by The Agar Market is estimated to be valued at Us$ 276.02 Mn in 2022 and is expected to exhibit a CAGR Of 4.67% over the forecast period 2022-2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Agar is obtained from red algae and is mainly used as a gelling agent, thickening agent, and stabilizer in various industries. It is widely used in microbiology and microbiological applications as a gelling agent in culture media. Agar is used in microbiological products such as petri dishes, bacteria slants, and other microbiology-related kits. It is also used as a vegetarian substitute for gelatin in the food processing industry. Agar helps stabilize emulsions, suspensions, creams, and fills, improves texture, and prevents crystallization in ice creams, jams, confectionaries, and other bakery products. Its high melting point and gelling properties make it suitable for baked goods production.
Market Dynamics:
The increasing application of agar in the food & beverage industry is expected to aid in the market growth over the forecast period. Agar is used as a substitute for animal gelatin in vegetarian and vegan food products such as desserts, ice creams, and confectionery items. It is driving the demand of agar in the food processing industry. Furthermore, the rising consumer preference towards organic and naturally derived ingredients is also propelling the demand for agar globally. Agar naturally occurs in seaweeds and is considered organic, hence rising demand for organic products is expected to support the agar market growth.
Segment Analysis
The agar market is dominated by two key sub-segments – phycocolloids grade and technical grade. Phycocolloids grade agar accounts for over 60% market share and is primarily used in the food and beverages industry for various applications such as bakery, confectionery, dairy, etc. It is the dominating sub-segment owing to increasing demand for clean label and natural ingredients in the food industry.
PEST Analysis
Political: The government regulations regarding the use of natural products in the food industry has positively impacted the growth of the agar market.
Economic: Rising disposable income and changing lifestyle and food habits of consumers have enhanced the demand for processed and convenient food products, driving the agar market.
Social: Increasing health consciousness among consumers and growing awareness about the various health benefits of agar has also propelled the market growth.
Technological: Advancements in extraction techniques have improved the productivity and yield of agar, benefiting agar manufacturers.
Key Takeaways
The global Agar Market size is expected to witness high growth, exhibiting a CAGR of 4.67% over the forecast period of 2022-2030, due to increasing demand for processed and packaged food. The market was valued at US$ 276.02 Mn in 2021.
The Asia Pacific region dominates the global agar market and is expected to continue its trend over the next few years. This is attributed to the large seaweed cultivation and production in countries like China, Indonesia, and Philippines. Furthermore, growing consumption of packaged and convenience food in densely populated countries like India and China are fueling market growth.
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. These key players are focusing on expanding their product portfolio and geographical presence by adopting strategies including mergers & acquisitions, partnerships and expansions.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
