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The gum arabic market is estimated to increase by USD 435.13 million and grow at a CAGR of 8.34% between 2022 and 2027. Market expansion hinges on several factors, notably the rising consumer demand for natural and clean-label ingredients in food and beverages, coupled with the expanding utilization of gum arabic in the pharmaceutical and cosmetics sectors. Additionally, sustainable harvesting practices and ethical sourcing initiatives drive growth in the market. However, challenges impeding this growth trajectory include the fluctuating availability of gum arabic, heightened competition from alternative ingredients and substitutes, and the absence of standardization and quality control measures. Overcoming these obstacles necessitates strategic measures to ensure a consistent supply of gum arabic, innovation to address evolving consumer preferences, and the implementation of stringent quality standards throughout the supply chain. By navigating these challenges effectively, the market can capitalize on the growing demand for natural ingredients and sustain its upward trajectory in the food, beverage, pharmaceutical, and cosmetics industries.
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This report extensively covers market segmentation by application (confectionery, beverages, bakery, pharmaceuticals, and others), source (acacia Senegal and acacia seyal), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The market share growth by the confectionery segment will be significant during the forecast period. Gum arabic is in high demand in the confectionery industry due to its use as a binder, emulsifier, and stabilizer as well as its ability to enhance the flavor and texture of confectionery products. Moreover, as consumers look for natural and healthier confectionery products, gum arabic is now utilized more frequently as a replacement for synthetic additives.
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The confectionery segment was valued at USD 160.50 million in 2017 and continued to grow until 2021. It is a preferred ingredient in sugar-free and low-calorie confectionery products because it provides a smooth texture and improves mouthfeel. In addition, with the rising demand for functional confectionery items like energy bars and gummies, the demand in the confectionery industry is anticipated to rise during the forecast period. Due to its beneficial properties, which include the ability to give food a chewy texture and extend its shelf life, it is a commonly used ingredient in confectionery products. These factors are expected to augment the demand for gum arabic in the confectionery application segment, which, in turn, will drive the growth of the market during the forecast period.
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North America is estimated to contribute 37% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
The North American market is anticipated to grow at a moderate rate during the forecast period due to the rising demand for natural and clean-label ingredients in food and beverages. The pharmaceutical and cosmetics industries are also anticipated to contribute to market growth between 2023 and 2027 as a result of the health benefits of . Additionally, government initiatives like the FDA designating the substance as Generally Recognized As Safe (GRAS) have increased the demand in the food and beverage industry. Furthermore, it is anticipated that a growing emphasis on sustainable sourcing practices by the government and key industry players will fuel demand for ethically produced in the North American market. Market participants are investing in R&D projects to improve functionality and create new applications in various industries. Thus, all these factors will boost the regional market during the forecast period.
Gum Arabic, derived from Acacia Senegal and Acacia Seyal trees, serves as a vital stabilizer and thickening agent in various industries, including dairy production, the soft drink industry, and the food and cosmetics sectors. Rich in glycoproteins and polysaccharides like arabinose and galactose, gum arabic is available in both powder and liquid forms, offering versatility in applications such as watercolor paints and as a microencapsulating agent. Its adhesive properties make it indispensable in industries like confectionery, beverages, and bakery, where it enhances texture and quality. With its natural origins and compatibility with diverse products, it continues to be a preferred additive for its effectiveness as a thickening agent and its role in enhancing product stability and quality across various industries. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing demand for natural and clean-label ingredients in food and beverages is notably driving the market growth. Due to synthetic additives' detrimental effects on human health and the environment, consumers are searching for natural alternatives. Gum arabic, a natural ingredient derived from the sap of acacia trees, is frequently used in the food and beverage industry due to its beneficial properties, including emulsification, stabilization, and viscosity. It is a preferred ingredient in many goods, including baked goods, beverages, and confections, due to its organic and clean-label attributes.
Its inclusion allows manufacturers to make health claims about their products, luring customers who are concerned about their health. Therefore, the demand as a natural and clean-label ingredient is anticipated to fuel the expansion of the global market during the forecast period.
The increasing use in producing plant-based meat alternatives is an emerging trend in the market. An important development in the global market is the growing commercialization of plant-based meat substitutes made withit. As the demand for plant-based protein sources rises, manufacturers are experimenting with various ingredients to improve the texture and mouthfeel of their products. By stabilizing and emulsifying ingredients, it can help plant-based meat substitutes achieve the desired texture and structure. It can also improve the ingredients' capacity to bind water, ensuring that the final product will retain moisture and juiciness.
It is used by manufacturers of plant-based meat alternatives to help them make clean label claims, which are becoming extremely important to customers who are concerned about their health. Therefore, the trend of using gum arabic for producing plant-based meat substitutes is anticipated to drive the growth of the global market during the forecast period.
Fluctuations in the availability are key factors impeding the market growth. One of the main problems impeding the expansion of the global market is the fluctuation in gum arabic supply caused by climatic and environmental changes, such as deforestation and desertification. The main source of gum arabic is the acacia tree, which grows well in arid and semi-arid regions of Africa, particularly Sudan and Chad. The risk of drought in these areas has a detrimental effect on the growth and yield of acacia trees. Desertification and deforestation brought on by human activity and climate change are also having an impact on the availability throughout the world.
Due to the increased demand for gum arabic, there is a risk that acacia trees will be overused, which could harm the environment and reduce biodiversity. The price and supply chain may be impacted by these factors. Hence, such factors are expected to hinder the growth of the market during the forecast period.
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
Agrigum International Ltd. - The company provides a major processor of Gum Acacia, producing the comprehensive Agri Range of Gum Acacia products and hydrocolloids. The key offerings of the company include gum acacia used in bakeries and other vegan products.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2023 to 2027, as well as historical data from 2017 to 2021 for the following segments
The market is poised for growth driven by diverse industries such as the soft drink, personal care, and bakery sectors, which demand natural emulsifiers and stabilizers like gum arabic derived from acacia trees. Rich in glycoproteins and polysaccharides like arabinose and galactose, gum arabic finds applications in watercolor paints, ceramic glazes, and printing. Despite challenges like climate change and political instability, gum arabic remains a sought-after additive for its adhesive properties and versatility in various products, including lower-calorie confectionery items and flavored emulsions. With regulatory clearance in food and cosmetics, gum arabic serves as a natural thickening agent, catering to consumer preferences for clean-label and natural products across industries.
The market caters to various industries, including the soft drink industry, personal care, and food sectors, where it serves as a natural emulsifier and stabilizer. Derived from Acacia Senegal trees, gum arabic finds applications in chewing gums, watercolor paints, and even rolling papers due to its adhesion power and versatility. Despite challenges like climatic change and the availability of synthetic substitutes, gum arabic remains a preferred choice for its natural properties and compatibility with bakery products, confectionary items, and dairy products. Its role as a thickening agent and microencapsulating agent in pharmaceutical products underscores its significance in diverse sectors, from the pharmaceutical industry to the food and cosmetics industries. With its wide-ranging applications and natural origins, gum arabic continues to be a valuable ingredient in various products across global markets.
Gum Arabic Market Scope |
|
Report Coverage |
Details |
Page number |
153 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 8.34% |
Market growth 2023-2027 |
USD 435.13 million |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
7.84 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 37% |
Key countries |
US, China, India, France, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
Agrigum International Ltd., Archer Daniels Midland Co., Ashland Inc., ASIYLA GUM Co. SARL, Colony Gums Inc., Farbest Brands, Foodchem International Corp., Gulf Agency Co. Ltd., Gum Arabic Co Nigeria Ltd., Hawkins Watts Ltd., Ingredion Inc., Kerry Group Plc, NEXIRA, RR Srl, Alpha Agriculture Processing Co. Ltd., Jumbo Trading Co. Ltd., Morouj Commodities UK Ltd., and SOMAR Corp. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Source
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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