Hydrocolloids Market Size, Share & Trends Analysis Report By Product (Gelatin, Xanthan Gum, Carrageenan, Alginates, Pectin, Guar Gum, Carboxy Methyl Cellulose), By Function, By Application, And Segment Forecasts, 2019 - 2025

Industry Insights

The global hydrocolloids market size was estimated at USD 8.77 billion in 2018 and is expected to expand at a CAGR of 6.5% from 2019 to 2025. Growing demand for thickeners and gelling agents from pharmaceutical, personal care and cosmetics, and food and beverages industries, in the emerging economies of Asia Pacific is driving the growth.

Upsurge in the consumption of hydrocolloids-based products in building materials coupled with rising demand from cosmetics industry is expected to boost the market growth over the forecast period. Additionally, high demand for thickening and gelling applications from food and beverage sector is expected to be the major factor boosting sales.

The extensive series of functions performed by hydrocolloids in food industry is a key driving force for the market. The foremost function contributing to the abundant utilization of the products in food industry is their capability to bind with water and enhance the properties of food ingredients.

Increasing demand for healthy food products is likely to translate into an ascending demand for hydrocolloids, thereby fueling growth of the global hydrocolloid market. Growing demand due to the convenience offered by processed food is expected to positively impact market in the forthcoming years.

Product Insights

Polysaccharides are being increasingly utilized as an important constituent in healthcare and food and beverage applications on account of providing excellent hydrolyzing enzymatic properties. Therefore, industry presence for polysaccharide is expected to pose a substitutional threat to gelatin over the next seven years.

Gelatin is used in the production of a broad range of pharmaceuticals including wound dressings, blood volume substitutes, and homeostatic sponges. The development of pharmaceutical industry in U.S. and Canada in light of increasing expenditure for the incorporation of the latest technologies is anticipated to have a substantial impact on the market growth.

Xanthan gum is mainly used for its exclusive characteristic to regulate the rheological properties of numerous food products. It provides uniform brine distribution, dissolves easily in cold or hot water, is stable in alkaline as well as acidic solutions, and has synergistic connections with other hydrocolloid products such as guar gum and locust bean gum.

Application Insights

Food and beverage manufacturers primarily employ hydrocolloids owing to their ability to alter the rheology of food systems including mechanical solid property (texture) and flow behavior (viscosity). The alteration of viscosity and/or texture of food helps modify the sensory properties and thus, hydrocolloids are significantly used as food additives to perform specific purposes.

Hydrocolloids find application in various food formulations such as sauces, toppings, salad dressings, gravies, and soups. They are also used in various food products including cakes, candies, gelled desserts, ice creams, jellies, and jams to obtain the desired texture. Future acceptance, positive endorsement, and functional attributes of hydrocolloids are expected to positively contribute in food & beverage sector.

In addition, hydrocolloids act as excellent replacement for sugar in food and beverage products. Thus, increasing demand for low-calorie food and beverages is expected to propel the product demand over the forecast period.

Hydrocolloids is a group of chemical compounds that modify the rheology or flow properties of aqueous solutions in which they are dispersed. They are extensively used in personal care and cosmetic water-based applications as viscosity control agents owing to their water binding, thickening, and gelling properties. In addition, they exhibit functional benefits such as emulsion stabilization and organoleptic properties.

Function Insights

Hydrocolloids are widely utilized as thickening agents in food industry. They disperse in water quite easily and thus have a viscosity producing effect, this attribute is harnessed in a wide range of applications as a thickening agent. This thickening property is common to all hydrocolloids and is one of the primary reasons for their use across various industries.

The degree of thickening differs with the nature and type of the hydrocolloid. A majority of the hydrocolloids give a high thickness at a concentration below 1% while a few of them give low viscosity at a fairly high concentration as well.

Hydrocolloids are employed in various food types such as soups, salad dressings, sauces, and gravies. The most common hydrocolloids used as thickening agents include starch, guar gum, xanthan, locust bean gum, gum tragacanth, gum karaya, gum Arabic, and other cellulose derivatives. Starch is the most popular thickener as it is widely available and is cheaper than other products.

Along with this, the selection of the hydrocolloid to be used as a gelling agent depends on the desired characteristics required for a food product. Alginates find applications in restructured vegetables and fruits, restructured meat and fish, puddings and desserts, fruit preparations, and bakery jams.

Regional Insights

In 2018, Asia Pacific emerged as the largest regional market for hydrocolloids. Growing consumption of carboxymethyl cellulose in processed food products along with expanding textiles and construction sector is expected to fuel the regional product demand. China is expected to remain a major consumer owing to rising demand for food and beverage products, Huge population along with abundant availability of raw material is projected to drive the regional market growth.

The Comprehensive Economic and Trade Agreement (CETA) is likely to impact the customs duty of industrial products as well as a majority of the food and agricultural products. This, in turn, is anticipated to propel the trade of hydrocolloids between North America and Europe, thereby providing a significant growth opportunity for hydrocolloids manufacturers in North America.

Market players in these countries must comply with the Fair Packaging and Labeling Act (FPLA) and the Federal Food, Drug, And Cosmetic Act (FD&C Act). The Food and Drug Administration (FDA) holds all rights to inspect the manufacturers, distributors, and hydrocolloid-based products to keep a check and to ensure compliance with the required standards.

Hydrocolloids Market Share Insights

Leading market players are channelizing their efforts in the development of new products and technologies, utilizing advanced methods to manufacture cost-effective products. The companies are also striving to reduce supply chain risk while strictly adhering to the delivery requirements. On account of this, the hydrocolloids are gaining consumer confidence across the globe. Globally, the companies are entering into partnerships, agreements, joint ventures, and mergers and acquisitions to strengthen their market share and increasing geographical reach.

The market is fragmented in nature with the presence of numerous participants across the value chain. However, limited number of big multinational companies possess the caliber of bringing innovations. These big multinational companies are also entering into collaboration with small companies who have strong hold in the domestic market. These collaborations are aimed to achieve unique selling points which these big market players can leverage on global scale.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global hydrocolloids market report on the basis of product, function, application, and region:

• Product Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • Gelatin

  • Xanthan Gum

  • Carrageenan

  • Alginates

  • Pectin

  • Guar Gum

  • Gum Arabic

  • Carboxy Methyl

  • Cellulose, Agar

  • Locust Bean Gum

• Function Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • Thickening

  • Gelling

  • Stabilizing

  • Others

• Application Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • Food & Beverage

  • Personal Care & Cosmetics

  • Pharmaceutical

• Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2014 - 2025)

  • North America

    • U.S.

    • Canada

  • Europe

    • Germany

    • U.K.

    • France

  • Asia Pacific

    • China

    • Japan

    • India

  • Latin America

    • Mexico

    • Brazil

  • Middle East & Africa