June 17, 2024
Gellan Gum Market

Gellan Gum Market Driven By Growing Food And Beverages Industry

Gellan gum is a high molecular weight extracellular polysaccharide produced by the fermentation of Sphingomonas elodea bacteria. It finds wide usage in food products due to its uniqueness in forming thermoreversible gels. The consistency and texture provided by gellan gum make it ideal for producing sauces, soups, dairy products, beauty products and more. Produced gels have characteristic properties of being elastic and soft.

The global Gellan Gum Market is estimated to be valued at US$ 249.78 Million in 2023 and is expected to exhibit a CAGR of 3.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

One of the main trends pushing the market growth is the increasing demand for gellan gum from the food and beverages industry. Gellan gum is used in various food products as a stabilizer, thickening and gelling agent. It helps maintain texture, prevent syneresis and provides stability to products. Due to the COVID-19 pandemic, more people are consuming ready-to-eat foods and beverages which has boosted demand. Another key trend is the rising health-consciousness among consumers who prefer foods with less starch, fat and calories. Gellan gum acts as a substitute for fat, starch and sugar in reduced calorie products. Additionally, growing vegetarianism and veganism has augmented the demand for plant-based and clean label products where gellan gum plays an important role.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the gellan gum market is moderate to low as it needs huge capital investment for research and production setup. In addition, existing players have established supply chains and brand loyalty.

Bargaining power of buyers: The bargaining power of buyers in the gellan gum market is moderate given its use as stabilizers and thickeners in food, bakery, confectionery, personal care products and pharmaceutical industries. Buyers can opt for substitutes if prices are high.

Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are limited suppliers of gellan gum. Major companies operating capture a substantial share of production. Suppliers have advantage due to proprietary production technologies.

Threat of new substitutes: The threat of substitutes is moderate given availability of other hydrocolloids like xanthan gum, guar gum, locust bean gum that serve similar functions. However, gellan gum provides unique sensory advantages.

Competitive rivalry: The competitive rivalry in the market is high given dominance of few multinational players. Players compete based on product quality, consistency, price and innovation.

Key Takeaways

The Global Gellan Gum Market Size is expected to witness high growth over the forecast period of 2023 to 2030. The global Gellan Gum Market is estimated to be valued at US$ 249.78 Million in 2023 and is expected to exhibit a CAGR of 3.8% over the forecast period 2023 to 2030.

Regional analysis: Asia Pacific accounted for over 40% of global demand in 2023. China is the largest producer and consumer globally. India and Southeast Asia are growing steadily driven by rising food processing sectors. North America and Europe are also significant markets given focus on convenience, healthy and organic foods.

Key players: Key players operating in the gellan gum market are China National Bluestar (Group) Co. Ltd, DuPont, Hebei Xinhe Biochemical Co. Ltd, Nanjing Joyfulchem Co., Ltd. Players compete on differentiating their products and expanding applications in new sectors like pharmaceuticals and personal care.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it