Asia-Pacific Food Hydrocolloids Market - Growth, Trends, and Forecast (2018 - 2023)
The demand for natural food products is increasing among the health-conscious consumer. This has resulted in the tremendous growth of the global hydrocolloids market. Hydrocolloids function as binding agents, stabilizers, emulsifiers, thickeners, and gelling agents. The global market for hydrocolloids is expected to be valued at USD 8.3 billion by 2023 with a CAGR of 5.8%. The food hydrocolloids market in Asia-Pacific is expected to reach USD 1.5 billion by 2023, at a CAGR of 7.3% from 2017.
The Asia-Pacific food hydrocolloids market is largely driven by the increased R&D and innovations in hydrocolloids. Consumer preference for natural ingredients and the varied applications of hydrocolloids in the food & beverage industry are some of the reasons for the uptick in demand. The changing consumer demographics in terms of lifestyle changes and growing working population, resulting in consumer demand for convenience and processed food, especially among the emerging nations, is an opportunity for manufacturers to adopt hydrocolloids. However, the market is mainly constrained by the demand and supply imbalances. Seasonal changes cause volatility in raw material pricing, thus raising costs for manufacturers. Despite restrains, the market sees huge potential for growth.
The Asia-Pacific food hydrocolloids market is segmented by type into gelatin, xanthan gum, starch, carrageenan, and others. Majority of the hydrocolloids require raw materials to be sourced from seaweed, plants, animals, and microorganisms. Hydrocolloids are used for a wide range of applications, such as bakery, confectionery, meat, poultry, beverage, and dairy and frozen products. Bakery and confectionery dominate the market share for hydrocolloids in Asia-Pacific.
Asia-Pacific is the fastest growing region, followed by Europe for the period 2018-2023. Changing lifestyles of consumers and increasing awareness of nutritional food is driving the hydrocolloids market in developing countries, such as India and China. China dominates the hydrocolloids market, followed by India. The increasing population of these regions is driving the market. While the Japanese market for hydrocolloids is increasing due to the increasing demand for convenience food confectioneries, Australian consumers are demanding natural additives and the use of natural hydrocolloids. Indonesia and Thailand are the major sources of seaweed extracts, and unseasonal changes are resulting in demand-supply bottlenecks as hydrocolloid supply chain depends on sourcing of raw materials in its manufacturing process.