USA – World leading pectin producer, CP Kelco has announced that it plans to expand pectin production capacity at its Lille Skensved, Denmark facility by about 15% as it anticipates growth in global market demand.
According to the company, the investment will enhance market supply by 2019-2020 with a focus on producing low methyl ester (LM) pectin, which is ideally suited for popular products such as ambient drinking yogurts, jams, jellies and fruit preparations.
“From a functional and clean label perspective, pectin is the stabilizing and texturizing ingredient of choice for many food and beverage companies, and we foresee continued increase in its demand and application, especially in emerging markets,” said Susanne Sörgel, Sr. Director, Platform Strategy, Pectin and Carrageenan, at CP Kelco.
“Over the years we have invested heavily to secure sustainable raw material supply and advance our pectin production capacity and capabilities to support global customers’ growth, while continuously innovating to improve product quality, minimize environmental impact and achieve new levels of sustainability.”
A new research report by IMARC Group estimates that the market reached a volume of 69,664 tons in 2017 and is expected to reach a volume 93,891 tons by 2023, at a projected CAGR of 5% over the forecast period.
The market is highly concentrated with the presence of a handful of players due to high capital investment including CP Kelco, DuPont, Cargill, Herbstreith & Fox and Naturex.
Increasing health concerns and growing usages of healthy & organic raw materials for producing edible products is expected to drive the market in the foreseeable period.
Pectin is extensively used as a gelling agent in a variety of fruit-based products, such as marmalades, jellies, jams, fruit filling for bakery products and fruit preparations for desserts and yogurts.
The growing demand for these products is anticipated to drive the growth of the global pectin market.
CP Kelco also recently said it was investing in specialty biogums capabilities and capacity expansions to reinforce its hydrocolloid solutions portfolio.
It involved three biogums product lines- gellan gum, specialty xanthan gum and diutan gum.