The report “Food Thickeners Market by Type (Hydrocolloids, Protein, Starch), Source (Plant, Animal, Microbial), Application (Bakery, Confectionery, Sauces, Marinades & Gravies, Beverages, Dairy, Convenience Foods), and Region – Global Forecast to 2022″, The food thickeners market is projected to reach USD 15.80 Billion by 2022, at a CAGR of 5.95% from 2016 to 2022. The market is driven by factors such as growth in demand for convenience foods, consumer awareness toward healthy diet, and multiple functionalities and advantages associated with the use of food thickeners.
Multifunctionality, compatibility with other ingredients, low cost, and abundant supply of food thickeners to drive the consumption growth of food thickeners, which, in turn, would drive the global market close to USD 15.80 billion by 2022
Food thickeners are food additives that increase the viscosity of a substance or a mixture while keeping its other properties unchanged. The most widely used food thickeners in the market are starches, followed by hydrocolloids, and proteins. Food thickeners are used in food applications such as bakery products, confectionery products, sauces, dressings, marinades & gravies, beverages, dairy & frozen desserts, and convenience & processed food.
The global food thickeners market is projected to reach USD 15.80 billion by 2022, at a CAGR of 5.95% from 2017. The growth of the market is driven by multifunctionality, compatibility with other ingredients, low cost, and abundant supply of food thickeners. The other key drivers for the market growth are rising demand for convenience & processed foods, and an increase in awareness toward a healthy diet.
High R&D costs associated with the development & manufacturing of food thickeners and fluctuations in raw material prices of hydrocolloids are the major restraints for the market.
Each food thickener works differently, depending upon the application. Hence, food thickener manufacturing companies should have a strong and dedicated R&D facility to develop food thickeners that are innovative and suitable to demanding product formulations. High R&D costs associated with the extraction and manufacture of vegetable gum and starch derivatives are restraining this market’s small and medium manufacturers. The extraction of thickening agent derivatives from new natural sources for physical and chemical applications in food & beverages has become a challenge for manufacturers. Several specific and technological factors such as crushing, sifting, centrifuging, and hydrolysis, need consideration and add to the manufacturing cost.
The price of hydrocolloid raw materials affects the price of food thickeners, which, in turn, impacts the price of the end food products. Hydrocolloids are mainly obtained from natural sources. Many thickening agent manufacturers increased the price of hydrocolloids in the last five to six years. For instance, in October 2011, Danisco announced that the global hydrocolloid price increased by 5% to 15% due to rise in raw material, energy, and logistic costs. The price of guar gum is fluctuating due to the poor harvesting of crops in Asian countries such as India and Pakistan. Consequently, many end-user companies have shifted to xanthan, an alternative of guar gum. Also, xanthan gum manufactured in China is facing anti-dumping tax, owing to their import and sales in the US market at a fairly low price. Thus, to protect the domestic manufacturing units (of xanthan gum), anti-dumping tax was imposed by the International Trade Administration, and the US Department of Commerce on xanthan gum imported from the People’s Republic of China (PRC) for the period of July 19, 2013 through June 30, 2014. Thus, given the tremendous increase in the raw material prices, manufacturers are bound to increase the prices of hydrocolloids.
North America accounted for the largest market share in the food thickeners market. The dominant share of the North American region is attributed to its high consumption of hydrocolloids, proteins, and starch & starch derivatives in a diverse range of food & beverage applications. Asia-Pacific is projected to be the fastest-growing region. This is attributed to the growing volume consumption of various types of food thickeners in Asia-Pacific, as food & beverage manufacturers focus on product innovation, health aspects, and improving the functional characteristics such as texture, flavor, and other organoleptic properties of their products.
High R&D costs associated with the development and manufacturing of food thickeners and fluctuations in raw material prices of hydrocolloids are the major restraints for the market.
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Some key players in the global food thickeners market include Cargill (U.S.), Archer Daniels Midland Company (U.S.), E. I. Du Pont De Nemours and Company (U.S.), Ingredion Incorporated (U.S.), and Kerry Group Plc (Ireland). Other companies such as Darling ingredients (U.S.), Tate & Lyle PLC (U.K.), Ashland Specialty Ingredients (U.S.), CP Kelco (U.S.), TIC Gums (U.S.), and Fuerst Day Lawson (U.K.) also have a significant market share in the food thickeners market. In 2016, Cargill set up a new innovation center in China named Cargill ONE. This would help the company to expand its expertise in taste, flavors, food ingredients, and menus that appeal to changing consumer demand in Asia.