Canada Food Hydrocolloids market is projected to witness a CAGR of 4.51% during the forecast period (2020 - 2025).

  • Hydrocolloids have a wide array of functional properties in foods including; thickening, gelling, emulsifying, stabilization, coating and etc. Hydrocolloids have a profound impact on food properties when used at levels ranging from a few parts per million for carrageenan in heat-treated dairy products to high levels of acacia gum, starch, or gelatin in jelly confectionery.
  • Therefore, these factors are expected to increase its application in its ever-expanding food and beverage market, which is expected to foresee a boom due to the increasing ex-pat population residing during the forecast period.



Key Market Trends

Increasing Penetration for Speciality Ingredients

The functional food industry and the dietary food supplement sectors in Canada are witnessing growth at a faster rate. Moreover, the specialty food industry is experiencing demand growth, due to increasing consumer preferences for high-quality food products. Therefore, with the rise in consumption of these types of food and beverage, the Gellan gum is also commonly being added to fortified juices and plant milk to help stabilize supplemental nutrients like calcium keeping them mixed into the beverage rather than pooled at the bottom of the container. Moreover, Gellan gum is particularly popular in vegan packaged foods because it’s a plant-based alternative to gelatin. Therefore, these factors are expected to increase the application of hydrocolloids in the specialty food ingredients market in Canada.

Increasing Consumption for Food and Beverage among Canadians

Canada is a potential market in the food and beverage industry as it possesses a wide consumer base with a multicultural population. Canadian consumers tend to spend a substantial amount of their earnings on food and drink owing to the four important factors of value, convenience, health, and sustainability that drive their choices, which is expected to increase the application of hydrocolloids in the food and beverage market in Canada. Moreover, the changing consumer demographics in terms of lifestyle changes and growing working population resulting in consumer demand for convenience and processed foods. This is seen as an opportunity for the manufacturers to apply hydrocolloids in their manufacturing process.

Competitive Landscape

Some of the major players manufacturing and importing their hydrocolloid ingredients in Canada are Cargill Incorporated, DuPont, and Koninklijke DSM N.V. The leading players are well-established and hold a major portion of the market. Local players are trying to compete with major players through innovations and product differentiation. The entry of a local manufacturer has further intensified the market in terms of pricing, as private-label players have low production and marketing costs. Therefore most of the players are dependent on the business to business trade fairs, exhibitions, and ingredients expo, to aware the end-users of the hydrocolloids in the country.

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