Gum Arabic Market size forecast to reach $603.25 Million by 2025

Gum Arabic Market size is forecast to reach $603.25 Million by 2025, growing at a CAGR of 6.17% during the forecast period 2020-2025. Gum Arabic is often referred to as acacia gum, gum sudani, meska, chaar gund/goond, and is a natural emulsifier derived from hardened sap obtained from two species of the acacia tree (Senegalia senegal (Acacia) and Vachellia (Acacia) seyal). Gum Arabic is widely used as an emulsifier within the food & beverage industry. Gum Arabic ensures even distribution of sugar within the liquid and helps avoid precipitation of crystals at the rock bottom. Gum Arabic has medicinal properties and can be consumed with water to treat stomach problems, as it is rich in dietary fibre. Additionally, it is extensively utilized in traditional lithography and printing. Consumer spending on dietary and fibre rich food especially in food items. This is owing to consumer growing purchasing power in bakery and confectionary items.
Key Takeaways
  • Geographically, North America holds largest share owing to demand in food and beverages, pharmaceuticals, and textiles.
  • Use of Gum Arabic as thickening agents held the major market share in 2019 and is also poised to be the fastest-growing segment during the forecast period 2020-2025.
  • Detailed analysis of the Strength, Weakness, and opportunities of the prominent players operating in the market will be provided in the Gum Arabic report.
  • Globally, the multiple functions of Gum Arabic helped to enhance the quality of the food products. Besides, the demand is set to continue owing to the functionality in the forecast period (2020-2025).
By Type – Segment Analysis
Gum Arabic Market based on type is segmented into Acacia Senegal and Acacia Seyal. Acacia Senegal dominated the Gum Arabic market in the year 2019 and is poised to grow during the forecast period 2020-2025. Acacia Senegal trees yield in all types of seasons, regardless of climatic conditions and soil texture. They are drought-tolerant, which makes them suitable to grow in the drier parts of the world. These trees yield the largest amount of superior quality gum acacia when they are unhealthy. Key applications of this form of gum include medicine and essential oil, as timber and fuelwood, as a soil improver, for intercropping, and as an ornamental tree in some parts of the world. Acacia Seyal is poised to emerge as the fastest-growing segment by source, registering the highest CAGR of during the forecast period 2020-2025.
By Application – Segment Analysis
The application type of Gum Arabic Market is segmented into Food & Beverage, Pharmaceutical, Personal care, and others.  Food and Beverage is estimated to be the fastest growing application with a CAGR of 5.81% during the forecast period 2020-2025. This is owing to Food & Beverage manufacturers and makers of edible flavors, syrups, and concentrates have been increasingly using Gum Arabic as a functional ingredient in soft drinks, smoothies, fruit-flavored water and beverages, and various soft-alcoholic drinks, which is accelerating the demand for the product. Thriving e-commerce channels and an increasing number of domestic vendors are the reasons set to continue the growth during the forecast period 2020-2025.
 
By Geography – Segment Analysis
Based on geography, Gum Arabic Market is segmented into North America, Europe, Asia Pacific, and Rest of the world. North America dominated the market with share of 37.03% during the forecast period 2020-2025. This is owing to large consumer base, especially for beverages, confectioneries, and pharmaceutical products. Asia Pacific is fastest growing segment during the forecast period 2020-2025. This is owing to soaring sales of dairy products, particularly in countries like Japan, China, Australia, and India. Another factor aiding the growth of the regional market is leading confectionery manufacturers expanding their geographical reach across countries in South Asia.
Drivers – Gum Arabic Market 
  • The Rise in Dietary Content
The Gum Arabic has high dietary fiber content which aids in healthy digestion and bowel movement. Gum Arabic benefits patients suffering from constipation and irregular bowel movement. Many Gum Arabic manufacturers are focusing on securing regulatory clearance for the inclusion of this emulsifier as an ingredient in food products. Powder encapsulation; remains to be one of the most instrumental production procedure in the pharmaceutical industry. Colorless, tasteless, odorless, and high water-solubility are key properties of instantly soluble Gum Arabic, which is adding as key pointers for driving the Gum Arabic market.
Challenges – Gum Arabic Market
  • Inconstancy in Weather
Gum Arabic market is prone to fluctuations in weather. Inconstancy in weather one year to another leads to variance in production and price of Gum Arabic, which acts as a challenge for the market growth. Opportunity is extremely high but production has limitations within different countries. Gum Arabic market is lucrative since the global demand for Gum Arabic is usually at peak.
Multifunctional Food Ingredients industry outlook:
Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Gum Arabic Market. Key companies of this market are Gum Arabic Company; Nexira; Kerry Group; Tic Gums Inc.; Agrigum International Limited; Farbest Brands; Archer Daniels Midland Company; Ashland Inc.; Hawkins Watts; and Prodigy NIG Limited.
Acquisitions/Product Launches:
  • June 4, 2018 – CaraGum launches- CaraGum EM CG 108-2, a cost-effective gum Arabic emulsifier. It costs less than conventional gum owing to its high concentration.