Market Overview:
Agar is an additive derived from red algae. It is commonly used as a gelling agent, thickening agent and vegetarian replacement for gelatin in food products. Agar provides texture and helps prevent liquid migration in desserts, confectioneries, bakery products and other food items. It has diverse applications in microbiological culture media, scientific research, cosmetics and pharmaceuticals owing to its gelling property.
Market key trends:
The global agar market is expected to witness significant growth due to rising demand from food and beverage industry. Agar finds extensive usage in dairy products, syrups, desserts, jams and jellies where it acts as a thickening and stabilizing agent. With changing dietary preferences and growing health consciousness, the demand for vegan and vegetarian food products is increasing. Agar being a vegetarian substitute for gelatin is increasingly preferred in various meat and dairy alternatives. Furthermore, growth in microbiology research and expanding pharma industry will also contribute to the demand for agar 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: New entrants face high capital requirements to build production facilities and distribution network. Bargaining power of buyers: The agar market has numerous buyers; however, the presence of substitutes like carrageenan provides buyers with bargaining power. Bargaining power of suppliers: There exist many suppliers of raw materials for agar production facing low threat from suppliers. Threat of new substitutes: Substitutes like carrageenan and gelatin pose threat of substitution. Competitive rivalry: Presence of many established players intensifies competitive rivalry in the agar market.
SWOT Analysis
Strengths: Agar is widely used in various industries due to its gelling and thickening properties. Weaknesses: Agar production depends on seasonal availability of seaweeds. High operational and production costs adversely impact profit margins. Opportunities: Increasing demand from food & beverages, microbiological and cosmetic industries offer new opportunities. Threats: Threat from substitutes like carrageenan and gelatin can hamper the agar market growth.
Key Takeaways
Market size: The global agar market is expected to witness high growth, exhibiting CAGR of 5.4% over the forecast period, due to increasing use in food, microbiology and cosmetic industries. Regional analysis: Asia Pacific dominates the global agar market owing to large seawater resources and presence of major seaweed producing countries like China and Indonesia. The APAC agar market is projected to reach US$ 189.4 Mn by 2030.
Key players: Key players operating in the agar market include New Zealand Manuka Group, Hispanagar, Acroyali Holdings Qingdao Co., Ltd., Industrias Roko, S.A., Neogen, Merck Group, Agarindo Bogatama, Setexam, and Norevo GmbH.
