The global clouding agents market is estimated to be worth USD 1,381.5 million by 2024 and is projected to reach a value of USD 2,667.2 million by 2034, reflecting a CAGR of 6.8% over the assessment period 2024 to 2034.
The business landscape is expanding rapidly all over the world since soft drink producers want to improve the organoleptic properties of their products. Both to increase market share, manufacturers are striving to expand capacities for production as well as investing into new improvements of formulations which will fit modern customer’s choice.
The obvious trend of consumers towards more functional, dense mouthful beverages is an undeniable motivator behind clouding agents primarily across Energy Drink, Fruit Juice and Soft beverage. Such agents assist in forming a quality, image tailored appearance by distributing components that otherwise would settle at the bottom making the product more appealing to the consumer.
Consequently, several manufacturers are developing clouding agents differentiated for various beverage formulations and expanding this category in response to the current demand. These agents are constructed to be pH and temperature sensitive, ensuring them for a variety use applications.
Several manufacturers have extended their production capacities and the consummation rate specifically in regions where a large number of beverage consumers exist and according to the global demand, the companies have been in a better position to meet the demand.
Another of its driving forces is the customer’s feelings, that the food and beverages should be good looking as possible. For instance, functional alcoholic products such as fruit wines and spirits; fruit juices and flavoured alcoholic beverages; and energy drinks have increased the demand for clouding agents since they demand for products with improved outlook. Consumers identify hazy or obscure drinks profile to be more natural and high in content hence clouds and opacity are very important agents in product differentiation given the current market complexities.
| Attributes | Description |
|---|---|
| Estimated Global Industry Size (2024E) | USD 1,381.5 million |
| Projected Global Industry Value (2034F) | USD 2,667.2 million |
| Value-based CAGR (2024 to 2034) | 6.8% |
Moreover, the increasing trend of fruit based and plant based beverages thru which consumers aims at health benefits is forcing manufacturers to look natural and renewable clouding agents like citrus extract and other plant source.
Trends towards clean-label and natural have led to the development of innovation that meet the desired expectations by the consumer. For these reasons the global industry is to grow even further in the future due to the interaction of technology related factors, greater production levels and changing consumer demands with regards to the attractive outlooks and textures in drinks.
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The below table presents a comparative assessment of the variation in CAGR over six months for the base year (2023) and current year (2024) for the global market. This analysis reveals crucial shifts in market performance and indicates revenue realization patterns, thus providing stakeholders with a better vision of the growth trajectory over the year. The first half of the year, or H1, spans from January to June. The second half, H2, includes the months from July to December.
| Particular | Value CAGR |
|---|---|
| H1 2023 | 6.3% (2023 to 2033) |
| H2 2023 | 6.7% (2023 to 2033) |
| H1 2024 | 6.5% (2024 to 2034) |
| H2 2024 | 7% (2024 to 2034) |
The global industry's predicted compound annual growth rate (CAGR) over a semi-annual period from 2024 to 2034 is shown in the above table. The business is anticipated to grow at a CAGR of 6.3% in the first half (H1) of 2023 and then slightly faster at 6.7% in the second half (H2) of the same year.
The CAGR is anticipated to decrease somewhat to 6.5% in the first half of 2024 and stay comparatively mild at 7% in the second half. The industry saw a decline of 35 basis points in the first half (H1 2024) and an increase of 46 basis points in the second half (H2 2024).
Rising visual appeal for energy drinks and fruit juices by consumers elevating the sales
As consumers are now more conscious of their health and are more likely to look for items that are organic. as affected this market, there is an increasing demand of natural ingredients obtained from such originations like citrus, rice starch and gum Arabic. Conventional agents, for example, brominated vegetable oils (BVO) are being phased out because of apprehensions about chemical modifiers and their negative effects on health.
Further to this, regulatory authorities around the world have encouraged clean-label products and strived to eliminate synthetic additives in foods and beverages. Business entities are constantly researching ways and means to develop plant-based products that provide the aesthetics, transparency and performance of drinks and other products like juices.
With sustainability and transparency being driving factors for consumers while making the purchase, companies with natural clouding agents products have an added edge. This trend is on the move changing the landscape in such ways that promote other forms of clouding such as, eco-friendly, non GMO and allergen free solutions.
Opinion on Increase in Demand in functional beverages
There is indeed great potential in functional beverages; attributed by greater consumer concern on health, wellness and performance. This includes fortified juices, energy drinks, plant based drinks, most of which contain clouding agents to create appropriate viscosity and an equal body in terms of opacity. Pacifying agents are almost indispensable to make the appearance predictable, milky or cloudy as desired by the consumers.
In the consumption of functional products, consumers are looking for products with vitamins, minerals, and other functional ingredients for their beverages, it is now the challenge of the manufacturers of these products to contain some of the stability of the functional products. They also hinder the ability of separating the individual ingredients: they maintain a visually and tactile appeal.
Parallel to this, the increasing trend of sports drinks, protein enriched drinks and nutraceuticals will fuel the demand of specialty clouding agents. This increasing usage is creating the need for new and better ingredients for its new complex high performance multicomponent formulation; as well as for period of storage and consumption.
Skyrocketing craze of plant based milk leveraging the Sphere
Clouding agent consumption is on the rise due to a shift from dairy products due to reasons such as growing preference for vegan foods and change to lactose free diet. Plant-based dairy products that include almond, soy, oat and coconut milk normally do not have a natural ability to form a homogeneous opaque solution that has the characteristic of regular dairy milk.
As they assist in emulating the opaque appearance coupled with texture that is similar to that of dairy products to make these products appealing in the market. In the same way and because of the increasing concern for ethical and environmental issues, animal keepers are looking for products like clouding agents, which are vegan, allergens-free, non GMO.
This again increases the need to use highly effective thickening agents since the customers require periodicity and stability in accessing these dairy-free products as well as shelf-life extension. That is why, as the market of dairy alternatives grows around the globe, the market from which manufacturers can differentiate according to functional and labelling needs, will also grow.
Advanced extraction techniques to improve the functionality elevating the production
Recent improvements in technology are playing a role in the introduction of new and enhanced clouding agents for the market hence the formulation of more superior theatrical clouds. New generation products are now capable of working at high process stress such as heat and long storage times and retain product stability.
Thus, there are tendencies to improve the solubility, dispersibility, and the stability to fulfil customer demands of various industries, such as food and beverages and personal care industries. Technological advancement has also enhanced the techniques for microencapsulation which help in the addition to the various products in the most efficient way without causing alteration of the tastes and the texture of the products.
Also, there is a continuing study on the non-toxic and environmentally friendly target products to cater with the growing consciousness of green ingredients. These developments are paving way for the next generation of enhanced functionality and eco-efficiency.
Regulatory Pressures on Synthetic Products
The clouding agents market is governed by a e number of regulations set by various governments across the world. Refined clouding agents such as BVO and TiO2 have been affiliate with certain hazards to health to consumers. As such, the FDA and The European Food Safety Authority (EFSA) have either blocked or restricted the incorporation of some of these synthetic agents which has triggered the change of product formulation among manufacturers.
This regulatory pressure is opening up opportunities for the companies manufacturing natural and safe products thus specifically targeting Food and beverage industries. Another factor that push innovations in clouding agent technologies is compliance with the new regulations which include focus on bio-based solutions that are also safe for use around the globe. Such changes have elicited new clearer formulations to ensure that the resultant labelling system comes to the requirements of both regulatory as well as consumer needs.
Increasing Stringency of rules and Regulations will remain in vogue in the coming future which in turn would serve to push the means of switching over from synthetic to natural clouding agents in the industries of its demand in a much faster pace.
Infusion in Alcoholic beverages bolstering the consumption in developed countries
Clouding agents are more and more used in the alcoholic beverages industry especially in craft beer and cocktail. In these applications, they are employed in giving diffused or milk opacities that are considered more fashionable by the consumers. Some beer styles - New England IPAs, for instance - deliberately still contain haze-enhancing clouding agents even though the hazy appearance isn’t a traditional feature of beer.
A similar case can be observed with ready-to-drink (RTD) cocktails as well as alcoholic seltzers, where target products are added which make the drink look more inviting. It was cited earlier that as more craft breweries and RTD brands explore product differences in particular, clouding agents are a key implement to match the appearance with taste.
It has been anticipated to increase in the future in line with the craft and premium alcohol segments amongst others around the world thus resulting in improved formulations for clouding agent’s specialty for alcohol products.
Principal Consultant
Global Clouding agent sales increased at a CAGR of 6.3% from 2019 to 2023. For the next ten years (2024 to 2034), projections are that the value will rise at 6.8% CAGR.
With a revelation of the potential applications, the market is expected to gain an absolute dollar opportunity of 1,285.7 million USD during the forecast period of 2024 to 2034. During the pandemic, the usage of clouding agents incorporated with vitamins in fruit based beverages has significantly boosted sales, which helps manufacturers to expand their portfolio as well as production volume.
From 2019 to 2023, several factors influenced the industry. Rising health consciousness and demand for fortified foods and beverages significantly drove growth. The increasing prevalence of lifestyle diseases spurred interest in natural ingredients. Technological advancements in food processing enhanced the stability and efficacy of thickening and binding agents, expanding their applications.
Regulatory support for nutrient fortification in developing regions also played a crucial role. Additionally, the COVID-19 pandemic heightened consumer focus on immunity and overall health, boosting the demand for fortified products. Together, these trends fuelled industry expansion and innovation in customized nutritional solutions.
The industry is characterized by a two-tier structure, which includes both organized and unorganized players. Leading companies such as ADM Wild Flavors, Kerry Ingredients, Cargill, Inc., Chr. Hansen Holding A/S, Danisco (DuPont), Ashland Global Holdings Inc., Tate & Lyle PLC, Sensient Technologies Corporation, Ingredion Incorporated and others some players dominate the organized segment that accounts for 60% of sales in the industry.
Multinational corporations (MNCs) that have target segment revenue greater than 5 million USD belong to these groupings and they maintain their arena presence in this way because they have large volumes of production capacities, high-tech infrastructure and various products.
These well-regulated players have strict distribution networks and can be found in every corner of the world thereby; resulting to huge penetration globally. Their modernized research labs on the other hand enhance innovations enabling them to introduce a range of plant-based pet foods with regard to changing trends among health aware consumers who are conscious about their diet.
On the contrary, local participants with target segment revenue below 5 million USD form the unorganized part that contributes up to 40% of total sales within this category. These smaller companies may lack global coverage but are vital for specific areas. Working in niche community allows them offer particular goods fitted for diverse domestic preferences or specialized dietary needs. In many cases, these entities adjust quickly according to fads in consumer tastes which results into unique and exceptional product mix.
This makes sure that there is dynamism as well as competitiveness within industry due to existence of both big and small firms. This variety brings on board multiple developments along with a wide range of options being made available satisfying different customers across all regions worldwide. This means that the industry has good prospects given its innovative nature coupled with growing trend towards healthier alternatives.
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The following table shows the estimated growth rates of the top three countries. USA, Germany, and India are set to exhibit high consumption, and CAGRs of 4.3%, 5.7%, and 6.3% respectively, through 2034.
| Countries | CAGR 2024 to 2034 |
|---|---|
| United States | 4.3% |
| Germany | 5.7% |
| India | 6.3% |
The customer preference for cleaner labels as seen in the USA consumes market is proving to be the key force as clouding agents. Consumers’ awareness of their health has been rising hence they are looking for consumables such as beverages not containing artificial flavors and chemicals. This change has led the manufacturers to seek natural sources of clouding agents rather than the synthetic source.
Manufacturers are also focusing on establishing new concepts and products, which, aside from giving an ethereal appearance to beverages, are also free from unwanted compounds. This trend remains most apparent in functional and organic beverage categories whereby customers place more emphasis on the product’s quality and simplicity. It has also ensured that manufacturers adopt the natural sourcing of raw materials in order to meet the customer’s ever increasing appetite for environmentally friendly products.
Plant based beverages are gaining the significant consumer traction in Germany. Due to increased trends of vegan and plant based products, the beverage industry is gradually pulling off more products in this line. Clouding agents serve a vital purpose of enhancing the appearance of these so-called ‘happy-hour’ drinks which range from plant-based milk, juices, and smoothies.
Suppliers in the German market are targeting innovation to meet new tendencies in natural, non GMO, and vegan raw materials. This shift is not only about providing customers with products that were increasingly concerned about their health and well-being but also fits the broader environmental agenda that plant-based products are perceived to be more environmentally sustainable than animal-based products.
Due to the higher tendencies to consume exotic fruit based alcoholic and non-alcoholic beverages, the demand for clouding agents has increased in India. Consumers’ requirements are expecting beverages with other properties such as taste and appearance that matches with the velvet, sumptuous, natural impression. Products play a role of increasing the attractiveness of these products especially the tropical and exotic fruit juices like mango, guava and passion fruits.
In a continually growing competition on the Indian beverage market, manufacturers are using clouding agents to create new products that look very attractive with bright and popular colours. With the increase of the demand for a healthy lifestyle, the new solutions for clouding are natural, and are also meeting local culture for clean and organic labels.
| Segment | Citrus Fruit Extracts (Base Ingredient) |
|---|---|
| Value Share (2024) | 36.3% |
Clouding agents’ major raw materials are obtained for the most part from citrus fruit extracts, especially that of oranges and lemons, because of their inherent clouding, acidity, and compatibility with the majority of beverages. Various by-products extracted from citrus include citrus oil or citrus peel, which provide that natural clouding effect that gives fruit juices, soft drinks and energy beverages a natural and uniform appearance.
These extracts also contain naturally occurring pectin and other components that create a thicker texture in beverages, which will be important where the texture of drinks is to be increased. Also, citrus extracts are easy on the clean label since the target consumers are increasingly seeking natural and recognizable ingredients.
It is also important that they complement each other in terms of taste and are readily available, which makes it easy still a cost-effective and a functional product to be added to the manufacture of high-quality appealing beverages.
| Segment | Fruit-based Beverage (Application) |
|---|---|
| Value Share (2024) | 32.8% |
Emulsifying agents primarily used in fruits containing products, and are also used in free standing drinks because of the quality they impart such as whiteness and mouthfeel. In fruit juices and nectars agents are used to preserve the natural and homogeneous appearance by preventing the sedimentation of pulp and other solid elements.
This is so evident in beverages where addition of fruits is seen as enhancing the quality and freshness of the product. The agents also add to the mouthfeel and brew to enhance the impression of a better product, more so a satisfying coffee.
In the expanding field of protein containing beverages derived from plants, clouding agents for plant particles are equally important, so that the particle is maintained in a stable dispersion and imparts a smoother, creamier texture to the drink. Known as clouding agents, they are essential to assist the manufacturers in meeting these increased demands for fruit based and functional beverages concerning taste, appearance and texture.
Key companies hold a significant share of the industry value of unique and potential nutritional products by bringing innovation in their product developments. These players are providing solutions to end user industries, who are actively looking for the potential ingredients to fortify their products. Companies are coming up with new and innovative flavourful formulas like strawberry, infused with organic blended products to enhance the taste and colour of products along with the nutritive values to increase the consumer base.
Neutral and non-neutral formulas are the solutions provided by the manufacturers to fulfil the technological needs of the products. These products are used not only to improve health but also to give an enjoyable mouth-filling experience to consumers who are actively seeking new product formulations to increase their alimentary intake.
Leading Manufacturers
This segment is further categorised into Palm Oil, Arabic Gum, Citrus Fruit Extracts, Titanium Dioxide, Vegetable Oils and Others
By property industry has been categorised into Neutral and Non-neutral.
Two forms like Oil-based and Powder are included in the report.
By nature, market has been categorised into Natural and Synthetic.
Key applications like Instant Beverages, Fruit-based Beverage, Energy Drinks, Sports Drinks, RTD and Smoothies and Others are considered after the exhaustive research.
Industry analysis has been carried out in key countries of North America, Latin America, Europe, Middle East and Africa, East Asia, South Asia, and Oceania.
Throughout the forecast period, the market is expected to grow at a CAGR of 6.8%.
By 2034, the sales value is expected to be worth USD 2,667.2 million.
Increasing visual appeal and shift towards to increase the mouthfeel experience are expected to boost sales.
Asia-Pacific is expected to dominate the global consumption.
Some of the key players in manufacturing include ADM Wild Flavors, Kerry Ingredients, Cargill, Inc., Chr. Hansen Holding A/S, Danisco (DuPont), Ashland Global Holdings Inc., Tate & Lyle PLC, Sensient Technologies Corporation, Ingredion Incorporated and others.
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Clouding Agents Market
