Market Trends of Hydrocolloids Industry
This section covers the major market trends shaping the Hydrocolloids Market according to our research experts:
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 confectionery sector for imparting texture.
- Gelatin is used as a gelling agent in emulsifiers. It also finds application as a stabilizer in food products, like candies, desserts, marshmallows, and ice creams.
- It is also used in meat products for water binding. According to the Food and Agriculture Organisation, Asia produced around 136.06 million metric ton of meat in 2019. Also, the growth in meat consumption is projected to increase to 12% by 2029 worldwide, thus increasing the demand for gelatin.
- Gelatin also finds applications in instant sauces & soups and jelly products for fat reduction, creaminess, mouthfeel, and intense taste experience.
- The revenue of the bread and bakery products segment was estimated at USD 487,108 million in 2020. It is further expected to register a CAGR of over 3%, which may increase the demand for gelatin, and consequently hydrocolloids, and propel the market's growth during the forecast period.
- Due to these factors, the hydrocolloids market is expected to grow rapidly over the forecast period.
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North America Region to Dominate the Market
- The North American region is expected to dominate the hydrocolloid market during the forecast period. In the United States and Canada, owing to the major market for confectionery, bakery, convenience food, and packaged food products, the demand for hydrocolloids has been increasing.
- The rising demand for convenience and functional food is expected to stimulate the demand for hydrocolloids. The function of 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 boosted the growth of the hydrocolloids market in the region.
- The increasing rate 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 hydrocolloid market during the forecast period.
- Technological advancements and new product launches have made hydrocolloids available for a 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.
- The growth in the US confectionery industry is projected to drive the hydrocolloid market during the forecast period. Revenue from the confectionery segment in 2020 was USD 76,594 million. It is projected to register a CAGR of around 2% during the forecast period. According To The American Bakers Association, as of 2020, the US baking industry had an economic impact of about USD 154.2 billion on the economy.
- Some major companies dominating the region are Ashland, CP Kelco U.S. Inc., and Cargill Incorporated.
- These factors, coupled with government support, are likely to boost the demand for hydrocolloids in the region during the forecast period.
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