Hydrocolloids Market Size, Share & Trends Analysis Report By Source (Natural, Synthetic), By Type (Gelatin, Starches, Pectin, Xanthan, Carrageenan, Alginates, Carboxymethyl Cellulose, Guar Gum), By Function (Thickener, Stabilizer, Coating Agent, Fat Replacer, Gelling Agent), By Applications (Bakery and Confectionery, Meat and Poultry Products, Beverage, Sauces and Dressings, Dairy Products) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global hydrocolloids market size was valued at USD 10,335.232 million in 2022. It is expected to reach USD 17,729.8 million by 2031, growing at a CAGR of 6.18% during the forecast period (2023–2031).

A heterogeneous collection of polysaccharides that, when dispersed in water, create a gel-like substance is referred to as a hydrocolloid. They are extracted from various sources, including plants, microbes, animals, seaweed, and others, and have become extremely popular among many manufacturers worldwide. Due to their thickening, gelling, stabilizing, and textural improvement properties are widely used in various application sectors, including food and beverage, cosmetics, and pharmaceuticals.

Market Dynamics

Market Drivers

Rising Demand for Food and Beverage Products

The food and beverage industry primarily uses hydrocolloids as thickeners, stabilizers, coating agents, fat replacements, and gelling agents. Functional carbohydrates, known as hydrocolloids, are added to various foods and drinks to extend their shelf lives and improve their quality. In addition, they are used to improve the texture, appearance, and mouthfeel of the right foods and beverages due to their incredibly versatile nature. Additionally, they are employed to raise the viscosity and stability of the ingredient matrix.

Hydrocolloids include frozen meals, frozen desserts, processed meat, sauces and dressings, dairy products, beverages, jam and jelly, and confectionery. These hydrocolloids are specifically used to alter the rheology, or the texture and viscosity, of foods like ice cream, processed meats, and beverages. While some hydrocolloids are used alone, others are combined to serve specific functional purposes. Hydrocolloids create edible skins on food surfaces or spaces between layers of food ingredients to stop moisture, oxygen, and solute from leaking into the food.

Increased R&D and Innovations in Hydrocolloids

Ingredient technologists and manufacturers create Hydrocolloid and gum combinations tailored to a product's needs to help create the best textures possible. Other valuable components might be incorporated into such systems. For instance, some innovators might want to add more fibers to produce less sugar formulation. Research and developments on the beneficial applications of hydrocolloids will likely increase their demand in the following years.

Many businesses are involved in research and development (R&D) related to hydrocolloids, like pectin, etc., and products by blending other ingredients to achieve favorable properties. Companies like UNITEC FOODS Co. Ltd are researching ingredients across multiple vectors, such as manufacturing process, form, and shape, leading to the developing of new features and applications.

Market Restraints

Adoption of Worldwide Quality Standards and Regulations

Through the application of numerous stringent regulations, different hydrocolloids, including gelatin, carrageenan, xanthan gum, pectin, and alginates, are produced and used worldwide. Natural raw materials from animals examined and approved for human consumption by veterinary authorities make gelatin. Fresh raw materials must adhere to hygienic standards, and each batch of raw materials delivered to the manufacturing facility is immediately inspected. In the case of alginates, a list of stabilizers generally regarded as safe in the United States includes ammonium, calcium, potassium, and sodium alginate (GRAS). An emulsifier, stabilizer, and thickener, propylene glycol alginate is approved for use as a food additive and has a variety of industrial services, including coating fresh citrus fruit. The presence of numerous international quality standards and regulations for sourcing, production, and their applications in various sectors is likely to impede the development of the market under consideration.

Market Opportunities

Higher Demand for Processed and Convenience Food Products

As the market for processed foods that are ready to eat expands, the demand for hydrocolloids from corresponding applications in the food processing industry also rises. Additionally, manufacturers use a variety of hydrocolloids to meet the demand for healthy and functional foods and beverages, considering consumers' growing preference for such foods. Further, the rise in disposable incomes brought on by economic expansion, particularly in emerging nations like India, has increased consumer demand for convenience and processed foods, which has, in turn, increased the demand for the hydrocolloids used in these food categories.

Regional Analysis

Asia-Pacific Dominates the Global Market

The global hydrocolloids market is segmented by region: North America, Europe, Asia-Pacific, South America, and the Middle East and Africa.

Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 7.58% during the forecast period. Regarding GDP, China has the largest economy in the Asia-Pacific region. Since the country has many end-use industries, including the food and beverage, personal care, oil and gas, and dairy industries, it has been one of the region's major producers and consumers of hydrocolloids. The nation is one of the world's top producers of seaweeds. Dairy applications dominate the market for food hydrocolloids in China. In the nation, gellan gum is frequently used to make yogurt products like Ambrosia from Yili. The booming dairy industry drives the country's growing need for food-based hydrocolloids for thickening and stabilizing purposes. To increase the involvement of private players in the exploration and production of oil and gas, the nation is also reshaping its upstream oil and gas industry. Gum guar, primarily used as a friction reducer in oil and gas production and enhanced oil recovery processes, is in high demand due to the nation's expanding oil and gas industry.

North America is expected to grow at a CAGR of 3.76% during the forecast period. The economy of the United States is the most significant and potent in the world. The US economy depends heavily on the food and beverage sector. Delivery services and e-commerce are becoming more and more popular. Customers are increasingly ordering groceries and other food products online due to the widespread use of the internet and rising demand for convenience. A growing number of services, like Amazon Fresh, enable customers to shop for fresh produce without leaving their homes. Additionally, wineries, food and beverage processing facilities, and facilities for the slaughter and processing of animals make up most of the food and beverage processing facilities in New York. All these food and beverage industry segments use their respective hydrocolloids for different purposes, which will likely significantly increase demand for the market under study.

Europe's largest economy and the fifth-largest economy in the world is Germany. In terms of projected growth, the food industry is the fourth-largest. There are 6000 SMEs in the sector. Germany's healthcare system depends on the EUR 62 billionpharmaceutical industry. The epidemic less impacted the pharmaceutical industry than other production sectors. In 2020, Germany exported pharmaceuticals worth 86 billion euros, an increase of 6% from 2019. Total imports came to EUR 56 billion. Germany's pharmaceutical sector is growing due to global economic expansion and overseas pharmaceutical demand. In the upcoming years, there will be a rise in hydrocolloid demand due to pandemic drug demand.

Additionally, numerous multinational corporations operate in the country's food industry, increasing market competition because U.S. products are even more expensive than those made locally in Brazil. Despite the pandemic, all the nation's industries experienced declines except the food industry. Euromonitor predicts the retail food industry to generate USD 82 billion in revenue in 2020, ranking the country as the eighth largest in the world. Large MNCs only account for 5% of the food sector's revenue, primarily comprised of SMEs. In this industry, which consists of 37,000 businesses, a recovery in revenue generation was anticipated for 2021. During the forecast period, the factors above are predicted to increase the demand for hydrocolloids in the food industry.

The Saudi Arabian government has tight control over all major economic activities, and the country's economy is heavily dependent on oil exports. The industry has experienced significant growth, primarily due to the country's rising food production and processing and the expanding online food delivery market. In Saudi Arabia, the industry of producing and processing food has expanded quickly over the past ten years. The market for frozen foods, chilled processed foods, snacks, and chocolate confectionery is expected to grow significantly in Saudi Arabia, leading to a significant expansion of the processed food sector. The increased demand for packaged foods, rising per capita income, rapid population growth, shifting lifestyles and dietary habits, and rising popularity of quickly expanding retail food outlets are additional significant drivers of the domestic food processing industry's growth.

Segmental Analysis

The global hydrocolloids market is segmented by source, type, function, and application.

Based on the source, the global hydrocolloids market is bifurcated into natural and synthetic.

The natural segment is the highest contributor to the market and is expected to grow at a CAGR of 6.23% during the forecast period. Pectin, cellulose gum, and locust bean gum are natural hydrocolloids. They can also come from animals or microbes. Foods such as cheese, ice cream, chocolate, and meat products are processed using natural gums like locust bean gums. Another naturally derived hydrocolloid used in frozen desserts and for flavor fixation is gum Arabic. As they are biodegradable and non-toxic, these natural gums are used in many different industries, particularly in the food and beverage sector. These are inexpensive and easily obtained from nature. Since natural hydrocolloids have many positive health effects, end-user sectors are gradually switching to synthetic hydrocolloids. Over the forecast period, there will likely be an increase in demand for hydrocolloids due to consumer demand for natural and organic ingredients in food, drink, and personal care products.

Chemical combinations create synthetic hydrocolloids with the same structure as natural hydrocolloids. Semi-synthetic hydrocolloids are created by combining natural ones with specific chemicals. Pure synthetic materials are less preferred than semi-synthetic ones. Additionally, synthetic hydrocolloids have some benefits over natural ones, such as increased potency, resistance to microbial actions, and solution clarity. Over the forecast period, it is anticipated that these characteristics of synthetic hydrocolloids will increase demand.

Based on the type, the global hydrocolloids market is bifurcated into gelatin, starches, pectin, xanthan, carrageenan, alginates, carboxymethyl cellulose, and guar gum.

The gelatin segment owns the highest market and is expected to grow at a CAGR of 6.88% during the forecast period. Gelatin is created from the parent protein, collagen, through mild partial hydrolysis at a low temperature. It is a hydrophilic colloid in an aqueous solution. It has almost no flavor or odor, is vitreous, brittle, and typically has a light-yellow color. Due to its distinctive qualities and benefits, gelatin is one of the most used hydrocolloids on the international market. It has a clean label and does not need to be chemically altered. In jellied confectionery, it can be used as a gelling agent.

Starch is the most popular hydrocolloid thickener because it is readily available, inexpensive, and may not taste bad when used in low concentrations of 2 to 5%. Additionally, because starch is a common component of many foods we consume, its addition has no off-putting flavors, which broadens its range of uses and boosts market share. Both the original form of starch and its modified form is used. Starch is not dissolved by cold water, but as it warms, it slowly permeates the granules, causing them to swell. As a result, there is only a slight thickening at this point. Finally, close to the boiling point, the starch granules rupture and release the inner components into the liquid, resulting in a noticeable thickening. Other gums are frequently added to enhance the mouthfeel and texture of starch.

Based on function, the global hydrocolloid market is bifurcated into thickeners, stabilizers, coating agents, fat replacers, and gelling agents.

Thickeners frequently use hydrocolloids. A polymer-solvent interaction causes the thickening of hydrocolloids; it involves the non-specific entanglement of conformationally disordered polymer chains. Thickeners frequently use hydrocolloids. Major industries like food and beverage, oil and gas, and paper and pulp are the main drivers of the demand for hydrocolloids as thickeners. In the upcoming years, the main drivers for hydrocolloid thickeners will be the increasing demand for foods that can be kept in storage and the improving oil and gas exploration environment.

Stabilizers are typically added to prevent unintended changes in the state of another substance. Stabilizers, for instance, are used in ice cream to prevent unattractive large ice crystals. As they maintain the homogeneity of the aqueous and oil phases over a specified storage period and stabilize the oil droplets, many hydrocolloids are used in emulsions as stabilizers. Hydrocolloids can function as non-surface-active stabilizers or as surface-active emulsifiers and thickeners. Different amounts of stabilizers should be used depending on the stabilizer's characteristics, the mix's solids content, the kind of processing machinery, and other elements. The following are some uses for hydrocolloids as stabilizers: Gelatin creates a thin mixture and necessitates aging. Pectin can be used alone or with gums to stabilize sherbet or ice.

Based on application, the global hydrocolloids market is bifurcated into bakery and confectionery, meat and poultry products, beverages, sauces and dressings, and dairy products.

The bakery and confectionery segment owns the highest market and is expected to grow at a CAGR of 6.79% during the forecast period. Hydrocolloids are used in baking and confectionery to delay aging and enhance food freshness even after freezing. By enhancing the bread's ability to retain water and reducing the chance of ice crystal formation during frozen storage, the structural changes to wheat aid in bread storage. These goods offer the benefit of low-fat content without detracting from the flavor and aroma of baked goods and confectionery products. The market is expanding due to the rising demand for convenience foods like pasta, drinks, cakes, bread, gravies, and pastries and the growing world population.

One of the main components used by producers of dairy products is a hydrocolloid, which primarily controls moisture up to about 87%. Additionally, aeration, emulsification, suspension, and encapsulation are used for this hydrocolloid. By keeping the ingredients stable, hydrocolloid plays a significant part in safeguarding flavor. Among these ingredients are nuts, fruits, oats, cereals, minerals, fibers, proteins, and other nutrients. Processed cheeses, analog cheeses, vegan cheeses, cheese powders, margarine and butter spreads, coffee creamers, whipped toppings, sour cream-based dips, sauced vegetable sides, shakes and smoothies, gelatin desserts, frozen desserts, and ice creams are among the dairy products that use hydrocolloids.

Recent Developments

• October 2022- Ashland introduced sclareanceTM biofunctional natural sclareolide to visibly reduce dandruff's appearance through biotechnology.