Agar Market Estimated To Witness High Growth Owing To Wide Applications in Food Industry
Market Overview:
Agar is a gelatinous substance extracted from red seaweeds. It has widespread applications in food industries such as confectionery, bakery, dairy, meat and others. It acts as a gelling, thickening and stabilizing agent. Some key uses of agar include its use in producing jam, jelly, desserts and other confectionery products. It also finds application in canned meat, canned vegetables and other canned food products to prevent separation of water and food.
Market Dynamics:
The agar market growth is primarily driven by its wide applications in food industries. Agar is widely used as a gelling and thickening agent in various food products such as jams, jellies, desserts, dairy products, confectionery items and others. It acts as an ideal substitute for animal-derived gelatins. Moreover, increasing demand for vegan and vegetarian food products is also augmenting the agar market growth. Agar forms gels that melt at relatively higher temperatures compared to gelatin, making it suitable for various food production processes involving heat. This versatility and properties make it the preferred gelling agent in many food applications.
SWOT Analysis
Strength: Agar is widely used as a gelling agent and stabilizer in food products like jam, yogurt, confectionery, etc. It has high melting point and forms strong gels even at low concentrations. Agar is considered vegan and halal which expanding its customer base.
Weakness: Agar market is dependent on agarwood supply which is facing sustainability issues due to overexploitation. Production of high-grade agar requires skilled labor which is facing shortage.
Opportunity: Growth of vegan and plant-based food industry presents an opportunity for agar market as it is used as substitutes for animal-derived gelling and thickening agents. Agar producers can explore new application areas like microbiology, cosmetics etc to boost growth.
Threats: Fluctuation in raw material prices affects the production cost of agar. Presence of substitute gelling agents like carrageenan and gelatin poses competition to the agar market.
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.
Key Takeaways
The global Agar market is expected to witness high growth, exhibiting a CAGR of 5.4% over the forecast period, due to increasing demand for vegan and plant-based foods. The market size for 2023 is projected to reach US$ 302.4 Mn.
Regional analysis: Asia Pacific dominates the global agar market with more than 30% share due to easy availability of raw materials in Indonesia and Malaysia. Countries like China, India and Japan are fastest growing markets in the region attributable to rising health consciousness.
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. Hispanagar and Acroyali Holdings are market leaders with widespread operations across Asia, Europe and the Americas.
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