Increasing population coupled with rising disposable income is anticipated to result in a steady growth in demand for specialty and processed food products Moreover, food additives are becoming a necessary part of food and beverages industry and natural clean label food additives such as hydrocolloids penetration is on the rise. Rising demand for processed food due to the convenience is expected to positively impact the hydrocolloid market in the forthcoming years. The ability of hydrocolloids to reduce the fat content by dispersing water and acting as a fat replacer in food products is expected to propel their demand as consumers are increasingly preferring low-calorie and low-fat food products.

India has one of the largest populations of celiac disease sufferers in the world, being a major wheat consuming country. This has slowly led to a rise in health-consciousness among the people, which is driving the market for gluten-free processed foods, such as crackers, breads, biscuits, and cookies in the country. Bakers nowadays use xanthan gum, guar gum as a replacement for gluten in gluten-free baked food products. Other than the proven benefits to gluten allergic customer base, it also has benefits for food processors regarding improving processing, reducing cost and providing long-term stability to the food products. Recently, the beneficial properties of hydrocolloids have been gaining significant visibility. Pectin, resistant starches, modified guar and a few other hydrocolloids are all in the process of developing nutritional awareness with consumers.