Sustainability, Functionality and Awareness Top Hydrocolloid Conference Agenda

IMR International has launched the SEVENTEENTH business development forum: Food Hydrocolloids 2013. The three key words around which the conference will revolve are, Sustainability, Functionality and Awareness.

5 Mar 2013 --- Sustainability in all parts of the food supply chain has become one of the key requirements not only for basic ingredients but also for specialty additives such as hydrocolloids. Functional expansion of hydrocolloids will cover novel aspects beyond the traditional thickening, stabilizing and gelling for which hydrocolloids are most well known. Finally, the awareness which consumers have of ingredients and additives has become of critical importance. The hydrocolloid industry benefits from a relatively low level of awareness, either positive or negative. There is still an opportunity for industry to be pro-active rather than re-active in the forming of perceptions and understanding of hydrocolloids. Other topics to be discussed are sure to include genetic modification (GMO), organic, food safety and regulatory approvals. Hydrocolloids are ideally suited to qualify for and promote a perception of sustainability. A string of new functional and metabolic properties are being uncovered. Awareness, unfortunately continues to be formed by periodic concerns or food scares publicized in mass media.

The global market for food hydrocolloids is valued at around US$6.0 – 6.5 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. Starches and gelatin are the large volume hydrocolloids accounting for about 80% of total tonnage but only around 40% of total value. Not surprisingly, the smaller volume hydrocolloids such as MC/HPMC and MCC are growing at above average rates. Pectin remains the most ‘label friendly’ hydrocolloid. Others suffer a negative image for less than scientific reasons, “Starts with an X…”, or “Difficult to pronounce…”Contains the word locust… or arabic…”. There is much work needed to address these perceptions or rather mis-perceptions.

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.

The massive use of guar gum in hydraulic fracturing for oil or gas production, (Hydro-fracking) has had a major impact on guar. It has had a domino effect on on other hydrocolloids which are suitable alternatives such as xanthan and CMC. The xanthan gum anti-dumping action taken by CP Kelco against Chinese and Austrian importers has also had a major impact on supply and demand, particularly in the US. CP Kelco has recently announced a plant expansion for xanthan production.

Price fluctuations affect market value significantly and also cause major shifts from one hydrocolloid to another. 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 27 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.

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. This year the conference is being held in the beautiful city of Charleston, SC from April 28-30, 2013.

The IMR Hydrocolloid Conference provides valuable information about what the key market players are doing to address Sustainabiliy, Functionality and Awareness issues. Complete conference details are available at:

www.hydrocolloid.com