Market Update on Essential Stabilizer Ingredients

(IngredientNews Staff) – Pricing on essential ingredients used in stabilizing systems continues to fluctuate, according to International Food Products’ March 6^th webinar on Spectacular Stabilizers view here. Featuring International Food Products’ Product Manager Sarah Clemons and Category Manager Jim Mitchell, the webinar revealed the latest news on pricing and product formulation for stabilizing products. Here’s the latest from International’s experts:

Carrageenan

Due to the recent typhoon in the Philippines, carrageenan prices have significantly increased. We are expecting to have higher prices through the first quarter of 2014. Carrageenan is used as a functional ingredient and due to this, you don’t want to modify levels of it in a product. Essentially, it works specifically for suspension and separation in non-soluble products.

Pectin

Currently the biggest impact on pectin is the Greening Disease, which kills citrus trees where pectin is found.  Pectin is available but there is less of it, so we will see an increase in price. Pectin is a highly functional product, and you can take a look at the levels in your product formulations and use alternatives. In formulating with this ingredient, looking at your processing equipment is very important for the functionality of a finished products’ final solution, whether it be fresh or frozen.

Locust Bean Gum

Consumption is up for Locust Bean Gum, so prices have been increasing. Although it is readily available, inventories are not deep. Right now it’s important to stay in front of your supplier and lock in long-term prices. Locust Bean Gum is a premium gum, highly functional and all natural. It can be used at lower levels if prices go up significantly.

Xanthan Gum

Xanthan gum is readily available and moderately priced. The price has come down in the past quarter, even with the rumor of Chinese imports staying out of the market. Demand in 2014 will not be upsetting supply, so we suggest contracting for the remainder of this year.

Guar Gum

Since it is such a great formulator, nothing can really replace the attributes of guar gum. It was heavily impacted by fracking in 2011-2012. Now the market has bottomed out, and we are at the lowest pricing range we’ve ever seen. Those who went to Plan B of using an alternative during the fracking craze have moved back to using guar gum again. Guar is used in many food products since it is all natural, highly functional and cost effective for a products’ overall formulation.

The bottom line is to source and partner with those who can give you a consistent product. As an end user you will always need options and have consistent suppliers with a great back up plan in place.