July 21, 2024
Agar Market

Rising Demand From Food Industry Is Anticipated To Open Up New Avenue For Agar Market

Market Overview:

Agar is used as a thickening, gelling and stabilizing agent in food products. It acts as a substitute for animal-based gelatins. It is derived from some varieties of red algae and is widely utilized in confectionery, desserts, bakery products, dairy, meat and microbiological media preparation. Agar finds application in cosmetics and pharmaceutical industry owing to its gelling and thickening properties. It is considered as a low-calorie substitute for fat and helps in reducing calories in food products. Growing health consciousness and increasing vegan population is fueling the demand for vegan gelling agents like agar.

Market Dynamics:

Rising usage of agar in food industry and increasing applications in cosmetics and pharmaceuticals are the key drivers fueling agar market growth. Agar is used as a gelling agent in various food products like jams, jellies, desserts and dairy. It improves texture and increases shelf life of food items. Growing food processing industry and increasing demand for vegan, halal and kosher food is propelling the usage of agar in diverse food applications. Additionally, rising application of agar in cosmetic products like hair treatments, anti-aging creams and makeup products owing to its skin-friendly properties is further supplementing market growth.

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.

Segment Analysis

The global agar market is dominated by the food and beverage sub-segment. Agar is widely used as a gelling, thickening and stabilizing agent in various food and beverage products like desserts, jams, jellies, confectionery items, canned meat and dairy products. It helps improve texture and shelf life of these products. The food and beverage industry accounted for over 60% share of the global agar market in 2022 owing to rapid growth of the packaged food sector and increasing consumption of convenience and processed foods across major economies.

PEST Analysis

Political: The agar market is moderately regulated by international organizations that set standards for usage of ingredients in food products. However, political stability and supportive trade policies favor growth of the food processing industry.
Economic: Emerging economies with rising disposable incomes and growing middle class populations are projected to augment the demand for processed, packaged and convenience food products over the forecast period. This will boost consumption of additives like agar.
Social: Changing consumer preferences towards natural, plant-based ingredients are prompting food brands to adopt agar as a vegetarian substitute for gelatin. Also, increasing health consciousness is spurring the demand for low-calorie, low-fat foods where agar is used.
Technological: New product development and innovations in processing techniques have increased the applications of agar in diverse industries including pharmaceuticals, biology and cosmetics. Advancement in hydrocolloid extraction technologies help lower production costs.

Key Takeaways
The global agar market size was valued at US$ 302.4 Mn in 2023 and is expected to witness high growth, exhibiting CAGR of 5.4% over the forecast period, due to increasing demand for convenience and processed foods. Regionally, Asia Pacific held the largest share of over 40% in the global agar market in 2022 led by countries like China, Indonesia and Japan. The region is projected to retain its dominance during the forecast period attributable to rising health awareness, growing vegan food consumption and expanding food processing sector in emerging economies.

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 players focus on adopting innovative production technologies and expanding their global footprint through strategic acquisitions and collaborations to cater to the rising global demand for agar.

The food and beverage industry has emerged as the largest end-use segment of the agar market contributing over 60% revenue share in 2022. Within this segment, agar found widespread application in dairy products, bakery, packaged foods, confectionery items, desserts and beverages requiring a stabilizing or gelling agent. Agar’s versatile functional properties and ease of use relative to animal-derived gelatin have increased its popularity in the sector.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it