by Market Overview:
Agar is a gelatinous substance derived from red algae. It has wide application in food & beverages, microbiology, and pharmaceutical industries as a gelling agent, thickening agent, and stabilizing agent. Its ability to formthermally reversible gelsand remain stable over a wide range of acidity, alkalinity, and temperature makes it useful in various applications.
Market key trends:
One of the key driver for the agar market is increasing utilization of agar as vegan substitute. With rising vegan population globally, the demand for plant-based substitutes for various food products is increasing. Agar acts as an ideal substitute for gelatin in vegan desserts and other food products. It provides similar texture and gelling properties as gelatin but is entirely plant-based. This is attracting several food manufacturers to utilize agar in various vegan food products.The rise in vegan food products is expected to continue during the forecast period, which will propel the demand for agar.
Agar market is witnessing increasing demand for gelling, thickening and stabilizing agents from end use industries like food & beverages, pharmaceuticals, and microbiology. Agar is widely used as a gelling agent in variety of food products like desserts, candies, jams & jellies due to its ability to form thermoreversible gels without melting or dissolving at high temperatures. The superior gelling properties and compatibility with both hot and cold applications is driving its use in food products. Additionally, growing demand for vegetarian and vegan food alternatives is augmenting the agar market as it is a plant derived product.
The global Agar Market Size is estimated to be valued at US$ 302.4 Mn in 2023 and is expected to exhibit a CAGR of 5.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
SWOT Analysis
Strength: Agar is renewable sourced from seaweed, hence seen as a more sustainable alternative to animal gelatin. It has heat resistant gelling properties and is widely used as a stabilizing and thickening agent in foods.
Weakness: Agar raw material supply depends on weather conditions as seaweed cultivation is majorly concentrated in Southeast Asia exposing the market to supply chain disruptions.
Opportunity: Expanding food Processing industry globally is presenting opportunities for food gelling and stabilizing agents like agar. Growing vegan and gluten free food trends also support the market growth.
Threats: Presence of substitute gelling agents like gelatin, pectin and carrageenan poses competition to the agar market. Fluctuations in seaweed harvests impact agar prices in the long run.
Key Takeaways
The global agar market is expected to witness high growth, exhibiting CAGR of 5.4% over the forecast period, due to increasing demand from food Processing industry. The global agar market size for 2023 is projected to reach US$ 302.4 Mn.
Regional analysis:
The Asia Pacific region dominates the global agar market with major production clusters located in Indonesia, Philippines and Malaysia. Stable seaweed supply and large processed food industry drive the regional market growth. China represents the fastest growing regional market attributable to rising food Processing activities in the country.
Key players:
Key players operating in the agar market are New Zealand Manuka Group, Hispanagar, Acroyali Holdings Qingdao Co., Ltd., Industrias Roko, S.A., Neogen, Merck Group, Agarindo Bogatama, Setexam, and Norevo GmbH. New Zealand Manuka Group and Hispanagar collectively account for over 35% of the global market share due to their vast production facilities and international distribution networks.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
