Press release
Gellan Gum Revenues to Grow Moderately at 4.3% CAGR During 2016-2026
Considering the growing demand for natural & organic gelling ingredients for production of food and beverages, global consumption of gellan gum should continue to increase at a greater pace. However, Future Market Insights projects that over a ten-year forecast period, global consumption will exhibit a moderate CAGR of 3.7%. Global gellan gum sales will incur a sluggish increment till the end of 2026, adding just over 500 MT to the current ballpark figures on global gellan gum consumption. Regardless of substituting agar as thickener for food & beverages and incurring higher use in production of pharmaceutical fluids, global sales of gellan gum will continue to rake in meagre revenues over the forecast period.Key Deterrents for Growth in Global Gellan Gum Consumption
Procuring raw materials required for production of gellan gum remains to be a major challenge for manufacturers. Complex techniques used for formulating gellan gum from lactose or glucose inhibits their production among local players that have a modest manufacturing infrastructure.
Gellan gum is now being actively substituted by alternative hydrocolloids such as xanthan, pectin and gelatine, which are cheaper to produce and easier to harvest from raw materials. The consumption of carrangeenan, among such hydrocolloids, is projected to gain traction as opposed to gellan gum.
Nevertheless, several companies in the global food & beverage industry will continue to prefer gellan gum as organic thickeners for products such as jellies, soups and packaged yogurts. Leading gellan gum manufacturers in the world are expanding their production capacity, primarily focusing on delivering gellan gum products for food & beverage applications. Royal DSM, a prominent manufacturer of gellan gum, recently acquired manufacturing plants in China, while CP Kelco made headlines for expanding the production capacity of its San Diego plant.
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In the report, titled “Gellan Gum Market: Global Industry Analysis & Opportunity Assessment, 2016-2026,” Future Market Insights mentions that a majority of gellan gum manufacturers in the global market are based in China, and are incidentally factoring a rampant growth of gellan gum market in the Asia Pacific excluding Japan (APEJ) region. Dancheng Caixin Sugar Industry Co. Ltd., Zhejiang Tech-Way Biochemicals Co. Ltd., Hangzhou Gellan Solutions Biotec Co. Ltd., Zhejiang DSM Zhongken Biotechnology Co. Ltd., Meron Group, Hebei Xinhe Biochemical Co. Ltd., Fufeng Group, and Inner Mongolia Rainbow Biotech Co. Ltd., are gellan gum manufacturers based in APEJ countries such as China and India. In terms of global market value, APEJ gellan gum market will account for over one-third share throughout the forecast period. US-based CP Kelco will continue to account for over 70% of global gellan gum revenues, making North America a dominant region in the global gellan gum market through 2026.
According to Future Market Insights, the global market for gellan gum raked in an estimated revenues worth US$ 46.1 million in 2016, which are likely to increase at 4.3% CAGR to reach US$ 70.2 million by the end of 2026. Demand for gellan gum products will high acyl content will remain lower compared to low-acyl gellan gum products, with global sales of the latter are expected to amount nearly US$ 50 million revenues by the end of 2026. The report also projects that application of gellan gum in global food industry will procure revenues worth over US$ 40 million by the end of forecast period, rendering it the largest application segment in the global gellan gum market.
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