North America Gum Arabic Market Size (2024-2030)

The North America Gum Arabic Market was valued at USD 295.2 million and is projected to reach a market size of USD 446.21 million by the end of 2030. Over the outlook period of 2024-2030, the market is anticipated to grow at a CAGR of 5.3%. 

Originally made from the hardened sap of two species of the Acacia tree, Senegalia senegal and Vachellia seyal, gum Arabic is a natural gum. This is used in a wide range of industries which include food, beverage, pharmaceutical, and others. North America has a notable presence in the Gum Arabic Market. In the past, this has seen considerable growth, especially in the food and beverage sector due to its purpose in improving and enhancing quality. In the present, with various R&D formulations, diverse applications, and innovations, this market has seen good progress. In the future, with a growing focus on sustainability, changing consumer preferences, and expansion of import-export trade, this market will have a substantial presence. During the forecast period, this market is predicted to see a considerable enlargement.

Key Market Insights:

In 2021, Gum Arabic was the world's 3187th most traded product, with a total trade of $363M.

Between 2020 and 2021 the exports of Gum Arabic grew by 7.33%, from $338M to $363M.

In 2021 the top importers of Gum Arabic were the United States ($60.9M), France ($58.7M), Germany ($26.7M), India ($24.2M), and China ($16.4M).

North American region dominated the global gum Arabic market in 2022, accounting for a 40% share in terms of value.

Fluctuations in price resulted in approximately 20% to 30% losses affecting the Gum Arabic market. To tackle this, fixed and lower costs are being incorporated to increase sales.

North America Gum Arabic Market Drivers:

An increasing number of applications are aiding the market to expand.

Gum Arabic is mainly used in the food industry. It is mainly used as a thickening agent in gums. Besides, it acts as an emulsifier, stabilizer, flavor enhancer, texturing, and foaming agent in many food products and beverages. These properties help to increase their usage in confectionery, candies, jellies, chocolates, soft drinks, sodas, beers, etc. Additionally, they are used in certain tablets and lozenges in the pharmaceutical sector due to their benefits. Moreover, are used as adhesives, additives, and binders in ceramic products, paper units, paints, and other manufacturing units. All these uses make it a suitable choice thereby helping in the generation of revenue.

Health benefits associated with Gum Arabic are contributing to the growth of the market.

This gum acts as a dietary fiber helping in healthy weight loss. Clinical studies have shown that acacia promotes the growth of healthy bacteria in the gut and digestive system. This acted as a prebiotic leading to the growth of Lactobacillus and Bifidobacterial. Secondly, it is known to lower cholesterol levels and help with the reduction of glycemic index in soft drinks. This helps to maintain the insulin level. Apart from this, it is FADMP (Fermentable Oligosaccharides, Disaccharides, Monosaccharides, and Polyols) friendly. FADMP is usually responsible for the prevalence of gastrointestinal problems. Moreover, it does not cause any plaque or cavity problems because it is a non-fermentable carbohydrate. Furthermore, few studies have linked the association of high proteins with kidney diseases. Gum acacia helps in the mitigation of such risks.

Gum Arabic Market Restraints and Challenges:

Price fluctuation, side effects, compilation with guidelines, and quality control are the main issues that are being faced by the market.

Due to recent inflation, there are many markets which have suffered. Gum Arabic is one of them. Availability of raw materials, expenses of import and export, manufacturing operations, and production units require a lot of funding. This can demotivate the companies. Secondly, even though there are health benefits associated with these products there have been few reports of nausea, bloating, allergies, and a discomforting sensation in the mouth. Thirdly, since this is a main product in the Middle East and African countries, they may face challenges regarding supplying these products to other regions. Every nation has different guidelines for its trade activities. This can hamper the growth. Furthermore, ensuring top quality for all the batches is a hindrance. Negligence can be done in ensuring proper quality.

Gum Arabic Market Opportunities:

Diverse applications for this market are being explored. Pharmaceutical companies have taken up research projects to study this product. Their usage in nutraceuticals, probiotics, and other medicine are being experimented with. The ongoing fitness goals are helping the market to progress. A greater part of the population is adopting various prebiotics to enhance their immunity. This is helping with the market expansion. Moreover, companies are focusing on expanding their operations globally, increasing their production lines, and prioritizing import and export trade to yield more profits. Furthermore, culinary innovations of plant-based items are helping to increase their usage. Apart from this, the ongoing demand for natural ingredients instead of artificial substitutes is boosting the market. Arabic Gum is a natural and clean-label product. Therefore, many health-conscious people are leaning towards using these products.

NORTH AMERICA GUM ARABIC MARKET REPORT COVERAGE:

Gum Arabic Market Segmentation:

Gum Arabic Market Segmentation: By Source:

• Acadia Senegal
• Acadia Seyal

Based on the source, Acadia Senegal is the largest segment in the market. They hold an approximate share of 65%. This is because they are widespread across many regions, can withstand weather conditions like being drought tolerant and able to be grown in dryer areas, and have high gelling properties, strength, and versatility. Moreover, they provide a better yield and have superior quality. Acadia Seyal is the fastest growing holding a share of around 35%. They are associated with high gum content and quality. Additionally, these trees have a higher pH, are resistant to salts, and are resistant to floods making them an apt choice. During the forecast period, they are predicted to show a notable growth rate.

Gum Arabic Market Segmentation: By Function:

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

Based on function, thickeners are the largest segment in the market. They are used in many desserts and other drinks to improve the texture, taste, and stability, and for reducing calories. Additionally, they are cost-effective. Fat replacers are amongst the fastest growing owing to an increase in chronic illness, health and wellness trends, demand, and reduced fat content.

Gum Arabic Market Segmentation: By Application:

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

Based on application, beverage products are the largest segment in the market. They hold a share of around 32%. Gum Arabic is often used in soft drinks as a stabilizer, emulsifier, taste enhancer, texturing agent, and emulsifier. They are found to be better than starch and gelatin. With the increasing number of food chains and changing lifestyles, this segment is predicted to tremendously expand. During the forecast period, this category will experience good growth. Dairy products are the fastest growing. These products are used for fat reduction, prevention of crystal formation, and as an emulsifier to maintain a smooth as well as consistent texture. Their demand is increasing due to rising consumption and the creation of vegan-based dairy products.

Gum Arabic Market Segmentation: Regional Analysis:

• United States
• Canada
• Mexico

Based on region, the United States holds the largest market share in the whole of North America. It holds a rough share of 52%. This is due to the population, demand, extensive use in end-user industries like food & and beverage and pharmaceutical, a greater number of eateries, presence of companies, technological advancements, and import trade dominance. Major revenue is generated from countries like California, Illinois, Texas, and New York However, Canada is the fastest growing owing to rising demand, R&D activities, increasing investments, emerging key players, extending uses, and Governmental initiatives. This region holds an approximate share of 32%.

COVID-19 Impact Analysis on the North American Gum Arabic Market:

The outbreak of the virus hurt the market. Lockdowns, social isolation, and movement restrictions were the new norm. This caused disruptions in supply chains, transportation, and other logistics. Import-export trade activities were hampered due to this. There was a decline of roughly 40% in the demand and supply. All these factors caused an economic downfall. There were very less investments towards this market. Most of the funds were diverted toward the development of vaccines, COVID testing kits, and other healthcare applications. Besides, there was a lack of labor due to uncertainty. This affected the planning of end-to-end operations. Apart from this, most of the companies and manufacturing units were shut down. Additionally, restaurants, hotels, and other dineries were shut down causing a decrease in the sales of Gum Arabic. Furthermore, there are few reported side effects of this gum. This didn’t align well with the ongoing fitness and wellness trends. The pandemic highlighted the importance of having good health. However, post-pandemic, with the upliftment of lockdowns and relaxation of rules & and regulations, this market has started to pick up steadily.

Latest Trends/ Developments:

Companies in this industry are driven to increase their market share using a variety of tactics, including alliances, investments, and acquisitions. Along with maintaining competitive pricing, businesses are paying much to advance existing technologies and find new ones. This has also led to greater enlargement.

The trend among consumers is to buy food with clear labels. Transparency is enabled by the inclusion of a list of all components. Additionally, this leaves no place for any potential allergies or other hazardous substances that could be present. Market expansion is anticipated as a result of this initiative.

Key Players:

1. TIC Gums
2. Archer Daniels Midland (ADM)
3. Ashland Specialty Chemicals Inc
4. Agrigum International
5. ISC Gums
6. Kerry Group
7. Dupont Nutrition & Biosciences
8. Farbest Brands
9. AEP Colloids
10. Nexira Inc

In October 2020, France-based acacia gum manufacturer Alland & Robert, a significant supplier to North America planned to invest €11 million (US$12.9 million) early next year. The move would increase its production capacity by 45 percent, bringing it from 20,000 tons processed per year to 29,000 tons. This increase in production capacity responds to a spike in global demand for acacia gum, which the company estimates to be approximately 60,000 tons per year.