Beverage Stabilizer Market - Forecast(2024 - 2030)

Beverage Stabilizer Market Overview

The Beverage Stabilizer market size is estimated to reach $2.4 billion by 2026, growing at a CAGR of 5.3% during the forecast period 2021-2026. Beverage Stabilizers are primarily used to thicken drinks, emulsify flavors, suspend particles, enhance mouth-feel, retain color, and maintain homogenous dispersal of the ingredients of beverages. Some of the most commonly used stabilizers in the beverage industry are modified starches, pectin, carrageenan, casein, inulin, CMC (Carboxymethyl Cellulose) and hydrocolloids such as xanthan gum, gum Arabic and gum acacia. The rise in applications of such stabilizers in the beverage industry is anticipated to drive the market during the forecast period. However, the stringent rules and regulations imposed by various regulatory bodies regarding the use of Beverage Stabilizers are a major challenge for the Beverage Stabilizer Industry.

Beverage Stabilizer Market Report Coverage

The report: “Beverage Stabilizer Market Forecast (2021-2026)”, by Industry ARC, covers an in-depth analysis of the following segments of the Beverage Stabilizer Market.

By Type: Xanthan Gum, Carrageenan, Gum Arabic, Carboxymethyl Cellulose, Pectin, and Others
By Function: Stabilization, Viscosification, Texturization, Emulsification, Thickening, and Anti-Crystallization.
By Application: Fruit Drinks, Dairy Products, Soft Drinks, Alcoholic Beverages, Tea, Coffee, and Energy Drinks
By Geography: North America (U.S., Canada, and Mexico), Europe (Germany, UK, France, Italy, Spain, Russia, and the Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia & New Zealand, and Rest of Asia-Pacific), South America (Brazil, Argentina, and Rest of South America) and the Rest of the World (Middle East and Africa).

Key Takeaways

• Geographically, the North American market accounted for the highest Beverage Stabilizer Market share in 2020 and it is poised to dominate the market over the period 2021-2026 owing to the well-developed alcoholic beverage industry in the region.
• Increase in health consciousness and the resulting rise in demand for natural ingredients in drinks are anticipated to drive the market during the forecast period. However, the increase in customer preference for fresh beverage products in developed regions act as a major challenge for the market.
• Detailed analysis on the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be provided in the Beverage Stabilizer Market report.

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Beverage Stabilizer Market Segment Analysis-By Type

Based on Type, the Beverage stabilizer market is segmented into Xanthan Gum, Carrageenan, Gum Arabic, Carboxymethyl Cellulose, Pectin, and Others. The Xanthan Gum segment accounted for the largest share of the market at 5.5% in 2020 and is anticipated to continue dominating the market during the forecast period 2021-2026. The growth of the segment is attributed to the rise in demand for gluten-free products in developed regions. Xanthan Gum is widely used as a substitute for gluten as it can give the same elasticity and texture that gluten provides. Moreover, Xanthan Gum is used extensively in beverages in order to increase shelf-life, water retention, and viscosity. Pectin is also projected to witness significant growth during the forecast period owing to its multi-functionality and application in various food and beverage products. Pectin can be used as a gelling agent, thickening agent, and stabilizing agent in both food and beverage sectors.

Beverage Stabilizer Market Segment Analysis-By Application

The Beverage Stabilizer Market based on the application can be further segmented into Fruit Drinks, Dairy Products, Soft Drinks, Alcoholic Beverages, Tea, Coffee, and Energy Drinks. The Fruit Drinks segment accounted for the largest share of the market in 2020 owing to the increase in consumer health consciousness and lifestyle changes. Fruit juices are tasty, natural, and nutritious beverages owing to the lack of artificial flavors, high sugar content, and phosphoric acid. Beverage stabilizers are used in fruit juices in order to add texture and thickness to the drink and thereby, enhance customer experience. Dairy products are anticipated to grow at a CAGR of 5.7% owing to their increasing consumption in developing regions. Stabilizers are used in dairy products in order to thicken them and maintain product stability during the manufacture and storage process.

Beverage Stabilizer Market Segment Analysis-By Geography

The Beverage Stabilizer Market based on Geography can be segmented into North America, Europe, Asia-Pacific, South America, and the Rest of World. The North American region accounted for the largest market share of more than 28% owing to an increase in health consciousness among the population. Consumers are more concerned about the ingredients present in the beverages they drink. The growth in consumption of alcoholic beverages such as beer and wine in the region is another major factor causing the growth in the segment. However, The Asia Pacific region is anticipated to have the fastest growth owing to the increase in population and disposable income. This growth in income has led to a rapid increase in demand for processed and packaged beverage products.

Beverage Stabilizer Market Drivers

Increase in Global Consumption of beverage Products is Projected to Drive Market Growth

The increase in disposable income and lifestyle changes is leading to an increased demand for processed alcoholic and nonalcoholic beverage products globally. This is anticipated to drive the demand as beverage stabilizers are extensively used in both beverage segments. The beverage market is anticipated to grow from $1550 billion in 2018 to $1961 billion in 2024.

The Rise in the Variety of beverage Products is Expected to Boost Product Demand

Owing to the extremely high competition in the beverage industry, major players of the market invest significant amounts into R&D in order to develop new and innovative flavors. The growth in a variety of beverage products that make use of stabilizers is anticipated to drive the Beverage Stabilizer demand. For instance, Trader Joe’s developed a non-dairy hemp beverage for the US market.

Beverage Stabilizer Market Challenges

Stringent Rules set by Regulatory Authorities is Anticipated to Hamper Market Growth

Various national, regional and global regulatory bodies such as the Canadian Food Inspection Agency (CFIA), US Food and Drug Administration (FDA), Chinese National Medical Products Administration (NMPA), Food Safety and Standards Authority of India (FSSAI) and World Health Organization (WHO) are associated with food safety regulations. These organizations have stringent regulations that could hamper the growth of the market.

Risk of Side-Effects from Beverage Stabilizer Consumption is projected to limit growth opportunities

The risk of mild to severe side-effects related to consumption of certain beverage stabilizers can discourage customers from purchasing stabilizer-containing beverages. For instance, Gum Arabic is known to cause nausea, bloating, gas, and loose stool among some people while Carrageenan can increase the risk of inflammation, glucose intolerance, food allergies and even colon cancer.

Beverage Stabilizer Market Industry Outlook:

Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the Beverage Stabilizer Market. Top 10 companies in of the industry are-

1. Cargill
2. Tate & Lyle
3. DowDuPont
4. Ashland
5. Palsgaard
6. Glanbia Nutritionals
7. Kerry Group
8. Advanced Food Systems
9. Chemelco International
10. CP Kelco

Partnerships/Product Launches:

• In September 2021, Cargill opened a $150m pectin production facility in Brazil, to meet growing global demand for the label-friendly texturizing ingredient.
• In December 2020, CP Kelco launched GENU Pectin YM-FP-2100, a clean-label-friendly ingredient that provides a medium-to-high viscosity in the fruited drinking yogurt and with ease of pump ability at the fruit prep stage.

Relevant Links:

Beverage Additives Market – Forecast (2021 - 2026)

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Beverage Packaging Market – Forecast (2021 - 2026)

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