Supply Shortages of Polysaccharides and Oligosaccharides Anticipated as the World Battles Covid-19
Food chemicals and additives such as polysaccharides and oligosaccharides are not listed as 'necessary goods' during the Covid-19 outbreak, and the transportation of non-essential items by road is now banned in many nations.
This has resulted in the cessation of bulk orders of organic and inorganic food chemicals across continents, forcing producers to take drastic measures to reduce or halt demand. Several leading food companies have had to shut down plants or reduce production capability in the face of a government-wide lockdowns to tackle the Covid-19 pandemic.
Moreover, owing to vehicle shortages, lack of manpower and various state laws to curb the global pandemic, the movement of polysaccharides and oligosaccharides from one outlet to another is restricted. It would be premature to assess the effect of the Covid-19 on the outlook for demand for polysaccharides and oligosaccharides. The global pandemic presently puts many obstacles in the way of a steady demand growth for polysaccharides and oligosaccharides.
Augmenting Demand for Clean Labelling to Create Growth Opportunities for the Polysaccharides and Oligosaccharides Market
The global polysaccharides and oligosaccharides market is estimated to leverage at a CAGR of over 5% during the forecast period (2020-2030), reaching a value pool of over US$ 22 Bn. All market related verticals have been impacted by the current "clean label" and sustainable developments in the food and beverages industry.
Health-conscious consumers have stimulated this clean label movement, forcing producers to use both organic and unadulterated products. Polysaccharide and oligosaccharide manufacturers have been combining new plant and animal sources to meet this demand. Manufacturers from several industries are utilizing polysaccharides and oligosaccharides in multiple applications.
Beverages Segment Leads but Remains Sluggish Due to Reduced Imports, Bacterial Sources Witness High Growth
The beverages segment is poised to remain dominant in the global polysaccharides and oligosaccharides market, accounting for a revenue share of one-fourth by 2020 end. The beverages segment is anticipated to grow at a CAGR of over 4.5% during the forecast period.
The beverages and the dairy industries, which are the foremost consumers of polysaccharides and oligosaccharides have been sorely affected due to the Covid-19 outbreak.
With a combination of reduced Chinese imports, supply chain disruptions and extreme competition for shipping containers, the polysaccharides and oligosaccharides market is anticipated to register a significant downturn.
By source, bacterial polysaccharides and oligosaccharides are poised to witness the highest growth over the forecast period. Plant sources continue to capture a significant chunk of market share
APEJ to Reign Supreme While Europe’s Contribution Remains Significant
Asia Pacific region excluding Japan (APEJ) is projected to be a highly lucrative area for the development of the polysaccharides and oligosaccharides market. Consumption of polysaccharides and oligosaccharides is projected to rise due to increased demand in various applications in the food sector.
APEJ's demand for polysaccharides and oligosaccharides is expected to hit a price slightly below US$ 11 billion by the end of the forecast year, from a value of around US$ 6 billion in 2017.
Europe is also expected to contribute significantly to the development of the global market for polysaccharides and oligosaccharides. In terms of market value Europe is expected to be the second largest. In the coming years the consumption of polysaccharides and oligosaccharides in this area is also expected to grow at a moderate pace.
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Movement of Players towards Sustainability and Partnerships
Despite a highly competitive market, players on the market for polysaccharides and oligosaccharides have shown a preference for sustainability. The market is highly divided with large food companies including Archer-Daniels-Midland, Associated British Foods, Corbion and Sensient taking center stage globally, gaining a share of over 15%. Large trends have concentrated mainly on inorganic advances in the market for polysaccharides and oligosaccharides.
The most significant inorganic business innovations are multilevel acquisitions and partnerships. In April 2019, Tate & Lyle signed an enzyme supply and licensing agreement with Codexis to manufacture TASTEVA M Stevia Sweetener. In March 2019, Tate & Lyle announced its research collaboration with APC Microbiome Ireland to work on dietary fiber.
Impact of Covid-19 on Global Polysaccharides and Oligosaccharides Market
In particular, the market for polysaccharides and oligosaccharides is facing a drastic impact due the Covid-19 crisis. This is witnessed in the decreasing demand since January and February 2020.
Manufacturers of polysaccharides and oligosaccharides are deciding how best to address potential supply chain disturbances and capacity limitations that may prevent them from meeting changing industry requirements in the Covid-19 outbreak.
Although the effect of the crisis will disrupt the demand for polysaccharides and oligosaccharides in all four quarters, the market will begin to show improvement by the first quarter of 2021.
“The main reason for the rapid utilization of polysaccharides and oligosaccharides is to improve customer access to beverage and dairy products in developing and underdeveloped countries,” says the Fact.MR analyst
An Adaptive Approach to Modern-day Research Needs
Global Polysaccharides and Oligosaccharides Market: Scope of the Report:
The recent global polysaccharides and oligosaccharides market report by Fact.MR offers a 10-year forecast from 2020 to 2030. The report elaborates on the key drivers, restraints, opportunities, and threats to the expansion of the global market. A detailed segmental analysis, based on product type, distribution channel, application and material used, has been provided in the report.
Regional analysis in terms of supply chain analysis, business execution and market value analysis provides an in-depth perspective about the future scope of the global polysaccharides and oligosaccharides market. In addition, a separate section on the market structure has also been provided. The section provides a detailed analysis of key market players and the strategies for expansion in the market.
Polysaccharides and Oligosaccharides Market: Segmentation
Fact MR’s study has done the segmentation of the polysaccharides and oligosaccharides market on the basis of product type, source, and application, end-use and region.
- North America
- Latin America
- Middle East & Africa
- Other Sources
- Infant Milk Formula
- Bakery & Confectionery
- Dairy Products
- Savory & Snacks
- Animal Feed
- Other Applications
- Mining & Agriculture
- Homeland Security & Defense
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Fact.MR follows a methodology that encompasses the demand-side assessment of the market, and triangulates the same through a supply-side analysis. This methodology is based on the use of standard market structure, methods, and definitions.
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