Gellan Gum Market is Estimated to Witness High Growth Owing to Demand from Food Industry

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Gellan gum is a high molecular weight extracellular polysaccharide produced by the microorganism Sphingomonas elodea. It is used as a gelling, thickening and stabilizing agent in various food applications such as soups, sauces, dressings, dairy products, meat and poultry products. Gellan gum provides excellent heat and freeze-thaw stability to food products along with clarity and snap effect. It also acts as a texturizer in low-calorie and fat-free products. The high demand for convenience, processed and ready-to-eat food items is propelling the demand for gellan gum from food manufacturers globally.

The global Gellan Gum Market is estimated to be valued at US$ 216.82 Mn in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Opportunity

The growing health consciousness among consumers is fueling the demand for low-calorie and diet food products. Gellan gum, being a versatile thickening and gelling agent, finds wide application in development of low-fat, low-sugar and reduced-calorie food items. It helps in maintaining the texture and mouthfeel in such diet foods without compromising on taste. The ability of gellan gum to produce firm and elastic gels at very low concentrations make it an ideal ingredient for calorie-conscious food formulations. The increasing prevalence of obesity and related diseases is propelling healthy food consumption globally, which is expected to drive the demand for gellan gum from food manufacturers over the forecast period. Gellan gum can help meet the nutritional requirements of health-conscious consumers, serving as a major market opportunity.

Porter's Analysis
Threat of new entrants: The gellan gum market has moderate threat of new entrants as it requires high initial investment for R&D and production facilities. However, low raw material costs provide opportunities.
Bargaining power of buyers: Buyers have moderate bargaining power due to the availability of substitute products. However, gellan gum's unique properties reduce impact of bargaining power.
Bargaining power of suppliers: Suppliers have low-moderate bargaining power due to availability of substitute raw materials for gellan gum production.
Threat of new substitutes: Threat of substitutes is moderate as gellan gum has certain unique characteristics that are difficult to replicate. However, other hydrocolloids continue advancing.
Competitive rivalry: The market has high competitive rivalry due to the established presence of global players and private label manufacturers.


SWOT Analysis
Strengths: Gellan gum has high stability, texture control and forms thermo-reversible gels. It is suitable for clear, heat-stable gels with neutral taste and odor.
Weaknesses: Gellan gum has high production costs. Raw material sourcing difficulties impact development.
Opportunities: Increasing usage in food, personal care and pharmaceutical applications drives opportunities. Demand from developing regions is an opportunity.
Threats: Stringent regulations and availability of substitutes are threats. Volatility in raw material prices also impacts the market.


Key Takeaways
The Global Gellan Gum Market Size is expected to witness high growth over the forecast period 2023-2030. The global Gellan Gum Market is estimated to be valued at US$ 216.82 Mn in 2023 and is expected to exhibit a CAGR of 12% over the forecast period 2023 to 2030.

Asia Pacific dominated the market in 2023 and is estimated to continue dominating with rapid economic development and increasing health conscious population in countries like China and India driving demand.

Key players operating in the gellan gum market are DSM, CP Kelco, H & A Canada Inc., Nanjing Joyfulchem Co., Ltd., Dancheng Caixin Sugar Industry Co. Ltd., Zhengzhou Cinogel Biotech Co., Ltd., Hangzhou Gellan Solutions Biotec Co., Ltd., DuPont, Hebei Xinhe Biochemical Co. Ltd, and Nutricorn Co., Limited. The demand for gellan gum in food industries is increasing due to properties like stability, clarity and ability to form thermo-reversible gels.

 

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