GELLAN GUM MARKET ANALYSIS

Gellan Gum Market Size and Trends

The global gellan gum market is estimated to be valued at USD 277 Mn in 2024 and is expected to reach USD 445.5 Mn by 2031, growing at a compound annual growth rate (CAGR) of 7% from 2024 to 2031.

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The market is expected to witness a positive growth over the forecast period. Gellan gum is widely used in food industries due to its versatile functional properties. There has been an increasing demand for gellan gum from food industries such as bakery, confectionery, beverages, etc. for use as a gelling agent and stabilizer. Growing awareness regarding health benefits of consumption of low calorie food products is also expected to support the growth of the gellan gum market. Advancements in production technologies have increased the production capacities of gellan gum over the past few years. This is further expected to promote the expansion of the gellan gum market during the forecast time frame.

Growing Food Industry

The global food industry has seen tremendous growth in the last few decades. As consumer incomes rise globally, people are adopting western diets high in processed foods and convenient ready-to-eat meals. The demand for packaged and prepared foods has never been greater. Food manufacturers are constantly innovating and introducing new product lines to meet the evolving tastes of consumers. This growing and evolving food industry relies on various food additives and ingredients to deliver texture, stability, and prevent spoilage in the diverse array of food products. Gellan gum has emerged as a versatile thickening, stabilizing, and gelling agent for the food industry. Gellan gum acts as an ideal gelling agent for producing gelled desserts and confectionery products. It sets into a gel with a smooth and elastic texture at room temperature without requiring any heat treatment. This makes it suitable for use in products like yogurt, fruit gels, and puddings. It is also used to produce stabilized dairy products like cream cheese and cheeses spreads by preventing separation of the oil and water components. The stable gels produced by gellan gum help maintain the texture in foods even after extended storage and transportation. Food manufacturers are incorporating gellan gum into ready meals, sauces and soups to prevent separation and maintain uniform viscosity during shelf life. Its ability to form thermally reversible gels enables preparation of sophisticated chilled foods in novel formats. Therefore, growing food industry is expected to drive the market growth. For instance, according to data published by Invest India in 2022, by 2025 the Indian Food Processing market is estimated to reach USD 535 Bn, growing at a compound annual growth rate of 15.2%.

Market Concentration and Competitive Landscape

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The pharmaceutical industry is constantly evolving to develop innovative drug delivery systems, formulations and medical devices. There is intensive research focused on controlled and sustained drug release technologies. Gellan gum has emerged as a promising material for pharmaceutical applications owing to its excellent gelling, viscosity enhancing, and film forming properties. Its bio-compatibility and ability to form soft, non-irritant gels makes it suitable for use in pharmaceutical products meant for internal consumption as well as external application. Gellan gum is widely used in the production of hard and soft gelatin capsules used for encapsulating both liquid and solid drugs. It serves as an effective alternative to gelatin in capsules for vegans and individuals with gelatin allergy. It also finds applications in the manufacturing of tablets by aiding granulation and improving flow properties during compression. Gellan gum solutions and gels are being explored as matrices for controlled drug delivery systems offering extended release of medicines.

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The global gellan gum market is facing challenges due to the presence of alternative gelling and thickening agents such as xanthan gum, guar gum, and others. These alternative agents are cheaper than gellan gum and widely used in food and other industries. Additionally, the high dependency on single raw material species Aureobasidium pollutants for gellan gum extraction makes the market vulnerable to supply disruptions.

Opportunities: Increasing demand for clean label and natural ingredients

The increasing demand for clean label and natural ingredients in food and personal care products presents significant growth prospects for gellan gum. Since it is derived from fermentation and considered vegan and Kosher, the gellan gum demand is expected to increase from various end-use industries. Furthermore, the rising awareness about the health benefits of gellan gum usage will create new opportunities in nutrition and pharmaceutical applications over the forecast period.

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Insights, By Type: Widespread application in food products

In terms of type, high acyl content contributes 58.5% share of the market owing to its widespread application in food products. High acyl content gellan gum accounts for the majority share in the global gellan gum market by type. This is primarily attributed to its extensive use in food products owing to advantageous functional properties. High acyl gellan gum has a gel strength and viscosity much higher than low acyl varieties, which makes it suitable for use in various food applications that require stable gel formation. It is widely used to thicken sauces, dressings and dairy products while creating clear gels without interfering with taste or appearance. The strong gelling ability of high acyl gellan gum allows food manufacturers to reduce overall costs by substituting or partially replacing high-cost hydrocolloids. It provides extended shelf life to products and helps control syneresis. The ease of use and ability to form thermoreversible gels makes high acyl gellan gum highly preferable for cold desserts and dairy applications

Insights, by Application: Extensive applications in various food products

Food & beverages contributes 39.8% share of the market owing to extensive applications in various food products. The food and beverages segment dominates the global gellan gum market by application. Gellan gum finds wide usage in preparation of various food products due to its functional properties. It is used as a thickening, stabilizing and gelling agent in products like dairy, soups, sauces, meat and pasta. Gellan gum helps provide proper mouthfeel and texture to many foods without compromising on taste. It forms thermoreversible gels that help maintain the shape of delicate food structures. The elastic and lightweight nature of gels formed by gellan gum make it suitable for varied food applications ranging from beverages, desserts to ready meals. It allows for easy manipulation of food textures while providing improved stability and extended shelf-life. The stabilization and suspension benefits of gellan gum allow its use across diverse food categories including soups, meat analogs, dressings, gravies, and others. With increasing demand for specialty and functional foods, the use of multi-functional ingredients like gellan gum continues to surge in the booming food and beverages industry.

Regional Insights

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North America has emerged as the dominant region in the global gellan gum market. This can be attributed to a strong presence of leading processed food manufacturers and growing awareness about healthy ingredients among consumers with 39.2% of the market share. The U.S. accounts for the majority of the demand due to increasing adoption of gellan gum as a stabilizer and thickening agent by food processing industry. Well-established food additive distribution channels facilitate easy availability of gellan gum. However, the regional market is facing pricing pressure as manufacturers focus on importing gellan gum from Asian markets at lower costs. This has led to increased private label presence. Additionally, fluctuating supply from key producers impact pricing stability in the North American market. Despite the challenges, growth is expected to continue given strong R&D investments by majors to develop new applications of gellan gum.

The Asia Pacific region, especially China, is evidencing the fastest growth and emerging as a lucrative market. This can be largely credited to capacity expansion initiatives by domestic producers in response to rising local demand and their focus on exports. Countries like India are also projected to boost overall regional market size due to developing processed food sector and growing health-savvy population. Compared to other markets, gellan gum finds larger acceptance in Asia Pacific food applications owing to affordable costs and availability of varied grades. The region also enjoys certain trade advantages considering exemption from high import duties on gellan gum in a. This is positively impacting imports and market penetration

Market Report Scope

Gellan Gum Industry News

• In 2021, Deosen Biochemical (Ordos) Ltd. launched high acyl gellan gum
• In 2021, CP Kelco Launches New, Dual-Function Gellan Gum Solution for Formulating Dairy Alternative Beverages
• In 2021, Jungbunzlauer launched TayaGel Gellan Gum

*Definition: The global gellan gum market deals in the production and sales of gellan gum. Gellan gum is a polysaccharide biogum produced by the fermentation of the microorganism Sphingomonas elodea. It has properties like gel strength, viscosity, thermal reversibility, etc. that makes it suitable for use as a gelling agent, thickener, and stabilizer in the food, personal care, and pharmaceutical products.

Market Segmentation

•  Type Insights (Revenue, USD Mn, 2019 - 2031)
  • High Acyl Content
  • Low Acyl Content
•  Application Insights (Revenue, USD Mn, 2019 - 2031)
  • Food & Beverages
    • Bakery & Confectionery
    • Dairy Products
    • Meat & Poultry
    • Sauces & Dressings
    • Beverages
  • Pharmaceuticals
  • Cosmetics & Personal Care
  • Others (Biotechnology and Others)
• Regional Insights (Revenue, USD Mn, 2019 - 2031)
  • North America
    • U.S.
    • Canada
  • Latin America
    • Brazil
    • Argentina
    • Mexico
    • Rest of Latin America
  • Europe
    • Germany
    • U.K.
    • Spain
    • France
    • Italy
    • Russia
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • Australia
    • South Korea
    • ASEAN
    • Rest of Asia Pacific
  • Middle East & Africa
    • GCC Countries
    • Israel
    • Rest of Middle East & Africa
• Key Players Insights
  • CP Kelco
  • Dancheng Caixin Sugar Industry Co. Ltd.
  • Zhejiang Tech-Way Biochemical Co., Ltd
  • Hangzhou Gellan Solutions Biotec Co., Ltd.
  • Hebei Xinhe Biochemical Co., Ltd.
  • Meron Group
  • Inner Mongolia Rainbow Biotech Co. Ltd.
  • Fufeng Group
  • Vizag chemical
  • Brova Limited
  • Opal Biotech
  • DSM
  • H & A Canada Inc.
  • Dancheng Caixin Sugar Industry Co. Ltd
  • Zhengzhou Cinogel Biotech Co., Ltd.