The global Agar Market is estimated to be valued at Us$ 296.41 Mn or Mn in 2022 and is expected to exhibit a CAGR Of 4.67% over the forecast period 2022-2030, as highlighted in a new report published by Coherent Market Insights.
Agar is a gelatinous substance extracted from red seaweeds. It is mainly used as a gelling, thickening, or stabilizing agent in food, bacteriological culture media, and other applications. Agar finds wide applications in food industry where it is used to make jams, jellies, desserts, etc. It acts as a substitute to gelatin. Agar is gaining acceptance from vegan and vegetarian consumers as it is plant-based. The versatile nature and wide range of applications of agar in food as well as non-food industries is driving the growth of the market.
Market key trends:
One key trend driving the agar market growth is increasing vegan and flexitarian population. Veganism and flexitarianism has gained significant traction worldwide over the past few years. Agar acts as an ideal substitute for animal-based gelatin for vegan consumers. This is positively impacting the demand for agar from food manufacturers. Another major trend is the increasing usage of agar in cosmetics and personal care products. Agar is used as a thickening and stabilizing agent in various skincare and haircare products like creams, lotions, gels owing to its oil-absorbing capacity. The abundant availability of raw materials i.e. red seaweeds and low production cost of agar further supports the market growth.
Threat of new entrants: The threat of new entrants in the agar market is low due to the established presence of global key players and the requirement of high initial investments.
Bargaining power of buyers: The bargaining power of buyers in the agar market is moderate as buyers can switch between different suppliers based on the availability and quality of products.
Bargaining power of suppliers: The bargaining power of suppliers is moderate owing to the availability of agar resources from limited regions and supplier concentration.
Threat of new substitutes: The threat of substitutes is low in the agar market as agar has unique properties and there are limited substitutes available for industrial applications.
Competitive rivalry: The competitive rivalry in the agar market is high owing to the strong presence of global and regional players.
The global Agar Market is expected to witness high growth, exhibiting CAGR of 4.67% over the forecast period, due to increasing application in food and beverages industries. Agar is widely used as a gelling agent and stabilizer in various foods such as desserts, bakery products, and confectionaries.
Regional analysis: Asia Pacific dominates the global agar market and is expected to continue its dominance over the forecast period. Countries like Indonesia, Philippines, and Malaysia are the major agar producing countries in the region. Easy availability of raw materials and growing food processing sector in Asia Pacific is surging the demand for agar.
Key players operating in the agar market are New Zealand Manuka Group, Hispanagar, Acroyali Holdings Qingdao Co., Ltd., Industrias Roko, S.A., Neogen, Merck Group, Agarindo Bogatama, Setexam, and Norevo GmbH. Key players are focusing on business expansion through new product launches and collaborations to strengthen their global presence.
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it