Gum Arabic market to represent a significant expansion at 6.5% CAGR by 2025

Increasing need for controlling glucose levels and bringing down blood cholesterol has led to an upsurge in demand for dietary fiber. Bakery and confectionary industry will witness relatively high demand for gum arabic due to increasing need for a binder of natural attributes. Moreover, consumption of gum arabic represents no harm as compared to synthetic and artificial binders. The global gum arabic market is expected to witness a growth of 5.7% CAGR over the forecast period, 2017-2025.

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Market Dynamic
Attributed to relatively low consistent properties in various fluids and water without evolving texture, flavor and mouth-feel of the original beverages, the gum arabic will witness surge in demand in the coming years. In addition, the gum arabic is relatively more stable in low pH conditions, and is moderately an essential element for refreshments. Moreover, as manufacturers are encouraged to produce and develop new formulations, the gum arabic market is likely to witness an upsurge in demand over the coming years. Furthermore, with the increasing production of dry spray preparations for encapsulation of powder, the gum arabic market is likely to witness a surge in growth globally in the span of next eight years. Additionally, surge in application of gum arabic in beverages is likely to fuel growth of the food and beverages segment over the coming years.

Segmentation Analysis
Acacia senegal among other types of gum arabic will retain dominance in terms of revenue, and consumption will remain relatively high in the coming years. However, consumption of acacia seyal will remain relatively high among other types of products in the span of next eight years. The acacia senegal will witness relatively high consumption of over 90 thousand tons over the coming years. Food and beverages will represent the largest application of gum arabic, and will account for a revenue share of 60% globally in the coming years. Pharmaceutical applications in gum arabic will further gain traction, and will witness a growth of 5.6% CAGR in the span of next eight years.

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Regional Analysis
Europe will represent major market for gum arabic globally, and will account for over US$ 170 Mn over the coming years. The gum arabic market in North America is likely to witness an impressive growth of 6% CAGR in the coming years. Whereas, Asia Pacific will account for 50 thousand tons of gum arabic in the span of next eight years. Moreover, Asia Pacific will grow at a relatively fast pace at a CAGR of 6.1% CAGR in terms of revenue over the coming years.

Market Players
Key manufacturers operating in the global gum arabic market are mainly focusing on offering health claims with supporting clinical evidence for various end products. In addition, manufacturers mainly focus on health-related benefits of gum arabic in the coming years. Leading manufacturers operating in the global gum arabic market include POLYGAL AG, AEP Colloids Inc., C.E. Roeper GmbH, Mountain Rose Herbs, Inc., Tic Gums Inc., IMPORTERS SERVICE CORP., KERRY GROUP PUBLIC LIMITED COMPANY, Nexira International, ALLAND ET ROBERT S.A. and CARAGUM International, S.A.

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