IFF, one of the largest global suppliers of Locust Bean Gum (LBG), reports that the availability of LBG has stabilized, and pricing has normalized after facing challenges in the last five years, including an 800% price increase at one point due to high demand. LBG, also known as carob bean gum, is derived from the seed of the carob tree and serves as a natural stabilizer, thickener, and emulsifier. It is widely used in various applications, including ice cream, dairy, infant formula, and plant-based alternatives.
During the COVID-19 pandemic, demand for LBG exceeded supply, leading to significant price hikes. Alternative blends and ingredients were developed to address the shortage. However, IFF now asserts that the crisis is over, with LBG availability robust and pricing close to 2017 levels when adjusted for inflation.
Jean-Baptiste Dufeu, Global Product Manager, LBG, Nourish IFF, highlighted that prices are now within a limited range, and the company is fully prepared to meet the demand for LBG. IFF has taken proactive measures, including rebuilding inventory carry-over stocks and developing conditions for higher supply volumes in the future, such as supporting the development of new plantations.
Acknowledging the unique challenges associated with carob production, IFF has initiated strategic partnerships with farmers to ensure the current and future availability of carob. These partnerships aim to contribute to the resilience of the industry and minimize the risk of future shortages.
Despite the availability of LBG alternatives, IFF cites positive trends in the demand for LBG among food manufacturers. Mintel data indicates a resurgence in confidence among food manufacturers regarding LBG supply, with an increasing number of new products incorporating LBG. Dufeu expects the demand for LBG to rebound, taking up to five years to return to pre-crisis levels.
LBG is recognized for its unique functionalities, effectiveness at low usage rates, and natural sourcing from carob trees with minimal use of fertilizers and water. In applications like ice cream, LBG is irreplaceable, excelling in reducing ice crystal growth at lower concentration levels compared to other hydrocolloids.
As the ice cream market is expected to grow, consumers seek added value in their food choices, emphasizing quality, functionality, clean labels, sustainability, and longer shelf life. This presents an opportunity for ice cream brands to continue focusing on LBG utilization with minimal cost-in-use (CIU).