Beverage Emulsion Market Outlook

The net worth of the global beverage emulsion market is estimated to be USD 526.5 million by the end of 2023. As per the beverage emulsion industry analysis report, it is expected to reach a market valuation of USD 754 million by 2033, accelerating at a CAGR of 4.3% from 2023 to 2033. Beverage emulsion industry sales are likely to account for a part of the demand in the global food processing market in 2023.

Rising consumption of innovative beverage products across various sectors, such as food service, retail, and others, is the prominent reason driving the market growth. Historically, emulsion for beverages has been used sparingly in beverage products, pointing to its steady growth rate in recent years. Nonetheless, as consumers seek more innovative textures and flavors in their beverages, demand for such products, including soft drink emulsion, is rapidly increasing. Liquid emulsion market is projected to uplift as a result.

Attributes Details
Beverage Emulsion Market Size (2023E) USD 526.5 million
Beverage Emulsion Market Projected Size (2033F) USD 754 million
Beverage Emulsion Market CAGR (2023 to 2033) 4.3%

FMI analysis indicates that with increased application in functional beverages, sales of beverage emulsions have increased manifold in the recent past. Demand for beverage emulsion from beverage manufacturers is also expected to be influenced by rapidly rising demand for non-alcoholic beverages due to its growing popularity among consumers, particularly younger people.

In the local marketplace, the increased sales of functional beverages are driven by a growing aversion to alcohol consumption. According to the World Health Organization, alcohol consumption kills 3 million people worldwide yearly, accounting for 5% of the global addiction burden. Recognizing this, consumers are making deliberate efforts to choose healthier alternatives, resulting in higher beverage emulsion sales across several markets.

Technological advancements in the packaging industry have increased the variety of convenience food products. Improved storage equipment and parameters have helped increase the shelf-life of such emulsion drinks, making them more accepted among general consumers.

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Key Opportunities: Demand for Functional Beverages to Alter Beverages Landscape

The encouraging opportunities in the beverage emulsion market are anticipated to be driven primarily by an increase in demand for healthy and natural beverages. Beverage emulsion drink provides additional benefits, such as controlled release, protection, targeted deliver. Such advantages have lately made a buzz in the local markets with easy access to information and have favored key trends and opportunities in the beverage emulsion industry.

The growing consumer preference for packaged ready-to-drink beverages has aided the market growth. As emulsifiers are widely used in most types of plant-based beverages, so the market trend is expected to rise over the forecast period.

What’s Stifling the Market Players?

The major problem faced by the beverage emulsion sector is ensuring that the beverages are stable and preventing them from coagulation. As color, taste, flavors, and texture are insoluble components, other liquids are necessary to keep the mixture stable and keep these properties intact. A souring of such stabilizers is the major challenge that needs to be taken care of by the participants in the global beverage emulsion market.

Nandini Roy Choudhury
Nandini Roy Choudhury

Principal Consultant

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Global Beverage Emulsion Market Historical Analysis (2018 to 2022) Vs. Forecast Outlook (2023 to 2033)

Historical CAGR (2018 to 2022) 3%
Forecast CAGR (2023 to 2033) 4.3%

As healthy drinking trends acquire precedence, the beverage emulsion industry opportunities have only expanded. Low-calories beverages are preferred by over two-fifths of adults aged 19-64 years in the United Kingdom, while over half of the United States population, adults and children, consumed them. In 2022, the market attained total revenue of USD 511.2 million, and registered CAGR of 3% in the historical period.

Even though COVID-19 had an adverse impact on the market initially, the global pandemic times witnessed a surge in demand for healthy and immunity-boosting foods and drinks to stay prepared for COVID-19 infection.

Due to such trends, the market penetration through products such as plant-based waters, functional beverages and kombucha has intensified. In recent years, beverage emulsion companies have incorporated efficient and advanced beverage emulsion solutions. Furthermore, growing abhorrence to alcohol consumption is prompting higher demand for beverage emulsions than before.

As per the recent market report published by FMI, the beverage emulsion industry is anticipated to reach USD 754 million by the end of 2033. FMI evaluates important developments in the market over the forthcoming period.

Duration Market Analysis
Short Term Growth (2022 to 2025) The market is anticipated to reach USD 572.75 million by 2025. The market is witnessing widened scope for expansion as demand for multifunctional beverage emulsions, including features like controlled release, protection, taste masking, and targeted delivery, is rising. These beverage emulsions offer cost benefits to manufacturers, in addition to adding volume, color, and flavor with single emulsion only. Over the forecast period, beverage emulsion market and color emulsion market are projected to surge.
Medium Term Growth (2025 to 2028) By 2028, the market is estimated to generate revenue of USD 649.86 million. The increasing demand for customized dairy and non-dairy gum and emulsifiers to prolong shelf life of beverages is projected to boost market growth in the upcoming years. The growing shift towards nutrient-enriched, clean-label products, stimulated by the emerging health-and-wellness trend, is projected to positively influence the market over the forecast period.
Long Term Growth (2028 to 2033) By the end of 2033, the market is slated to reach USD 754 million. The market is projected to witness strong growth as competitors in the market are embracing sustainability in their supply chain. Beverage manufacturers are expected to utilize e-bikes, and electronic vehicles in future, in line with sustainability concerns. Another key factor which is expected to define the future of beverage emulsion is packaging. Many key players in the market are predicted to take on a novel approach to packaging. Additionally, introduction of innovative flavored products is projected to cater to the beverage flavor emulsions market.

Segment-wise Analysis

Cloud Emulsion to Emerge as the New Face of Beverage Emulsion Market

The cloud emulsion segment, under the category of emulsion type, is projected to expand at 4.4% CAGR over the forecast period, up from the 3.1% CAGR witnessed in the historical period. Cloud emulsion is expected to register the significant growth attributed to its aesthetic appeal, thicker sensation and enhanced taste. These solutions are also known to limit sedimentation and ringing, so it is getting widely preferred by older people.

Historical CAGR (2017 to 2022) 3.1%
Forecast CAGR (2023 to 2033) 4.4%

Pectin to Expand Expeditiously over the Upcoming Years

Pectin is estimated to assume 4.2% CAGR over the forecast period, lifting up from the 3.3% CAGR registered in the historical period. As per the recent market report, pectin is the dominant segment with the significant revenue share generated annually. Pectin is also widely used in different functional beverage products rendering it a strong market awareness and presence. So, the contribution of pectin emulsifiers for beverages is expected to follow the substantial figures through the projection period.

Historical CAGR (2017 to 2022) 3.3%
Forecast CAGR (2023 to 2033) 4.2%

Commercial Applications of Beverage Emulsion

For a very long time, emulsifiers have been used in the non-alcoholic beverage industry for various applications. And the alcoholic beverage segment of the beverage emulsion industry is the significantly grossing category, with a share of more than 50% in revenue generated globally.

Over the past couple of years, contrastingly, emulsifiers have been in high demand in dairy-based beverages and various RTD beverages. Demand for emulsion for such non-alcoholic drinks is expected to rise in response to the growing popularity of functional beverages due to the global health trend. Therefore, the lucrative milk emulsion market is projected to positively impact the beverage emulsion market over the forecast period.

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Emerging Trends in Beverage Emulsion Market in Different Geographical Regions

The United States Market Size (2033) USD 169.65 million
Estimated CAGR 4.4%
The United Kingdom Market Size (2033) USD 45.24 million
Estimated CAGR 6.4%
China Market Size (2033) USD 119.89 million
Estimated CAGR 4.7%
Germany Market Size (2033) USD 60.32 million
Estimated CAGR 7%
Spain Market Size (2033) USD 25.64 million
Estimated CAGR 5.4%

North America to Bag Substantial Market Portion

Attributes of the United States Market Details
Market Size (2033) USD 169.65 million
Market Absolute Dollar Growth (USD million/billion) USD 59.38 million

By the end of market forecast period in 2033, the North American beverage emulsion industry is expected to cross sales volume of 46,000 tones. The presence of the most global key players and increased acceptance of non-alcoholic beverages among the general public have significantly boosted the sales of beverage emulsions in the United States and Canada. Furthermore, as diet and fruit beverage consumption are increasing among United States adults, according to the National Health and Nutrition Examination Survey, beverage emulsion products have entered the mainstay drinks of the citizens in urban culture.

United States CAGR
Historical CAGR 2.9%
Forecast CAGR 4.4%

Wide Consumer Base in the Asia Pacific to Induce Regional Expansion

Attributes of China Market Details
Market Size (2033) USD 119.89 million
Market Absolute Dollar Growth (USD million/billion) USD 44.36 million

As per the latest market analysis report obtained by FMI recently, the Asia Pacific region is projected to witness strong growth.

Across the Asia Pacific nations, there has been an increase in health-conscious consumers, and people are becoming more aware of the health risks posed by the foods and beverages they consume. In line with this development, the availability of low-fat beverages made with emulsions is increasing in countries like China, India, Japan and South Korea.

China CAGR
Historical CAGR 3.5%
Forecast CAGR 4.7%

Europe to Offer Lucrative Opportunities to Market Players

The Europe region is projected to move at an incremental rate over the forecast period. Few factors supporting rapid market development include lifestyle changes and increasing cognizance of the significance of balanced diet. Such trends are propelling the consumption of beverages fortified with vegetables and/or fruit juices, which have enormous health benefits and helps prevent disease formation. Growing health-consciousness among consumers are spurring demand for such health-uplifting drinks, simultaneously boosting the demand for beverage emulsifiers.

  • Germany is projected to contribute significantly towards the market growth, with German market projected to reach USD 60.32 million by 2033. The market is projected to assume CAGR of 7% over the forecast period. Growing receptivity towards new beverages and rapid introduction of new drink formulations to meet the ever-evolving demand for carbonated drinks is projected to boost market growth.
  • The United Kingdom market is expected to attain USD 45.24 million by 2033, registering CAGR of 6.4% over the forecast period. Technological innovations by key players and rising sustainability concerns are projected to dictate new developments in the country.
  • Spain is projected to hold a small share in the market, attaining USD 25.64 million by 2033. Over the next 10 years, the market is projected to expand at 5.4% CAGR over the forecast period.

New Launches by Key Participants to Capture Eyeballs

Flavored alcoholic and non-alcoholic beverages are becoming increasingly popular among consumers because they provide a variety of taste profiles, unique flavors, and textures. Weighting agents’ beverage emulsions are key ingredients in producing a wide range of flavored alcoholic and non-alcoholic beverages.

Moreover, with a hectic lifestyle, a busy schedule, and less time to consume healthy food and beverages, consumers are turning to more readily available healthy food and beverages. Sighting this opportunity, beverage emulsion manufacturers offer ready-to-drink beverages with added nutrition, taste, color, and flavor, contributing to its growing popularity.

Such activities have paved the way for market players to extend their business and customer base. Market players in the beverage emulsion industry are expected to benefit from lucrative growth opportunities in the future, as a result of rising demand for beverage emulsion in the global market.

Players such as Sensient Technologies Corporation and Silverson Mixers are at the forefront of cloud emulsion solutions for beverage producers. The latter offers a High Shear mixer equipped with high-action rotor worked hydrates, dispersing powdered ingredients to produce a finely dispersed pre-emulsion solution.

  • In November 2022, Ingredion and InnovoPro came into an exclusive partnership for commercial distribution for next-Gen chickpea proteins across North America. As a result of this partnership, food and beverage manufacturers are projected to be supported in their attempt to meet rising demand for plant-based products.
  • In August 2020, Cargill, Incorporated invested USD 15 million in bio industrial plant in India. The plant has 35000 tons annual capacity, making it one of the leading facilities to develop bypass fats and speciality waxes in the nation.

Key Players Profiled in the Market Report

  • Archer-Daniels-Midland Company
  • Cargill Inc
  • CHr. Hansen A/S
  • Döhler GmbH
  • DuPont
  • Givaudan SA
  • Ingredion Incorporated
  • Kerry Group
  • Sensient Technologies Corporation
  • Tate and Lyle PLC

Scope of the Report

Attribute Details
Forecast Period 2023 to 2033
Historical Data Available for 2018 to 2022
Market Analysis USD million for Value
Key Regions Covered North America; Latin America; Europe; East Asia; South Asia; Oceania; and the Middle East & Africa
Key Countries Covered The United States, Brazil, Mexico, Germany, the United Kingdom, China, India, Japan, Australia, and GCC Countries
Key Segments Covered Source, Application, Emulsion Type, Region
Key Companies Profiled Archer-Daniels-Midland Company; Cargill Inc; CHr. Hansen A/S; Döhler GmbH; DuPont; Givaudan SA; Ingredion Incorporated; Kerry Group; Sensient Technologies Corporation; Tate and Lyle PLC
Report Coverage Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives
Customization & Pricing Available upon Request

Beverage Emulsion Industry by Category

By Source:

  • Xanthan Gum
  • Pectin
  • Carboxymethyl Cellulose
  • Carrageenan

By Application:

  • Non-Alcoholic
  • Carbonated Beverages

By Emulsion Type:

  • Color Emulsion
  • Flavor Emulsion
  • Cloud Emulsion

By Region:

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • Oceania
  • Middle East and Africa

Frequently Asked Questions

What is the Beverage Emulsion Market Size?

The beverage emulsion market is worth USD 526.5 million in 2023.

What is the Projected CAGR for the Beverage Emulsion Market?

The market is anticipated to thrive at a 4.3% CAGR from 2023 to 2033.

Which is the CAGR of the Leading Emulsion Type in the Beverage Emulsion Market?

The cloud emulsion segment is projected to rise at a 4.4% CAGR from 2023 to 2033.

What will be China’s Beverage Emulsion Market Size by 2033?

The market in China is anticipated to reach USD 119.89 million by 2033.

What is the CAGR of the Leading Country in the Beverage Emulsion Market?

Germany is projected to rise at 7% CAGR from 2023 to 2033.

Table of Content
	1. Executive Summary | Beverage Emulsion Market
	2. Market Overview
	3. Market Background
	4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033
	5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Source
		5.1. Xanthan Gum
		5.2. Pectin
		5.3. Carboxymethyl Cellulose
		5.4. Carrageenan
		5.5. Gellan Gum
		5.6. Gum Arabic
		5.7. Modified Starch
	6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Emulsion Type
		6.1. Colour Emulsion
		6.2. Flavour Emulsion
		6.3. Cloud Emulsion
		6.4. Vitamin Emulsion
	7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application
		7.1. Non-alcoholic Beverages
			7.1.1. Carbonated Beverages
			7.1.2. Dairy Beverages
			7.1.3. Fruit Juices
			7.1.4. RTD Tea/Coffee
		7.2. Alcoholic Beverages
	8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region
		8.1. North America
		8.2. Latin America
		8.3. Europe
		8.4. Asia Pacific
		8.5. MEA
	9. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
	10. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
	11. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
	12. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
	13. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country
	14. Key Countries Market Analysis
	15. Market Structure Analysis
	16. Competition Analysis
		16.1. Döhler GmbH
		16.2. Archer-Daniels-Midland Company
		16.3. Cargill Inc.
		16.4. Givaudan SA
		16.5. Sensient Technologies Corporation
		16.6. International Flavors & Fragrances
		16.7. Ingredion Incorporated
		16.8. Kerry Group
		16.9. DuPont
		16.10. CHr. Hansen A/S
		16.11. Tate & Lyle PLC
		16.12. Corbion N.V.
	17. Assumptions & Acronyms Used
	18. Research Methodology
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