The South American food hydrocolloids market is anticipated to register a CAGR of 7.0% during the forecast period (2020-2025).

  • The market is driven by the wide applications of hydrocolloids in the food industry. It is also attributed to the increasing demand for natural and clean-label ingredients.
  • Pectin remains to be the major ingredient available for clean-label requirements and its use is growing in dairy and dairy alternative beverages.
  • The changing consumer demographics, in terms of changing lifestyles and the increasing working population, are resulting in a high demand for convenience and processed foods across the region, which, in turn, will boost the sales.



Key Market Trends

Increasing Demand for Processed Foods in the Region

Commercially, the most attractive markets for ultra-processed food and drinks are no longer the fully-industrialized high-income countries; they are the middle- and low-income countries, including the ones in South America. The countries in South America, like Brazil and Argentina, witnessed rapid growth in the demand for processed foods, over the past few years. Ultra-processed foods are found to have a faster growth rate in the region. The nutritional profile of the fraction of ultra-processed food consumption showed higher energy density, higher overall fat content, higher saturated and trans fats, higher levels of free sugar, less fiber, and lower protein, sodium, and potassium, when compared to the fraction of consumption of natural or minimally processed foods have propelled the demand. Thus, the increasing demand for processed foods in the region is expected to boost the sales of the market.

Brazil Holds a Prominent Share in the Market

The demand for natural food products is increasing, among the health-conscious consumers. This has resulted in the tremendous growth of the hydrocolloids market. Hydrocolloids function as binding agents, stabilizers, emulsifiers, thickeners, and gelling agents. The market is largely driven by increased R&D and innovations in hydrocolloids. The consumers’ preference for natural ingredients and the varied applications of hydrocolloids in the food and beverage industry are some of the reasons for the upsurge in the demand. The changing consumer demographics, in terms of lifestyle changes and the increasing working population, are resulting in the demand for convenience and processed foods, especially in the emerging countries. This is seen as an opportunity for the manufacturers to adopt hydrocolloids in their manufacturing processes.

Competitive Landscape

The South American food hydrocolloids market is a competitive one, with the presence of various players. The leading players in the market are Cargill, CP Kelco U.S. Inc., and Kerry Group. The strategies of the leading players focus on developing innovative solutions that address the taste, texture, and nutritional profile of processed foods, in turn, extending the shelf-life of the final products.

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