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 one of the popular vegetarian substitutes for gelatin. It is derived from red algae seaweeds, especially Glacaralia and Gelidium. The yield of agar-agar is more when extracted from Glacaralia and Gelidium than other species. Hence, these species are used commercially for agar-agar extraction. Agar-agar has excelling gelling properties. Moreover, it has a high melting point than other gelling agents. Thus, it provides high thermal stability to the food products. It helps extend the shelf life of bakery products. The increasing demand for agar-agar as a gelling and thickening agent from the food & beverages manufacturers is propelling the agar-agar market growth.
Asia-Pacific held the largest share of the global agar-agar market in 2020; it is expected to grow significantly over the forecast period. China, Japan, and Indonesia are among the major seaweed-producing countries. Thus, the availability of raw materials required for manufacturing agar-agar in the region is driving the growth of the Asia-Pacific agar-agar market. Moreover, the growing inclination of the majority of the population in the region toward veganism is projected to boost the demand for agar-agar as it can be effectively used in vegan food products.
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Agar-Agar Market: Strategic Insights
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Agar-Agar Market: Strategic Insights
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Impact of COVID-19 Pandemic on Agar-Agar Market
The COVID-19 outbreak affected several industries due to lockdowns, business shutdowns, and supply chain disruptions. There was a mixed impact of the pandemic on the agar-agar market. Initially, owing to lockdowns and business shutdowns, manufacturers faced raw materials and labor shortages, which affected their production and supply. However, as people are becoming more health-conscious, they prefer health-boosting products. Agar-agar is widely used in various pharmaceutical & nutraceutical products. This factor positively impacted the growth of the market as the pharmaceuticals & nutraceuticals industry experienced a significant boom in 2020. Furthermore, many nations are vaccinated, and governments have relaxed the restrictions imposed on manufacturing and trade. All these factors are expected to drive the agar-agar market growth over the forecast period.
Market Insights
Product Development is Likely to Open New Opportunities in the Agar-Agar Market
The agar-agar manufacturers are focusing on developing innovative products to fulfill the changing requirements of consumers. They are making significant investments in research and developments to differentiate their products from their competitors and retain their market share. For instance, Gelita AG developed agar-agar sheets in July 2019. Initially, agar-agar was available in powder and flakes format. However, Gelita AG developed agar-agar sheets utilizing a new production technology, and the product is better than powdered or flaked agar-agar in various ways. It eliminates the uncertainty of spoon measures and complex conversions between powder solutions, making it easy to use in different culinary preparations. Such innovations by the key players operating in the market are anticipated to offer lucrative opportunities in the agar-agar market over the forthcoming period.
Form Insights
Based on form, the agar-agar market is segmented into powder, flakes, and others. The powder segment held the largest share in the market and is projected to grow at the fastest CAGR over the forecast period. Agar-agar is usually available in powdered format. Powdered agar-agar can be conveniently incorporated in various formulations. Moreover, it is easy to store. Agar-agar powder is used in several dry blends, such as dry bakery blends, soup blends, and jelly blends. It acts as a thickening and gelling agent. The rising demand for agar-agar powder for manufacturing various foods and beverages drives the segment growth.
Application Insights
Based on application, the market is segmented into food & beverages, pharmaceuticals & nutraceuticals, and others. The food & beverages segment accounted for the largest market share in the agar-agar market in 2020; however, the pharmaceuticals & nutraceuticals segment is projected to grow at the fastest CAGR over the forecast period. Agar-agar acts as an appetite suppressant and is used in supplements that aid weight loss. It is also used in supplements that improve digestive health as it absorbs and throws toxins from the intestines and gastrointestinal tract. Furthermore, it is used in supplements that improve bone health. The rising applications of agar-agar in the pharmaceuticals & nutraceuticals industry are driving the market growth.
The key players operating in the 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. These players are engaged in developing innovative products to meet the emerging consumer trends. Moreover, they focus on providing high-quality products to their consumers to retain their market share.
Agar-Agar Market Regional Insights
Agar-Agar Market Regional Insights
The regional trends and factors influencing the Agar-Agar Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Agar-Agar Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
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Agar-Agar Market Market Report Scope
| Report Attribute | Details |
|---|---|
| Market size in 2021 | US$ 323.66 Million |
| Market Size by 2028 | US$ 459.42 Million |
| Global CAGR (2021 - 2028) | 5.1% |
| Historical Data | 2019-2020 |
| Forecast period | 2022-2028 |
| Segments Covered |
By Form
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
Market Players Density: Understanding Its Impact on Business Dynamics
The Agar-Agar Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Agar-Agar Market are:
- GINO BIOTECH
- CV. AGAR SARI JAYA
- PT. Agar Swallow
- HUGESTONE ENTERPRISE CO., LTD
- JUSTCHEM INTERNATIONAL LIMITED
Disclaimer: The companies listed above are not ranked in any particular order.
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Report Spotlights
- Progressive industry trends in the agar-agar market to help players develop effective long-term strategies
- Business growth strategies adopted by developed and developing markets
- Quantitative analysis of the agar-agar market from 2019 to 2028
- Estimation of global demand for agar-agar
- Porter's five forces analysis to illustrate the efficacy of buyers and suppliers operating in the industry
- Recent developments to understand the competitive market scenario
- Market trends and outlook as well as factors driving and restraining the growth of the agar-agar market
- Assistance in the decision-making process by highlighting market strategies that underpin commercial interest, leading to the market growth
- The agar-agar market size at various nodes
- Detailed overview and segmentation of the market, as well as the agar-agar industry dynamics
- Size of the agar-agar market in various regions with promising growth opportunities
- Historical Analysis (2 Years), Base Year, Forecast (7 Years) with CAGR
- PEST and SWOT Analysis
- Market Size Value / Volume - Global, Regional, Country
- Industry and Competitive Landscape
- Excel Dataset
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
Form and Application
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States
Frequently Asked Questions
Surging demand for agar-agar in food & beverages industry and growing applications in pharmaceuticals & nutraceuticals are some of the key driving factors for agar-agar market.
Based on application, the pharmaceutical & nutraceutical is the fastest growing segment. Agar-Agar is a soluble dietary fiber and is used as a mild laxative in treating malfunctions of the digestive tract for its swelling properties. It is also used as a retarding agent and carrier in managing medicines, antibiotics, and vitamins.
Asia-Pacific accounted for the largest share of the global agar-agar market. Seaweed is produced in large quantities in Asian countries, such as China. Agar is far more cost-effective than gelatin, which has led to a surge in its use in various culinary products across the region.
Based on form, the powder segment accounted for the largest revenue share because agar-agar powder is more stable and easier to produce and pack than other types such as flakes, Bars. Powdered dry agar-agar is soluble in water and other solvents at a temperature ranging from 95°C to 100°C.
Manufacturers of agar-agar are significantly investing in research and development to improve existing products and develop new products. These companies are adopting product innovation strategies to differentiate their brands in the minds of consumers, boost their revenues, and fulfill the requirements of potential consumers. Such innovations by prominent companies are projected to offer lucrative growth opportunities to the agar-agar market players over the forecast period
The major players operating in the global agar-agar market are 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
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The List of Companies - Agar-Agar Market
- GINO BIOTECH
- CV. AGAR SARI JAYA
- PT. Agar Swallow
- HUGESTONE ENTERPRISE CO., LTD
- JUSTCHEM INTERNATIONAL LIMITED
- Meron Group
- PT. AGARINDO BOGATAMA
- PT Kappa Carrageenan Nusantara
- PT SURYA INDOALGAS
- ROLAND FOODS, LLC
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