China Food Hydrocolloids Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

China Food Hydrocolloids Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Chinese food hydrocolloids market is projected to register a CAGR of 9.4% during the forecast period (2020-2025).

Key Highlights

• China is a prominent market for hydrocolloids in the Asia-Pacific region.
• Additionally, the market is projected to be the fastest growing due to its agricultural input and the large population, as it contributes a lot to the food consumption.
• The food and beverage industry is on its peak in the region and so is the additives and ingredients market. The hydrocolloid market is also high due to the higher consumption of ready-to-eat meal.
• The growing demand for gluten-free bakery goods is giving rise to new opportunities to use highly functional hydrocolloids to improve the eating experience of consumers.

Key Market TrendsGrowing Consumption of Plant-based Food

The rapid growth of a middle-class population, together, with shifting consumer values, has created a favourable market for plant-based meat in China, thereby catering to the market growth of food hydrocolloids, which include gellan gum, welan gum, and xanthan gum. Thus, key players operating in the market studied, such as DSM, are expanding their production in the country and significantly investing to upgrade their production facilities to improve safety, health, quality, and environmental standards. The growth of plant-based food increases the application of hydrocolloids in the dairy confectionery and beverage segment.

Dairy Segment Holds a Prominent Share

In China, the market for food hydrocolloids is majorly driven by dairy application. As hydrocolloids play an important role in keeping ingredients stable in dairy product systems, beyond white milk and natural cheese, almost all dairy products can benefit from the addition of hydrocolloids. Gellan gum is widely used in the country for the production of yogurt products, such as Ambrosia from Yili. By application, the segment holds a significant share of the market, and it is projected to grow at a faster pace during the forecast period.

Competitive Landscape

The Chinese food hydrocolloids market is fragmented, with the presence of major global and regional players as well as a host of local manufacturers. The major players in the market are Cargill, CP Kelco, and ADM. Companies use various strategies, such as acquisitions, new product launches, expansions, and joint ventures, to expand their market share. DSM is the most active company in the market studied, and it is engaged in product launches, expansions, and other strategies. For instance, in January 2019, DSM launched a new product range for its gellan gum and xanthan gum portfolios, by seeking new opportunities in ‘cross-segment’ applications.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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