Market Research Report
Global Gum Arabic Market - 2021-2028
|Global Gum Arabic Market - 2021-2028|
Published: July 26, 2021
Content info: 180 Pages
Delivery time: 2 business days
Gum arabic, also known as acacia gum, meska, and chaar gund/goond, is a natural emulsifier made from the hardened sap of two acacia species (Senegalia senegal (Acacia) and Vachellia (Acacia) seyal). Acacia trees can be found on Africa's west coast and the Indian subcontinent. Food and beverage, pharmaceuticals, textiles, inks, paper, ceramics, and paints are some of the end use industries where gum arabic is used as an emulsifier. Local farmers mainly grow gum arabic in the Sub-Saharan coastal belt. Despite being discovered and named in Senegal, the trees are farmed in Somalia, Sudan, and Senegal for the production of gum arabic. Sudan is the world's largest producer of gum arabic, which is usually exported to Europe for treatment, refining, and distribution to other parts of the world. Other gum arabic producing countries are Chad, Senegal, Nigeria, Tanzania, Mali and Mauritania
Market Dynamics: Increasing demand from various end-use industries
In the food and beverage industry, gum arabic is commonly used as an emulsifier. It's one of the most important emulsifiers in the production of syrups for soft drinks like Coca-Cola and Pepsi. Gum arabic ensures even sugar distribution in the liquid and helps prevent crystal precipitation at the bottom. Gum arabic is also used in a variety of pharmaceutical formulations to keep the ingredients in the drug together. It has therapeutic properties and, since it is high in dietary fiber, can be eaten with water to treat stomach problems. It can be used as a laxative and can help patients lower their cholesterol levels. Gum arabic is also used in conventional lithography and printing techniques. It's used in newspaper printing because it gives the ink adhesion properties that help the print last longer. Because of its tacky properties, gum arabic is used in book binding, photo printing, and paints for textiles and art.
Political instability in Somalia and Sudan, has resulted in a loss of customers, as businesses hesitate to align themselves with such societies. Factors such as climatic changes caused by global warming, overexploitation of acacia tree plantations, and political instability in the leading producing nation are expected to hamper the gum arabic market. Moreover, chemical companies have also produced a range of synthetic alternatives for emulsification applications. While they cannot equal gum arabic's superior emulsifying capabilities, these replacements can be produced safely as per market demand.
Market Segmentation: Acacia Senegal segment is expected to be hold highest market share of XX% during the forecast period
The gum arabic market, based on type, is segmented into Acacia Senegal and Acacia Seyal. Acacia Senegal segment is expected to grow with a CAGR of XX% during the forecast period. Sudan, Africa, and parts of eastern India are native to the tree. Regardless of climatic conditions or soil texture, Acacia Senegal trees are known to produce in all seasons. They are drought-tolerant, making them suitable for cultivation in arid climates. When these trees are unhealthy, they produce the greatest amount of high-quality gum acacia. In some parts of the world, this form of gum is used for medicine and essential oils, as well as timber and fuel wood, as a soil improver, for intercropping, and as an ornamental tree.
Acacia Seyal is projected to grow with highest CAGR of XX% during the forecast period. The Nile region is home to this tree, which can be found in many parts of Africa. The variant can withstand salts, high pH, and floods, and its average molecular mass of gum is higher than that of acacia Senegal. The gum produced by these trees is much darker than that produced by the Senegal varieties, and it has poor functional properties. However, Acacia Seyal is fast gaining prominence as it is relatively cheaper.
Geographical Penetration: North America is expected to dominate the global Gum Arabic market
The North America region accounted for the largest share of the regional Gum Arabic market. The United States dominated the North American Gum Arabic market with a share of XX% in 2020. This is due to a broad customer base, especially in the beverages, confectionaries, and pharmaceutical industries. Gum arabic is one of the most popular emulsifiers used in the manufacture of soft drink syrups. As a result, the region's booming food and beverage industry has aided market growth. Moreover, a well-established pharmaceutical sector also aids regional growth. The ingredient finds application in numerous pharmaceutical formulations and as a result, demand for the same is likely to remain steady over the coming years.
Asia Pacific is the fastest growing regional market and is expected to exhibit a CAGR of XX% over the forecast period. Soaring sales of dairy products, particularly in countries like Japan, China, Australia, and India have been driving the market.
The market is highly fragmented, with well-established and long-term operating players dominating. Because of the rising demand for food and beverages, competition is expected to intensify over the forecast period. Furthermore, the market's high level of competition is due to the presence of large and well-established players. Some of the key players operating in the market include Gum Arabic Company, Ashland Inc, Kerry Group, TIC Gums and Somar Corporation, among others. Key players have been relying on in the market is forming strategic partnerships to build and strengthen their network of high-quality raw material suppliers. For instance, in April 2019, Alland & Robert entered into a joint venture with India-based Sayaji Industries Limited. A brand-new name and logo embody the partnership. Alland & Robert will primarily focus on the production and supply of premium quality spray dried acacia gum for the growing Indian market.
COVID-19 Impact: Guar Arabic market has been negatively impacted as it is highly dependent on exports
The companies in food & beverage industry are facing low consumption of their products and supply chain challenges. The companies are focusing on altering their supply chains with the objective of adapting to the present business environment. The changes in consumer buying behavior may have serious implications on the growth of the gum arabic market in the short term. Moreover, the gum arabic market is highly dependent on exports from African countries. The pandemic has caused trade restrictions, owing to which the market has shown negative impact.