North America Carrageenan Market - Growth, Trends, and Forecast (2020 - 2025)

North America carrageenan market is anticipated to witness a CAGR of 4.78% during the forecast period (2020-2025).

• The market is mainly driven by the increasing demand for natural ingredients in processed foods and the high consumption of meat and poultry in the region.
• Kappa type holds the majority share among all carrageenan types due to its extensive application in the food industry, wherein it functions as a bodying agent, stabilizer, and emulsifier in foods like ice cream, cheese, puddings, and chocolate. Iota is mostly used in ready-to-eat meals.
• The food and beverage segment leads the carrageenan market among the application categories. Common food industries incorporating the ingredient include dairy, meat, beverages, etc.

Key Market Trends

Pharmaceutical Sector is Progressing at a Rapid Pace

Carrageenan is a polysaccharide and is gaining popularity in the pharmaceutical field for specific gelling, thickening, and stabilizing properties. Its abilities to stabilize emulsions for insoluble drug preparations and shelf life elongation of antibiotic suspensions are driving its use in the medicinal field. Iota carrageenan is extensively used in pharmaceutical applications due to its ability to form transparent, elastic gels with thixotropic properties.

The World Health Organization is promoting the development of carrageenan, due to the lack of effective microbicides feasible in the prevention of HIV infections. The Joint FAO/WHO Expert Committee on Food Additives (JECFA) completed an in-depth review of the science related to the safety of carrageenan and found it to be safe for use in infant formula, including the formula for special medical purposes. Thus, considering the positives, the market of carrageenan is likely to experience good progress in the near future, in the field of pharmaceuticals.

United States is the Largest Market for Carrageenan in the Region

The demand for fortified foods and beverages market was witnessed to have an increasing trend owing to the rising health consciousness among the consumers which is, in turn, increasing the demand for natural ingredients. Moreover, the fast-moving lifestyle of the country has increased the demand for ready-to-eat foods that incorporate Iota carrageenan. Carrageenan is used in the United States as a food additive in a wide range of processed foods as well, including dairy products, water-based foods, meat products, beverages, condiments, infant formula, and pet food. The major players in the country market are Ingredion Inc., Ingredients Solutions Inc., W Hydrocolloids, DuPont, FMC Corp., and Cargill Inc.

Competitive Landscape

The North America carrageenan market is fragmented, owing to the presence of large regional and domestic players in the different countries of the region. Emphasis is given on the merger, expansion, acquisition, and partnership of the companies along with new product development as major strategic approaches adopted by the leading companies to boost their brand presence among consumers. The global giants are expanding their businesses by setting up new plants or by increasing the capacity of the existing ones to cater to the inflated demand in the region for different carrageenan ingredients. Moreover, Mexico poses a major opportunity for the industry with rapid industrialization in the country.

Reasons to Purchase this report:

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