Market Overview:
Agar is an additive obtained from red algae. It is primarily used as a gelling agent, thickening agent or stabilizer in food, pharmaceuticals and microbiological applications. Agar finds extensive usage in production of jams, jellies, desserts, confectionery, dairy products and canned products owing to its gelling properties. It acts as a vegetarian substitute for gelatin. The gelling property of agar makes it suitable for bacterial culturing and medical applications such as supplementation, wound dressing and tissue engineering. Growing demand for plant-based and vegan food products is fueling the growth of agar market.
Market key trends:
The rising trend of veganism and plant-based diet has significantly contributed to the growth of agar market. Agar is widely used as a substitute for animal-derived gelatin in vegan food products. Growing health consciousness among consumers and rising incidence of lifestyle diseases have increased the demand for nutritional and low-calorie food items, propelling the need for usage of thickeners and stabilizers like agar. Furthermore, increasing food and beverage industry coupled with technological advancements in agar extraction process are some of the major factors expected to drive the market growth over the forecast period.
The global Agar Market Size is estimated to be valued at US$ 302.4 Mn in 2023 and is expected to exhibit a CAGR of 5.4% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Porter’s Analysis
Threat of new entrants: Low capital requirements and established distribution channels lower barriers to entry in the agar market. However, presence of major players and need for consistent quality restrict new entrants.
Bargaining power of buyers: Buyers have moderate bargaining power due to availability of substitutes and differentiated qualities offered by manufacturers. Switching costs are low.
Bargaining power of suppliers: Suppliers have low to moderate bargaining power due to availability of substitutes and differentiated qualities offered.
Threat of new substitutes: Substitutes like gelatin and carrageenan pose threat. However, unique properties provide less incentive to switch.
Competitive rivalry: The global agar market is fragmented with presence of numerous small and large players. Price competition is high.
Key Takeaways
The global agar market is expected to witness high growth, exhibiting a CAGR of 5.4% over the forecast period, due to increasing application in food and beverages industry. Agar is widely used as gelling agent, thickening agent and stabilizer in various food products.
The Asia Pacific is expected to dominate the global agar market during the forecast period. Abundant availability of raw materials and large food industry are driving the agar market in the region. China, Indonesia, Philippines, Malaysia and Japan are the major consumers in the Asia Pacific region.
Key players operating in the agar market are New Zealand Manuka Group, Hispanagar, Acroyali Holdings Qingdao Co., Ltd., Industrias Roko, S.A., Neogen, Merck Group, Agarindo Bogatama, Setexam, and Norevo GmbH. New product launches, expansions and acquisitions are among key strategies adopted by major players to gain competitive edge in the market.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
