensory experiences and clean-label plant-based foods and beverages.

Type Insights

By type, gelatin is projected to gain largest share in the hydrocolloids market during the study period

The gelatin segment is projected to dominate the market. Still, as people's awareness of their health and the environment is growing, they are gradually turning towards hydrocolloids made from plants. One notable influencing element that is predicted to considerably affect the hydrocolloids in food market size throughout the projected period is the sharp growth in the overweight and obese population, across the globe. Food products with lower fat, sugar, and salt contents not having any negative affects on food's texture, flavor, or aroma are in higher demand on the market.

Application Insights

By application, food & beverages is forecasted to account for the largest share in the market during the research period

Hydrocolloids enhance the cooking yield, texture, and slice qualities of beef and poultry products. To preserve moisture and natural textural qualities of meat and poultry products as well as to increase viscosity, carrageenan is utilised in food items. In contrast, agar assists in the lowering of fat content in meat products. While xanthan gum is frequently used as a thickening and stabiliser in meat products, gelatin is also used to enhance the look of meat products and gel the fluids in processed hams. The use of alginate in meat products improves texture and quality. Pectin and locust bean gum work as fat replacers in meat & poultry products, whereas guar gum can be utilised as a binder and lubricant in many meat products.

Source Insights

By source, animal segment is anticipated to occupy major share in the market during the study period

In hydrocolloids market growth by source, animal segment is forecasted to account the largest market share during the forecast period. Yet, as environmental concerns grow, the demand for hydrocolloids derived from plants is rising quickly. The food industry has access to a wide variety of hydrocolloids, and the list keeps expanding as new sources are discovered in streams of by-products or natural resources. Conventional hydrocolloids include exudate gums like gum Arabic, gum ghatti, and tragacanth, as well as substances derived from plants including pectin, modified starches, modified celluloses, guar gum, and locust bean gum. In the food sector, hydrocolloids made from algae are frequently employed as thickening, emulsifying, and gelling agents. Examples include carrageenan, agar, and alginate.

Function Insights

By function, stabilizers is forecasted to gain the major share in the hydrocolloids market during the research period

Hydrocolloids are regarded as the most significant group of substances used to stabilise and protect flavours in beverage emulsions since emulsions are thermodynamically unstable systems that have a propensity to separate into two immiscible liquids. The most often used emulsifiers and stabilisers in beverage emulsions are gum arabic and modified starches; other hydrocolloid stabilisers include xanthan, carrageenan, pectin, cellulose derivatives, and alginates. The physicochemical and textural characteristics of beverage emulsions can be influenced by the distinct functional characteristics of each of these hydrocolloids.

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Regional Insights

North America is projected to gain the largest market share in the global hydrocolloids market. Given the nation's food habits and eating habits, there is a special demand for the ingredient that reduces oil and fat in US. It serves as a barrier for the oil and fat found in the widely consumed breaded and fried cuisine in the country. It is possible to substitute calorie-dense fat and oil with what is essentially structured water by employing hydrocolloids. Customers prefer foods that are low in oil and fat, which is attainable with the right use of hydrocolloids. The hydrocolloids industry in the nation is anticipated to grow further as a result of the huge rise in the number of health-conscious consumers.

The main hydrocolloids that are accessible and used in the US include pectin, gellan gum, guar gum, xanthan gum, and locust bean gum. The food sector has access to a variety of hydrocolloids, including biopolymers, carrageenan, and pectin, due to US based firms like Cargill, Incorporated (US), Ingredion (US), Darling Ingredients Inc. (US), among others. These hydrocolloids are employed in numerous pharmaceutical and cosmetic products as well as in the food industry.

Key Players:

Key players in this market include International Flavors & Fragrances Inc. (US), Ingredion (US), Cargill, Incorporated (US), Kerry Group plc (Ireland), Associated Archer Daniels Midland Company (US), Palsgaard A/S (Denmark), Darling Ingredients Inc. (US), DSM (Netherlands), Ashland (US), Tate & Lyle (UK), CP Kelco U.S., Inc. (US), Nexira (France), Deosen Biochemical (Ordos) Ltd. (China), Fufeng Group (China), and BASF SE (Germany).

Hydrocolloids Market Report Scope

Hydrocolloids Market Segmentation:

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