February 23, 2024
Agar Market

The Increasing Demand For Vegan And Plant-Based Food Products Projected Growth To Boost The Agar Market

The global Agar Market 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.

Market Overview:

Agar is an additive substance extracted from red algae. It has wide applications in food and beverage, microbiology, and pharmaceutical industries. In the food industry, agar is used as a gelling agent, thickener and stabilizer in products like jams, jellies and breads. In the microbiology industry, agar is employed for culturing microorganisms due to its gelling properties. It provides a solid substrate for the growth of bacterial and fungal colonies. Agar plays a key role in various microbiological techniques like antibiotic sensitivity testing and plaque assays. In the pharmaceutical industry, agar finds application in the manufacture of ointments, medicines and other medical preparations owing to its efficiency as an emulsifying and encapsulating agent.

Market key trends:

The increasing demand for vegan and plant-based food products free from animal gelatin is driving the agar market. Agar is mainly derived from seaweed and acts as a substitute for gelatin in many vegetarian and vegan food products. Rising health awareness among people is boosting the consumption of healthy and natural ingredients like agar. Growth of the microbiology sector for R&D in new drug development is propelling the need for agar in microbiological applications. Technological advancements to improve the physical and textural properties of agar for diverse industrial uses have opened new avenues in the market.

Porter’s Analysis

Threat of new entrants: Low barriers to entry in the agar market. New players can easily enter the market and produce agar at competitive prices.

Bargaining power of buyers: Buyers have moderate bargaining power. They can negotiate prices and demand high quality agar from suppliers and producers.

Bargaining power of suppliers: Suppliers have low to moderate bargaining power due to availability of agar from multiple sources globally.

Threat of new substitutes: Low threat from substitutes. Agar is uniquely used as gelling, thickening and stabilizing agent in various applications.

Competitive rivalry: High competitive rivalry. The global agar market is moderately fragmented with number of small and large players operating worldwide.

Key Takeaways

The Global Agar Market Size is expected to witness high growth, exhibiting CAGR of 5.4% over the forecast period, due to increasing utilization in food & beverages industry. Agar is widely used as gelling, thickening and stabilizing agent in various food products such as desserts, dairy, confectionery etc.

Regional analysis: The Asia Pacific region dominates the global agar market and is expected to grow at fastest pace during the forecast period. This is attributed to increasing population, rapid industrialization and changing food consumption patterns in countries such as China and India. Further, growth of food & beverages industry in Asia Pacific boosts the demand of agar.

Key players: 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

*Note:
1.      Source: Coherent Market Insights, Public sources, Desk research
2.      We have leveraged AI tools to mine information and compile it