Agar Market Is Thriving Due To Growing Health and Nutraceutical Industry
Author : pragati bodkhe | Published On : 22 Jan 2025
Agar is a gelatinous substance extracted from red algae that has several industrial and food applications. It serves as a vital ingredient in microbiological culture media due to its gelling and stabilizing properties. Agar finds extensive usage in the production of jellies, desserts, candies and other confectioneries. It acts as a stabilizer, thickener and texturizer in various food products. The global food industry consumes over 90% of the total agar produced annually.
Agar has several functional advantages over animal-derived gelatin. It is vegetarian, halal and kosher certified. The gel strength of agar is independent of pH, enabling stable properties across a wide range of acid and alkaline conditions. Agar Market Size requires minimal processing and retains functionality even at elevated temperatures. The non-animal origin of agar makes it suitable for vegans as well. These advantages have fuelled the demand from the burgeoning health and wellness sector. The nutraceutical industry utilizes agar extensively in the manufacture of dietary supplements, functional foods and beverages.
Global agar market was valued at US$ 276.02 Mn in 2021 in terms of revenue, exhibiting a CAGR of 4.67 % during the forecast period (2022 to 2030).
Key Takeaways
Key players operating in the Agar market are New Zealand Manuka Group, Hispanagar, Acroyali Holdings Qingdao Co., Ltd., Indoalgas, and Agarindo Bogatama.
The food industry dominated the overall demand in 2021 led by biscuits, bakery products and confectioneries. Increased health consciousness is propelling the consumption of functional foods incorporated with prebiotics like agar. The nutraceuticals application is anticipated to witness fastest growth during the forecast period.
The Asia Pacific region led the global agar consumption in 2021 owing to large food processing industries in China, Japan and Indonesia. Europe and North America are also lucrative markets driven by growing vegan population. Major agar producers are focusing on capacity expansions and global expansions to cater to international demand.
Market key trends
One of the key trends witnessed in the agar market is the increased demand from the nutraceutical industry. Agar acts as a prebiotic dietary fiber that promotes beneficial gut bacteria. It also helps manage weight, lower cholesterol and blood sugar levels. These health benefits have led to its wider usage in formulations of probiotic supplements, nutritional bars and drinks. Recent clinical studies validating the health attributes of agar are further strengthening consumer confidence in such products. This is expected to drive the consumption of agar from the nutraceuticals segment during the forecast period.
Porter’s Analysis
Threat of new entrants: Low capital investment required for entry and cultivation of agarwood trees poses threat. Bargaining power of buyers: Large number of established buyers bargaining for competitive prices reduces buyer power.Bargaining power of suppliers: Limited availability of quality agarwood boosts supplier bargaining potential. Threat of new substitutes: Emerging synthetic substitutes pose threat to agarwood demand. Competitive rivalry: Strong among existing suppliers for limited supply and dominance in end-use markets.
Geographical Regions
Southeast Asia dominates the agar market in terms of value mainly due to abundant harvest of quality agarwood from Indonesia, Malaysia, Thailand, and Vietnam. The agar market in MEA region is witnessing the fastest growth driven by increasing utilization of agar in cosmetics and pharmaceutical industries from Gulf economies along with domestic consumption in Indonesia and Malaysia.
Geographical Regions
Europe leads the agar market in terms of value due to extensive usage of agar in food processing industries across Germany, UK, France and Poland. The agar market in Latin America is growing at the fastest pace because of exponential rise in vegan and plant-based food popularity in Brazil and Mexico along with increasing research funding for agar-based products.
Explore Additional Details From The Source
Recent Development In Agar Market
About Author:
Alice Mutum is a seasoned senior content editor at Coherent Market Insights, leveraging extensive expertise gained from her previous role as a content writer. With seven years in content development, Alice masterfully employs SEO best practices and cutting-edge digital marketing strategies to craft high-ranking, impactful content. As an editor, she meticulously ensures flawless grammar and punctuation, precise data accuracy, and perfect alignment with audience needs in every research report. Alice's dedication to excellence and her strategic approach to content make her an invaluable asset in the world of market insights.
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