The global Agar-Agar Gum market is expected to develop USD 325.29 million by 2028, at a compound annual increase in price (CAGR) of 5.10 % throughout the forecast period.
Attributes of agar agar gum such as gelling and thickening act as stabilizer and solidifying agent that will favor the market growth. Agar agar gum is likely to be preferred over polysaccharides owing to the huge hysteresis between the setting and melting temperatures of agar agar gum, The key reason of higher usage of agar agar gum in food and beverage industry owe to its high compatibility of getting mixed well in sugary environment, hence offering a stable structure to the concentrated sugary system. Thus, sugary food products favor the demand of agar agar gum. However, burgeon health concerns like diabetes, obesity, etc. may halt the growth of the market in the future. The higher demand of agar agar gum market is contributing to higher employment opportunities for rural women especially from coastal areas. These women are dormant participants of mainstream fishing and seaweed collection.
The most dominant market of agar agar gum is Europe. Investors are highly investing in the European market by becoming a part of food ingredient shows, so as to introduce higher product variety and at the same time keeping costs low, replacing gelatin and conventional products. To keep up the growing diet consciousness and transforming consumer preferences, organizations have proliferated healthier foods in the industry. European companies have initiated collaboration with Indonesia and other emerging economies to wide their presence and reach. The State Secretariat for Economic Affairs (SECO), had set the Swiss Import Promotion Programme (SIPPO) that offers opportunity to European importers to tie-up with high-quality suppliers.
Asia-Pacific is anticipated to grow with a higher CAGR, which is calculated as much higher than Europe, owing to higher consumer disposable income and food processing sector.
On the basis of application, the agar agar gum market is segregated into Bakery & Confectioneries, Dairy Products, Food & Beverage, Gums, Meat & Fish, Microbiological, Pharmaceutical and Others (jam, jellies, water gel desserts, wine etc.)
As agar agar gum encompasses the property of very high melting point, it becomes a vital ingredient of the bakery & confectioneries application segment. Thus, bolstering the demand further for agar agar gum. Other factors that are boosting the market are increasing consumption of canned products such as meat & fish products, pet food, dairy products such as ice-creams, cream cheese, sherbets, yogurt and confections like candy fillings, fruit jellies and candies. Agar agar gum is especially employed in beverage industry for wine clarification.
Major industry participants include Myeong Shin Agar, Agarmex, B&V, Tic Gums, AgarGel, Agar Shallow, AsionsChem, Meron Group, Marine Science Co., Ltd, Orient Resources Company, Titan Biotech Ltd, Central Drug House (P) Ltd., Agar Corporation, Ltd., Indoalgas and Able Sales Company.
Based out of Indonesia, Indoalgas a major manufacturer, has declared capacity expansion of 350 to 450 tons in order to satisfy the growing market requirements. As a result other companies are also attempting similar steps and streamline their operations. Introducing innovative products or augmenting existing capacities on the competitive edge.
Key segments of ‘Global Agar-Agar Gum Market’
Based on product, the market has been segmented into,
The market breakdown data by application,
- Bakery & pastry
- Microbiological & molecular
- Other applications
Others Based on region, the market has been segmented into,
- North America (U.S.)
- Europe (Norway, France and Spain)
- Asia Pacific (China, Japan and South Korea)
- Middle East and Africa
- Central & South America