Healthy CAGR 8.14% is the Key Motivator for Global Gum Arabic Market

Market Research Future (MRFR) has published on the “Global Gum Arabic market”.

Market Synopsis

According to the MRFR analysis, the global Gum Arabic market was valued at USD 915.00 million in 2022 and is projected to reach USD 1,992.8 million by 2032 at a CAGR of 8.14%.

The key factors driving the growth of the Gum Arabic market include its wide use in the food and beverage industry as a stabilizer, emulsifier, and thickener, especially in soft drinks and confectionery. In addition, the pharmaceutical and cosmetic industries are driving demand by using gum Arabic and its natural properties in drug delivery systems and as a binder in makeup products. Sustainability and natural ingredient trends continue to fuel the market as gum Arabic is seen as a safe and environmentally friendly alternative. Finally, innovations in agroforestry practices in gum Arabic producing regions such as the Sahel will improve yield and quality, increasing supply to meet growing global demand.

COVID-19 Impact on the Gum Arabic Market

The COVID-19 pandemic has had widespread and profound effects on various industries across the globe, and the Gum Arabic market is no exception. Gum Arabic, also known as acacia gum, is a natural exudate from the Acacia trees, primarily Acacia senegal and Acacia seyal. It is widely used in various industries, including food and beverages, pharmaceuticals, textiles, and cosmetics. This versatile ingredient faces challenges in production, supply chain, pricing, end-use applications, and other aspects due to the pandemic. In this comprehensive analysis, we will delve into each aspect to understand the multifaceted impact of the COVID-19 outbreak on the Gum Arabic market. The Gum Arabic production process involves harvesting resin from Acacia trees, a labor-intensive activity often carried out by small-scale farmers. The pandemic has disrupted this process in several ways. First, lockdowns and restrictions on movement have hindered the ability of farmers to access and collect Gum Arabic. Social distancing measures also impacted the workforce available for harvesting. Moreover, the economic uncertainties resulting from the pandemic may have led to a reduction in investments in agriculture, further affecting production. The Gum Arabic supply chain has been significantly disrupted due to the COVID-19 outbreak. Transportation restrictions, border closures, and reduced workforce availability have led to delays in the transportation of Gum Arabic from the production areas to processing facilities. The global nature of the Gum Arabic market also means that international trade has been affected, with delays in shipping and increased transportation costs. This has resulted in challenges for both producers and consumers in maintaining a steady supply of Gum Arabic. Beyond production, supply chain, and pricing, the COVID-19 outbreak has brought about several other challenges for the Gum Arabic market. For instance, there have been concerns about the health and safety of workers involved in Gum Arabic production and processing. Companies have had to implement new safety protocols and invest in protective equipment to ensure the well-being of their workforce. Additionally, the economic impact of the pandemic has led to shifts in consumer behavior, influencing the demand for products containing Gum Arabic.

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Competitive Landscape

The Gum Arabic market demonstrates a moderate level of concentration, characterized by the collective market share of the top 10 companies, which accounts for approximately 58.2% of the overall market. At the forefront of this competitive landscape is Nexira, holding a substantial 14.3% market share, reaffirming its position as the clear leader in the industry. Following closely is Gum Arabic Company (GAC) with an 11.2% market share, solidifying its presence as a significant player. Despite the dominance of these key players, the remaining 40.8% of the market is dispersed among numerous smaller companies, emphasizing a diverse and competitive landscape. This distribution suggests opportunities for new entrants and smaller players to enter the market and carve out their niche. The existence of various players in this segment highlights the dynamic nature of the Gum Arabic market, where innovation, product differentiation, and strategic market positioning play crucial roles in gaining a foothold. As such, the industry presents potential avenues for growth and competition, creating an environment conducive to the emergence of new players aiming to capture a share of the market. The growth of the market players in the global Gum Arabic space is dependent on various factors including market conditions, disposable income of individuals, growth of the working population, inflation, and industry development. The key players operating in the global Gum Arabic market include Nexira (Switzerland), Gum Arabic Company (Nigeria), Kerry Group (Ireland), TIC Gums (United States), Agrigum International Limited (England), Farbest Brands (United States), Hawkins Watts Limited (New Zealand), Alland & Robert SE (Germany), Archer-Daniels-Midland Company (ADM) (Germany), among others.

Segmentation

By Nature

1. Conventional: The consistent and sustained utilization of conventional Gum Arabic in sectors such as food and beverage, pharmaceuticals, and textiles continues to be a driving force behind the expansion of the market. Its status as a stable and traditional choice for numerous applications further reinforces its appeal to industries seeking reliability and established per Natureance standards.


2. Organic: The growing awareness among consumers regarding the benefits of organic alternatives has led to an increased demand for organic Gum Arabic. Industries are proactively adapting to these evolving consumer preferences, further boosting the market. Moreover, the heightened emphasis on health and environmental concerns has prompted a surge in the adoption of organic Gum Arabic across various end-use applications, contributing significantly to its anticipated growth.

By Functional Properties

1. Emulsifier: Its ability to stabilize emulsions enhances product quality and texture, driving an increased demand for Gum Arabic. Furthermore, the expanding global food processing industry is anticipated to contribute significantly to the segment's growth, as the need for effective emulsifiers like Gum Arabic continues to rise in tandem with the industry's expansion.


2. Stabilizer: The heightened demand for Gum Arabic as a stabilizer is attributed to its effectiveness in enhancing the shelf life of various products. This property is particularly valuable in the food and pharmaceutical industries, where maintaining product stability over time is critical. The pharmaceutical industry's reliance on stabilizers for drug formulations further fuels the demand for Gum Arabic as a stabilizing agent.


3. Thickener: Gum Arabic's ability to act as a thickening agent is crucial in the food and beverage industry, especially in products like beverages and confectionery. The rising demand for such applications contributes significantly to the segment's anticipated growth. Moreover, the cosmetic and pharmaceutical industries are increasingly incorporating Gum Arabic as a thickening agent in various formulations, further expanding its market presence.

By Grade

1. Acacia Senegal: The increased global demand for natural and plant-based products, expanding applications of Gum Arabic, and its versatility in various industries. This outlook positions the Gum Arabic market as an attractive sector for investors and businesses alike, showcasing sustained and robust expansion prospects.


2. Acacia Seyal: Increased utilization of Acacia senegal in diverse industries such as food and beverage, pharmaceuticals, and cosmetics, driven by its unique properties that cater to the rising demand for natural and versatile ingredients.

By Form

1. Kibbled Acacia Gum: This segment includes gum Arabic that has been refined into small coarse pieces during grinding. Acacia powder is mainly used for direct use or as an ingredient in various industries including food, pharmaceutical and cosmetic industries. Its light solubility and natural properties make it a versatile binder, emulsifier, and stabilizer, especially appreciated in the preparation of traditional and natural products.


2. Powdered Acacia Gum: Ready-to-drink (RTD) spirits are becoming more and more popular as people look for easy ways to enjoy their favorite drinking drinks while they are on the go. In this market, the choice of packing is a big reason why people buy or don't buy something. The can packaging type is a key segment of the Gum Arabic market. It includes a wide range of trends, applications, pricing strategies, and sales outlets, as well as significant differences between demographics and between developed and developing countries. Portability and ease of use are two of the most important trends in can packaging for RTD drinks.


3. Raw Gum Arabic: This form is crucial for industries that want to process gum Arabic themselves or use it in its most natural state for handmade products. The raw form is also central for research and development purposes and provides a starting point for testing the properties and potential applications of gum Arabic in various fields.


4. Spray-Dried Acacia Gum: pray-dried gum Arabic is a highly soluble, refined gum Arabic obtained by rapidly drying liquid gum Arabic into a fine powder with hot air. This process improves the functional properties of the rubber, such as emulsification and film formation, making it ideal for the production of high-quality food coatings, flavor encapsulation, and pharmaceutical excipients.

By Application

1. Food and Beverages: Gum Arabic has a significant share in the food and beverage segment, where it is valued for its natural emulsifying, thickening, and stabilizing properties. It is widely used in a variety of products, including soft drinks to prevent sugar crystallization and sweets to improve texture and mouthfeel. Its field of use extends to ice creams, where it prevents the ice from crystallizing, and as a stabilizer in sauces and dressings to ensure consistency and quality.


2. Nutraceuticals: The nutraceutical industry uses gum Arabic for its prebiotic properties, which support the growth of beneficial gut bacteria and aid in digestion. It is included in food additives to improve texture and serve as a source of fiber, improving the nutritional value of products aimed at health-conscious consumers looking for natural ingredients to maintain well-being and health.


3. Cosmetics and Personal Care: Gum Arabic is found in the cosmetics and personal care industry as a natural thickener and emulsifier in products such as lotions, creams, and makeup. Its film-forming properties make it ideal for use in mascara and eye shadows, where it helps stabilize the formulation and ensures even application and wear. The demand for natural and sustainable ingredients has increased its use in this segment.


4. Paints and Coating: In paints and coatings, gum Arabic is used as a binder and stabilizer that contributes to the viscosity and flow of the paint. It is particularly appreciated in watercolor paints for its ability to improve the dispersion of the pigment without compromising the intensity of the color, which gives a lasting and uniform final result.


5. Pharmaceuticals: In the pharmaceutical industry, gum Arabic is valued for its role in the preparation and delivery of drugs. It acts as a binder in the tablets, ensuring that they stay together but dissolve properly when swallowed. Its natural origin and few side effects make it an excellent choice for medicinal uses, including use as a sedative in cough suppressants and lozenges to soothe irritated mucous membranes.


6. Other Applications: In addition to these primary fields, the versatile properties of Arabic find niche applications, for example in the textile industry, where it is used as an adhesive to improve the strength and smoothness of the thread. In the printing industry, it acts as a binder for printing inks, ensuring the clarity and durability of prints. Its wide range of functions constantly opens up new opportunities for its use in various fields.

By Region

1. 
   

   North America: North America, especially the United States, holds the highest position in the North America gum Arabic market due to its strong food and beverage industry, developed pharmaceutical sector, and high demand for natural and organic products. The North America region and the emphasis on cleanly produced ingredients, as well as the transition to a healthier and more natural additive, have greatly increased the demand for gum Arabic, known for its versatility and natural origin.

   
   


2. 
   

   Europe: The European Union and its emphasis on food safety and sustainable supply practices are well suited to the characteristics of gum Arabic, making it a preferred choice for food manufacturers. Europe's advanced pharmaceutical and cosmetic industries are also driving demand for the region and the use of gum Arabic and its natural emulsifying and film-forming properties. Additionally, growing consumer preference for clean labels and herbal products will strengthen the Arab market in Europe. However, Europe is highly dependent on imports due to the lack of local production, which sometimes causes supply chain problems.

   
   


3. 
   

   Asia-Pacific: Asia Pacific dominates the global gum Arabic market due to a combination of economic, agricultural, and demographic factors. Mainly behind the region's dominance is its extensive food and beverage industry, which makes extensive use of gum Arabic as a stabilizer, emulsifier, and thickener. Countries with large populations such as China and India have seen increased demand for processed foods and beverages, pharmaceuticals, and cosmetics, all of which are important uses for gum Arabic.

   
   


4. 
   

   Rest of the World: The Rest of the World, including regions such as Africa, the Middle East, and South America, the Arab market is growing, albeit more slowly than Asia Pacific and North America. These areas affect both the supply and demand side of the market. Africa, especially the Sahel region, is the main producer of gum Arabic, providing a significant part of global demand. However, issues such as political instability, inadequate infrastructure, and limited technical progress in production and processing methods may hinder the growth of the market. The Middle East and Latin America have the potential for market expansion, led by gum Arabic-using industries. However, economic volatility, regulatory environment, and awareness and acceptance of gum Arabic and its applications will affect the growth rate of these regions.