Global Gum Arabic Market 2017-2021
About Gum Arabic
Gum arabic is extracted from the stems and branches of Acacia senegal and is also popularly known as gum acacia. Gum arabic is primarily used as a thickener, gelling agent, stabilizer, and fat replacer in the food and beverage industry. The gum is filtered before use in food as it contains extraneous materials such as sand and bark pieces. The gum arabic supply is dominated by the North African country Sudan as it produces one of the popular varieties, the Senegalese. This is collected in different parts of the country, and the cost of collection is low.
Technavio’s analysts forecast the global gum arabic market to grow at a CAGR of 8.26% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global gum arabic market for 2017-2021. The report presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Gum Arabic Market 2017-2021
Technavio recognizes the following companies as the key players in the global gum arabic market: Agrigum International, Alland & Robert, Kerry Group, Nexira, TIC Gums, and Ingredion.
Other Prominent Vendors in the market are: AEP Colloids, Archer Daniels Midland, Ashland, CARAGUM International, Farbest Brands, Hawkins Watts, and KANTILAL BROTHERS.
Commenting on the report, an analyst from Technavio’s team said: “One trend in the market is consumer preference for natural ingredients. The natural trend is important in the European market for food. Consumers want to buy foods that have been produced under good environmental conditions. They want the production to have minimal impact on the environment. As this is a growing trend, producers are increasingly looking for new natural ingredients to include in their products.”
According to the report, one driver in the market is growing awareness about multi-functionality of gum Arabic. The demand for gum arabic is primarily driven by the growing awareness about it. Consumers keep a strict scrutiny of the quality of their diet, owing to an increase in health concerns like diabetes, cardiovascular problems, gastrointestinal tract problems, constipation, and others.
Manufacturers of different industries like food and beverage, chemicals, pharmaceutical, and cosmetics are utilizing gum arabic for different purposes, which is popularizing its usage and functional properties. This is the major reason for the increase in the popularity of gum arabic.
Further, the report states that one challenge in the market is demand-supply gap owing to price fluctuations. The price fluctuations of gum arabic are dependent on many factors like imposition of high market fees and taxes. Such economic factors influence the exchange of gum arabic. Implementation of gum arabic trade liberalization policies has improved the nominal prices, but the fluctuation rate is still high. For instance, in 1973-1974, the Sahelian droughts had resulted in a global shortage and high prices. Such climatic conditions impact farmers as well as companies, who then need to switch to synthetic products. Sudan dominates the global gum arabic market in terms of production.
Agrigum International, Alland & Robert, Kerry Group, Nexira, TIC Gums, Ingredion, AEP Colloids, Archer Daniels Midland, Ashland, CARAGUM International, Farbest Brands, Hawkins Watts, and KANTILAL BROTHERS.