Market Overview

Global Gum Arabic Market size was valued at USD 800.3 Million in 2022 and is projected to reach USD 1167.7 Million by 2030, also growing at a CAGR of 6.7% from 2023 to 2030.

The source of gum arabic are acacia trees, which are mostly grown in Africa, Sudan, Chad, and Nigeria, are. It is used as a binding, thickening, and stabilizing agent in many different industries, such as the cosmetics and personal care, food and beverage, and medicinal industries.

Gum Arabic is a natural emulsifier obtained from the Senegalese and Serial acacia trees. It has many uses in various industries. Gum Arabic, also known as gum sultana, gum arabic, gum senegal, gum ghatti, among other names. Most of the world's gum arabic is produced in Africa, with countries such as Sudan, Nigeria and Chad producing the most.

Gum arabic is a complex mixture of glycoproteins and polysaccharides, mainly polymers of arabinose and galactose. It is soluble in water, edible, and mainly used in the food industry and soft drink industry as a stabilizer. The gum arabic market continues to grow in demand across the globe owing to its wide range of industrial uses ranging from the food and beverage industry to the painting industry.

Market Dynamics

Driver 

• Increasing demand for natural and organic products

During the period of study, the significant growth rate of the gum arabic market is anticipated to be driven by the increasing demand for natural products in the food and beverage industries. In addition, gum arabic products are rich in dietary fiber, which aids intestinal function and digestion. As a consequence, gum arabic consumption is increasing. Even manufacturers and producers emphasize gum arabic's nutritional benefits in promotional materials. Additionally, gum arabic products are in high demand due to their organic nature and high fiber content.

• Expanding use of gum Arabic in diverse industries

Gum arabic is also extensively used as a thickening agent in the production of gum arabics. In addition, gum arabic flour is utilized as an additive in ceramic glazes, an adhesive in rolling papers, and a binder in the production of watercolor paints. In addition, gum arabic is extensively used as a microencapsulating agent in the confectionery, beverage, bakery, and dairy industries. Consequently, gum arabic products were the fastest-growing product on the gum arabic market during the assessment period. As a result, gum arabic applications are expanding across a variety of industries, which is anticipated to drive the growth of the global gum arabic market.

• The Rise in Nutritional Content

The high fiber content of Gum Arabic promotes healthy digestion and bowel function. Patients suffering from constipation and irregular bowel movements can benefit from using gum Arabic. Many manufacturers of Gum Arabic are focused on obtaining regulatory approval for the incorporation of this emulsifier in food products. Encapsulation of powder remains one of the most important manufacturing processes in the pharmaceutical industry. Instantly soluble Gum Arabic is colorless, tasteless, odorless, and has a high water-solubility, all of which are key factors driving the Gum Arabic Market.

Restraints

Due to a lack of raw materials and varying gum Arabic product prices, the global gum Arabic market may be constrained. Recently, coronavirus has posed a significant threat to the global gum Arabic market. This pandemic has affected nearly all of the global market's producers and manufacturers, thereby directly affecting global market demand.

Uncertain climatic changes are anticipated to impede the gum Arabic supply. In addition, the fluctuating price of gum Arabic is anticipated to be a significant factor impeding market growth over the forecast period.

Opportunities

The increasing demand for gum Arabic products with clear labels as a result of rising consumer preferences for natural ingredients is anticipated to generate significant growth opportunities. Due to the increasing demand for natural ingredients, manufacturers are emphasizing on acquiring food ingredients and raw materials that are derived from natural sources. Thus, increasing demand for gum Arabic products with clear labels is anticipated to fuel the gum Arabic market.

The expanding use of gum Arabic in dentistry is anticipated to create opportunities for the gum Arabic market. It is a complex polysaccharide with a neutral pH, composed of magnesium, calcium, and potassium, which promotes remineralization of the teeth. In addition, it possesses antimicrobial properties, which contribute to its growing demand in the dentistry industry. Consequently, the expanding demand for gum Arabic in dentistry is anticipated to stimulate market expansion.

Industry News and Key Developments

• June 4, 2018 - CaraGum launches- CaraGum EM CG 108-2, a cost-effective gum Arabic emulsifier. It is less expensive than conventional gum due to its higher concentration.
• In March 2020 – Farbest Brands has partnered with CARAGUM International, which specializes in developing and manufacturing stabilizer systems for the food industry. CARAGUM International focuses primarily on developing stabilizers for liquid products, including beverages, flavored emulsions, and sauces.
• In May 2022 - Kerry, opened the largest and most advanced taste manufacturing facility on the African continent. The new R650m (€38m) facility is located in KwaZulu-Natal, South Africa, and will produce sustainable nutrition solutions that will be consumed across the African continent.
• In August 2022 – ADM, accelerating the commercialization of sustainable foods in Asia, announced the official inauguration of their joint venture company, ScaleUp Bio. It is the first company in Singapore to provide contract development and manufacturing organization services for precision fermentation for food applications.

Market Segmentation

On the Basis of Type:

The market is segmented by Type into Acacia Senegal and Acacia Seyal. Acacia Senegal will be the dominant participant on the global Gum Arabic Market in 2020. The tree is native to Sudan, Africa, and eastern India, but it has since spread throughout the globe. Acacia Senegal trees are renowned for their capacity to produce fruit in every season, regardless of the climate or soil type. They are drought-resistant, making them suitable for cultivation in arid climates around the globe.

According to the information source, Acacia seyal is anticipated to be the sector with the highest growth rate over the foreseeable future. This tree can be found in a variety of African locations, but it is especially prevalent in the Nile region. The variant is more resistant to ions, high pH, and repeated flooding than acacia Senegal, and its leaf surface has a higher average molecular mass of gum.

On the Basis of Application:

The market is segmented based on Application into Beverage Products, Dairy Products, Confectionery, Sauces & Dressings, Bakery Products, and Others. In terms of revenue, the beverages application will account for the largest share of the global market in 2020. Gum Arabic offers several value-added advantages over gelatin, tapioca, and other common beverage additives, as it has been demonstrated to be a superior stabilizing and emulsifying agent. Beverage manufacturers and manufacturers of consumable flavors, syrups, and concentrates are increasingly incorporating gum arabic as a functional ingredient in soft drinks, smoothies, fruit-flavored water and beverages, and other soft-alcoholic beverages.

On the basis of function:

The market is segmented based on the function like it is used as thickener, fat replacer, stabilizer, gelling agent, coating agent, texturant. 

On the Basis of Region:

Geographically, the global Gum Arabic market has been analyzed in various regions such as North America, Latin America, Middle East, Asia-Pacific, Africa, Europe, and India. The global Gum Arabic region is dominating this market in the upcoming future.

North America dominates the global gum arabic market in 2022. North America holds a market share of 33.4% in the global gum arabic market. The region is expected to continue dominating the global gum arabic market as it is the region with the widest consumption base for food and beverage products.

The demand for gum arabic market has been rising in the United States and Canada owing to the huge market for confectionery, convenience food in bakeries, and packaged food.

Europe is expected to offer huge growth opportunities for the gum arabic market owing to the presence of leading confectionary manufacturers in the region. The European gum arabic market accounted for 40.1% of the global market share.

Asia Pacific is the fastest growing region for the gum arabic market. Japan, India, China, and Australia are expected to register double-digit CAGRs for the foreseeable period owing to surging sales of dairy products.

Moreover, increasing demand for confectionery in the region has positively impacted the growth of the gum arabic market. The market is driven by rising sales of dairy products, especially in countries such as Japan, China, Australia, and India.

Market Key Players

GUM ARABIC, NEXIRA, KERRY, TIC GUMS, AGRIGUM INTERNATIONAL, FARBEST BRANDS, ARCHER DANIELS MIDLAND, ASHLAND, HAWKINS WATTS, PRODIGY NIG, and others.

• Gum Arabic

Gum Arabic Company (GAC) is a publicly traded corporation founded in 1969 and headquartered in Khartoum. The Minister of Supply and Internal Trade granted the GAC an exclusive export license for gum Arabic in its unprocessed form.

• NEXIRA

Nexira, a family-owned business founded in 1895, has established itself as the global authority in acacia gum. Today, Nexira is the global leader in botanical extracts and natural ingredients for food, nutrition, and dietary supplements. Their  ingredients are ideal for the formulation of products with pristine labels.

In France, Nexira manufactures a variety of natural ingredients with established health advantages, including FibregumTM, an all-natural, organic, and GMO-free source of soluble dietary fiber.

Nexira's portfolio for the supplement industry includes premium nutraceuticals for digestive health, weight management, sports nutrition, joint health, and men's and women's health that are strongly supported by scientific and marketing data.

• KERRY

Kerry Group Limited is an Irish-based public food manufacturer. It is listed on the stock exchanges of Dublin ISEQ and London. Given the company's origins in the cooperative movement, the company's farmer-suppliers maintain a significant stake in the business.

They provide services like taste & nutrition, foodservice & convenience, food & beverage, and pharma.

• TIC GUMS

TIC Gums is a global pioneer in texturizer and stabilizer solutions for the food industry. TIC Gums are utilized by food and beverage companies to enhance the texture, stability, consistency, nutritional profile, and retail appeal of their products.

Their services are food texturizers & stabilizers and gums & hydrocolloids

• AGRIGUM INTERNATIONAL

Managing Director George M. Haddad founded Agrigum International Limited in 2007. George is the third generation of his family to work in the Gum Acacia industry, following in the footsteps of his Father and Grandfather, who established the family's first business in Sudan in the 1950s. Agrigum is a significant processor of Gum Acacia, producing the extensive Agri Range of Gum Acacia products as well as other hydrocolloids and associated blends to meet the specific needs of its customers.

The Gum Arabic market research report is categorized based on type, applications and region.

On the Basis of Type:

• Acacia Senegal
• Acacia Seyal

On the Basis of Application:

• Confectionery
• Beverage Products
• Bakery Products
• Dairy Products
• Sauces & Dressings
• Others

On the basis of function:

• Thickener
• Fat Replacer
• Stabilizer
• Gelling Agent
• Coating Agent
• Texturant
• Others

Further the regions are divided into countries as follows

• North America
• US
• Canada
• Mexico
• Rest of North America
• Europe
• Germany
• France
• Italy
• Spain
• UK
• Nordic Countries
• Denmark
• Finland
• Iceland
• Sweden
• Norway
• Benelux Union
• Belgium
• The Netherlands
• Luxembourg
• Rest of Europe
• Asia-Pacific
• Japan
• China
• India
• Australia
• South Korea
• Southeast Asia
• Indonesia
• Thailand
• Malaysia
• Singapore
• Rest of Southeast Asia
• Rest of Asia-Pacific
• The Middle East & Africa
• Saudi Arabia
• UAE
• Egypt
• South Africa
• Rest of the Middle East & Africa
• Latin America
• Brazil
• Argentina
• Rest of Latin America

Scope of Report

Conclusion

Acacia trees, which are mostly grown in Africa, Sudan, Chad, and Nigeria, are the source of gum arabic. It is used as a binding, thickening, and stabilizing agent in many different industries, such as the cosmetics and personal care, food and beverage, and medicinal industries. In 2022, the world Gum Arabic Market was worth USD 800.3 Million. By 2030, it is expected to be worth USD 1167.7 Million, and from 2023 to 2030, it will grow at a CAGR of 6.7%. Any growth in this business is good for product demand because this ingredient is used in most sweets and baked goods as a filler and thickener. More people want different kinds of food, which will give the Gum Arabica Market even more chances to grow. Estimates and forecasts of the size of the gum Arabic market are given in terms of sales volume (K units) and income (million USD), with data from 2017 to 2030, with 2022 as the base year. This study breaks down the global Gum Arabic market into many different parts. Regional market sizes are also given for each product type, each application, and each player. When figuring out how big the market was, we took COVID-19 and other world crises into account.