Agar Market - Growth, Trends, and Forecast (2020 - 2025)

The global agar market is projected to grow at a CAGR of 5.55% during the forecast period (2020 - 2025).

The exponential growth in the usage of this product is attributed to its various functions and health benefits. It contains 80% fiber and can be used as an appetite suppressant. It is also an important culinary ingredient as it acts as a substitute for gelatin and can be used as a thickener in soup, fruit preserves, ice cream, and other products.

The application of agar in the food and beverage industry, specifically in bakery and confectionery, is expected to increase during the forecast period. Agar is mostly used in solid form of strip agar and agar powder. Agar strip, sometimes called natural agar, is produced on a small scale in China, Japan, and the Republic of Korea by the old, traditional method.

Moreover, technological advancements, such as the introduction of metal scrappers provide room for harvesting large quantities of seaweed without putting in much effort, are further expected to boost the production of agar during the forecast period.

Key Market Trends

Acquisitive Demand of Agar in Bakery and Confectionery Industry

In the baked goods industry, due to the ability of agar gels to withstand high temperatures, agar is gaining prominence as a stabilizer and thickener in pie fillings, icings, and meringues. Cakes, buns, etc., are often pre-packed in various kinds of modern wrapping materials and often stick to them, especially in hot weather by reducing the quantity of water and adding some agar, a more stable, smoother, non-stick icing is obtained. Some agars, especially those extracted from Gracilaria chilensis, are extensively used in confectionery with a very high sugar content, such as fruit candies. Because agar is tasteless, it does not interfere with the flavors of foodstuffs. this contrasts with some of its competitive gums that require the addition of calcium or potassium salts to form gels. Thus, it is highly preferred by the bakery and confectionery manufacturers in the food industry.

Asia-Pacific Witnessed a Significant Market Growth

Asia-pacific is expected to have the highest growth rate during the forecast period owing to the growing preference for vegan products. North American region has the highest share for the agar market; Europe has the second-highest market for the agar. Agar has a wide range of application, it is used to make ice cream, bakery, and confectionaries, dairy products, sports and health foods, beverages. The powdered form agar is the most preferred form as its ease of usage coefficient is high.

Competitive Landscape

New product development and capacity expansion are the two key success strategies adhered to by market participants. Some of the major players in the agar market, globally, include Neogen Food Safety, HISPANAGAR, MARINE SCIENCE CO., LTD., PT. Agarindo Bogatama, INDUSTRIAS ROKO S.A., SETEXAM, among others.

Reasons to Purchase this report:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

This product will be delivered within 2 business days.