Agar Market Size, Share and Growth Analysis Report - Forecast Trends and Outlook (2025-2034)

The agar market was valued at USD 300.10 Million in 2024. The industry is expected to grow at a CAGR of 4.50% during the forecast period of 2025-2034 to attain a valuation of USD 466.05 Million by 2034.

Global Agar Market Growth

The net cumulative pharmaceutical market is projected to increase by USD 500 billion from 2020 to 2027. The highest growth in pharmaceutical volume is anticipated in Latin America, Asia, and Africa. Agar is a crucial component in the pharmaceutical sector, primarily utilised as a culture medium in microbiology. Its distinctive gelling characteristics make it suitable for the cultivation of bacteria, fungi, and other microorganisms for research, quality assurance, and diagnostic applications. The stability of agar across a broad temperature range ensures dependable growth conditions for sensitive microbiological assessments. Furthermore, agar is employed in the production of capsules, offering a vegan-friendly substitute for animal-derived gelatin, thus addressing the increasing demand for plant-based alternatives in pharmaceuticals and dietary supplements.

As per the agar market analysis, in 2022, the global fast-food sector achieved a significant milestone, with sales totalling USD 731.65 billion, indicating a strong growth trend anticipated to persist until 2031. Within the fast-food sector, agar is being utilised more frequently as a natural thickening and stabilising agent, particularly in sauces, dressings, and desserts. It imparts a smooth, gel-like consistency to products such as jelly toppings, frozen desserts, and vegan options. As a plant-derived alternative, agar meets the increasing demand for healthier, vegetarian choices, thereby improving product stability and attractiveness in the fast-food market.

Key Trends and Developments

The agar market growth can be attributed to the rising demand for agar in the food sector, the increasing preference for vegan and vegetarian diets, the rising application of agar in the cosmetics sector, and the expansion of the pharmaceutical sector

September 2024

The Meghalaya Forest Training School located in Baiza initiated an extensive training programme designed to enhance the skills of local farmers in the cultivation, harvesting, and value addition of agar. This training initiative was organised by the Research and Training Wing within the Forest and Environment Department, with support from the Meghalaya Basin Development Authority.

June 2021

The government of Tripura introduced the 'Tripura Agar Wood Policy 2021', which aims to double the area dedicated to agar wood plantations by the year 2025. The state possesses a potential for agar trade valued at Rs 2000 crore.

April 2020

Hispanagar introduced a highly soluble agar that facilitates dissolution at lower temperatures. This innovative agar completely dissolves in water at 80°C, resulting in energy savings of more than 25% compared to conventional agar during industrial processing.

Rising Demand for Natural Ingredients

There is a growing preference among consumers for natural ingredients as opposed to synthetic alternatives, which has contributed to the rising popularity of agar. This natural, sustainable, and biodegradable gelling agent is increasingly favoured across multiple industries, ranging from cosmetics to food and beverages.

Rising Demand for Agar in the Food Sector

One of the notable agar market trends is the expansion of the food sector. The gelling, thickening, and stabilising characteristics of agar render it highly sought after in various food applications, including jellies, candies, and desserts, thereby propelling its demand within the food processing sector.

Increasing Vegan and Vegetarian Demographics

Agar serves as a plant-based alternative to gelatin, gaining traction among vegan and vegetarian consumers, which results in heightened incorporation into food products designed for these dietary choices.

Expansion of the Pharmaceutical Sector

Agar is extensively utilised in the pharmaceutical sector for the production of capsules and microbiological culture media. This contributes to increased demand as the pharmaceutical sector experiences robust growth.

Increasing Utilisation of Agar in the Cosmetic Sector

Due to its thickening and stabilising properties, agar is well-suited for cosmetic formulations, enhancing its application in creams, lotions, and masks, in alignment with the growth trends observed in the beauty sector.

Global Agar Market Trends

The agar market is experiencing robust growth, primarily fuelled by the increasing demand for natural, plant-derived gelling agents across multiple sectors. In the food and beverage sector, agar is gaining traction as a vegan-friendly substitute for gelatin, reflecting the rising consumer inclination towards plant-based diets. The pharmaceutical and biotechnology sectors also play a crucial role, utilising agar as a culture medium for microbiological purposes. Furthermore, the cosmetic sector utilises agar for its thickening and stabilising attributes in skincare formulations. Current market trends indicate a movement towards sustainable and eco-conscious ingredients, enhancing agar’s status as a natural, biodegradable choice. Advances in extraction techniques and product innovation, including the introduction of flavoured and coloured agar variants, are further broadening agar’s applications and global appeal.

Global Agar Industry Segmentation

The report titled “Global Agar Market Report and Forecast 2025-2034” offers a detailed analysis of the market based on the following segments:

Market Breakup by Form:

• Strips
• Powder
• Flakes
• Others

Market Breakup by Industry Vertical:

• Food and Beverage
• Pharmaceutical
• Biotechnology
• Cosmetics
• Healthcare
• Others

Market Breakup by Distribution Channel:

• Online
• Offline

Market Breakup by Region:

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East and Africa

Global Agar Market Share

Based on the distribution channel, the market is segmented into offline and online. The online segment is projected to grow at a CAGR of 8.9% during the forecast period of 2025-2034. The expansion of online channels has enhanced the accessibility of agar, enabling consumers and businesses worldwide to conveniently acquire agar-based products.

Leading Companies in the Global Agar Market

Market players are focusing on sustainable plantation methods to gain a competitive edge in the agar market.

Agarmex, S.A. de C.V.

The company was established in 1944 and is based in Mexico. Agarmex specialises in the production of agar-agar, a hydrocolloid derived from seaweed, which has a wide range of applications in both the food sector and microbiology.

Meron Group

Founded in 1982 and based in Kerala, India, Meron Group is dedicated to the production of agar and various hydrocolloids. The company caters to sectors such as food, pharmaceuticals, and biotechnology, emphasising quality and sustainability in its offerings.

HISPANAGAR S.A.

Founded in 1949 and headquartered in Burgos, Spain, HISPANAGAR S.A. is a prominent manufacturer of agar. The company specialises in high-purity agar production for the food, biotechnology, and microbiology sectors throughout Europe and beyond.

PT. Agarindo Bogatama

Established in 1988 and situated in Jakarta, Indonesia, PT. Agarindo Bogatama is a significant producer of agar with a robust presence in the international market. The company is committed to supplying high-quality agar for applications in the food, pharmaceuticals, and microbiology sectors.

Other major players in the agar market are MSC Co.,Ltd., Zhenpai (Fujian) Hydrocolloids Co., Ltd., ROKO, SETEXAM, HiMedia Laboratories Pvt. Ltd., and B&V srl, among others.