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The Global Agar Market size is projected to increase by USD 41.46 million at a CAGR of 3.56% between 2022 and 2027. The rising demand for dairy products, driven by factors such as population growth, rising disposable incomes, and changing dietary preferences, is increasing the need for ingredients such as gelatin in the production of dairy-based products. The wide use of gelatin in combination with pectin for confectionery products is also contributing to market growth, as these ingredients are often used together to create desirable textures and flavors in sweets and candies. Additionally, the focus on increasing production capabilities is driving investment in the gelatin market, leading to increased supply and market growth. It also includes an in-depth analysis of drivers, trends, and challenges.
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This market report extensively covers market segmentation by product type (powders, flakes, and sheets), application (food and beverages, pharmaceuticals, and others), and geography (Europe, North America, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. In the marketing industry, several key components come into play. Agar is a crucial ingredient in various industries, including the food, pharmaceutical, and cosmetic sectors. The Bakery industry relies heavily on Agar as a gelling agent, providing structure and texture to various baked goods. The Confectionery industry also utilizes Agar in making jellies, jams, and other sweets. Agar is a versatile product, with uses extending to the production of cosmetics and personal care products.
The Cosmetics industry uses Agar as a thickener and stabilizer, ensuring the consistency and longevity of various cosmetic formulations. The Preservative property of Agar is another essential factor in its marketing. Agar inhibits the growth of microorganisms, making it an ideal ingredient for food and pharmaceutical applications. The Ice Cream industry uses Agar as a stabilizer, preventing ice crystals from forming and ensuring a smooth texture. The market for Agar is vast and diverse, with applications ranging from Food and Beverages to Pharmaceuticals and Cosmetics. The demand for Agar is increasing due to its numerous benefits, making it a valuable commodity in various industries. The production of Agar involves careful extraction from specific seaweed species, making it a niche market with unique challenges and opportunities.
The Agar market plays a significant role in the food industry, particularly in the production of soups, fruit preserves, ice cream, bakery, and confectionery products. Agar, derived from seaweed such as Gracilaria chilensis, Gracilaria, Gelidium, and Gelidiella, functions as a stabilizer and thickener. In soups and fruit preserves, it prevents the separation of solids and liquids. In ice cream, it enhances texture and mouthfeel. For bakery items like pie fillings, icings, meringues, cakes, and buns, agar strips provide the desired consistency. Technological advancements have led to the development of low-temperature-dissolving agar-agar powder, enabling its use in various applications. Agar is also used as a plant-based gelatin substitute in vegetarian and organic foods. In the pharmaceutical industry, it serves as a gelling agent in cosmetics and has bacteriological and technical applications. Agarose, a form of agar, is used in the production of calcium and potassium salts. The Republic of Korea is a major player in the global agar market, with companies like PT. Agarindo Bogatama offers agar-agar powder for making diverse confectionery products.
The market share growth by the powder segment will be significant during the forecast period. Agar powder is a plant-based gelling, thickening, stabilizing, and emulsifying agent made from 100% natural Red Seaweed. The segment is a great substitute for Gelatin powder which is an animal-based protein.
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The powder segment was valued at USD 112.67 million in 2017 and continued to grow until 2021. Agar, a natural gelling and thickening agent derived from Red Seaweed, holds significant market value in various industries. In the Food & Beverages segment, agar functions as a stabilizer in beverages, creams, and dressings, providing an anti-tackiness property and preventing sugar adherence to packaging. Agar also finds applications in dietetic products and culture media for microbiology. Beyond food, agar plays a crucial role in cosmetology, acting as a hydrocolloid impression material in dentistry and a moisturizer in skincare products. In the medical field, agar is used as a surgical lubricant, capsule binder, and suppository base.
The pharmaceutical industry utilizes agar in the production of capsules and suppositories. Agar's fiber properties contribute to weight-loss supplements and its use as a substitute for gelatin in vegetarian and vegan products. In summary, agar is a versatile hydrocolloid with applications in food, beverages, cosmetology, medical, and pharmaceutical industries.It holds a good amount of water by avoiding the tendency of the glaze to crack, chip, or weep. This also prevents sugar crystallization. All these properties of agar make it a convenient ingredient for the preparation of confectionery items such as candies and gummies. Therefore, DIY bakery products at home are also expected to drive the sales of agars in this segment of the market during the forecast period.
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Europe is estimated to contribute 37% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
Agar, a natural hydrocolloid derived from seaweed, is gaining popularity in various industries due to its versatile applications. In North America, the food industry's growth is driven by the increasing demand for vegan and vegetarian ingredients, natural and functional foods, and kosher certified products. Agar is used as a thickener in soup, fruit preserves, ice cream, bakery, and confectionery. Agar strip are used in pie fillings, icings, meringues, cakes, buns, and wrapping materials.
The Republic of Korea is a significant producer of agar, with technological advancements leading to the development of metal scrappers for efficient harvesting. Agar is also used in pharmaceuticals, cosmetics, and dairy products as a plant-based gelatin substitute. Additionally, agarose, a form of agar, is used in technical applications, including bacteriological and pharmaceutical applications. Agar is derived from various seaweed species, including Gracilaria chilensis, Gelidium, and Gelidiella. Calcium and potassium salts are used in the production process. Agar is also used in organic and vegetarian foods, agriculture, and as a gum in sauces and sweets. The European market is driven by the consumers' preference for organic and natural food products that contain natural nutrients. Therefore, many companies are offering organic products to manufacturers and consumers. In addition, it is used for the diagnosis of several diseases, including respiratory, digestive, and urinary tract diseases, which is expected to drive the market's growth in Europe.
In the Agar industry, Preserves play a crucial role in extending the shelf life of various fruits and vegetables. The use of Confectionery in Agar production adds to its versatility and appeal. Bakery products, such as cakes and pastries, can incorporate Agar as a gelling agent, providing a stable texture and structure. Technology and advancements have led to the development of new methods in Agar manufacturing, including the Repulping process, which ensures uniform consistency and high-quality end product. The use of advanced machinery and techniques has streamlined the production process, making it more efficient and cost-effective. The Agar market is driven by the increasing demand for processed foods and the growing awareness of healthier alternatives to traditional gelling agents. The market is expected to grow at an impressive rate, with major players focusing on innovation and product development to meet consumer demands. The use of Agar in the Ice Cream industry is also gaining popularity due to its ability to provide a smooth and stable texture. The versatility of Agar makes it a preferred choice for various applications, from food to pharmaceuticals. The market is a dynamic and growing industry, driven by advancements in technology and the increasing demand for processed foods and healthier alternatives. The versatility of Agar, coupled with its unique properties, makes it a preferred choice for various applications, from food to pharmaceuticals.v Our researchers analyzed the data with 2022 as the base year, along with the key trends and challenges. A holistic analysis of drivers, trends, and challenges will help stakeholders in the value chain refine their marketing strategies to gain a competitive advantage.
The market is driven by the increasing demand for dairy products. It is a versatile ingredient that, even in small amounts as little as 0.04%, can efficiently thicken, solidify, and stabilize dairy products without needing additional technical support. Its capacity to improve the firmness and stability of dairy items makes it a crucial component in the dairy industry.Agar, a hydrocolloid derived from red algae, plays a significant role in various industries due to its unique gelling and stabilizing properties. In the Food & Beverages segment, agar is extensively used in beverages, creams & dressings, and dietetic products as a thickener and stabilizer. In the pharmaceutical industry, it finds applications in culture media for microbiology, cosmetology for skin care products and moisturizers, and in medical applications such as surgical lubricants, capsules, suppositories, and hydrocolloid impression materials in dentistry. Agar's non-nutritive characteristics make it suitable for no-sugar, no-fat, and no-carbohydrate products. It also serves as a fiber source for weight-loss supplements and a metal scrapper in the pharmaceutical industry. Agar's versatility extends to the production of gelatin alternatives and various industrial applications.
Additionally, it serves as an appetite suppressant, culinary ingredient, gelatin substitute, and thickener in various food applications, including soups, fruit preserves, and ice cream. Even in small amounts, as little as 0.04%, it can efficiently thicken, solidify, and stabilize dairy products without needing additional technical support. Its capacity to improve the firmness and stability of dairy items makes it a crucial component in the dairy industry.
Furthermore, its non-nutritive properties make it ideal for formulations that aim to be sugar-free, fat-free, or carbohydrate-free. It also serves as a mild laxative, which is beneficial for individuals with irritable bowel syndrome or constipation. Agar is derived from seaweed and serves as a stabilizer in the baked goods industry, often used in pie fillings and icings. In the Asia-Pacific region, it is commonly used to create gelatinous milk-based desserts. As the demand for vegan products grows, it is increasingly being used as a substitute for gelatin. As a result, the market is expected to witness significant growth in the coming years.
The increasing prominence of private-label brands is an ongoing market trend. Retailers worldwide are increasingly focusing on private-label agars to boost profitability, which is driving the growth of the global market. Major retailers are introducing their own brands to meet the growing demand for gluten-free confectioneries, thereby competing with leading global brands. Alibaba, for instance, sells various products, including Food Grade Agar-Agar gelatin powder and Agar-Agar Powder for food application, under its brand. Essential Wholesale and Labs also offer agars with different gums strengths to buyers under private-label brands .The Agar market has experienced significant growth in recent years, particularly in the Food & Beverages segment. Retailers worldwide are introducing private-label agars for various applications, including beverages, creams & dressings, and dietetic products. Agars are also used in culture media for microbiology and in cosmetology for skincare products and moisturizers. In addition, the pharmaceutical industry utilizes agars for medical applications such as fiber supplements, weight-loss aids, gelatin alternatives, metal scrapper coatings, dentistry, hydrocolloid impression materials, surgical lubricants, capsules, and suppositories.
The popularity of private-label brands is intensifying competition in the market and reducing the market share of major brands. Price-sensitive consumers are more likely to purchase private-label agar due to its lower price compared to nationally branded products. The demand for private-label brands is expected to increase, which will drive the growth of the global market during the forecast period.
Price fluctuations is a major concern hindering the market growth. The scarcity of red algae and limited yield from seaweed result in high price fluctuations for agar. Additionally, government restrictions on supply add to the challenge. For example, Thermo-Fischer Scientific temporarily halted the supply of two agar varieties to maintain the supply of dehydrated culture media.
The Agar market experiences significant price volatility due to the scarcity of red algae, the primary source for agar-agar production. The limited yield from raw materials, such as seaweed, further exacerbates the issue. Agar is used extensively in various industries, including Food & Beverages for beverages, creams & dressings, and dietetic products. In the field of Culture media for microbiology, agar plays a crucial role. In cosmetology, it is used for skincare products and moisteners. Agar also finds applications in the medical field, such as in the Pharmaceutical industry for fiber, weight-loss supplements, and in dentistry for hydrocolloid impression materials, surgical lubricants, capsules, and suppositories. Additionally, agar is used in the production of gelatin and as a metal scrapper.The industry is also impacted by dwindling seaweed supply due to trade restrictions and environmental concerns. This has led to a shortage of seaweed for microbiological laboratories, affecting gum prices. While it provides benefits as an ingredient, adjusting to the fluctuating prices is a challenge for manufacturers in the global market.
The market research report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Market Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
The market report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The market report forecasts market growth by revenue at global, regional & country levels and provides a market growth analysis of the latest market trends and growth opportunities from 2017 to 2027.
The market flourishes with applications across various industries. Derived from red-algae like Gracilaria chilensis, agar serves diverse purposes. From fruit candies to sports and health foods, it acts as a gelatin-like substance. It finds use in bacteriological culture media, cosmetics, medicine, and dentistry. Agar enhances wine production and brewing as a clarifying agent. Its thickening properties benefit salad dressings, while providing health benefits rich in minerals like calcium, iodine, and phosphorous, along with vitamins. Limited sourcing of raw materials impacts production and supply, catering to customers in industries ranging from food to pharmaceuticals.
Preserves play a crucial role in extending the shelf life of various fruits and vegetables. The use of Confectionery in Agar production adds to its versatility and appeal. Bakery products, such as cakes and pastries, can incorporate Agar as a gelling agent, providing a stable texture and structure. Technology and advancements have led to the development of new methods in Agar manufacturing, including the Repulping process, which ensures a uniform consistency and high-quality end product. The use of advanced machinery and techniques has streamlined the production process, making it more efficient and cost-effective. The Agar market is driven by the increasing demand for processed foods and the growing awareness of healthier alternatives to traditional gelling agents. The market is expected to grow at an impressive rate, with major players focusing on innovation and product development to meet consumer demands.
The use of Agar in the Ice Cream industry is also gaining popularity due to its ability to provide a smooth and stable texture. The versatility of Agar makes it a preferred choice for various applications, from food to pharmaceuticals. In conclusion, the market is a dynamic and growing industry, driven by advancements in technology and the increasing demand for processed foods and healthier alternatives. The versatility of Agar, coupled with its unique properties, makes it a preferred choice for various applications, from food to pharmaceuticals.
Agar, sourced from red-algae, is crucial in various industries. It acts as a thickening and stabilizing agent in meat and poultry products, enhancing their texture and quality. With its unique diffusion property, agar ensures clarity in products like sauces and soups. Its adhesiveness makes it a preferred choice in food production. However, agar faces challenges due to its limited sourcing and fluctuating supply. Bacteriological agar serves in laboratory settings, while technical agar finds applications in industries. Additionally, agar is a source of fiber, adding to its nutritional value in food products.
Agar Market Scope |
|
Report Coverage |
Details |
Page number |
150 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.56% |
Market growth 2023-2027 |
USD 41.46 million |
Market structure |
USD Fragmented |
YoY growth 2022-2023(%) |
2.5 |
Regional analysis |
Europe, North America, APAC, Middle East and Africa, and South America |
Performing market contribution |
Europe at 37% |
Key countries |
US, China, Germany, UK, and France |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AgarGel, Agramex SA de CV, Ases Chemical Works, B and V srl, Central Drug House Pvt. Ltd., Hispanagar S A, INDUSTRIAS ROKO SA, Ingredion Inc., Merck KGaA, Meron Group, MSC Co. Ltd., Myeong Shin Agar-Agar Co. Ltd., Neogen Corp., New Zealand Manuka Group, Orient Resources Co., PT. Agar Swallow , PT. Agarindo Bogatama, PT Surya Indoalgas, SETEXAM SA, and Titan Biotech Ltd. |
Market dynamics |
Parent market analysis, Market forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product Type
7 Market Segmentation by Application
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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