The global agar market size is slated to register significant growth from 2023 to 2033. According to the research report published by Future Market Insights, the global market is predicted to surpass a valuation of USD 292 million in 2023. It is projected to hit a valuation of USD 478.4 million by 2033. The market is expected to expand at a CAGR of 5% from 2023 to 2033.
Agar is derived from the polysaccharide agarose, which forms the supporting structure in the cell walls of agarophytes belonging to the Rhodophyta (Red algae) phylum. Gracilaria, gelidium, and gelidiella which are a genus of red algae, are cultivated commercially for the production of agar. Commercial cultivation of gracilaria was initially carried out using gracilaria chilensis, which is a red seaweed originating from the southern coast of Chile.
Gelidium seaweed is primarily harvested on the western coast of Morocco, the southern coast of Portugal, and the northern coast of Spain. While gracilaria species are widely present in cold waters such as the southern coast of Chile and the Atlantic coast of Canada. However, some species have adapted to the tropical waters of Indonesia and Thailand.
Preference for halal/kosher food products and increasing usage of agar as natural ingredients by food, pharmaceuticals, and cosmetics industries are factors fuelling market growth. The global agar market is currently witnessing key trends like the usage of agar in the bakery industry due to its high-temperature resistance capacity and its superior gelling agent in dairy products.
| Attributes | Details |
|---|---|
| Agar Market Share (2022) | USD 281 million |
| Agar Market Share (2023) | USD 292 million |
| Agar Market Share (2033) | USD 478.4 million |
| Agar Market Share (2023 to 2033) | 5% |
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The global agar industry size expanded at a CAGR of 2.1% from 2018 to 2022. In 2018, the global market size stood at USD 258.6 million. In the following years, the market gained considerable growth, accounting for USD 281 million in 2022.
Several food and beverage items, including sweets, candies, dairy goods, and sauces, employ agar as a gelling ingredient. The demand for agar as a plant-based gelatin substitute has been fuelled by consumers' increasing preference for organic and vegetarian foods.
Several areas, including Southeast Asia (particularly Indonesia, Malaysia, and the Philippines), Japan, and South Korea, have increased agar production. The climate in these areas is ideal for growing seaweed species that produce agar. Market expansion has been sparked by the emergence of agar processing facilities and the accessibility of raw materials in these areas.
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The availability and procurement of raw materials, especially seaweed, are necessary for the manufacturing of agar. Agar production may be impacted by changes in seaweed supplies or supply-chain interruptions. Additionally, the price of raw materials might change, which has an impact on the total cost of manufacturing and the cost of agar-based goods. While agar is frequently used as a gelling agent, there are substitutes on the market.
Agar may be replaced in some applications by gelatin, carrageenan, pectin, and other plant- and man-made gelling agents. The availability of these substitutes and their affordable prices may restrict the expansion of the agar industry.
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In the report, the agar market is segmented on the basis of form which includes strips and powders. In 2022, among all these segments, the powder segment accounted for a substantial value share in the global agar market. The powder segment captured 55.6% of market shares in 2022. Compared to other forms, including agar strips or flakes, agar powder is more convenient to handle and use.
It is easy to add to food formulations and recipes since it dissolves quickly in liquids. The powder form enables exact control over the required gel strength, accurate measurement, and simple distribution throughout the product. There are many applications for agar powder in foods and beverages. Because of its fine texture and solubility, it may be used to produce sauces, jellies, and sweets with smooth textures. It may be included in liquid formulations, resulting in reliable outcomes and homogenous gel formation.
The global agar market is segmented on the basis of application which includes: food & beverages, bacteriological applications, technical applications, and others (agriculture). In 2022, of these segments, the food & beverages segment dominated the market in terms of value and volume and is expected to remain dominant over the forecast period.
The food & beverages segment is further sub-segmented as bakery, confectionery, dairy, canned meat/poultry products, beverages, sauces, creams & dressings, dietetic products, and others. In addition, bacteriology is further sub-segmented as culture media and microbiology.
The food and beverage application held 34.6% shares in the global market. There are several uses for agar in the food and beverage sector. It is used as a clarifying ingredient in drinks as well as in sweets, confectionery, bread goods, dairy goods, sauces, and dressings. Because of its adaptability, producers have several alternatives for incorporating agar into their formulas and expanding their product lines.
Technical application is sub-segmented as cosmetology and medical applications. The technical application segment is expected to expand at the highest CAGR in terms of value during the forecast period.
Based on region, the global agar market is segmented into North America, Latin America, Western Europe, Eastern Europe, Asia Pacific Excluding Japan, the Middle East & Africa, and Japan.
Due to the rising popularity of vegan goods, the Asia Pacific region is predicted to witness a rapid growth rate throughout the projection period. The Asia Pacific region is renowned for its fertile coastal regions, which offer optimal conditions for the development of species of seaweed that produce agar. The expansion of the agar business across the region has been aided by the accessibility of these raw resources.
Agar has a long history of use in many Asia Pacific nations' traditional foods and customs, including those of Japan, China, and South Korea. Due to the solid basis and knowledge this has built up in agar manufacture and use, the market has continued to grow. The pharmaceutical and healthcare industries have experienced substantial expansion in the Asia Pacific area. Agar is used as a stabilizing agent, an encasing substance, and in tissue engineering in the pharmaceutical industry. In 2022, China, India, and Japan captured 5.5%, 6.7%, and 4.2% shares in the global market, respectively.
The agar market in North America has a dominant share, with the Europe market in second place. Agar has several uses. Including the production of ice cream, bread goods, confections, dairy products, sports nutrition products, and drinks. The most popular form of agar is in powder form due to its high ease of use coefficient. In 2022, the United States captured 28.9% shares in the global market.
As a natural and vegetarian substitute for gelatin, agar is becoming more and more popular in the food and beverage business in North America. Agar is increasingly being used as a gelling agent in desserts, dairy products, sauces, and confectionery goods. Due to the growing customer preference for plant-based ingredients and the requirement for clean-label products.
| Country | CAGR Share in Global Market (2022) |
|---|---|
| United States | 28.9% |
| United Kingdom | 7.2% |
| China | 5.5% |
| Japan | 4.2% |
| India | 7.1% |
The agar market is very competitive, and several significant rivals use different tactics to hold onto their market positions and promote development. To fulfill the changing expectations of customers and industries, the key players in the agar market place a strong emphasis on ongoing product development and innovation. They make R&D investments to improve the features, applications, and quality of agar-based goods. By being ahead of the competition in terms of product offers, they are able to stand out from the competition.
Recent Developments Observed by FMI:
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD million for Value, MT for Volume |
| Key Regions Covered | North America; Latin America; Western Europe; Eastern Europe; Asia Pacific Excluding Japan (APEJ); The Middle East & Africa; Japan |
| Key Countries Covered | United States, Canada, Germany, United Kingdom, Nordic, Russia, BENELUX, Poland, France, Spain, Italy, Czech Republic, Hungary, Rest of EMEAI, Brazil, Peru, Argentina, Mexico, South Africa, Northern Africa, GCC Countries, China, Japan, South Korea, India, ASEAN, Thailand, Malaysia, Indonesia, Australia, New Zealand, Others |
| Key Segments Covered | Component, Business Function Type, Service Type, Organizational Size, Application, Region |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, Trend Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
The worldwide agar market is anticipated to be valued at US$ 292 million until 2023.
Over the historical period, from 2018 to 2022, the global agar market registered a CAGR of 2.1%.
The worldwide agar market is expected to reach US$ 478.4 million through 2033.
North America is expected to generate a revenue share 28.9% through 2023.
Plant-based diet trend and vegan lifestyle adoption generate significant potential for the agar industry.
1. Executive Summary 2. Market Overview 3. Market Background 4. Global Market Analysis 2018 to 2022 and Forecast, 2023 to 2033 5. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Application 5.1. Food & Beverages 5.2. Bakery 5.3. Confectionery 5.4. Dairy 5.5. Canned meat/poultry products 5.6. Beverages 5.7. Sauces, creams & dressings 5.8. Dietetic products 5.9. Others 5.10. Bacteriological 5.11. Culture media 5.12. Microbiology 5.13. Technical Applications 5.14. Cosmetology 5.15. Medical applications 5.16. Others 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Form 6.1. Splits 6.2. Powders 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Region 7.1. North America 7.2. Latin America 7.3. Europe 7.4. Asia Pacific 7.5. MEA 8. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 9. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 10. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 11. Asia Pacific Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 12. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Country 13. Key Countries Market Analysis 13.1. U.S. 13.2. Canada 13.3. Brazil 13.4. Mexico 13.5. Germany 13.6. U.K. 13.7. France 13.8. Spain 13.9. Italy 13.10. China 13.11. Japan 13.12. South Korea 13.13. Singapore 13.14. Thailand 13.15. Indonesia 13.16. Australia 13.17. New Zealand 13.18. GCC Countries 13.19. South Africa 13.20. Israel 14. Market Structure Analysis 15. Competition Analysis 15.1. Merck KGaA 15.2. Thermo Fisher Scientific Inc. 15.3. HiMedia Laboratories Pvt. Ltd. 15.4. Neogen Corporation 15.5. Bio-Rad Laboratories, Inc. 15.6. Becton, Dickinson and Company 15.7. Crystalgen Inc. 15.8. Titan Biotech Limited 15.9. Micromaster Laboratories 15.10. TCI Chemicals 16. Assumptions & Acronyms Used 17. Research Methodology
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