The sizing & thickening agents market is influenced by various industry applications. The market for natural and synthetic products is growing at a considerable rate, creating immense profit potential for sizing & thickening agent manufacturers. The market for natural thickeners, which includes hydrocolloids, is driven by the growing health consciousness among consumers for natural products. The increase in prices of hydrocolloids is hindering the growth of the market. Emerging markets, such as China and India, have potential demand for hydrocolloids due to their huge population and increasing consumption of convenience food. However the industry also faces certain challenges in coping with the demand for sizing & thickening agents used in various industries such as food & beverages, textiles, and paper. The global demand for sizing & thickening agents is growing and is projected to reach $20,719 million by 2020.
Increasing Demand for Natural and Clean-label Ingredients in Food & Beverages Industry
Increasing consumption of healthy and tasty palatable and health based nutritious food products among consumers has led to increasing interest towards the origin of the ingredients used to produce these products. Natural and clean-label thickeners and ingredients are preferred by consumers as they are constantly looking for ‘natural’ nutrition and products incorporating inherently natural, fresh, wholesome, and balanced nutrition.
Natural ingredients are more likely to be accepted than chemical or synthesized ingredients as consumers perceive natural ingredients to be the safer and healthier choice. The growing trend towards clean-label products, which is slowly becoming mandatory across the globe, creates many opportunities for new formulations and new product developments in food & beverage segments. As consumers are becoming more conscious about the ingredients used in the products they consume, it will become even more important to them to be able to access the products they want with ingredients they recognize and trust. Manufacturers will have to find new solutions to incorporate natural ingredients to satisfy the consumer desire for simplicity and transparency in the food products and ingredients used. This clean-label trend will drive the market of natural ingredients such as hydrocolloids and starch thickeners in the coming years. The natural sizing agents segment is projected to reach $3,920.8 million by 2020, at a CAGR of 5.3% from 2015 onwards.
SIZING &THICKENING AGENTS MARKET, BY APPLICATION, 2015-2020
Starch and starch derivatives are the most common and widely used natural sizing agents
Starch and starch derivatives constitute the largest share of sizing agents used in the textile industry across the world and could remain the predominant ingredient in most types of sizes. Starch can be derived from renewable resources such as corn and potatoes. Due to high availability and less expensive raw materials, starch sizing agents are most commonly used for industrial purposes. Most modified starches are consumed by the paper industry. Synthetic sizing agents are the fastest-growing segment in the chemical industry. Limited supply of raw material for natural agents is influencing the consumer to shift to the use of the synthetic sizing agents. These are prepared using a combination of chemicals; and can be applied in combination with natural agents too.
Key industry players in sizing & thickening agents market
Some prominent players in the global sizing & thickening agents market are DuPont (U.S.), CP Kelco (U.S.), Cargill, Incorporated (U.S.), AkzoNobel NV (The Netherlands), The Dow Chemical Company (U.S.), Archer Daniels Midland Company (U.S.), and Ashland, Inc. (U.S.).
BASF SE (Germany) held the leading position in the sizing & thickening agents market in 2014. BASF SE provides a wide range of sizing & thickening agents through its performance products segment. The company has maintained its leadership in the market through a strong distribution network across Germany, North America, Europe, and Asia-Pacific. The company offers an exhaustive range of sizing agents, thickening agents, and starch products. It focuses on expansions and agreements as its key business strategies to ensure its growth in the sizing & thickening agents market. For instance, in December 2014, BASF SE (Germany) invested $63.33 million for the expansion of its Polyvinylpyrrolidone (PVP) production, which has increased its global PVP production capacities by up to 6,000 metric tons.
