The food thickener market is expected to grow at a compound annual growth rate of 5.95% over the forecast period to reach a market size of US$ 17.272 billion in 2027 from US$ 11.525 billion in 2020. The variety of food and beverage innovations is one of the main reasons that is expected to fuel the growth of the food thickener market. Furthermore, the food and beverage industry has undergone rapid transformation in recent years as a result of a variety of factors such as urbanization, trade liberalization, shifts in food consumption patterns and diets, population growth, policy changes, internet penetration, increasing availability of disposable income, globalization, or digitalization. . The most significant is that of globalization, which aids the food market in both developed and emerging economies as a result of the formation of a single global market that operates outside the confines of protectionism and is fostered by trade agreements among various nations. In this respect, it is important to note that, as of June 2020, 303 regional trade agreements are currently in place. The European Union Vietnam Free Trade Agreement (EVFTA) & EU-Vietnam Economic Integration Agreement (EVIPA) between the EU and Vietnam are the most recent, which would reportedly abolish the 65% of duties on exports from the EU that would be bound for Vietnam, followed by a gradual elimination during the next 19 years. Conversely, 71% of the duties levied on goods exported from Vietnam will be reportedly eliminated over the next seven years. It is an agreement that, through the reported elimination of 99% of customs duties between Vietnam and the EU is reportedly projected to facilitate investments in the food industry, among others. The EU’s expertise in technology and quality management, along with the capacity to invest, reportedly complements Vietnam’s labor-intensive industries and the agri-food sector, which in turn is reported to facilitate the healthy development of the processed food category. Moreover, food preparations will reportedly be exempted from duty after 7 years, as per the report by the Delegation of the European Union to Vietnam, which is also one of the benefits derived from tariff elimination for EU exporters, which would lead to increased access to markets in Vietnam. On the other hand, through such means, among others, the food market has internationalized, which has effectuated the diffusion of snacking habits that have further reinforced the expansion of increased innovation, food delivery services, and fast-food restaurants across the world. Moreover, this is further complemented by the evolving modern retail sector of Vietnam which has been facilitated by strong economic growth, rapid urbanization, increasing foreign investment, heightened concerns about hygiene, a growing middle class with higher disposable income, and benefits from free trade agreements.
Globalization is also complemented by rapid urbanization that is taking place simultaneously with rural –to urban migration, which in turn is reported to result in the adoption of new trends that have resulted in the growing consumption of ready-to-eat food, among others. Moreover, convenience snacking is also another factor that has arisen from the aforesaid, which is in part responsible for increased consumption of sauces and dips, convenience and processed foods confectionery, beverages, and bakeries, among others. The growing household expenditure on processed food, which has resulted from a rapid shift away from traditional food and beverage consumption, is expected to drive the food thickener market growth globally. To provide a contextual reference, the following is being elucidated to substantiate the extent of urbanization. Most of the world's population resides in urban areas. As of 2018, North America was the most urbanized region in the world, wherein the urban areas constituted 82% of the total population. This was followed by 81% of the population of Latin America and the Caribbean which are concentrated in urban settlements, and 74 % of the population of Europe, which is concentrated in urban settlements. Additionally, the share of the world population living in urban areas is expected to reach 60% in 2030 from 55% in 2018. Besides, as of 2018, Africa and Asia represented the lowest levels of urbanization. However, by 2030, urban settlements are projected to support 47 % of the population in Africa, 56 % in Asia, and 71 % in Oceania. Moreover, by 2050, the African urban population is expected to triple. In the case of Asia, it is expected to increase by 61 %. Thus, most of the world’s urban population will be concentrated in Asia (52 %) and Africa (21%)by 2050 [Source: UN]. Hence, continuing urbanization is expected to contribute to the higher consumption of processed and convenience foods.
A healthy contribution to the food thickener market growth is expected from the APAC region. This primarily stems from the rise in the regional population, the growing availability of disposable income, the accessibility of eCommerce, and the availability of higher internet bandwidth. Concerning Australia, the considerations that are determinants of driving consumption are based on health, and wellness, among others, which are buttressed by one of the highest levels of per capita income and GDP. Before COVID 19 the economy of the nation had reportedly registered economic growth consecutively for the past 29 years. At A$58 billion (US$44 billion) Australia’s food service has a significant proportion of it dedicated to Australia’s consumer food service sector, which consists of more than 71000 outlets. Thus, facilitating the purchase of more raw materials, which among others, is expected to drive the food thickener market. Moreover, the consumers of Australia are open to new experiences and are known to acknowledge product development, which is also conducive to the market growth of food thickeners. [Source: USDA]. Moreover, the per capita disposable income of residents of China during the first half of 2020 experienced an increase of 2.4 % over the same period of last year and was in the order of 15,666 yuan. Furthermore, the per capita disposable income of urban residents was in the order of 21,655 yuan, which is a reported increase of 1.5 %. Additionally, in the first half of the year, the per capita consumption expenditure on food, tobacco, and alcohol was 3,097 yuan, an increase of 5.0 %, accounting for 31.9 % of the per capita consumption expenditure. Besides, urban permanent residents numbered 848.43 million, accounting for 60.60 % of the total population, which is 1.02 % higher than recorded data over the same period of last year. Moreover, the rate of urbanization of the population with household registration was 44.38 %, a reported 1.01 % points higher than that at the end of 2018. It is also important to note that in 2019, the total retail sales of consumer goods reached 41,164.9 billion yuan, reporting a growth of 8.0 % over the previous year [Source: National Bureau of Statistics of China]. Regarding India, the advent of COVDID 19, resulted in a nationwide lockdown that steered the consumption trend to accommodate more preference for processed foods. On the other hand, the modern food retail sector has repeatedly grown over the past 3 years and is still evolving. On the other hand, in Vietnam, even though small, traditional retailers still dominate the food retail sector, and modern retail channels are expanding in response to growing consumer demand. In 2018, Vietnam’s total retail sales of goods and services were $191 billion, up 11.7 percent over 2017. There is a continuous endeavor to increase the market share of existing modern retail food chains through the expansion of their distribution network, which is not restricted to tier 1 cities like Ho Chi Minh City and Hanoi only. Tier 2 cities and provinces across the country are also being expanded. Moreover, modern grocery outlets have increased from 1000 registered in 2013 to 4000 in 2018. [Source: USDA]. Food thickeners have also emerged as integral to the improvement of quality of life for patients who experience swallowing disorders. In April 2020, hick-It® Original Food & Beverage Thickener which is reportedly the first commercially available food and beverage thickener was made commercially available in new innovative stick packaging in moderately thick and mildly thick consistencies. It reportedly aids in the thickening of hot or cold beverages and puréed foods to the desired consistency without altering the flavor and is easy to mix.
Tate & Lyle extended its tapioca-based starch line in January 2021. Novel REZISTA MAX thickening starches & BRIOGEL gelling starches are part of the expansion. This has aided the company in expanding its product line.
INGREDION INCORPORATED purchased Verdient Foods Inc. in November 2020. This acquisition significantly aids the company in increasing total sales, expanding production capabilities, and collaborating with partners to address the growing need for plant-based food thickeners.
CP Kelco US Inc. stated in April 2019 that it would develop a new product offering dubbed "NUTRAVA Citrus Fiber," which would cater to the natural consumers' willingness for own-brand products. For beverages, dairy goods, bakery items, meats, sauces, soups, and other applications, the substance will work as a thickening, stabilizer, and give gelling and water replicas.
COVID-19 had a detrimental effect on the food thickeners market due to supply chain interruptions. Consumer desire for lifestyle & wellbeing products was harmed as a result of social constraints and lockdown measures, resulting in lower demand for food thickeners. However, public discussion about resuming economic activity and reducing limitations in the consumer products industry suggests that demand will soon revive.
Frequently Asked Questions (FAQs)
Q1. What will be the food thickener market size by 2025?
A1. The food thickener market is expected to reach a total market size of US$16.345 billion by 2025.
Q2. What is the size of global food thickener market?
A2. Food Thickener Market was valued at US$11.348 billion in 2019.
Q3. What are the growth prospects for food thickener market?
A3. The global food thickener market is expected to grow at a CAGR of 6.27% during the forecast period.
Q4. What factors are anticipated to drive the food thickener market growth?
A4. The variety of food and beverage innovation is one of the main reasons which is expected to fuel the growth of the food thickener market.
Q5. How is the global food thickener market segmented?
A5. The food thickener market has been segmented by type, source, application, and geography.
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Deosen Biochemical Ltd.
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