Post by Trade facilitator on Jul 25, 2022 23:55:10 GMT 1
Multi-Billion Naira Gum Arabic Business In Nigeria: Are You Ready To Tap Into The Market?
This business is expected to generate over US$476 million globally by the year 2025 if properly harmonized by the relevant authorities.
Gum Arabic is a big time business both locally and internationally. It is a multi-billion naira business talking from the local scene.
In simple terms: Gum Arabic is the gum that is exuded from certain trees, such as the Acacia Senegal tree. It's a source of dietary fiber that can dissolve in water easily.
Gum arabic tends to make people feel full, so they might stop eating earlier than they otherwise would. This might lead to weight loss and reduced cholesterol levels.
What is gum arabic used for in drinks?
Gum arabic is a key ingredient in soft-drink syrups. In soft drinks like Coca-Cola and Pepsi, gum arabic keeps sugar uniformly suspended so that it won't precipitate to the bottom of the drink. You know the size of the soft drink business in the world; this is apart from other things that Gum Arabic is used for globally.
A little application of gum arabic makes newspaper ink more cohesive and permanent.
Investors are making billions from the business daily. That is why experts are calling on the Federal Government of Nigeria (FGN) to immediately address the challenges impeding the country’s performance in the production of Gum Arabic for the nation to tap from its global market.
Gum Arabic, leguminous tree species that is well adapted to Sudan and Sahelian agro-ecology of Africa, is capable of generating foreign exchange for Nigeria and Africa if its production and processing are optimized.
The Raw Material Research and Development Council (RMRDC) said this while forecasting that the global revenue to be generated from its production and industrialization would reach US$476.1million by 2025.
This information was disclosed in a document made available to the press by the Director General of RMRDC, Prof. Ibrahim Hussain Doko.
The professor said, “Gum arabic has several industrial, social and other uses. It is used in the food and beverages, pharmaceuticals, paper, adhesives, paint and textiles industries.
“Globally, Gum Arabic is used as a stabilizer, a binder, an emulsifier or a viscosity-increasing agent. The addition of five per cent gum Arabic to 10 per cent sugar and protein in gelatinous mix derived from amino acid is used to bind expendable foundry cores for casting in USA and in the hot box production in the United Kingdom,” he said.
“This shows the need for African countries to engage more in the exportation of processed Gum Arabic products. This is necessary to boost their foreign exchange generation capacities, more importantly, as Gum Arabic utilization is expanding globally,” the DG said.
According to the Global Newswire, 2018, research indicated that towards the end of 2025, over 165,000 tonnes of Gum Arabic will be consumed in the world, bringing in an estimated US$476.1million in revenue by the end of 2025.
Major producing countries: The main producing and exporting countries in the gum arabic trade include Cameroon, Chad, Mali, Nigeria and Sudan.
Sudan dominates the world gum trade with a market share of about 60%.
As at today, Nigeria is the largest producer of Gum Arabic in West Africa, and third largest world producer and exporter after Sudan and Chad.
The major producing areas include Borno, Yobe, Jigawa, Bauchi, Adamawa, Kebbi, Gombe, Plateau, Katsina and Zamfara states.
There are over 1,100 Acacia species worldwide. However Acacia Senegal and Acacia Seyal are the most commercially exploited species.
Nigeria has three grades of Gum Arabic;
Acacia Senegal (grade 1)
Acacia seyal (Grade 2) and
Combretum (Grade 3).
The largest amount of grade one of Gum Arabic is produced in Borno, Yobe and Jigawa States.
The best type of grade two is from Plateau and Bauchi states, while the best of grade three is from Bauchi State.
In subsequent articles we are going to bring to you how you can actually take part in this business locally by supplying gum arabic to local businesses.
Our company is one of the best companies in Agro-Export Business in Nigeria today, we train individuals and corporate organizations on how to do Export Business the right way; if you are interested, please contact the admin of this forum now for further details.
This business is expected to generate over US$476 million globally by the year 2025 if properly harmonized by the relevant authorities.
Gum Arabic is a big time business both locally and internationally. It is a multi-billion naira business talking from the local scene.
In simple terms: Gum Arabic is the gum that is exuded from certain trees, such as the Acacia Senegal tree. It's a source of dietary fiber that can dissolve in water easily.
Gum arabic tends to make people feel full, so they might stop eating earlier than they otherwise would. This might lead to weight loss and reduced cholesterol levels.
What is gum arabic used for in drinks?
Gum arabic is a key ingredient in soft-drink syrups. In soft drinks like Coca-Cola and Pepsi, gum arabic keeps sugar uniformly suspended so that it won't precipitate to the bottom of the drink. You know the size of the soft drink business in the world; this is apart from other things that Gum Arabic is used for globally.
A little application of gum arabic makes newspaper ink more cohesive and permanent.
Investors are making billions from the business daily. That is why experts are calling on the Federal Government of Nigeria (FGN) to immediately address the challenges impeding the country’s performance in the production of Gum Arabic for the nation to tap from its global market.
Gum Arabic, leguminous tree species that is well adapted to Sudan and Sahelian agro-ecology of Africa, is capable of generating foreign exchange for Nigeria and Africa if its production and processing are optimized.
The Raw Material Research and Development Council (RMRDC) said this while forecasting that the global revenue to be generated from its production and industrialization would reach US$476.1million by 2025.
This information was disclosed in a document made available to the press by the Director General of RMRDC, Prof. Ibrahim Hussain Doko.
The professor said, “Gum arabic has several industrial, social and other uses. It is used in the food and beverages, pharmaceuticals, paper, adhesives, paint and textiles industries.
“Globally, Gum Arabic is used as a stabilizer, a binder, an emulsifier or a viscosity-increasing agent. The addition of five per cent gum Arabic to 10 per cent sugar and protein in gelatinous mix derived from amino acid is used to bind expendable foundry cores for casting in USA and in the hot box production in the United Kingdom,” he said.
“This shows the need for African countries to engage more in the exportation of processed Gum Arabic products. This is necessary to boost their foreign exchange generation capacities, more importantly, as Gum Arabic utilization is expanding globally,” the DG said.
According to the Global Newswire, 2018, research indicated that towards the end of 2025, over 165,000 tonnes of Gum Arabic will be consumed in the world, bringing in an estimated US$476.1million in revenue by the end of 2025.
Major producing countries: The main producing and exporting countries in the gum arabic trade include Cameroon, Chad, Mali, Nigeria and Sudan.
Sudan dominates the world gum trade with a market share of about 60%.
As at today, Nigeria is the largest producer of Gum Arabic in West Africa, and third largest world producer and exporter after Sudan and Chad.
The major producing areas include Borno, Yobe, Jigawa, Bauchi, Adamawa, Kebbi, Gombe, Plateau, Katsina and Zamfara states.
There are over 1,100 Acacia species worldwide. However Acacia Senegal and Acacia Seyal are the most commercially exploited species.
Nigeria has three grades of Gum Arabic;
Acacia Senegal (grade 1)
Acacia seyal (Grade 2) and
Combretum (Grade 3).
The largest amount of grade one of Gum Arabic is produced in Borno, Yobe and Jigawa States.
The best type of grade two is from Plateau and Bauchi states, while the best of grade three is from Bauchi State.
In subsequent articles we are going to bring to you how you can actually take part in this business locally by supplying gum arabic to local businesses.
Our company is one of the best companies in Agro-Export Business in Nigeria today, we train individuals and corporate organizations on how to do Export Business the right way; if you are interested, please contact the admin of this forum now for further details.
