Acacia Gum Market Trends, Segments, Top Companies, Revenue and Forecast by 2030 | Kerry Group, ISC Gums, Gum Arabic Company

Acacia Gum known by other names such as Gum Arabic, Senegal Gum, or Indian Gum is a rich source of dietary fibers and in addition to its widespread use in food and pharmaceutical industries as a safe thickener, natural emulsifier, and stabilizer. It has remedial properties that help to remove toxins from the body and cure skin inflammation, bacterial and fungal infections through application. Harvested from the Acacia tree that prominently grows in Sudan (North-East Africa), it suppresses hunger pangs and cravings, which is helpful in reducing weight. Being highly soluble in water, this fiber is very easy to consume and digest. The global market is driven by increasing consumer spending on dietary and fiber-rich food products and the Acacia Gum market is witnessing significant growth due to increasing consciousness toward Acacia Gum multi-functionality.

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Key Market Players:

Nexira, TIC Gums Inc., Kerry Group, ISC Gums, Archer-Daniels-Midland Company, Gum Arabic Company, Agrigum International Limited, Farbest Brands, Ashland Inc., Hawkins Watts.

COVID-19 Impact analysis

The COVID-19 pandemic is hindering economies and industries in various countries due to lockdowns and business shutdowns. The food & beverages is one of the significant industries facing severe disruptions such as office and factory shutdown and supply chain break, which is restraining the growth of the Acacia gum market.
In lockdown period gyms are closed and people are working from home. To maintain health, dietary control seems to be the only viable option. Due to Acacia's special healing properties and health benefits, the demand for it has risen significantly in the COVID-19 pandemic.
Many COVID-19 patients are recommended to include a 30-gram dose of Acacia Gum in powdered form in their diet.
As a pain reliver and a fungal remedy, it is also being used to cure patients of Black fungus, which suddenly emerged during second wave of COVID-19 in India.
Manufacturers of these products have a chance to capitalize this increased demand.
Top Impacting Factors

Due to the cut in production and panic buying, people have stockpiled necessities and food items. Acacia Gum has a long life. If stored in a cool and dry place, it potentially has unlimited life.
80% of the production of Acacia Gum takes place in Sudan. Hundreds of thousands of Sudanese are dependent on it for their livelihoods. After market reforms, Sudan's exports are now at about 160,000 tons. The production is heavily controlled by the Sudanese government.
Its unlimited shelf life, health benefits, diversity of uses, ease of application present new pathways in the industry especially in COVID-19.

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Market Trends

The Rise in Dietary Content

The Acacia Gum has high dietary fiber content which aids in healthy digestion and bowel movement. Acacia Gum benefits patients suffering from constipation and irregular bowel movements. Improvement of diet is an alternative of exercising in this COVID-19 pandemic due to the gyms and fitness clubs being closed. Many Acacia Gum manufacturers are focusing on securing regulatory clearance for the inclusion of this emulsifier as an ingredient in food products. Powder encapsulation; remains to be one of the most instrumental production procedures in the pharmaceutical industry. Colorless, tasteless, odorless, and high water-solubility are key properties of instantly soluble acacia gum, which are the key drivers for the acacia gum market.

Stockpiling

As the production of food and Beverages industry was hit drastically, the supply of acacia gum hasn't been very adequate in pandemic. Another reason of supply not being adequate was due to people stockpiling loads of it along with other food items and necessities in advance due to panic buying and restrictions on movements.

The market is characterized by several growth initiatives, such as acquisitions, mergers, online sales, and investment in R&D. Manufacturers are also concentrating on new product launches, capacity expansions, and technological innovation to estimate existing and future demand patterns. Key players in the market include: Nexira, Kerry Group; TIC Gums Inc., ISC Gums. Key trend players have been relying on forming strategic partnerships to build and strengthen their network of high-quality raw material suppliers.

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Key Segments Covered:

Acacia Gum Market based on type is segmented into Acacia Senegal and Acacia Seyal. Acacia Senegal dominated the Acacia Gum market in the year 2020 and is estimated to grow during the forecast period 2020-2028. Acacia Senegal trees yield in all types of seasons, regardless of climatic conditions and soil texture. They are drought-tolerant, which makes them suitable to grow in the drier parts of the world. These trees yield the largest amount of superior quality gum acacia when they are unhealthy. Key applications of this form of gum include medicine and essential oil, as timber and fuel wood, as a soil improver, for intercropping, and as an ornamental tree in some parts of the world.

Acacia Gum has several value-added benefits over starch, gelatin and other additives utilized in drinks as it is a natural stabilizing and emulsifying agent. Beverage manufacturers and makers of edible flavors, syrups, and concentrates have been increasingly using Acacia Gum as a functional ingredient in soft drinks, smoothies, fruit-flavored water and beverages, and various soft-alcoholic drinks.

The ingredient plays a pivotal role in dairy products as an encapsulation medium and stabilizer. Its air-holding ability improves freezing stability in Ice-creams and other frozen desserts. Thriving e-commerce channels and an increasing number of domestic vendors have been providing players major growth opportunities and are the reasons set to continue the growth during the forecast period.

Furthermore, it is also used as a pigment stabilizer, an alternative for artificial sweeteners and in chewing gum as a coating agent. Consequently, due to established food & beverages industry in North America and growing industry in developing countries of Asia-Pacific, the consumption of acacia gum is expected to grow at high rate.

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