The global hydrocolloids market was valued at USD 9.07 billion in 2019 and is anticipated to expand from USD 17.55 billion in 2020 to USD 13.30 billion by 2032, growing at a CAGR of 5.36% over the forecast period. In 2019, the Asia Pacific region led the market with a 37.93% share. The U.S. hydrocolloids market is expected to grow substantially, reaching approximately USD 2.50 billion by 2032, fueled by the increasing use of hydrocolloids in the production of various food items.
The growth in CAGR is attributed to the resurgence in market demand and expansion as conditions normalize post-pandemic. COVID-19 had an extraordinary global impact, causing a modest decline in hydrocolloid demand across all regions.
Hydrocolloids refer to a varied group of polysaccharides that form gel-like substances when mixed with water. Extracted from sources such as plants, microbes, animals, and seaweed, hydrocolloids have become increasingly popular among manufacturers worldwide. They are extensively used across industries including food and beverages, cosmetics, and pharmaceuticals due to their thickening, gelling, stabilizing, and textural enhancement properties. With rising demand for convenient food options, manufacturers are increasingly incorporating hydrocolloids into processed food products, a trend expected to drive future sales.
Information Source: https://www.fortunebusinessinsights.com/industry-reports/hydrocolloids-market-100552
What Does the Report Offer?
This report presents both qualitative and quantitative evaluations of various elements such as key growth drivers and restraints. It also offers regional insights highlighting the contribution of different regions to overall market development. The report covers the competitive landscape, profiling major players and detailing strategies such as partnerships, product launches, and collaborations that enhance market growth. Furthermore, the report utilizes research techniques like Porter’s Five Forces analysis to assess industry trends and developments expected to influence market growth between 2020 and 2027.
DRIVING FACTORS
Rising Demand for Convenient Food Products to Fuel Market Expansion
Growing awareness around clean-label food choices is driving the adoption of natural additives like hydrocolloids. The shift towards healthier and more convenient food options, known for their nutritional benefits, is projected to boost global product adoption. Additionally, health concerns linked to consumption of high-fat foods such as pizzas and burgers are pushing consumers towards more balanced diets, further contributing to the hydrocolloids market’s growth.
SEGMENTATION
Food & Beverages Segment to Capture Largest Market Share
The food and beverages segment is expected to witness notable growth in the coming years. This growth can be attributed to increasing global demand for natural, nutritious food products enriched with hydrocolloids.
REGIONAL INSIGHTS
Asia Pacific to Lead Market Due to Strong Manufacturing Presence
Asia Pacific is anticipated to maintain a leading position in the global hydrocolloids market throughout the forecast period. This dominance is linked to the presence of numerous hydrocolloid manufacturing facilities in countries such as India, China, Thailand, and Indonesia. The region accounted for USD 3.44 billion in 2019.
Meanwhile, North America is expected to experience rapid growth due to rising demand for fortified, convenient food items, which is likely to boost hydrocolloid usage in the region from 2020 to 2027.
COMPETITIVE LANDSCAPE
Key Players Focus on Expanding Production Capabilities to Strengthen Market Presence
The global hydrocolloids market is characterized by a consolidated competitive landscape, with leading companies emphasizing the expansion of their production capacities and development of innovative hydrocolloid solutions to meet rising demand for functional foods. Other prominent players are sustaining their market presence through strategies such as partnerships, product launches, and mergers and acquisitions, all contributing to overall market growth.
Key Companies Profiled in the Global Hydrocolloids Market:
- Kerry Group plc (Tralee, Ireland)
- Koninklijke DSM N.V. (Heerlen, Netherlands)
- Cargill, Incorporated (Minnesota, United States)
- Archer-Daniels-Midland Company (Illinois, United States)
- DuPont de Nemours, Inc. (Delaware, United States)
- Ashland Global Holdings Inc. (Delaware, United States)
- M. Huber Corporation (New Jersey, United States)
- W Hydrocolloids, Inc. (Philippines)
- Ingredion, Incorporated (Illinois, United States)
- Tate & Lyle plc (London, United Kingdom)
Industry Update:
- November 2018: CP Kelco, a division of J.M. Huber Corporation, announced a 15% increase in its pectin production capacity in Denmark. This move aims to meet the surging demand for clean-label ingredients in functional foods and to further reinforce the company’s global market standing.