The global gum Arabic market is estimated to account for USD 1.01 billion in 2024. It is anticipated to grow at a CAGR of 5.9% during the assessment period and reach a value of nearly USD 1.8 billion by 2034.
| Attributes | Description |
|---|---|
| Estimated Global Gum Arabic Market Size (2024E) | USD 1.01 billion |
| Projected Global Gum Arabic Market Value (2034F) | USD 1.7 billion |
| Value-based CAGR (2024 to 2034) | 5.9% |
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Gum Arabic Rides on the Coattails of Plant-Based Surge
The food and beverage sector, in the past few years, has been going through transformation with companies introducing products that primarily include plant-based ingredients. In this light, Gum Arabic, extracted from acacia, has become a feasible option for companies involved in the manufacturing of protein shakes and energy drinks, owing its ability to enhance emulsification, improve mouthfeel, and stabilize suspended particles.
Gum Arabic, beyond these functionalities, scores high on the sustainability quotient. Harvested from acacia trees, it contributes to environmental conservation and carbon sequestration. This fits perfectly into the sustainability strategies of companies looking to cater to the demands of businesses and consumers who are environmentally conscious.
Growing Demand for Food & Beverage Industry to Drive Sales
Gum Arabic has a long-standing presence in the food and beverages sector. It is used as a stabilizer, thickener, emulsifier, and encapsulating agent in food manufacturing. It also functions as an anti-crystallization agent in the wine industry. With wine production rates going up, demand for gum Arabic is likely to increase.
These gums, adhering to its name, are also used in the making of chewing gums. It gives manufacturers the desired texture while regulating flavor release. Another interesting characteristic of Gum Arabic, the reason for which it is highly sought-after in these industries, is its ability to prolong the dissolving process.
Even in the beverages sector, Gum Arabic has found its place. Its acid resistance and high solubility makes emulsification of citrus and cola flavor oils easy. Manufacturers have also added it to their recipes as it gives extra volume to their drinks. It is also a crucial component in powdered beverage mixes where it mimics the opacity, appearance, mouth-feel, etc., of natural fruits.
| Application | Description |
|---|---|
| Emulsifier | Used to stabilize emulsions in products like salad dressings and sauces. |
| Thickening Agent | Adds viscosity to beverages, sauces, and soups, enhancing texture. |
| Stabilizer | Helps maintain the consistency of products like ice cream and yogurt. |
| Flavor Encapsulation | Protects and delivers flavors in confections and baked goods. |
| Foaming Agent | Used in beverages to create and stabilize foam, such as in certain cocktails. |
| Dietary Fiber Source | Added to foods to increase dietary fiber content, promoting digestive health. |
| Glazing Agent | Provides a shiny finish on candies and baked goods. |
| Low-Calorie Sweetener | Acts as a bulking agent in low-calorie and sugar-free products. |
While Gum Arabic has been replaced by modern ingredients such as celluloses and modified starches, there are still some industries where it finds its applications. It remains in use as s a suspending agent, emulsifier, adhesive, and binder in tableting in the production of demulcent syrups.
In the cosmetics sector, it is used as a stabilizer in lotions and protective creams. Its inclusion enhances viscosity, facilitates spreading, while also providing excellent texture. Even in liquid soaps, gum Arabic is being increasingly found. There, its acts as a foam stabilizer.
The following table discusses its use in these industries.
| Industry | Application |
|---|---|
| Pharmaceuticals | Used as a binder in tablets and capsules, and as a stabilizer in liquid formulations. |
| Cosmetics | Acts as a thickening and emulsifying agent in creams, lotions, and makeup products. |
| Printing | Utilized in inks and coatings to improve adhesion and stability. |
| Textiles | Used as a sizing agent to enhance the finish of fabrics and prevent fraying. |
| Adhesives | Serves as a natural adhesive in various applications, including paper products. |
| Art Supplies | Found in watercolours and other paints as a binder for pigments. |
| Ceramics | Used in glazes and as a binding agent in clay products. |
| Biotechnology | Employed in drug delivery systems and as a medium for cell culture. |
Dependency on Sudan to Become a Major Challenge
Gum Arabic is derived from acacia trees. While these trees are predominantly found in the Australian region, it is the African and select Asian countries that have are among the largest exporters. Sudan, in particular, accounts for more than 70% of the global supply. This has led to over dependency on a single country.
Sudan, as a country, is a conflict-prone region. Unfortunately, the country is home to various inter-political conflicts. This creates production uncertainty which then results into supply chain disruptions. This is why, several companies are shifting to other countries, such as Chad, Nigeria, and Senegal, for the procurement of gum Arabic.
Apart from wars and political instability, there are also some other reasons which has affected the production in the country. There is an observed migration of people from agriculture to mining sector, where opportunities are more lucrative. Water scarcity, limited land and natural resources, and increasing desertification have had a major impact cultivation.
To tackle all these challenges, well-established players in the market, Nexira, being one of them, are seeking different solutions. They are investing on creating artificial environments for the cultivation of acacia. This way, they can practise its cultivation in non-traditional regions. Apart from this, these companies are also maintaining stockpiles of Gum Arabic in stable locations to buffer against supply disruptions. This has helped them secure steady supplies even during periods of instability.
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Gum Arabic is used in a myriad of industries for several functions. While it is used as a gelling agent, fat replacer, stabilizer, etc., companies mainly prefer it for thickener. This is because:
Gum Arabic, being a versatile natural ingredient, is utilized in a multitude of industries. However, the food and beverage sector holds a major share of it due to its ability to enhance texture, stabilize emulsions, and improve mouthfeel while being a natural, low-calorie option that meets the growing consumer demand for clean-label products.
The following section talks about the region-wise analysis of the Gum Arabic market with a focus on prominent countries.
| Countries | CAGR (%) |
|---|---|
| Japan | 7.3% |
| Germany | 6% |
| The United Kingdom | 7.5% |
| The United States | 7.4% |
| Thailand | 6.9% |
Consumers in the United States, especially the millennials and Gen-Z, are focused on health and functionality in their food and beverages. This has led to several companies in the sector to introduce products that contain natural ingredients. Gum Arabic, thus, is increasingly used in products marketed as “better-for-you”.
Food and beverage companies are using it as a primary ingredient in kombucha, protein shakes, and plant-based alternatives. This focus on gut health has also amplified demand for Gum Arabic in dietary supplements and prebiotic formulations
Some of the most prominent companies in the United States are Nexira, Gum Arabic Company (GAC), Alland & Robert, and Gum Technology Corporation.
Australia is home to one of the largest species of acacia, the plant from which Gum Arabic is extracted. It is also because of this reason, the availability of this gum is very large in the country. This makes the procurement easy and cost-effective, making Australia one of the largest consumers and producers of Gum Arabic.
Nexira, Alland & Robert, and Gum Technology Corporation are key players in the Gum Arabic market in the Australia.
Japanese consumers are very concerned about the food they eat. The general populace in the country prefers food items that suit their taste preferences. In scenarios like these, gum Arabic plays a crucial role. In traditional Japanese confections (wagashi), it is a major component. It provides the perfect consistency required in these delicacies.
Other than this, it is also used in clear beverages, such as flavored waters and herbal drinks. This appeals to Japan’s aesthetic and sensory preferences.
While there is no single company dominating the scene in Japan, multiple companies such as Nexira, Alland & Robert, and local suppliers like Marubeni Corporation are considered leaders in the gum Arabic market.
Indian consumers have always been favoring natural and traditional products. The population has been familiar with Gum Arabic since the beginning of time. It also finds its mention in Ayurvedic remedies and popular local drinks like jaljeera (spiced lemonade) and sharbat. This familiarity coupled with the limited availability, makes India one of the most lucrative markets for gum Arabic.
Several companies involved in the market are Agarwal Industrial Corporation, K. S. B. International, and Altrafine Gums.
The market for Gum Arabic is largely spread across some countries of Asia, Africa, and Central Australia. Sudan accounts for more than 70% of production. However, political instability and other reasons have prompted businesses to look for other regions as well.
Nexira stands as a prominent leader, commanding approximately 40% of the market share. It is closely followed by Gum Arabic Company (GAC), holding around 11.2% of the market. These companies are responsible for some of the major changes in the market.
Mergers and acquisitions are quite common. For instance, in August 2024, Ampak Co. Inc. partnered with Agrigum International, a UK-based gum Arabic producer, to expand the distribution of gum arabic in the United States. This collaboration aims to leverage Ampak's distribution capabilities to strengthen Agrigum's presence in the USA market.
Gum Arabic is used in a multitude of industries as a thickener, stabilizer, gelling agent, and fat replacer.
On the basis of applications, the market is segmented into food and beverage, pharma, nutraceutical, personal care, etc.
The market is segmented by region, encompassing North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
The market is predicted to reach a size of USD 1.7 billion by 2034.
The market is anticipated to be valued at USD 1.01 billion in 2024.
Canada is set to hold the highest CAGR of 9.2% by 2034.
| Estimated Market Value for 2024 | USD 15.94 billion |
|---|---|
| Forecast Value for 2034 | USD 33.2 billion |
| Market CAGR (2024 to 2034) | 7.60% |
| Market Value for 2023 | USD 11,983 million |
|---|---|
| Projected Market Value for 2033 | USD 19,873 million |
| Value-based CAGR (2023 to 2033) | 5.2% |
| Market Size Value in 2022 | USD 35.1 Million |
|---|---|
| Market Forecast Value in 2032 | USD 57.8 Million |
| Growth Rate (2022 to 2032) | 5.6% CAGR |
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