Gum Arabic Market - Evolving Industry Trends and key Insights by 2025

The food and beverages application segment is estimated to be valued at a little more than US$ 180 Mn in 2017, which is expected to increase at a CAGR of 5.7% over the forecast period, to be valued at more than US$ 280 Mn by the end of 2025. The segment is estimated to create absolute $ opportunity of more than US$ 8 Mn in 2017 over 2016 and incremental $ opportunity of a little more than US$ 100 Mn between 2017 and 2025. The food and beverages segment by application is expected to retain its dominance in the global Gum Arabic market throughout the forecast period, with near about 60% revenue share, followed by the pharmaceuticals & dietary supplements segment.

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Increasing use of Gum Arabic in food and beverages that contain fiber anticipated to boost revenue growth of the food and beverages segment

Characteristic dietary fiber is necessary for bringing down blood cholesterol and controlling glucose levels. Gum Arabic contains 80%–85% natural dissolvable fiber, which binds all insoluble fiber in a diet. Rising interest for high dietary fiber content items among customers across the globe is resulting in rising number of producers, producing products with improved nature of Gum Arabic. This rising demand for dietary fibers is anticipated to fuel the growth of the food and beverages segment over the projected period.

Demand for Gum Arabic for application as a natural binder in the bakery and confectionery industry is moderately high, and it represents no harm if consumed, unlike artificial or synthetic binders. Gum Arabic is broadly utilized in the food and beverages industry as an emulsifier in various product applications. Gum Arabic is steady in low pH conditions and is a moderately essential element for refreshments. Likewise, it displays low consistency properties in water and different fluids without evolving mouthfeel, flavor or texture of the original beverages. These advantages are encouraging key players in the global food and beverages industry to receive and increase applications of Gum Arabic in different food products. This increasing use of Gum Arabic in food products is creating a positive impact on the food and beverages application segment of the global Gum Arabic market.

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Increasing demand for easily soluble Gum Arabic among consumers in the global market is encouraging manufacturers to develop and produce new formulations such as instant soluble Gum Arabic. Instant soluble Gum Arabic solution is used in dry spray preparations for powder encapsulation, which is a technique that helps in the encapsulation of flavors, aromas, and colors. This increasing use of soluble Gum Arabic in beverages is anticipated to boost the food and beverages segment during the period of assessment.

Food and beverages segment expected to register a high CAGR in the APAC Gum Arabic market over the forecast period

The food and beverages segment is estimated to be valued at more than US$ 35 Mn in 2017 in North America, and is expected to increase at a CAGR of 6.2% over the forecast period, to be valued at almost US$ 60 Mn by the end of 2025. In Latin America, the food and beverages segment is estimated to create absolute $ opportunity of US$ 0.53 Mn in 2017 over 2016 and incremental $ opportunity of US$ 5.9 Mn between 2017 and 2025. The segment is likely to increase at a CAGR of 5.4% during the projected period in Europe, while in the APAC Gum Arabic market, the food and beverages segment is anticipated to register a CAGR of 6.2% during the period of forecast.

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