The net worth of all carrageenan sold globally in the year 2022 was estimated to be worth USD 935.9 million. According to Future Market Insights, the market is anticipated to record a 4.8% CAGR from 2023 to 2033. Conclusively, the net valuation of the global carrageenan market, as per the FMI report, is projected to reach USD 1,567.4 million by 2033.
Due to the increased demand for carrageenan from the food and beverage industry, the market for this substance has seen tremendous expansion over the last several years. The worldwide carrageenan market is also predicted to be further driven by the rising demand for all-natural food additives, particularly for gelatinization and emulsification.
The demand for carrageenan is anticipated to be driven by the growing interest in hydrocolloids in a variety of non-food industries, including pharmaceuticals and personal care. Carrageenan is used by the pharmaceutical and drug industry to make inactive excipients during tablet preparation, which has rendered it sufficient importance.
Carrageenan is also frequently applied as a thickener in cosmetic goods like lotions and skin creams, making it very desirable in personal care products. Such qualities that make carrageenan more appealing to diverse end-user application sectors have improved the profitability of its sales.
The sales of carrageenan have increased substantially in recent years as a result of the increased demand among customers for convenience foods. It is getting heavily used as a gelling and stabilizing agent in various food items that are readily available and fully prepared. Moreover, it has turned imperative lately, as jelly, pie filling, and chocolate are all now made with carrageenan as a fat alternative.
Carrageenan's capacity to improve the quality of food components is the main element behind its widespread use in the food business. The sales of carrageenan are projected to rise because of consumers' growing preference for items made with materials obtained from plants. Carrageenan's ability to mimic the fat thickeners is projected to strengthen its penetration in packaged dairy and meat products in the coming days.
Product differentiation by the key players in this sector is achieved by adopting better solvent extraction methods and the raw materials used. An illustration, Cargill, Inc. introduced its new Satiagel ADG 0220 Seabird carrageenan, which may be utilized for dairy bases desserts that are gelled. The business has expanded this product line by creating Seabrid carrageenan that may be used as a texturizing additive in creamy dairy delicacies.
| Attributes | Details |
|---|---|
| Carrageenan Market Share (2022) | USD 935.9 million |
| Carrageenan Market Size Value (2023) | USD 980.8 million |
| Carrageenan Market Size Value (2033) | USD 1,567.4 million |
| Carrageenan Market Growth Rate (2023 to 2033) | 4.8% |
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Based on the reports published earlier by FMI, the net worth of the global carrageenan market back in the year 2018 was USD 740 million. Then in the following years, the market gradually gained pace and penetrated new markets before getting hit by the pandemic.
Owing to its antiviral qualities, carrageenan was also investigated as an active ingredient for COVID-19 therapy, which opened up new potential for the manufacturers. Marinomed Biotech AG, Cardiff University, Walgreens Boots Alliance, and a University Health Board together launched research in December 2020 to examine the carrageenan nasal and throat spray.
However, sales of carrageenan are significantly constrained by the presence of alternatives like guar gum and xantham gum, which are readily available. In the future, all-natural ingredients extracted from plant sources are expected to be more popular, rather than ones made from animals, such as gelatin.
By generating a revenue share of more than 70% in 2022, the food and beverage category controlled the majority of the carrageenan market. However, the demand for carrageenan is increasing more quickly in the pharmaceutical and cosmetics market categories than in the food and beverage segment.
Both these end-user segments are anticipated to develop as a result of increased research and development spending on medication formulations for creating reliable and efficient goods.
In 2022, based on technology for carrageenan extraction, the semi-refined category led the market, accounting for over 50% of total sales. Since a semi-refined procedure for carrageenan extraction is economical, it favors both consumers as well as producers with a higher profit margin.
The development of food-grade semi-refined carrageenan as a result of technological advancement has also increased this segment's market acceptance over the years.
The alcohol precipitation method's several phases raise the processing costs of carrageenan extraction and are predicted to impede the segment's adoption. Likewise, the fact that only certain types of seaweed, including Eucheumacottonii, is processed using the gel press technology, it is primarily limited to kappa-type carrageenan.
Due to rising production costs brought on by the need for alcohol-precipitated carrageenan, gel-press technology is becoming popular these days.
In the United States, carrageenan is being used extensively by its processed food industries to produce convenience meals and packaged food items. In terms of revenue, the United States dominated the North American carrageenan market in 2022 and the preceding years. Due to the higher demand for processed food items in the United States and Canada, carrageenan is in great demand as an additive.
Back in 2022 and the preceding years, the United States had the leading revenue share of around 27% generated by the global carrageenan market. Because of the insufficient carrageenan supply, it is now one of the top buyers of carrageenan from China and the Philippines. Throughout the forecast years, the United States is expected to experience tremendous growth in the demand and production of carrageenan and its alternatives.
Canada, alongside the expansion of its many carrageenan end-use industries, is also experiencing remarkable growth in North America. Based on the statistics figures, the regional carrageenan market in the country is anticipated to develop at a CAGR of 4.4% over the projected period.
Given its huge shipments of carrageenan out from Asia Pacific nations and the rising processed food industry, Europe is an important market. Due to a growing F&B industry, prospective regions for higher sales of carrageenan include Germany, the United Kingdom, France, and Spain.
Both refined and semi-refined types are permitted in the European Union under the food additive codes E407 and E407a, creating an increased demand for carrageenan. Germany was responsible for a sizeable portion of the total demand for carrageenan in 2022, because of its huge F&B industry sector. Over the next ten years, the German carrageenan market is projected to witness a growth rate of 3% on a yearly basis.
Owing to the sufficient supply of carrageenan in nations like the Philippines and other Asia Pacific nations, China's carrageenan market is seeing rapid expansion. The overall market share of China is predicted to witness a growth rate of 7.4% over the years between 2023 and 2033.
The existence of key food industry firms has led to the total food and beverage sector in China seeing tremendous expansion, which is expected to boost the carrageenan demand. Demand for carrageenan in China has also grown as a result of its widespread use in the domestic pharmaceutical industry for the production of gel-based medications.
Over the projected period, many regional markets in Asia Pacific are anticipated to see quick growth in carrageenan market trends and opportunities. South Korea’s carrageenan industry is also now being driven by the rapidly developing cosmetic industries' rising need for the product.
As per the market report prepared by FMI, the South Korean carrageenan market is expected to reach a valuation of USD 158 million by 2027. Federal measures that are beneficial for small-scale producers might be credited for the development of the carrageenan market in the country.
Due to their extensive spatial presence and numerous production centers and distribution channels dispersed throughout the main continents, a few leading companies in the carrageenan industry have a worldwide reach. According to an FAO report, the market players based in the United States together accounted for 4.82% of all seaweed-based hydrocolloid exports in 2019.
Prominent carrageenan market players operating in the sector are concentrating on forming alliances with small businesses with a solid presence in regional marketplaces. For example, CP Kelco and Biesterfeld stated in August 2020 that they were expanding their collaboration in Europe's food and nutrition market. Following this collaboration, Biesterfeld might likely promote CP Kelco's carrageenan goods throughout Europe and other regions as well.
Thanks to ideal climatic circumstances, carrageenan production and extraction are growing throughout the Asia Pacific, notably in Southeast Asia. So very positive progress and emerging trend in the carrageenan market has resulted from the seaweed production in coastal nations. Due to comparably simpler procedures and cheaper processing costs, small and medium-sized companies are holding a major share of the sector in these nations.
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The global carrageenan market is expected to grow at 4.8% during the forecast period.
The global carrageenan market is predicted to be valued at USD 1,567.4 million by 2033.
The global carrageenan market was valued at USD 935.9 million in 2022.
The United States accounts for a 27% revenue share of the global carrageenan market.
China is predicted to witness a CAGR of 7.4% in the carrageenan market.
| Market Size Value in 2022 | USD 915.9 Million |
|---|---|
| Market Forecast Value in 2032 | USD 1,355.7 Million |
| Global Growth Rate (2022 to 2032) | 4.0% |
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