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Emulsifier Market Size Forecast to Reach $10.2 Billion by 2026

Increasing Demand for Emulsifier in the Manufacturing of Cosmetics Driving the Growth of Emulsifier Market.

 

New York, NY -- (SBWIRE) -- 10/07/2021 -- Emulsifier Market size is forecast to reach US$10.2 billion by 2026, after growing at a CAGR of 5.8% during 2021-2026. The increasing use of emulsifiers in the food products such as cereals, nutrition products, ready-to-eat meals & snacks, desserts, and others and the growing demand for packaged food products on account of convenience and improved shelf life is driving the market growth globally. Additionally, the increasing demand for emulsifiers in infant nutritional foods that are non-protein based emulsifiers such as lecithin, monoglyceride, citric acid esters of mono- and diglycerides of fatty acids, and many others, is also driving the market growth. Furthermore, R&D growth in sectors such as pharmaceuticals and chemicals are anticipated to create new opportunities for the growth of the global emulsifier industry in the forecast era.

Impact of Covid-19

The Covid-19 pandemic severely affected the production and supply-demand for emulsifiers in the starting months of the year 2020. Due to nationwide lockdown, the movement of products was set to a pause, which led to the decline in the demand for emulsifiers. Furthermore, the acceptance of the new normal has driven the demand for emulsifiers from various end-use industries which are further estimated to incline the growth of the emulsifier market in the forecast period.

Emulsifier Market Segment Analysis - By Type

Natural emulsifiers held the largest share in the emulsifier market in 2020. Owing to its low cost, easy availability, and biocompatibility it is highly preferred as compared to other various types of emulsifiers. The rising demand for lecithin as a natural emulsifier for the restoration of skin health by reducing dryness and flakiness is set to drive market growth. Also, the increasing use of lecithin as a thickener, mild preservative, stabilizer, emollient, and moisturizer in natural beauty products is raising the demand for natural emulsifiers. The use of natural emulsifiers in food goods will, however, contribute to a better and more secure supply of food.

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Emulsifier Market Segment Analysis - By Application

Food and beverage industry held the largest share in the emulsifier market in 2020 and is anticipated to rise at a CAGR of 4.9% during the period 2021-2026. A food emulsifier, also known as an emulgent, is a surface-active chemical that forms a barrier between two immiscible liquids like oil and water, allowing them to be mixed into stable emulsions. Emulsifiers also reduce stickiness, control crystallization, and prevent separation due to which it is highly preferred in processed food products such as dairy & meat products, bakery, convenience foods, and confectionery. In the food industry, sorbitan esters, monoglycerides, and diglycerides are increasingly being employed as emulsifiers. Moreover, rising consumer requirements for fibrous and nutritious food products is another trending aspect of the emulsifier in the food and beverage industry. Also rising consumption and increasing demand for packaged food products will drive the emulsifier market growth in the upcoming years.

Emulsifier Market Segment Analysis - Geography

Asia Pacific held the largest share with 40% in emulsifier market in 2020. Rising demand for emulsifiers from various end-use industries such as pharmaceutical, food and beverage, cosmetics, and personal care are majorly driving the demand for emulsifiers in this region. The growing food and beverage industry in economies such as China will drive the emulsifier market growth. According to the International Trade Administration, as per China chain store and franchise Association in 2019, the food and beverage (F&B) sector in China hit approximately US$ 595 billion, a rise of 7.8% over 2018. Also, the rising demand for emulsifiers in tablets, syrups, creams, and gels will drive the pharmaceutical industry. According to India Brand Equity Foundation, it is estimated that the Indian pharmaceutical industry will grow to US$ 100 billion, while the demand for medical devices is expected to grow to US$ 25 billion by 2025. Thus, with the growing use of emulsifiers in various end-use industries, the market demand is therefore anticipated to increase in the forecast period.

Emulsifier Market Drivers

Increasing Demand for Emulsifier in the Manufacturing of Cosmetics

Since water and oil do not mix, emulsifiers in cosmetics aid in the formation of homogeneous mixtures of both. Emulsifiers in cosmetics help to stabilize emulsions and influence formulation consistency. To begin with, the emulsifiers' unique molecular structure reduces the surface tension between the hydrophilic and lipophilic constituents, promoting the formation of finely dispersed mixtures. In addition, emulsion stabilizers improve and prolong the stability and shelf-life of dispersions. By reducing flaking and restoring suppleness, lecithin and hydrogenated lecithin improve the appearance of dry or injured skin. These components also aid in the formation of emulsions by lowering the surface tension of the emulsified substances. Most cosmetic products, such as creams, lotions, sprays, and foams, make extensive use of emulsifiers in their formulations. Furthermore, the rising production of personal care and cosmetic products is estimated to drive the growth of the market in the forecast period. For instance, according to the International Trade Administration (ITA), the total production of cosmetics and personal care products in Mexico was found to be US$ 7.15 billion in 2019. Similarly, in Indonesia, the beauty and personal care product market revenues are expected to reach US$ 7.5 billion in 2021 and expand at a 6.5% compound annual growth rate through 2025. Thus, owing to such benefits, an increase in demand for emulsifiers in the manufacturing of cosmetics will drive the growth of the emulsifier industry.

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Emulsifier Market Challenges

Stringent Regulations Regarding Manufacturing and Supply of Certain Emulsifier

According to the Food and Agriculture Organization of United Nation, any emulsifier or stabilizer for use as an ingredient in food preparation that is not an approved emulsifier or stabilizer is prohibited from being manufactured, imported, distributed, sold, or advertised for sale under the regulations. The regulations also, establish labeling requirements for permitted emulsifiers and stabilizers sold as ingredients in food preparation, as well as prohibit labeling. Additionally, the 2011 Food Safety and Standards (Food Products Standards and Food Additives) Regulations define "emulsifying agents" and "stabilizing agents" as "substances that, when added to food, are capable of facilitating a uniform dispersion of oils and fats in aqueous media or vice versa, and/or stabilizing such emulsions, and include the agents specified." The use of emulsifying and stabilizing chemicals is likewise restricted according to FSSAI standards. Foods cannot contain emulsifying or stabilizing agents unless the emulsifying or stabilizing agent is specifically approved. Hence, rising strict regulations regarding manufacturing and supply of certain emulsifiers will further create hurdles for the emulsifier's market growth in the forecast period.

Emulsifier Market Landscape

Technology launches, acquisitions and R&D activities are key strategies adopted by players in the emulsifier market. Major players in the emulsifier, market are BASF SE, Dow Corning, AkzoNobel NV, Evonik, Kerry Group, AAK Bakery Services, DuPont Nutrition & Biosciences, Lubrizol Advanced Materials, Cargill Inc., Stepan Company, DSM Nutritional Products, and among others.

Acquisitions/Technology Launches

In October 2020, DuPont Nutrition & Biosciences introduced two new emulsifier solutions to assist the bakery industry in meeting consumer demand for friendlier labels and a smaller carbon footprint.

Key Takeaways

The Asia Pacific region dominated the emulsifier market due to the rising usage of emulsifiers in the production of pharmaceutical, food and beverage, cosmetics, and personal care products in emerging economies such as China, Japan, India, and others.

The food and beverage sector is always on the lookout for additives and ingredient solutions that help food items retain their nutritional value while also providing a longer shelf life, improved structure, and high stability. Thus, increasing usage of emulsifiers in the food and beverage industry will drive the growth of the market.

Also, clearly shifting of food consumption patterns from unprocessed to processed food and ultra-processed foods are driving the growth of the emulsifier market.

Strict government regulations towards the production and supply of emulsifiers would further hamper the growth of the market over the projected period.

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