The India Hydrocolloids Market is estimated to be valued at USD 144.8 Mn in 2024 and is expected to reach USD 218.6  Mn by 2031, growing at a CAGR of 7.1% from 2024 to 2031.

The extensive applications of hydrocolloids in food and beverage and pharmaceutical industries are fueling the India hydrocolloids market.

Market Driver – Growth in Food and Beverage Industry

The food and beverage industry in India has seen tremendous growth in the past decade fueled by changing consumer tastes and preferences. As Indians shifted away from traditional diets to more convenience foods, it has opened up immense opportunities for food processing companies in the country. hydrocolloids have emerged as an important ingredient for these companies.

Food processing in India utilizes hydrocolloids like guar gum, xanthan gum, carrageenan etc. in various applications. They are used as thickening and stabilizing agents in products ranging from sauces and soups to baked goods, salad dressings and more. The growth in packaged foods, ready-to-eat meals and other convenience foods have created strong demand for these additives. Food processors rely on hydrocolloids to add texture, maintain consistency and improve shelf-life of food products. They help enhance the sensory properties of foods and enable the design and formulation of novel food varieties.

The growing food industry has also led to proliferation of branded food companies in India. Their focus on product differentiation through consistent textures, flavors and quality has boosted hydrocolloids consumption. As Indians adopt western eating habits, the market for packaged bakery and confectionery items is ballooning.

Market Driver – Surging Demand for Thickening and Gelling Agents

The Indian market for thickening and gelling agents have seen strong growth over the years driven by increasing applications across industries. Hydrocolloids are extensively used as texturizers in wide variety of processed food products as well as personal care, pharmaceutical and other specialty applications. They provide critical functionality to emulsions, suspensions, gels and many other formulated systems.

In food industry, hydrocolloids act as stabilizers, emulsifiers, thickening agents, gelling agents and preservatives. They help manufacturers achieve the desirable viscosity, texture and appearance in foods. Growth of packaged bakery, dairy, meat and dressing categories imply increasing adoption of hydrocolloids during processing. Personal care segment has witnessed rapid formulation changes with hydrocolloids improving consistency and aesthetics of products. They are used in creams, lotions, shampoos, hair conditioners as well as cosmetic products.

Pharmaceutical industry relies heavily on hydrocolloids for manufacture of oral liquids, gels, suspensions and other dosage forms. They are ideal excipients for developing medicines for pediatric, geriatric patients and those having difficulty swallowing tablets or capsules.

Hydrocolloids are also replacing gelatin widely due to their superior attributes and assurance of religious safety. Applications are growing in paints, dyes, adhesives, explosives and industrial formulations as well where they confer stability and other properties.

Market Challenge – Substitutes Availability

One of the major challenges faced by the hydrocolloids market in India is the rising availability of substitutes. Being an agricultural-based industry, hydrocolloids have to compete with a plethora of alternate ingredients that can be used instead of them. For example, starches extracted from corn, potatoes and tapioca are increasingly replacing gums in various applications such as thickeners in soups, sauces and gravies. The substitutes offer cost benefits to manufacturers as they are cheaper and easily available in the country.

Moreover, some substitutes also provide better functionality than hydrocolloids in certain uses. This increased competition from substitutes is putting pressure on the price and volumes of hydrocolloids in the India market. For hydrocolloids suppliers and processors, attracting and retaining customers is becoming more difficult in this substitute-driven environment. Going forward, substitute pressures are expected to intensify for the Indian hydrocolloids industry as alternative options continue to expand.

Market Opportunity – Developing New Application Areas

One of the key opportunities for the hydrocolloids market in India is to focus on developing new application areas of usage. While hydrocolloids have been used commonly in food products as thickeners, stabilizers and gelling agents; there remains headroom to increase adoption in non-food industries. For instance, hydrocolloids show promise in personal care applications such as moisturizers and hair conditioners where they can act as emulsifying and thickening agents.

Similarly, areas such as pharmaceuticals, paints and construction can provide growth avenues as hydrocolloids have properties beneficial in these sectors too. Developing specialized grades of hydrocolloids for non-traditional segments through rigorous research presents a major opportunity. Engaging with key players in these emerging sectors and creating awareness about functionality can help boost new consumption of hydrocolloids over the long run. This will aid the Indian industry in moving away from saturated food applications and diversifying into novel application development.

Insights, By Product Type: Gelatin Sub-segment Dominates the Product Type Segment

In terms of product type, gelatin sub-segment contributes the highest share of 77.5% in the market, owning to its diverse applications and functional benefits. Gelatin has excellent gelling, stabilizing, emulsifying, and thickening properties that make it highly versatile for use in a wide variety of products. In the food industry, gelatin is commonly used to add texture to desserts, snacks, confectionaries, and other items. Its ability to form thermo-reversible gels allows foods containing gelatin to solidify upon cooling but remain easily spreadable when heated again. This unique characteristic boost consumer convenience.

Gelatin is also popular as a binding and coating agent. It helps bind meat products like sausages together while also providing a glossy outer layer. This enhances the aesthetic appeal of finished goods on store shelves. In pharmaceuticals, gelatin is valued for its ability to rapidly dissolve or disperse active ingredients for faster absorption in the body. Capsule shells and coated tablet formulations leverage gelatin's film-forming properties. Moreover, gelatin has bioactive peptides that may benefit joint health, bone strength, and skin complexion - an added functional benefit boosting its usage in nutraceuticals and cosmetics.

The established use of gelatin in diverse applications has supported steady demand growth over the years. Manufacturers are also innovating with gelatin to launch new product variations.

Insights, By Application: Pharmaceuticals and Nutraceuticals Sub-segment Lead the Application Segment

In terms of application, pharmaceuticals and nutraceuticals sub-segment contributes the highest share of 50.4% in the market.

Hydrocolloids find extensive usage in pharmaceuticals and nutraceuticals owing to their ability to effectively encapsulate, protect, and deliver active compounds in the body. They are frequently used as excipients - substances apart from the active drug that aid processing or patient compliance. Hydrocolloids like carrageenan, pectin, and xanthan gum help formulate diverse oral dosage forms like tablets, capsules, suspensions and emulsions by providing viscosity, stability and release modulation.

Their film-forming nature and emulsifying properties enable enteric coating of tablets to protect actives from stomach acids. Hydrocolloids also control particle size in suspensions for uniform dosing. As part of semi-solids, they impart texture and prevent separation. In nutraceuticals, hydrocolloids enhance the solubility and bioavailability of ingredients like minerals, vitamins and antioxidants. They offer benefits like sustained release and protection from degradation during processing and shelf-life.

The Indian pharmaceutical industry's stable growth prospects support continued demand from this segment. As healthcare expenditures rise with growing incomes, more consumers utilize OTC drugs and supplements for general wellness needs. Hydrocolloids facilitate delivery of active compounds in these products.

The major players operating in the India Hydrocolloids Market include Cargill, Inc., Koninklijke DSM N.V., International Flavors & Fragrances Inc., LUCID COLLOIDS LTD., United Group of Food Consultants, Altrafine Gums, Gujarat Enterprise, and Indian Hydrocolloids.

• On January 4, 2021, Ingredion Incorporated expanded its specialty ingredient portfolio with acquisition of KaTech Ingredion Incorporated, a leading global provider of ingredient solutions to the food and beverage industry. KaTech has a strong focus on plant-based, dairy and dairy alternatives, meat and fish, savory, and bakery products providing a high level of technical expertise and formulation capabilities for texturization and stabilization and clean and simple formulations.
• In September 2021, Cargill announced the opening of its new,  pectin production facility, located in Bebedouro, Brazil. The plant, which represents a $150 million investment, significantly expands the company’s ability to meet growing global demand for the label-friendly texturizing ingredient.
• In July 2021, DSM Hydrocolloids unveiled new branding for its gellan gum and xanthan gum portfolios. The new brands are Gellaneer for gellan gum, ClariXan for xanthan gum used in food and personal care, and XanTreme for xanthan gum used in industrial applications.

• By Product Type
  • Gelatin
  • Carrageenan
• By Application
  • Pharmaceuticals & Nutraceuticals
  • Food & Beverages
  • Others
  • Personal Care & Cosmetics