Gum Arabic shortage could lead to a decline supply of soft drinks in M’sia

Wars don’t only tear down the affected countries, but the global economy is also bound to take a hit. The Russia-Ukraine in 2022 hampered world trade, which was still reeling from the effects of the pandemic. Now there’s another war that has taken place in Sudan, the world’s leading source of gum Arabic, a crucial ingredient in soft drinks, sweets, and cosmetics. This could hit the production and supply of fizzy drinks like Coca-Cola and Pepsi.

What Is  Gum Arabic?

Gum Arabic is made from the hardened sap of two acacia tree species: Senegal and Seyal which grows in semi-desert areas of Sub-Saharan Africa. The tree is quite valuable economically in the area.

Around 70% of the world’s supply of gum Arabic, comes from acacia trees in the Sahel region that runs through Africa’s third-largest country.

Why is Gum Arabic Important In Soft Drink Production?

While there are alternative ingredients to gum Arabic in other food and cosmetics. But it cannot be substituted in the production of soft drinks. The gum Arabic is introduced to the emulsion’s water phase and acts as an emulsion stabilizer following homogenization.

Companies relying on the commodity, such as Coca-Cola and Pepsico, have long stockpiled supplies, with some holding three to six months’ worth to avoid being caught short, according to exporters and industry sources. But what happens after six months?

So Does That Mean Malaysia is going to face a soda shortage?

In Malaysia, we have a Coca-Cola production factory that manufactures Coke for the Malaysian, Singaporean, and Bruneian markets. If the import of gum Arabica is halted, supply disruptions could harm Coke production.

This could also mean that we will be seeing lesser soft drinks on shelves at shops and retail stores in Malaysia and other parts of the world. Unless there is a new replacement for Gum Arabic, we are in limbo for the time being.