Impact of Clean Label Movement on Food Stabilizer Market Dynamics

Impact of Clean Label Movement on Food Stabilizer Market Dynamics

The Food Stabilizer Market is estimated to be valued at US$ 9.5 Bn or Billion in 2023 and is expected to exhibit a CAGR of 6.9% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Food stabilizers are additives that are used to stabilize processed foods and beverages. They help to maintain the structural integrity of food products and prevent undesirable changes. Common food stabilizers include starch, gelatin, pectin, carrageenan, xanthan gum, etc. They are used as thickening, gelling, stabilizing and emulsifying agents in various food applications such as dairy products, confectionery products, bakery products, sauces and dressings, beverages and other processed foods. Food stabilizers play a vital role in improving texture, consistency and stability of food and beverage products.

Market key trends:

One of the key trends gaining traction in the food stabilizer market is the increasing demand for clean label ingredients. Clean label refers to simple and easy to understand list of ingredients in food products. Consumers are becoming more health conscious and prefer food and beverage products with natural and minimally processed ingredients over artificial and synthetic additives. This has prompted food manufacturers to look for clean label stabilizers that are derived from natural sources such as plants, fruits and vegetables. Some of the commonly used clean label stabilizers are guar gum, locust bean gum, xanthan gum, starch, pectin, carrageenan, etc. The demand for clean label stabilizers is expected to grow significantly over the forecast period due to rising clean label trends in developed markets of North America and Europe.

Porter’s Analysis

Threat of new entrants: The food stabilizer market requires high capital investment and poses high risks which restricts new players to enter the market. Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and presence of many vendors supplying food stabilizers. Bargaining power of suppliers: Suppliers have high bargaining power owing to concentration of raw material sources and requirement of technical expertise. Threat of new substitutes: Developing alternative ingredients for food stabilizer faces product development risks and stringent regulations. Competitive rivalry: High as players focus on product differentiation, new product development and expansion to emerging markets.

SWOT Analysis

Strengths: High demand from food processing industry. Wide applications in bakery, confectionery, dairy, meat products etc. Weaknesses: Stringent regulations associated with usage levels. High R&D costs for new product development. Opportunities: Growing demand for convenience and packaged food. Expanding markets in Asia Pacific and Latin America. Threats: Substitution threat from alternative ingredients. Volatility in raw material prices.

Key Takeaways

The global food stabilizer market is expected to witness high growth, exhibiting CAGR of 6.9% over the forecast period, due to increasing demand for convenience and packaged food products. Regionally, Asia Pacific dominates the global market and is expected to grow at fastest rate owing to growing population, rising incomes and changing food habits in countries like China and India.

By application, bakery products segment holds major share in food stabilizer market due to high usage of emulsifiers and stabilizers to improve texture and moisture retention in bakery products. Latin America and Middle East & Africa also offer substantial growth opportunities for food stabilizer market players owing to growing food processing industry in these regions.

Key players operating in the food stabilizer market are BASF SE, Cargill Inc., Celanese Corporation, Chr. Hansen A/S, DuPont, JEY'S F.I. INC, Kerry Group, Koninklijke DSM N.V, and The Archer Daniels Midland Company. Major players are focused on new product development, expansions and mergers & acquisitions to strengthen their foothold in the market.