Surging Demand for Agar-Agar in Food & Beverages Industry
According to our latest market study on "Agar-Agar Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Form and Application," the market is expected to grow from US$ 323,657.68 thousand in 2021 to US$ 459,415.30 thousand by 2028; it is estimated to grow at a CAGR of 5.1% from 2021 to 2028.
Agar-agar is a hydrocolloid extracted from red algae seaweed. Gracilaria and Gelidium are the commercially used species of red algae for the production of agar-agar. Agar-agar is used as a thickener, stabilizer, and gelling agent in the food & beverages industry. It has a higher melting point than other gelling agents. It is commonly available in powder, flakes, and threads format. Agar-agar is a vegetarian substitute for gelatin and is gaining huge traction among the vegan population. It is widely used in Asian cuisines. The rising demand for convenience food & beverages products is driving the growth of the agar-agar market.
Agar-agar has significant applications in the food & beverages industry. It is used in various food & beverages products, such as bakery products, candies, jellies, icings, glazes, ice-creams, jams, and meringues. It is used in bakery dough as it increases the stability of the products and extends their shelf life. Moreover, owing to its excellent gelling capabilities, it is used in jellies and jams. It is also utilized as a clarifying agent in fruit juices, beers, and wines. Thus, the growing applications of agar-agar in the food & beverage industry are boosting the growth of the agar-agar market.
Key players operating in the global agar-agar market include Agar Sari Jaya; Agar Swallow Indonesia; Gino Biotech; Hugestone Enterprise Co., Ltd.; Justchem International Limited; Meron; Pt. Agarindo Bogatama; Pt. Kappa Carrageenan Nusantara; Pt. Surya Indoalgas; and Roland Foods, LLC.
Impact of COVID-19 Pandemic on Agar-Agar Market
Many sectors faced unprecedented challenges owing to the COVID-19 outbreak. The food & beverages industry was also affected due to supply chain disruptions caused by lockdowns and border restrictions during the first quarter of 2020. There was a shortage of raw materials and labor which adversely affected the operations of various food & beverages manufacturing companies. Agar-agar manufacturers also faced significant challenges during the initial months of the COVID-19 pandemic. Raw material shortages increased the overall production cost of agar-agar, which impacted the profitability of various companies’ operations in the market. All these factors adversely affected the market growth of agar-agar. However, the marketplace is recovering from the financial losses. The current market situation is quite better than earlier as many people are fully vaccinated, and the manufacturers are permitted to operate with full capacity. These factors are projected to drive the agar-agar market growth over the coming years.
Agar-Agar Market Breakdown – by Region
Agar-Agar Market Forecast to 2028 - COVID-19 Impact and Global Analysis By Form (Flakes, Powder, and Others) and Application (Food & Beverages, Pharmaceuticals & Nutraceuticals, and Others)
Agar-Agar Market Size & Growth | Global Industry Analysis, 2028
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The report segments the agar-agar market as follows:
Based on form, the agar-agar market is segmented into flakes, powder, and others. Based on application, the market is segmented into food & beverages, pharmaceuticals & nutraceuticals, and others. By geography, the market is segmented into North America, Europe, Asia-Pacific (APAC), the Middle East & Africa (MEA), and South & Central America (SAM).
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