The plot thickens

The prediction is for a relatively low rate of growth in the use of hydrocolloids in the foreseable future, but it should still be ahead of the overall market

Thickeners are part of an important group of functional food ingredients known as hydrocolloids and are responsible for increasing viscosity. This capability can also have the additional effects of stabilising an emulsion, improving texture (mouthfeel), prevention of syneresis (leaking of liquid from a gel), moisture retention, foam formation, or binding-in/ suspending, particulates.The usage of thickeners tends to be quite high in ingredient terms, often in the range 2% to 5% of the weight of finished product. However, some specialist gums and cellulose compounds can be used at levels as low as 0.1% and still have a significant effect on the finished product. Thickeners may be divided into eight groups:

• starches (mainly derived from maize or potatoes)

• modified starches

• gums (derived from plants and animals)

• gelatines (animal hides and bone)

• celluloses (plant fibre)

• alginates (seaweed)

• pectins (from fruit pulp)

• other (including caseinates, soya-based compounds and other proteins)

Usage of these materials is not straightforward, however. Combinations or blends of more than one thickener may be used in one product for a variety of technical reasons. Many products are also interchangeable and usage may be significantly influenced by prevailing prices. It must also be remembered that the total European usage of starches and thickeners is much larger than that quoted here as they are used extensively in non-food products (pharmaceuticals, adhesives, toiletries, etc.).

The industrial usage of thickeners as an ingredient in food and drink for retail and catering products in Europe (the 15 original members of the EU) has been calculated here as one total figure although the usage of the main categories is in the approximate volume ratios: starch (20%), modified starch (25%), cellulose (3%), pectin (6%), gums (12%), gelatines (15%), alginates (4%), other (15%).

Starches and modified starches

Starches are mainly derived from maize, wheat and potato. Other sources include cassava (tapioca) rice and arrowroot. Modified starches are produced by the physical or chemical modification of the above.

Cellulose derivatives

Cellulose plant fibres are used in certain food systems for binding and stabilising. The main cellulose material used is CMC (carboxy methyl cellulose). Other forms found in food and drink include MCC (microcrystalline cellulose), MC (methylcellulose), and HPMC (hydroxypropyl methyl cellulose). These are used mainly in sauces, baked goods, ice cream, soft drinks and formed meats.

Pectin

Pectins are extracted from fruit solids such as apple pulp and citrus peel. Accordingly, their main use is in the stabilisation of jams and other fruit products.

Gums

The usage of certain gums has become increasingly popular in Europe in recent years due to their efficiency at binding and stabilising, often at much lower usage levels. The most used include guar gum, locust bean gum, xanthan gum, gum arabic, tragacanth and gellan gum. Key usages are in fillings, desserts, sauces, dressings, soft drinks and confectionery.

Gelatines

Gelatines are animal-derived proteins, generally extracted from animal hides and bone. Their application is widespread and includes usage in confectionery, dairy products, formed meats and meat products such as pies. However, gelatines are losing favour in some applications, as they are animal and not vegetable based.

Alginates

Produced from seaweed, alginates include agar and carrageenan. These are effective in producing gels for either thickening and/or stabilising and are used widely in dairy products, prepared fruit, sauces, dressings, and formed meat products.

Market size

The size of the industrial usage of all hydrocolloids in Europe was calculated at 564,445t in 2007, according to RTS research. Between 2002 and 2007, usage grew by an average of 0.6% per year with the main segments of usage being yoghurts and desserts, soups and bouillon and petfood. These were followed by the segments of cakes and pastries and meat and savoury products.

Market value, meanwhile, was put at euro 904M. Between 2002 and 2007 value grew by only 0.2% per year on average although it must be noted that these figures are distorted by a significant increase in the value of the euro versus the dollar during this period. (Commodity prices are normally quoted in US dollars and then have to be converted to euros at prevailing average exchange rates.)

By country, the main user in Europe, not surprisingly, is Germany at 137,000t, followed by the UK, France and Italy. However, their average annual growth rates in usage have not been particularly high, while Spain has led the way with 2.2% growth per year.

The EU15 uses approximately 30% in volume of the global total of hydrocolloids, although growth rates have been the lowest of the world's six main regions. By comparison, growth rates in Central and South America and in the Asia/Pacific region have been much higher at annual averages of 4.2% and 3.4% respectively.

Market prospects

Over the 2007 to 2012 forecast period, growth in overall European food consumption will be low (0.5% per year), indicating that growth in the usage of hydrocolloids will continue to be low also. Of course, the main driving force behind growth in food consumption is population, and EU population growth is forecast to be moderate over the next five years with declines in both Germany and Italy. However, immigration will continue to boost numbers in certain states, especially the UK where growth will improve from a previously recorded 0.4% per year to a predicted 0.7% per year to 2012.

The overall result is that usage of hydrocolloids will continue to grow at 0.6% per year on average (RTS forecasts), which is slightly ahead of overall market growth.

The reason that growth is slightly higher than market growth is that an increasing proportion of the food we consume will be 'prepared' and prepared foods always require thickening and the appropriate level of stabilisation.

By usage by segment, the order of magnitude will remain the same although the highest growth rates are predicted for soft drinks, snacks and morning goods.

Usage in fruit and vegetable products (mainly jams and marmalade) and in soups and bouillon is expected to decline.

By country, we expect to see the highest growth rate in the use of hydrocolloids in Portugal, followed by Ireland and Spain. Of the largest users, Germany and Italy will see below average growth rates although usage in the UK will grow by 0.7%, roughly in line with forecast population growth. This is expected to be the case as UK consumers already purchase a high level of prepared foods.

In terms of thickener types, we do not expect to see any major changes, although usage of some gums will continue to increase whilst usage of native starches and gelatines will decline slightly.

For more details, contact Jamie Rice at RTS Resource on +44 (0)1902 422282.

wnzvr.evpr@egf-erfbhepr.pbz For market reports go to: http://www.foodmarketreports.com or logon to http://www.rts-resource.com