Gellan gum, is a polysaccharide produced by the fermentation of the bacterium Sphingomonas paucimobilis. It has wide applications in the food industry as a gelling, thickening and stabilizing agent. It acts as an alternative to gelatin in vegan foods. It is often used in dairy alternatives like non-dairy yogurt. Due to its properties like thermoreversibility and clarity in solubilized state, it is also used in pharmaceuticals and cosmetics industry.

Market key trends:

One of the key trends in the Global Gellan Gum Market Size is its increasing usage in the food industry. The rising demand for gluten-free and vegan products has boosted the consumption of gellan gum as a thickening and gelling agent. The food applications of gellan gum include desserts, bakery products, dairy products, confectionery etc. It is widely used in dairy alternatives like non-dairy yogurt and cheese due to its ability to provide a similar texture to dairy products. The growth of the vegan food industry is expected to drive the demand for gellan gum over the forecast period. Apart from food, gellan gum also finds applications in pharmaceuticals and personal care products owing to its thermoreversible and soluble properties.

Porter’s Analysis

Threat of new entrants: The threat of new entrants in the gellan gum market is moderate. High capital requirements and research and development costs pose barriers for new players to enter the market. However, the increasing demand provides opportunities.

Bargaining power of buyers: The bargaining power of buyers is moderate. Buyers have several options available and switching costs are low. However, established applications of gellan gum increase buyer dependence.

Bargaining power of suppliers: The power of suppliers is moderate to high given the specialized production process. However, the presence of multiple suppliers balancing the power.

Threat of new substitutes: The threat of substitutes is moderate as gellan gum has established applications and properties that are difficult to replace. However, technological advancements can increase the threat over time.

Competitive rivalry: Intense as major players globally operate and compete on the basis of product quality, reliability of supply and price.

SWOT Analysis

Strengths: Wide applications in food industry, inherent gelling and thickening properties, stable under temperature variances.

Weaknesses: Higher production cost than substitutes, limited regional production impacting consistent supply.

Opportunities: Increasing demand from emerging economies, potential in non-food applications like pharmaceuticals with advancements.

Threats: Stringent regulations surrounding food additives, substitutes development like modified starch and cellulose.

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