Food Grade Gellan Gum Market

Global Market Study on Food Grade Gellan Gum: Rising Trend of Using Natural Food Additives Aiding Market Progress

Food Grade Gellan Gum Market Segmented By Gellan Gum, Food Grade Guar Gum, Guar Gum, Gellan Gum

Food Grade Gellan Gum Market: About the Report

With ever-increasing demand for processed food & beverage products, food grade gellan gum is gaining immense importance across regions. PMR’s report also elaborates on how players in the food grade gellan gum market space are leveraging growing demand for related products to increase their sales and market share in this competitive space. While North America and Europe enjoy the top spots in the global food grade gellan gum market, stakeholders will find a lot of opportunities coming their way from developing markets of East Asia and South Asia as well, mainly due to China’s dominance of this regional market. Ample research has been included about why the COVID-19 pandemic will have a moderate impact on this market landscape.

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  • CP Kelco
  • DowDuPont, Inc.
  • Cargill, Inc.
  • Ingredion Inc.
  • Hawkins Watts.
  • Fufeng Group
  • Inner Mongolia Rainbow Biotech Co. Ltd
  • Meron Group
  • Hebei Xinhe Biochemical Co., Ltd.
  • Hangzhou Gellan Solutions Biotec Co., Ltd. Lubrizol Corporation
  • Zhejiang DSM Zhongken Biotechnology Co., Ltd.
  • Zhejiang Tech-Way Biochemical Co., Ltd.
  • Dancheng Caixin Sugar Industry Co. Ltd.

Food Grade Gellan Gum Market Overview

Gellan gum is a food additive that is extensively used as a substitute for agar and gelatin, and finds application in a variety of processed foods such as candy, jams, plant milk, and meat. It is primarily used as a thickener, stabilizer, and emulsifier to bind, texturize, or stabilize processed foods. Gellan gum is found naturally on water lilies, and can also be synthetically produced using sugar by fermenting it with a specific strain on bacteria.

Apart from this, gellan gum is known for its ability to stabilize supplemental nutrients such as calcium in plant milk and fortified juices. Gellan gum helps keep them mixed with the beverage, rather than getting settled at the bottom of the container. As such, the food grade gellan gum market size is set to witness significant 1.5X volume growth over the forecast period of 2020 to 2030.

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Food Grade Gellan Gum Market Trends

Rising Consumer Awareness & Sensitivity about Food Additives: Rapid urbanization, increasing disposable income, and fast-paced lifestyle of consumers have led to increased consumption of processed foods. This, in turn, has triggered the use and need of food additives in the food manufacturing industry. There is an increased awareness among consumers regarding health problems associated with food additives. Less awareness was noted in countries such as Japan, but due to globalization, this trend is slowly picking up in all regions. Consumer focus is likely to compel manufacturers to include natural food additives in their products as part of their marketing strategy, which will benefit the growth of the food grade gellan gum market.

  • According to a survey conducted by gum manufacturer Alland & Roberts, 88% Americans are aware about the food additives listed on food product labels. Similarly, the U.K. showed 65% consumer awareness toward food additive enlistment.

Surge in Demand for Organic and Clean Label Products: The perception that organic products are healthier has led to increased consumer preference for products with natural ingredients. Owing to this trend, key players operating in the processed food & beverage industry are focusing on procuring food ingredients and raw materials that have been processed in accordance with industrial standards. This includes processes such as cleaning, sorting, and grading, wherein, the processing company has stringently adhered to various norms and regulations related to extraction practices, hygiene, etc. This is due to the need to reduce the impact of production on the environment. This factor will further aid expansion of the food grade gellan gum market.

  • Manufacturing food grade gellan gum with clean labeling is an emerging trend in the food industry, which is expected to offer a competitive and sustainable advantage over manufacturers of synthetic ingredients.


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Regional Outlook of Global Food Grade Gellan Gum Market

Geographically, the region of North America is contemplated to show major influence on the global gellan gum market share in terms of value as well as volume, owing to enormity of the food and pharmaceutical industry as well as its broad range of application in the food & beverage industry. Europe is expected to be the second-most dominant region, attributed to the well-established food and drink processing industry in the region. In terms of production, East Asia is anticipated to stay at the forefront of the food grade gellan gum market, owing to high production rates of the gellan gum in China.

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COVID-19 Impact on Food Grade Gellan Gum Market

The outbreak of COVID-19 has had serious negative impacts on the global economy, as it continues to face new difficulties to adjust to the new normal. The food manufacturing industry is one of the most important segments of the global economy, which is expected to witness various challenges, owing to considerable concerns about food production, processing, distribution, and safety. The outbreak of the pandemic has led to restricted movement of workers, closure of food production units, financial pressures on the food supply chain, changes in consumer preferences, and restricted food trade policies. However, functional foods are anticipated to witness inclined demand, owing to increasing consumer demand for immunity-boosting supplements. Furthermore, a decline in consumption of animal-based food products, including poultry, meat, and seafood products, has resulted in surge in demand for plant-based food ingredients. Owing to these factors, the impact of COVID-19 is expected to be moderate on the food grade gellan gum market.

Analysts’ Viewpoint

Key players operating in the food grade gellan gum market are strategizing to expand their presence in emerging markets to increase their network with their consumers, at the same time expanding their sales footprints. With this approach, these players aim to strengthen their market presence in dairy, beverage, and bakery industries, globally, as well as focus on catering to growing demand from regional consumers. Constant efforts taken by key manufacturers to offer food grade gellan gum with increased functionality is expected to further contribute toward high market growth, with an expected volume of over 5,530 tons in the year 2030.  

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