PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1394595
PUBLISHER: Market Xcel - Markets and Data | PRODUCT CODE: 1394595
Global hydrocolloids market size was valued at USD 4.57 billion in 2022, which is expected to grow to USD 6.5 billion in 2030, with a CAGR of 4.5% during the forecast period between 2023 and 2030.
The rising awareness of health and wellness among consumers has increased demand for natural and functional ingredients. Hydrocolloids, known for their natural origins and health benefits, are favored for their role in formulating health-conscious food and beverage products. Similarly, the growing popularity of plant-based and vegan diets is fuelling the use of hydrocolloids as key ingredients in creating plant-based alternatives. Hydrocolloids are instrumental in replicating the texture and mouthfeel of traditional animal-based components in these products.
Rising industrial applications of hydrocolloids, such as their integration in fertilizers, surfactants, paints and coatings, and latex production, offer higher market growth.
As consumer interest in health and wellness rises, sugar reduction has become a pivotal aspect of this trend. Hydrocolloids offer manufacturers a means to fulfill consumers' desires for healthier choices, consequently propelling the expansion of their market presence. According to a consumer survey taken by ADM, 57% of beverage consumers prioritize scrutinizing the type of sweetener employed in a product, surpassing those who assess the ingredient list.
Moreover, many regulatory authorities are encouraging the reduction of added sugars in food and beverages, which has led to an increased interest in sugar substitutes like hydrocolloids as viable alternatives. Lastly, Hydrocolloids are versatile and can be tailored to specific applications, allowing manufacturers to create products with the desired sensory attributes while meeting sugar reduction goals.
Hydrocolloids play a significant role in ice cream preparation by enhancing texture, stability, and overall quality. They prevent the formation of ice crystals, ensuring a smoother and creamier consistency in the final product. Hydrocolloids help control the volume increase during churning and freezing (overrun), allowing manufacturers to achieve the desired airiness. Moreover, they contribute to melting resistance, ensuring the ice cream maintains its shape and texture in various serving conditions. These ingredients act as stabilizers, preventing the separation of water and fat in the mix, thereby maintaining the product's consistency, and preventing ice crystal formation during storage.
For instance, as per data from the International Dairy Foods Association, the United States produced a staggering 1.38 billion gallons of ice cream in 2022, making it the favored choice among frozen desserts. Thus, the increasing production volume of frozen desserts globally is expected to increase the demand for hydrocolloids.
Consumers are increasingly concerned about the negative health effects of excessive sugar consumption, such as obesity and diabetes. As a result, there is a growing demand for products with reduced sugar content. Hydrocolloids can maintain the texture and mouthfeel of sugar-containing products while reducing the sugar content.
For instance, according to the 'What We Eat in America' survey conducted by the U.S. Department of Health and Human Services and the U.S. Department of Agriculture, the consumption of added sugar by Americans has decreased over the past 15 years. Additionally, in recent beverage category launches, 50% of products that incorporate natural sweeteners can be found within various segments, including sports drinks, carbonated soft drinks, flavored waters, kombucha, and energy drinks. This global rise in demand for sugar alternatives drives the hydrocolloids market.
The demand for hydrocolloids in the personal care sector has experienced significant growth in recent years, driven by several key factors. These versatile compounds, which are natural or synthetic polymers with unique properties, have found diverse applications in a wide range of personal care products, including skincare, cosmetics, and hair care. Hydrocolloids are frequently used as thickeners and stabilizers, enhancing the overall quality and user experience of products such as creams, lotions, and gels. Their ability to prevent the separation of oil and water phases in emulsions is particularly valuable, ensuring that these products remain homogenous and appealing to consumers.
The COVID-19 pandemic had negative impact on hydrocolloids market due to the supply chain disruptions and increased operational costs during the pandemic. The closure or limited operation of restaurants and foodservice establishments negatively impacted the demand for hydrocolloids in commercial food applications. With fewer people dining out, the need for certain food products decreased. However, while the pandemic disrupted many industries, the personal care and pharmaceutical sectors continued to see demand for hydrocolloids. These ingredients are essential in various personal care and pharmaceutical products, including hand sanitizers, creams, and lotions, which helped in mitigating the weakened performance of other sectors to a certain extent.
The food and beverages sector claims the largest share of hydrocolloids application, showcasing its significant influence in the industry. The Russia-Ukraine conflict and unanticipated crop yield reductions, had a pronounced impact on the bakery goods segment, contributing to the escalation in prices as a direct consequence, the increased cost of bakery products has instigated a decline in consumer purchasing sentiments. Which in turn, had a dampening effect on the demand for hydrocolloids within the baking industry on a global scale.
Prominent hydrocolloid manufacturers are strategically engaging in joint ventures, to foster innovation and meet the escalating demand for ready-to-use food ingredients within specific geographical regions. These collaborations represent a strategic response to the evolving landscape of the food industry, which increasingly emphasizes convenience and region-specific product offerings.
For instance, Cargill, the hydrocolloids specialist Unitec Foods, and sugar manufacturer Fuji Nihon Seito Corporation have formed a strategic partnership to drive innovation and expand their market presence in Japan and other Asia-Pacific countries during October 2022. This renewed collaboration will facilitate the exchange of expertise and technical knowledge in the realm of food ingredient solutions and provide enhanced service to their customers throughout Japan and the broader Asia-Pacific area.
All segments will be provided for all regions and countries covered:
Companies mentioned above DO NOT hold any order as per market share and can be changed as per information available during research work.