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Food Grade Gellan Gum Market to Witness Siginficant Incremental Opportunity During 2020 - 2030

Food grade gellan gum is a plant-based alternative for gelatin, and is gaining traction in a majority of vegan packed food products. Food grade gellan gum offers a variety of benefits to foods that helps make them more consistent and enjoyable, while reducing waste and enhancing safety, as manufacturing is done in a controlled environment without the use of pesticides of farmlands. Addition of gellan gum to different processed foods ensures the availability and consumption of essential nutrients that are added to these processed foods.

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It is considered as one of the most efficient multifunctional gelling agent that can be utilized alone or in combination with different products to produce a wide range of textures. Gellan gum is expected to address the need for nature-based ingredients in a variety of food applications. Taking these factors into consideration, the global food grade gellan gum market is expected to witness a significant volume CAGR of approximately 4.0% through 2030.

Key Takeaways from Food Grade Gellan Gum Market Study

In terms of geography, the regions of South Asia and East Asia are expected to witness the highest growth rates in the global food grade gellan gum market. These regions are expected to witness a value CAGR of more than 7%, attributed to rising population in emerging nations as well as rapidly expanding food & beverage industry. However, in terms of value and volume, North America is expected to have a major influence on the global market.
In terms of functionality, food grade gellan gum, as an emulsifier, is expected to witness the highest growth rate. This is due to rising incidence of allergies associated with synthetic emulsifiers, which has led to increased demand for plant-based, natural emulsifiers.
Low acyl food grade gellan gum products are widely consumed, due to which, manufacturers are developing new and innovative products in this segment. Revenue from the segment is expected to expand at a CAGR of approximately 4% over the forecast period.
The COVID-19 pandemic is expected to have a moderate adverse impact on the global food grade gellan gum market over the short term.

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Global Food Grade Gellan Gum: Competitive Landscape

Key players functioning in the global food grade gellan gum market are focusing on expanding their production capacity to cater the increasing demand for plant-based specialty ingredients from regional customers. With expansion of production units, key players are also focusing on increased penetration in emerging markets.

In March 2017, CP Kelco expanded the production capacity of Kelcogel gellan gum at its new production facility in Okmulgee, Oklahoma, U.S. This expansion helped the company better serve its customers in this region. With this expansion, the company aimed at offering food grade gellan gum at competitive prices to expand its customer base.
Apart from this, key players engaged in the food grade gellan gum market are investing huge amounts in research & development activities to offer unique products and strengthen their brand and reputation.

In December 2016, Cargill, Incorporated set up a new innovation center in China, named Cargill ONE. It was designed to create innovative food products and new flavors for its customers in China. Cargill ONE was Cargill's first innovation center in Asia.

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