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

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

The Global Hydrocolloids Market is projected to register a CAGR of over 6% during the forecast period (2021-2026).

Plants that process meat has become a hotspot for COVID-19 infections, bringing attention to the health and safety of traditional meat and resulted in a decrease in meat consumption. During 2020, the CDC (Centers for Disease Control and Prevention) had received data on COVID-19 cases from 19 of the 23 states that had reported at least one case related to this industry; there were 115 meat or poultry processing facilities with COVID-19 cases, with 4,913 workers diagnosed. This resulted in a decrease in demand and consumption of Gelatin and other hydrocolloids in the meat industry. The sales of bakery products were above average, even though the supply of bakery was insufficient, as many bakeries had to close due to labor shortages. Additionally, the disruption in logistics facilities and scarcity of raw materials as a result of the lockdown has caused additional issues in the market. Owing to all these factors the hydrocolloids market is negatively impacted by COVID-19. However, after taking back the lockdown regulations by governments bakery products are increasing in demand.

Key Highlights

• Over the medium term, the major factors driving the market studied are the growing demand for hydrocolloids in the food and beverage industry and increased R&D and innovations in hydrocolloids.
• On the flipside, unfavorable conditions arising due to the COVID-19 outbreak and adherence to international quality and standards are the major restraints hindering the growth of the market.
• The North American region dominated the market across the world, with the largest consumption from countries, such as the United States and Canada.

Key Market TrendsIncreasing 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 confectionary sector for imparting texture.
• Gelatin is used as a gelling agent in emulsifiers. Furthermore, it also finds application as stabilizers in food products, like candies, desserts, marshmallows, and ice creams.
• It is also used in meat products for water binding. According to Food and Agriculture Organisation, the Asia region has around 136.06 million metric tons of meat produced in the year 2019. Also, it is predicted that the growth in consumption of meat will increase to 12% by 2029 around the world thus increasing the demand for gelatin.
• Gelatin also finds applications in instant sauces and soups and jelly products for fat reduction, creaminess, mouthfeel, and intense taste experience.
• The revenue of the global bread and bakery products segment is estimated to be USD 487,108 million in 2020, and it is further expected to register a CAGR of over 3%, which would increase the demand for gelatin, and consequently hydrocolloids, and it is likely to propel its market during the forecast period.
• Owing to the aforementioned factors, the hydrocolloids market is expected to grow rapidly over the forecast period.

North America Region to Dominate the Market

• The North American region is expected to dominate the market for hydrocolloids during the forecast period. In countries, like the United States and Canada, owing to the presence of a major market for confectionery, bakery, convenience food, and packaged food products, the demand for hydrocolloids has been increasing in the region.
• The rising demand for convenience and functional food is expected to stimulate the demand for hydrocolloids. The function of the 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 helped the hydrocolloids market in the region to grow at a brisk pace.
• The increasing commonness 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 market for hydrocolloids 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.
• Additionally, the growth in the confectionary industry in the United States is projected to further drive the hydrocolloids market during the forecast period. Revenue from the confectionary segment in 2020 is estimated to be USD 76,594 million, and it is further projected to register a CAGR of around 2% during the forecast period. Furthermore, the Baking industry in the United States has had an economic impact of about USD 154.2 billion direct impacts on the economy as of 2020, according to American Bakers Association.
• Some of the major companies dominating the region are Ashland, CP Kelco U.S. Inc., and Cargill Incorporated.
• The aforementioned factors, coupled with government support, are contributing to the increasing demand for hydrocolloids in the region during the forecast period.

Competitive Landscape

The hydrocolloids market is fragmented with top players accounting for a marginal share of the market. Major companies in the market include DuPont, Cargill, Incorporated, CP Kelco U.S., Inc., DSM, and Ashland.

Additional Benefits:

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

Companies Mentioned
 
Afton Chemical
Baker Hughes
BASF SE
Bell Performance, Inc.
Chevron Corporation
Clariant
Dorf Ketal
Evonik Industries
Infineum International Limited
Innospec
The Lubrizol Corporation

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