Gum Arabic Market Analysis North America, Europe, APAC, Middle East and Africa, South America - US, France, UK, China, India - Size and Forecast 2024-2028

Gum Arabic Market Size 2024-2028

The gum arabic market is estimated to increase by USD 543.6 million and grow at a CAGR of 9.45% between 2023 and 2028. The market is experiencing significant growth due to the increasing demand for natural and clean-label ingredients in the food and beverage industry. This trend is driven by consumer preferences for healthier and more sustainable options. Additionally, the use of gum arabic in producing plant-based meat alternatives is on the rise, further fueling market growth. However, fluctuations in the availability of gum arabic, primarily due to weather conditions and geopolitical instability in major producing countries, pose a challenge to market stability. Overall, the market is expected to continue its growth trajectory, driven by these trends and the versatility of the ingredient in various applications.

What will be the size of the Market During the Forecast Period?

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Market Segmentation

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 173.60 million in 2018 and continued to grow until 2022.  It is a preferred ingredient in sugar-free and low-calorie confectionery products because it provides a smooth texture and improves mouthfeel. 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. 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.

Key Regions

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North America is estimated to contribute 38% 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. 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 ethical products 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. 

Market Dynamics and Customer Landscape

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 2023 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.

Key Market Driver

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 for a natural and clean-label ingredient is anticipated to fuel the expansion of the global market during the forecast period.

Significant Market Trend

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 with it. 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.

Major Market Challenge

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.

Key Market Customer Landscape

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

Who are the Major Market Players?

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 a 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:

• 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.

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.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Million" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments

• Application Outlook 
  • Confectionery
  • Beverages
  • Bakery
  • Pharmaceuticals
  • Others

• Source Outlook 
  • Acacia Senegal
  • Acacia Seyal

• Region Outlook
  • North America
    • The U.S.
    • Canada
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa
  • South America
    • Chile
    • Brazil
    • Argentina

Market Analyst Overview

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 liquid, 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. 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.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting of the market between 2023 and 2028.
• Precise estimation of the size of the market size and its contribution to the parent market
• Accurate predictions about upcoming market trends and analysis and changes in consumer behavior
• Growth of the market industry across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough market growth analysis of the market’s competitive landscape and detailed information about vendors
• Comprehensive market analysis and report on the factors that will challenge the market research and growth of market companies

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