The global 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 seaweed that is widely used as a gelling agent in food, pharmaceuticals, microbiology, and cosmetics industry. It is commonly used as a growth medium for microorganisms because of its gelling and non-toxic properties.
Market key trends:
One of the key trends in the agar market is the growing demand for clean label and organic products. Agar being derived from seaweed is considered a natural and organic ingredient. Food products manufacturers are focusing on replacing synthetic thickeners and stabilizers with natural agents like agar to meet increasing consumer demand for clean label and organic products. The clean label trend has significantly contributed to the growth of the agar market. Additionally, the growing cosmetic industry especially natural cosmetic products is also driving the demand for agar.
SWOT Analysis:
Strength: Agar is a versatile ingredient that can be used in a variety of applications like food, microbiological media, and pharmaceuticals. It has good gelling properties and works well in cosmetics and personal care products.
Weakness: Agar production heavily relies on seaweeds which are prone to weather vulnerabilities. Fluctuating supply due to harsh weather conditions can impact the agar market.
Opportunity: Rising demand for vegan and plant-based products opens up opportunities for agar producers to explore vegetarian and vegan applications. Increasing research into new applications and product development will expand the market scope.
Threats: Availability of substitutes like carrageenan and gelatin poses threats. Volatility in seaweed cultivation and prices affects the supply chain reliability.
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 demand from food industries.
The food industry accounts for over half of the total agar consumption. It is used as a thickening, gelling, and stabilizing agent in foods. Growing health-conscious consumer base boosts the demand for vegan and plant-based foods containing agar.
Asia Pacific dominates the global agar market, driven by major producers like Indonesia and Philippines. The region accounts for over 60% of the global agar supply owing to abundant seaweed resources. Countries like China, Japan, and South Korea are the major consumers in the region. North America and Europe are other prominent markets growing at a steady pace due to extensive food processing industries.
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. The market is highly concentrated with the top five manufacturers accounting for over half of the total production.
