Gum Arabic Market

Global Gum Arabic Market Forecast

• Gum Arabic market size likely to reach US$834.3 Mn in 2030 from US$526.4 Mn attained in 2023
• Global market size of gum Arabic to witness healthy expansion at a CAGR of 6.8% between 2023 and 2030

Quick Report Digest

1. Rising ethical sourcing techniques and sustainability are the key trends anticipated to fuel the growth of the gum arabic market. Furthermore, sustainability and ethical sourcing are becoming increasingly important in the gum arabic market. The development of sustainable sourcing strategies is driven by producers' and customers' growing interest in socially and environmentally responsible activities.
2. Another major market trend expected to fuel the growth of the arabic gum market is the rapid rise of e-commerce platforms. Moreover, The proliferation of e-commerce platforms is making gum arabic items more accessible. This trend makes it easier for customers to find and buy products based on gum arabic and for producers to reach a wider market.
3. Variations in climate, soil conditions, and harvesting techniques might make maintaining consistent quality in gum arabic products difficult. Quality issues may impact gum arabic's dependability for some applications.
4. In 2023, the acacia senegal category dominated the industry. Gum arabic can improve texture, increase dough stability, and lengthen the shelf-life of baked items like bread and pastries. It stabilizes flavors and stops particles from settling in beverages like fruit juices, flavored water, and soft drinks.
5. Regarding market share for gum arabic globally, the thickener segment is anticipated to dominate. Gum arabic is used in adhesives and glue formulations as a thickening ingredient. Their inherent adhesive qualities improve the performance of these items.
6. In 2023, the food and beverages industry category controlled the market. Gum Arabic stabilizes formulations in functional beverages, including vitamins, minerals, and other dietary ingredients.
7. The North American region is anticipated to account for the largest global gum arabic market share. North America's nutraceutical sector is growing as more people look for functional meals and dietary supplements. Gum arabic's market expansion is facilitated by its inclusion in nutraceutical products that address intestinal health and general well-being.
8. The market for gum arabic is expanding in Asia Pacific because it is used in the textile business for its part in the printing and dying textiles. Gum arabic is in high demand due to the expansion of the textile sector in Asia Pacific, especially in nations with robust industrial bases.

A Look Back and a Look Forward - Comparative Analysis

Gum-producing tree cultivation can be optimized using geographic information system (GIS), and remote sensing technology in precision agriculture. This guarantees good plantation management, which raises the yield and caliber of gum. Precise control over growing conditions is made possible by using sensors to monitor temperature, moisture content in the soil, and other environmental parameters. Farmers may maximize gum output with the aid of this data-driven methodology.

The Gum Arabic market witnessed staggered growth during the historical period 2018 – 2023. The purchasing power of consumers was influenced by the economic progress occurring in the Middle East and Africa at that time. Gum arabic was a popular product ingredient because consumers chose more high-value items as their disposable income increased. Gum arabic was utilized in many religious and cultural rituals and had historical and cultural importance in the Middle East. Its cultural acceptance and acknowledgment facilitated gum arabic's increased use in the area.

The environmental impact of gum arabic manufacturing is decreased by the development of green processing technologies, which prioritize ecologically friendly extraction techniques. Sustainability is enhanced by using energy-efficient processing techniques. This covers the extraction and processing of gum arabic using renewable energy sources in the coming years. Additionally, the gum arabic supply chain is investigating the possibility of implementing traceability systems through blockchain technology. This improves transparency and enables customers to track gum arabic goods' provenance and manufacturing methods.

Furthermore, gum arabic is consistently graded and sorted using cutting-edge technology in processing facilities. Automation boosts the chain's efficiency and decreases the need for physical labor. Continuous quality control is made possible in processing facilities by implementing real-time monitoring systems. Gum arabic of the highest caliber is produced by identifying and resolving problems early in the next five years.

Key Growth Determinants

• Rising Demand from F&B

Gum arabic is used in food and beverage products as a natural emulsifier and stabilizer. It makes various items, such as drinks, sauces, and confections, better overall by preventing component separation and improving texture. Gum arabic enhances the mouthfeel and texture of food and drink items. It is a useful ingredient in drinks, dairy, and desserts because of its capacity to produce a smooth and enticing texture that improves the sensory experience for customers.

Gum arabic use has expanded due to consumers' growing desire for natural and healthful beverages. As customers look for natural alternatives to artificial additives and preservatives, its use in flavored water, natural fruit juices, and functional beverages has grown in popularity.

• Increasing Uses in the Pharmaceuticals

Gum arabic is a powerful binder and encapsulating agent in the pharmaceutical sector. Its cohesive qualities and increased drug stability make its adhesive qualities useful in tablet and capsule formulations. Pharmaceutical formulations for sustained release use gum arabic's capacity to regulate the release of active components.

To improve therapeutic efficacy and patient compliance, pharmaceuticals that call for a prolonged and regulated release should pay special attention to this. Drugs that are not very soluble in water can become more soluble with gum arabic. With improved bioavailability, medication formulations with higher absorption and efficacy can be created because of their emulsifying qualities.

• Expanding Advances in Wellness and Health

Gum arabic is attractive when considering digestive health because of its prebiotic qualities. Gum arabic is being utilized more frequently in goods supporting a healthy digestive system, such as nutritional supplements and functional beverages, as consumers become more conscious of the significance of gut health. Gum arabic is used to produce products with fewer calories and less sugar.

The Gum Arabic market is growing because of its capacity to keep the desired texture and mouthfeel without using a lot of sugar, which meets consumer demand for healthier options. Gum arabic is a useful component in weight-loss solutions because of its capacity to produce a sensation of fullness. This tendency is especially pertinent now as people seek foods supporting their overall wellness and hunger management objectives.

Major Growth Barriers

• Fluctuating Raw Material Costs

The resin obtained from acacia plants is the main ingredient in Gum Arabic. The production and availability of acacia gum can be affected by variable fluctuations, including climate, weather, and geopolitical events, which can raise input costs. The profitability of businesses that make gum Arabic is directly impacted by fluctuating raw material costs. Acacia gum prices can rise suddenly, which could push up production costs and reduce producers' profit margins.

• Competition from Synthetic Alternatives

Gum arabic substitutes made of synthetic materials are frequently less expensive. Gum arabic may need help to compete on a cost basis due to pricing challenges from the reduced production costs of synthetic replacements. The market share of gum arabic may decline as synthetic substitutes become more readily available. The market for natural gums may be impacted if cost-conscious industries decide against gum arabic in favor of synthetic alternatives.

Key Trends and Opportunities to Look at

1. Rising Demand for Clean Label Products

Gum arabic complements the clean label movement nicely because it is a natural plant product. Product labels that are easily recognizable and have minimal processing appeal to consumers who demand transparency in food labels.

Little processing is done during the extraction process of gum arabic, which adds to its clean label attractiveness. Accepted as a natural addition, it satisfies consumers' desire for food and drink items free of chemicals or artificial substances.

2. Growth of Cosmetics and Personal Care Industry

Gum arabic is used for its stabilizing qualities in healthcare products, including lotions and creams. It contributes to the stability of formulations, avoiding ingredient separation and lengthening the skincare products' total shelf-life.

Gum arabic is a natural binding ingredient in haircare products, such as shampoos and conditioners. It improves the texture of the formulation and helps ensure that the active ingredients are distributed evenly, which improves the effectiveness of haircare formulations.

3. Increasing Demand within Dentistry

The market for gum arabic is anticipated to have opportunities as its use in dentistry expands. It is a complex polysaccharide with a neutral pH that contains a combination of calcium, potassium, and magnesium that aids teeth remineralization. Additionally, it possesses some antibacterial activity, increasing demand for it in the dental sector. Therefore, the market is anticipated to rise with the increasing demand for gum arabic from the dental industry.

How Does the Regulatory Scenario Shape this Industry?

Over the last three years, gum arabic has been governed as a food additive in the EU (E414). It must follow the rules outlined in EU Food Additives Regulation (EC) No 1333/2008, which gives the usage guidelines for food additives, including gum arabic. When evaluating the safety of food additives, such as gum arabic, the European Food Safety Authority (EFSA) is an important player. Regarding the approval and use of gum arabic in food applications, regulatory decisions are informed by the scientific opinions provided by EFSA.

Gum arabic is generally acknowledged as safe (GRAS) in the United States when used in compliance with good manufacturing practices. Under Title 21, Part 172 of the Code of Federal Regulations (CFR), the U.S. FDA governs the use of gum arabic in food and drinks. A food additive petition may be necessary for FDA clearance if gum arabic is to be used for a new purpose or if its specifications are altered. The FDA assesses the safety and appropriateness of the addition for the intended application. The WTO's restrictions on international trade impact the import and export of gum arabic. Guaranteed to satisfy the necessary quality and safety criteria, gum arabic complies with international trade standards.

Fairfield’s Ranking Board

Top Segments

1. Acacia Senegal Maintains Dominant Position

The acacia senegal segment dominated the Gum Arabic market in 2023. Gum Arabic has widespread application in the food and beverage sector as an emulsifying and stabilizing agent. It assists in keeping ingredients with an oil and water base from separating items like drinks, sauces, and candies. It imparts a smooth and appealing mouthfeel to food goods as a texturizing agent. Applications such as ice cream, candies, and gummies frequently use Gum arabic.

Furthermore, the acacia seyal category is projected to experience the fastest market growth. Pharmaceutical tablets and pills use acacia seyal gum as a binder to help hold the components together and strengthen the structural integrity of the tablet. Pharmaceutical chemicals are encapsulated using encapsulation agents to ensure targeted delivery and controlled release. The thickening agent Acacia seyal gum is used in the textile industry to generate well-defined fabric patterns during dyeing and printing.

2. Thickener Continues to Surge Ahead

In 2023, the thickener category dominated the industry. Gum arabic is a natural thickening ingredient derived from plants, which appeals to markets that value natural and clean-label products. Natural thickeners like gum arabic are becoming increasingly popular as customers look for more transparency on the labels of food and personal care products. Gum arabic can be used with watercolor paints and inks because of its thickening and sticky qualities. It contributes to the application qualities of these products by aiding in the regulation of their viscosity.

The stabilizer category is anticipated to grow substantially throughout the projected period. Gum arabic is a stabilizing component in formulations for lotions, creams, and emulsions used in cosmetic and personal care products. It contributes to the product's overall stability by assisting in maintaining consistency and preventing ingredient separation.

3. F&B Leads Demand Generation, Pharma Companies Follow

The food and beverages industry segment dominated the market in 2023. Gum arabic is used in fruit juices to enhance the overall texture and appearance by stabilizing pulp and cloud emulsions. Gum arabic is used in glazes and coatings for confections because it forms films, giving the coating a glossy sheen and stabilizing it. Gum arabic is used as a stabilizing agent in salad dressings to keep the proper texture and stop the separation of the water and oil components.

The pharmaceutical industry category is expected to experience the fastest growth within the forecast time frame. Gum arabic can disintegrate tablets, helping the medication dissolve and absorb more easily by breaking it down quickly into smaller pieces when it comes into contact with water. Gum arabic is used as a suspending ingredient in liquid formulations when it is essential to have a homogeneous suspension of particles to prevent settling and provide even distribution.

Regional Frontrunners

Revenue Generation Concentrated in North America

North America is expected to dominate the market. The market in North America has demonstrated an increasing inclination towards natural and plant-based products across many industries, such as cosmetics, medicines, and food and beverages. Gum arabic's demand in the area is fueled by its natural and plant-derived product, which fits nicely with this trend.

The need for gum the arabic food market has experienced growth in the US, and Canada because of the sizable markets for candies, baked products, convenience foods, and packaged goods. Growing consumer spending on nutrient-dense and high-fiber foods and increasing consumer purchasing power in the area are driving the market's expansion. Aside from that, the market is anticipated to gain in the coming years from the baking industry's explosive growth and the growing demand for gum arabic that dissolves easily.

The Organic and High Fiber Wave Uplifts Asia Pacific

Asia Pacific is expected to be the fastest-growing region. The expansion of the gum arabic market is positively impacted by the region's increasing demand for confectionary items. Growing dairy product sales have driven the industry, particularly in nations like China, Japan, Australia, and India. Furthermore, a growing number of producers of gum arabic are concentrating on getting regulatory approval to use this emulsifier as an ingredient in food items.

Additionally, producers emphasize gum arabic's health advantages and provide clinical proof to back up their health claims for finished goods. The gum arabic market in the Asia Pacific is expanding due to manufacturers' emphasis on the nutritional benefits of their products, such as their organic or high-fiber content.

Fairfield’s Competitive Landscape Analysis

A few global companies control most of the gum arabic market. The leading businesses are creating new products and enhancing their distribution systems to expand their worldwide footprint. Moreover, Fairfield Market Research expects more consolidation over the coming years. 

Who are the Leaders in Global Gum Arabic Space?

• Archer Daniels Midland Company
• Ingredion
• Gum Arabic Company
• AEP Colloids Inc.
• Hawkins Watts
• Farbest Brands
• Nexira
• Ashland Inc
• Kerry Group plc
• Agrigum International Limited
• Alland & Robert S.A
• Dar Savanna Ltd.

Significant Industry Developments

New Product Launch

• May 2022: Kerry established Africa's most sophisticated and expansive taste production plant. Situated in KwaZulu-Natal, South Africa, the new R650 million (€38 million) plant will generate sustainable nutrition solutions that will be eaten throughout Africa.
• December 2020: the government of South Sudan launched the export of Gum Arabic, which is also referred to as Acacia gum.
• January 2020: Alland & Robert released a new paper outlining the advantages of acacia gum for lowering sugar intake.

Distribution Agreement

• August 2022: ScaleUp Bio, ADM's joint venture company, has opened for business, marking a significant milestone in commercializing sustainable foods in Asia. It is the first firm in Singapore to offer precision fermentation for food applications contract development and production organization services.
• March 2020: CARAGUM International®, which specializes in creating and producing stabilization systems for the food sector, has partnered with Farbest Brands. Creating stabilizers for liquid products, such as drinks, flavored emulsions, and sauces, is the main emphasis of CARAGUM International.

An Expert’s Eye

Demand and Future Growth

Gum arabic is now available in many regions of the world due to the expansion of international trade and market globalization. As a result, gum arabic manufacturers, and exporters now have access to a wider consumer base and more market opportunities.

Furthermore, the market is expanding due to major industry players investing in R&D to investigate new uses and features for gum arabic. This includes creating creative applications in printing, paper, and textiles. However, the arabic gum market is expected to face considerable challenges because of fluctuating raw material costs.

Supply Side of the Market

According to our analysis, Sudan is the world's largest producer of Gum Arabic. Compared to other producers, Sudan holds a startling majority of the world's Arabic gum production, roughly 70%. This enormous scale has cemented their status as the unchallenged leader.

Senegalia senegal and Vachellia seyal are the two Acacia trees from which Sudan typically derives Gum Arabic. These trees are good natural resources for plentiful production since they flourish in the arid savanna regions of the nation. Over 5 million people in Sudan depend directly or indirectly on gum arabic for their livelihoods, making it a vital component of their economy. Farmers, merchants, processors, and exporters are all included, making it an essential source of stability and revenue. The European gum arabic market makes up 40.1% of the global market.

A sizable consumer base, particularly for beverages, confections, and pharmaceuticals, is credited for the market's expansion in the area. Gum arabic holds significant importance as an emulsifier in producing soft drink syrups. Consequently, the region's booming food and beverage sector has helped the market expand. Countries like Japan, India, China, and Australia are also customers of the gum arabic; demand for confectionery products has increased.

Global Gum Arabic Market is Segmented as Below:

By Product Type:

• Acacia Senegal
• Acacia Seyal

By Function:

• Thickener
• Gelling Agent
• Stabilizer
• Fat replacer
• Texturant
• Others

By End-use Industry:

• Food and Beverages Industry
• Pharmaceutical Industry
• Confectionery
• Printing & Painting
• Others

By Geographic Coverage:

• North America 
  • U.S. 
  • Canada 
• Europe 
  • Germany
  • U.K.
  • France
  • Italy
  • Turkey
  • Russia
  • Rest of Europe 
• Asia Pacific 
  • China
  • Japan
  • South Korea
  • India
  • Southeast Asia
  • Rest of Asia Pacific 
• Latin America 
  • Brazil 
  • Mexico 
  • Argentina
  • Rest of Latin America 
• Middle East & Africa  
  • GCC 
  • South Africa
  • Egypt
  • Nigeria
  • Rest of Middle East & Africa