HYDROCOLLOIDS MARKET ANALYSIS

Market Challenges And Opportunities

Global Hydrocolloids Market Drivers:

• Growing demand from food and beverage industry: Growing demand from the food and beverage industry is a prime factor driving growth of the hydrocolloids market. Hydrocolloids are widely used as stabilizers, thickeners, fat replacers, coating agents, and gelling agents in the food industry. It is used to prepare frozen desserts, frozen meals, processed meat, sauces and dressings, various beverages, dairy products, fruit preserves (jam and jelly), and confectionery. In meat products, it is used to reduce the fat content in order to enhance the taste of the meat product.
• Increasing focus of key players to expand production capacity of hydrocolloids: Growing health consciousness among consumers and increasing demand for natural products are other factors that are driving growth of the market. In the cosmetic industry, they are often used in place of synthetic chemicals with similar properties. So, growing demand for natural-based products is expected to augment market growth.

Global Hydrocolloids Market Opportunities:

• Increase usage of hydrocolloids in pharmaceutical: The use of hydrocolloids in pharmaceutical formulations is expected to drive the market in the coming years. These products have numerous benefits, including reduced dosages, reduced side effects, and extended drug release. The pharmaceutical industry holds potential opportunities for the hydrocolloids market.
• Boosting Research & Development and innovation: Increasing Research & Development and innovation in hydrocolloids is also expected to provide major growth opportunities in the near future. Several firms are involved in Research & Development for various hydrocolloids, such as pectin, etc., and products through the combination of various ingredients in order to explore new properties. At present, firms such as UNITEC FOODS Co. Ltd. have been researching ingredients across various vectors such as manufacturing process, form, and shape, resulting in new properties and applications.

Global Hydrocolloids Market Restraints:

• Adherence to international quality standards and regulations: Adherence to international quality standards and regulations is expected to hinder market growth. Hydrocolloids such as carrageenan, gelatin, xanthan gum, pectin, and alginates are produced and used through the employment of various strict regulations. For instance, carrageenan and processed Eucheuma seaweed in the European Union are listed in Annex 1 of the European Parliament and Council Directive 95/2/EC on Food Additives Other Than Colors and Sweeteners, as amended, and assigned E-numbers of E407 and E407A (EU, 1995, 1998). Moreover, xanthan gum is recognized as a food additive under the provisions of the U.S. Food and Drug Administration regulations (21 CFT 172.695) for use as a stabilizer, thickener, or emulsifier.
• Unfavorable condition arise due to Covid-19 outbreak: Unfavorable conditions that arise due to the COVID-19 outbreak are expected to hamper market growth. For instance, according to Diagnostic and Statistical Manual of Mental Disorders (DSM), the demand for hydrocolloids was impacted in 2020 by a drop in the overall demand for on-the-go foods and beverages as a result of COVID-19.