Albany, NY -- (SBWIRE) -- 08/11/2017 -- The global food hydrocolloids market is fragmented and competitive with the presence of a large number of local and regional players, notes Transparency Market Research in a new report. New product launches, investments, acquisitions, and expansions are the preferred growth strategies among key players in this highly competitive market, adds the report.

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Du Pont De Nemours & Company, Cargill Incorporated, Darling Ingredients, Kerry Group plc, CP Kelco, Fuerst Day Lawson, Ashland Inc., Ingredion Incorporated, Koninklijke DSM N.V., and Rico Carrageenan are to name some of the prominent participants in the global food hydrocolloids market.

As per a report by Transparency Market Research, the global food hydrocolloids market is projected to increase at a CAGR of 3.6% between 2017 and 2025. Rising at this rate, the market is expected to be valued at US$7,634.0 mn by the end of 2025 from an estimated value of more than US$5,762.8 mn in 2017.

North America to Remain Attractive in Forthcoming Years

By source type, plant source, microbial source, seaweed source, animal, and synthetic source are the segments of the market. Plant source segment is expected to account for 37.4% of the overall market by the end of 2017. The thickener function segment is expected to dominate the global food hydrocolloids market over the forecast period. Amongst application segments, bakery and confectionery is expected to display a significant 4.8% CAGR over the forecast period.

On the basis of region, North America is anticipated to dominate the global food hydrocolloids market in 2017. The region is expected to gain significantly in terms of revenue by the end of 2025.

Increasing Consumption of Convenience Foods Benefits Market

The food industry has been displaying a surging adoption of food hydrocolloids over the past decade on account of its functional properties. The rising demand for ready-to-eat meals has been a key factor for the upsurge in the demand for hydrocolloids. In response to this, manufacturers of food hydrocolloids are focusing on expanding production capacity to serve the increasing demand for hydrocolloids across various regions.

The increasing number of personal and professional commitments is likely to make consumer dynamics more complex in the coming years. This will impact eating habits as well, wherein the demand for convenience and ready-to-eat meals will further increase. This, in turn, would display an increased demand for ingredients used in food products, which include hydrocolloids. Thus the demand for hydrocolloids is on the rise across all geographies, though a little higher in developing markets.

Hydrocolloids, particularly the low molecular weight type, carry potential health benefits which is anticipated to have a positive impact on the food hydrocolloids market. Food hydrocolloids could be beneficial for patients suffering from constipation and irregular bowel movement if included in food products. This, however, requires regulatory approval before food hydrocolloids such as gum arabic can be included in food products, especially in Europe.

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The global food hydrocolloids market is facing challenges despite its immense growth potential. This is because the regional food industry uses conventional ingredients, thereby restricting the global food hydrocolloids market to attain potential growth. Consumers of hydrocolloids have limited awareness of the use of hydrocolloids in the product. This is acting as a restraint for the global food hydrocolloids market.