The agar market 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 2023-2030, as highlighted in a new report published by Coherent Market Insights.

 

Market Overview:

Agar is a jelly-like substance extracted from red algae. It is commonly used as a gelling agent, thickening agent, stabilizer or emulsifier in food products. Agar finds wide applications in confectionery, bakery, dairy, microbiological and other food products. It acts as a vegan substitute for gelatin. The food industry around the world is a major consumer of agar.

 

Market Dynamics:

Growing veganism and preference for plant-based foods is expected to drive the demand for agar in the coming years. Agar acts as an ideal vegan substitute for gelatin which is derived from animal sources. Rising health consciousness has boosted the demand for clean label and natural ingredients in food products. Agar fulfils this demand being a natural hydrocolloid extracted from algae. Furthermore, the global prepared food market is growing at a rapid pace. Agar finds application as a gelling and stabilizing agent in prepared foods which is further supporting the agar market growth.

 

SWOT Analysis

 

Strength: The agar market has strong growth potential due to its wide range of applications. Agar is widely used as a gelling agent and thickness provider in various industries such as food, pharmaceutical, and microbiology. It acts as an excellent vegan substitute for gelatine. The market is driven by increasing vegan and vegetarian population globally.

 

Weakness: Fluctuation in raw material prices impacts the production cost of agar. Asia Pacific countries dominate the agar supply and any geopolitical issues can disrupt the supply chain.

 

Opportunity: Rising application of agar in cosmetics and personal care products acts as an opportunity. Agar being rich in minerals and vitamins is being increasingly used in anti-aging creams and hair care products. Growing health-conscious population seeking plant-based ingredients further drives the demand.

 

Threats: Presence of substitute products like gelatin and carrageenan are a threat. Strict regulations regarding grade and standards of agar used in different applications can hamper market growth.

 

Key Takeaways:

 

The Global Agar Market Size is expected to witness high growth, exhibiting CAGR of 5.4% over the forecast period, due to increasing vegan population globally. The vegan trend is on rise with people looking to adopt plant-based diets and ingredients. This is expected to significantly drive the demand for agar as a gelatin substitute.

 

Regional analysis

 

The Asia Pacific region dominated the global agar market in 2023, accounting for around 35% of the overall share. Countries like Indonesia, Philippines, and Thailand are among the major producers of agar globally. Availability of raw materials at cheaper costs and presence of leading players supplement the market growth. China is projected to exhibit fastest growth during the forecast period owing to rapidly changing dietary patterns and growing health awareness.

 

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. Players adopt strategies like capacity expansion, new product launches, and mergers and acquisitions to strengthen their market position. For instance, in 2022, Hispanagar inaugurated a new production plant in Spain to meet the growing global demand for agar.

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