Asia-Pacific Carrageenan Market - Growth, Trends and Forecast (2020 - 2025)

Asia-Pacific carrageenan market is projected to grow at a CAGR of 8.52% during the forecast period (2020-2025).

• Asia-Pacific being the prominent producer of carrageenan, it is the fastest-growing region with higher application in varied sectors.
• Carrageenan is broadly used in food applications, such as dairy and meat products, and recently, its demand in non-food applications has increased significantly. The demand for carrageenan in pharmaceuticals and cosmetic products is increasing due to its sustainable functional property.
• Additionally, the increasing demand for natural hydrocolloid ingredients in processed foods and increased consumption in the meat and poultry industry is projected to drive the market.

Key Market Trends

Upsurge in the Application in Dairy Sector

Carrageenan as an additive is a safe food stabilizer that thickens and extends the efficiency of shelf-life. The high-quality food-grade carrageenan produced in the region, including the Philippines and others. Lambda carrageenan is cold, soluble, and acts as a thickening agent, that improves mouthfeel in dairy beverages, thus, driving the market. Kappa is the most used carrageenan in food, where it acts as a stabilizer, bodying agent and emulsifier in cheese, ice cream, chocolate, and puddings. Iota is used for ready-to-eat meals, whereas, lambda is mostly used for whipped cream. Therefore, the rising food industry of the region boosts the demand for carrageenan.

China is the Largest Market

China is leading the Asia-Pacific carrageenan market due to the rapid growth in industrialization and investment in research and development. The Chinese market built an economic model to estimate the derived demand for seaweed. The model considers three angles, which include supply side (carrageenan production), demand-side (carrageenan demand from end-users), and trade data of seaweed. It is also the major producer of carrageenan, and hence, is the leading exporter of carrageenan to Europe and the United States. About 95% of the carrageenan produced for domestic use is consumed by the food industry, especially for foods, such as meat, jelly, and soft sweets. The jelly industry is the prime consumer of carrageenan and recorded the highest growth rate during the past few years.

Competitive Landscape

The companies operating in the Asia-Pacific carrageenan market have adapted strategies for market evolution, which primarily target their investments, in order to gain higher market share. The market is highly fragmented, with numerous regional and global players trying to gain competitive advantage through various factors, like innovation, design, etc. With several regional players existing in the market, the global players are dominating the highly competitive market.

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