The food thickener market Size is expected to grow at a compound annual growth rate of 6.27% over the forecast period to reach a market size of US$16.345 billion in 2025 from US$11.348 billion in 2019. 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. Besides during the past few years, the food and beverage industry has experienced a rapid transformation in because of a numerous factor that is inclusive of urbanization, trade liberalization, shifts in food consumption patterns and diets, population growth, policy changes, internet penetration, increasing availability in 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 agreement 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 EU and Vietnam are the most recent which would reportedly abolish the 65% of duties on exports from EU which 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 seven years. It is an agreement that which through the reported elimination of 99% of customs duty between Vietnam and EU is reportedly projected to facilitate investments in the food industry, among others. The EU’s expertise pertaining to 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 a healthy development for the processed food category. Moreover, food preparations will reportedly be exempted from duty after 7 years as per the report by 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, growing middle class with higher disposable income, 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 has 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 & dips, convenience & processed food, confectionery, beverages, and bakery, 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. At present, most of the world population resides in urban areas. As of 2018, North America was the most urbanized region of the world, wherein the urban areas constituted 82% of the total population. This was followed by 81% of the population of Latin American and Caribbean which are concentrated in urban settlements and 74 % of the population of Europe that 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, the continuing urbanization is expected to contribute to higher consumption of processed and convenience food.
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, accessibility of eCommerce, and availability of higher internet bandwidth. With respect to Australia the considerations that are determinant of driving consumption are based on health, wellness, among others, which also buttressed by one of the highest levels of per capita income GDP. Before COVID 19 the economy of the nation had reportedly registered an economic growth consecutively for the past 29 years. At A$58 billion (US$44 billion) Australia’s foodservice has a significant proportion of it dedicated to Australia’s is the consumer foodservice sector that 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 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 by experienced an increase of 2.4 % over the same period of last year and was in the order of 15,666 yuan. Further the per capita disposable income of the 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, reported a growth of 8.0 % over the previous year [Source: National Bureau of Statistics of China]. Regarding India, the advent of COVDID 19 which resulted in a nationwide lockdown tat steered the consumption trend to accommodate more preference of processed foods. On the other hand, the modern food retail sector has repeatedly grown over the past 3 years and is still evolving. On other hand, in Vietnam even though small, traditional retailers still dominate the food retail sector t 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 are across the country are also being expanded into. 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. To this end 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 thickening of hot or cold beverages and puréed foods to desired consistency without altering flavor and is easy to mix.