The Role of Sustainable Food Solutions for India Hydrocolloids Market
The Role of Sustainable Food Solutions for India Hydrocolloids Market
Blog Article
The hydrocolloids market in India has been growing significantly over the past decade. Hydrocolloids are high molecular weight polymers that are derived from natural sources as well as synthetic sources. They are widely used as food additives and thickeners in a variety of food products such as dairy products, bakery products, sauces, dressings and more. They provide texture improvement, stability, mouthfeel enhancement and water retention in foods.
Some of the major India Hydrocolloids Market used in India include gelatin, carrageenan, xanthan gum, pectin, guar gum, alginates and starch. The rising awareness regarding healthy diet and clean label products has been driving the demand for hydrocolloids from the food and beverages industry.
The India Hydrocolloids Market is estimated to be valued at USD 144.8 Mn in 2024 and is expected to reach USD 218.6 Mn by 2031, growing at a CAGR of 7.1% from 2024 to 2031.
Key Takeaways
Key players operating in the India hydrocolloids market are Ashland Global Specialty Ingredients, Cargill, CP Kelco, Dupont, FMC Corporation and Kerry Group. These players are focusing on capacity expansion and new product development strategies to cater to the growing demand.
The demand for hydrocolloids is increasing from various food applications such as dairy products, confectionery, sauces and dressings. The changing food consumption patterns and rising health consciousness among consumers is driving the growth of processed food industry in India. This in turn is fueling the demand for hydrocolloids from food manufacturers.
Technological advancements are helping manufacturers develop new grades of hydrocolloids with superior texture, stability and performance. Numerous novel hydrocolloid formulations are being introduced to serve the requirements of various food applications. Rapid innovations centered on functionality, sustainability and label-friendliness of hydrocolloids.
Market Trends
Growing popularity of clean label and plant-based products: Consumers are shifting towards clean label products with minimal processing and identifiable ingredients. This is driving the demand for natural hydrocolloids like starch, pectin and gum in various vegan foods.
Increasing application in dairy alternatives: With rising vegan population, dairy alternatives like plant-based milk, yogurt and cheese have gained popularity. Hydrocolloids are widely used to mimic the texture and mouthfeel of dairy products in non-dairy substitutes.
Market Opportunities
Rising health-conscious middle class: Health awareness is surging among Indian middle class consumers fueling the demand for functional foods with hydrocolloids. This provides opportunities for value-added products targeted at wellness-seekers.
Growth of organic segment: The organic food segment is growing rapidly in India driven by millennial shoppers. This increase focus on organic certification of hydrocolloids to tap into the rising demand from premium organic food manufacturers.
The COVID-19 pandemic has significantly impacted the India hydrocolloids market. Pre-COVID, the market was growing steadily at a CAGR of 7.1% driven by expanding food processing industry. However, nationwide lockdowns imposed to curb the virus spread disrupted the supply chains and halted production facilities. This led to shortage of key raw materials like gums, starches, pectin etc. used to produce hydrocolloids.
With restrictions now being lifted in a phased manner, production and supply chains are slowly getting back on track. However, demand has also witnessed a decline as food service industry was hit hard. Hotels, restaurants and cafes closed down impacting sales of products using hydrocolloids. Export markets too dried up affecting revenues of players. Though retail sales increased for staples and packaged foods, it could not offset the losses from other segments.
Going forward, focus on health, immunity and convenience is expected to drive uptake of functional and packaged foods offering growth opportunities. Players are innovating product offerings, strengthening distribution networks and enhancing safety protocols at facilities. The agriculture dependent economy is also recovering, ensuring steady raw material supply. However, risks of second wave and potential restrictions continue to loom. Increased investment in R&D, capability development and digitization will be key for businesses to emerge stronger from this crisis.
In terms of value, Western region leads India's hydrocolloids market accounting for over 35% share. States like Maharashtra, Gujarat and Tamil Nadu have sizable food processing industries driving hydrocolloids consumption. Eastern states are witnessing fastest growth on back of development initiatives and expansion of FMCG sector. Odisha has emerged as a manufacturing hub attracting investments while West Bengal is transforming into a food basket.
Northern region has shown consistent growth over past few years and is emerging as the fastest growing region for hydrocolloids market in India currently. Growth is supported by favorable policies, improving infrastructure and increasing domestic demand from packaged foods, dairy and beverages sectors. States like Punjab, Haryana and Delhi-NCR offer tremendous opportunities especially for dairy and beverage companies.
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About Author: Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)