Hydrocolloid Conference to Focus on “Stability & Sustainability”

The need for stability in hydrocolloids could not be more apparent than in the case of guar gum which is currently in short supply and at skyrocketed prices. All hydrocolloids, however, suffer from some instability in supply and price.

Jan 30 3012 --- Sustainability is a key concern to consumers and thus to producers. The global market for food hydrocolloids is valued at around US$5.0-6.0 billion depending on what price is assumed for GUAR gum and to a lesser degree, other hydrocolloids. Several hydrocolloids are growing at a healthy 4-6% in volume. Price fluctuations mean that growth rates in value can vary significantly whereas volume growth is steadier.

IMR International has launched the sixteenth business development forum: Food Hydrocolloids 2012. The theme of the conference, which will be held in Valencia, Spain (April 22-24, 2012) is, “ Achieving Stability and Sustainability in Hydrocolloids.” Stability of supply and price is of paramount importance to buyers.

Executives from key end-users of hydrocolloids including major, global food companies will be amongst the carefully selected range of speakers. The conference provides a neutral forum for suppliers and users of hydrocolloids to meet. Views on the strengths, weaknesses and future requirements of this industry will be exchanged. About 100-120 high level hydrocolloid executives from all parts of the globe traditionally attend the conference, which is held in the USA one year and Europe the next.

The need for stability in hydrocolloids could not be more apparent than in the case of guar gum which is currently in short supply and at skyrocketed prices. All hydrocolloids, however, suffer from some instability in supply and price. Stability can be achieved in many ways including partial replacement of one hydrocolloid by another. Long term contracts and stockpiling are frequently used to ‘smoothen’ the supply curve. Hydrocolloid history is rife with dramatic and panic situations created either by natural or man-made scenarios. Hydrocolloids are natural products dependent on a variety of unpredictable factors, ranging from weather to politics.

Sustainability is a buzzword, but one with serious and long term implications. The sustainable nature of this group of ingredients has become a key factor. They are mostly perceived as natural, GMO free, and often organic. Sustainable and environmentally friendly production has given hydrocolloids a positive connotation in many respects.

In general, hydrocolloids offer good margins and clearly fall in the category of specialty ingredients, i.e. sold for what they do more than for what they are. Efforts by some buyers to commoditize and standardize the purchase of hydrocolloids are often foiled by their specialty nature. Novel properties are constantly being discovered in hydrocolloids, both functional and nutraceutical. These, and other discoveries yet to be made, will assure the long term viability of hydrocolloids as specialty, value added food additives.

Price fluctuations affect market value significantly. Guar gum prices have skyrocketed from around $1.50/kg in late 2010 to around $11.00/kg in January 2012. At current prices, the guar market value ranks in the league of gelatin and starches at around $1.0 – 1.5 billion each. The price and availability of many hydrocolloids is volatile, each for different reasons. Locust bean gum prices depend on the harvest and harboring of seed in Spain and Morocco. Alginate prices are in a state of flux due to issues of capacity and/or raw material availability. Gum arabic prices are clearly split between senegal and seyal grades. The guar gum situation is, however, a unique event which has never occurred for any other hydrocolloid in the 25 years that IMR has been monitoring this market. The future of guar in food is predicated by developments in the notorious process of hydraulic fracturing (Hydro-fracking) to produce oil and gas.

Aspects of nutrition and health are being addressed by hydrocolloids in innovative ways. Soluble fiber, encapsulation, coating, long term stability, all offer opportunities for innovation. Not to mention the growing demand for organic, natural and/or GM free designation. ‘OPEN’ innovation has firmly taken root in the hydrocolloid world. It includes not only collaborative relationships between suppliers and users but also relationships between erstwhile competitors Old marketing and product development methods are being re-written and stability must be sought even as these changes are wrought upon the industry.

Complete conference details are available at: www.hydrocolloid.com