Hydrocolloids Market by Type (Gelatin, Carrageenan, Agar, Gellan Gum), Source (Seaweed, Synthetic, Botanical), Function (Stabilizer, Gelling Agent), Application (Food & Beverage, Pharmaceuticals, Cosmetics and Personal Care) - Global Forecast to 2031

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The Hydrocolloids Market was valued at $11.59 billion in 2023. This market is expected to reach $18.34 billion by 2031, from an estimated $12.23 billion in 2024, at a CAGR of 6% during the forecast period 2024-2031.

Hydrocolloids Market Size & Forecast

Hydrocolloids are hydrophilic molecules, or more commonly gums, derived from various sources, such as plants, animals, seaweeds, and microbials, that play a crucial role in the food & beverage industry. They are used as functional ingredients in food formulation to enhance food consistency, improve the gelling effect, and control the microstructure, texture, flavor, and shelf life.

The growth of the global hydrocolloids market is driven by the increasing global demand for processed and convenience food products, growing health consciousness among consumers, and the versatile functionality of hydrocolloids in food & beverages. However, the stringent government regulations and fluctuations in raw material prices restrain the growth of the hydrocolloids market to some extent.

Furthermore, the rising demand for clean-label products, increased R&D, and innovations in hydrocolloids are expected to provide market growth opportunities for the stakeholders operating in the global hydrocolloids market. Moreover, the escalating demand for vegan food is a prominent trend in the hydrocolloids market.

Hydrocolloids Market: Competitive Analysis

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last 3–4 years. Some of the key players operating in the global hydrocolloids market are Cargill, Incorporated (U.S.), Archer-Daniels-Midland Company (U.S.), Kerry Group plc. (Ireland), International Flavors & Fragrances, Inc. (U.S.), Ingredion Incorporated (U.S.), Tate & Lyle PLC (U.K.), CP Kelco U.S., Inc. (U.S.), Nexira (France), Darling Ingredients Inc. (U.S.), DSM-Firmenich AG (Switzerland), Ashland Inc. (U.S.), Palsgaard A/S (Denmark), and Hawkins Watts Limited (New Zealand).

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Increasing Global Demand for Processed and Convenience Food Products to Spur the Growth of the Global Hydrocolloids Market

Hydrocolloids, which are long-chain molecules utilized as thickeners, stabilizers, and emulsifiers, are witnessing significant growth due to the rising popularity of natural and organic hydrocolloids, as well as the escalating demand for convenience foods, ready-to-eat meals, and functional foods. Nowadays, consumers are increasingly seeking out convenient food options requiring minimal preparation time owing to their busy lifestyles. Several processed and convenience food manufacturers are frequently incorporating hydrocolloids in food products, such as ready-to-eat meals, snacks, and frozen foods, to improve their texture, stability, and shelf-life.

As per the survey conducted by the International Food Information Council in November 2022, approximately 81% of the 1,000 American respondents regularly stocked shelf-stable, canned, or packaged foods in their households. Additionally, a survey by Eating Better’s Ready Meals found that around 86% of adults in the U.K. consumed ready breakfasts and dinners or ready-to-cook food, and three in ten people consumed frozen packaged meals, weekly in 2020. This trend towards convenience and packaged foods is expected to continue to grow as consumers seek out easy and quick meal options in their busy lives. With the rise in demand for these products, the use of hydrocolloids in food manufacturing is also expected to increase in order to meet consumer expectations for quality, taste, and convenience. Manufacturers are constantly innovating and developing new ways to incorporate hydrocolloids into their products to enhance the overall experience for consumers.

Furthermore, rapid urbanization, particularly in developing countries, is driving up demand for processed and convenience foods. According to the United Nations World Urbanization Prospects, in 2021, nearly 56.6% of the world’s population resided in urban areas, and this number is further expected to be 68% by 2050. Urbanization plays a significant role in improving living standards and incomes, thereby influencing the affordability of convenience foods. Thus, the demand for convenience food products is experiencing rapid growth alongside increasing urbanization, fueled by changing lifestyles, the rise of nuclear families, and a significant increase in fast-paced work environments. As a result, the demand for hydrocolloids is expected to surge globally in the coming years.

Key Findings in the Hydrocolloids Market Study:

In 2024, the Gelatin Segment is Expected to Dominate the Hydrocolloids Market by Type

Based on type, the global hydrocolloids market is segmented into gelatin, pectin, xanthan gum, carrageenan, alginates, carboxy methyl cellulose, locust bean gum (LBG), agar, gellan gum, microcrystalline gum (MCC), guar gum, and other hydrocolloids. In 2024, the gelatin segment is expected to account for the largest share of the global hydrocolloids market. The large market share of this segment is primarily attributed to the increasing incorporation of gelatin in food & beverage and pharmaceutical industries, owing to their functional properties, such as gelation, emulsification, and film-forming. Moreover, the increasing usage of gelatin in the cosmetic industry for its binding and thickening properties is further expected to support the growth of this market. Furthermore, the versatility of gelatin in various food applications, including desserts, candies, jellies, ice creams, and meat processing, is further anticipated to drive the growth of this market across the globe.

In 2024, the Animal-sourced Hydrocolloids Segment is Expected to Dominate the Hydrocolloids Market by Source

Based on source, the global hydrocolloids market is segmented into animal, botanical, seaweed, microbial, and synthetic. In 2024, the animal segment is expected to account for the largest share of the global hydrocolloids market. The large market share of this segment is attributed to the widespread adoption of animal-sourced hydrocolloids in food & beverage and pharmaceutical applications and the availability of animal by-products for hydrocolloid production. Further, animal-based hydrocolloids like gelatin are versatile, cost-effective, and widely available, making them a popular choice in many formulations.

In 2024, the Stabilizers Segment is Expected to Dominate the Hydrocolloids Market by Function

Based on function, the global hydrocolloids market is segmented into thickeners, stabilizers, gelling agents, fat replacers, coating materials, and other functions. In 2024, the stabilizers segment is expected to account for the largest share of the global hydrocolloids market. The large market share of this segment is attributed to the several benefits offered by stabilizers, including their role in preventing the separation of different components within food products, improving texture, stabilizing emulsions, and enhancing the overall quality of the product. The most commonly used stabilizers are pectin, carrageenan, alginate, agar, xanthan gum, and gaur gum. These hydrocolloids exhibit versatile functionalities capable of influencing the physical and textural properties of the products.

In 2024, the Food & Beverages Segment Expected to Dominate the Hydrocolloids Market by Application

Based on application, the global hydrocolloids market is segmented into food & beverages, pharmaceuticals, cosmetics and personal care, and other applications. In 2024, the food & beverages segment is expected to account for the largest share of the global hydrocolloids market. The large share of this segment is attributed to factors such as the increasing consumer demand for ready meals and convenience foods due to busy schedules and high disposable incomes, the rising food & beverage industry, and health and wellness trends.

Moreover, this segment is projected to register the highest CAGR during the forecast period of 2024–2031 due to the escalating demand for clean-label products and increasing product innovations in the food industry. Hydrocolloids modify the flow characteristics of liquids, enhance the gelling properties, and facilitate the emulsification of oil droplets while inhibiting ice recrystallization. These properties make hydrocolloids an indispensable ingredient in the food industry.

In 2024, North America is Expected to Dominate the Hydrocolloids Market

Based on geography, the hydrocolloids market is divided into five major regions: North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, North America is expected to account for the largest share of the global hydrocolloids market. The major share of this region is primarily attributed to factors such as the presence of a large number of stakeholders, increasing demand for processed and convenience foods, growing consumer preferences for natural and clean-label foods, technological advancements and product innovations in the food industry, and rising demand for functional foods due to healthy eating habits. Furthermore, hydrocolloids are used as fat replacers in low-fat and reduced-calorie foods to provide a creamy texture and mouthfeel.

However, Asia-Pacific is expected to register the highest CAGR during the forecast period of 2024–2030 due to the rapidly growing food and pharmaceutical industries resulting from the rising population, which significantly amplifies the demand for hydrocolloids in the region. Moreover, rapid urbanization, rising disposable income, the ongoing trend of natural and clean-label food ingredients, and the expansion of the personal care and cosmetic industries in developing countries, including China and India, are further expected to support the growth of this market during the forecast period.

Hydrocolloids Market Report Summary:

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