Agar Market

Global Agar Market Size (2024 to 2029)

The size of the Agar Market is expected to be worth 302.40 million in 2024,to grow at a CAGR of 4.67% during the forecast period to reach USD 379.92 million by 2029.

Agar is a natural gelling agent. It is extracted from red algae called rhondophyceae members of Gelidium and Gracilaria. There are different types of Agar depending on the various algae. Every agar has different characteristics and applications. The presence of agarose in the agar helps it to solidify. Agarose has high temperatures and solidifies at low temperatures. Agar is used as a stabilizing agent. This is due to its thickening properties. Agar powder is a widely used food additive, especially in Asian cuisine, where it is frequently used as a "vegetarian alternative to gelatin." All around Asia, agar-based delicacies are widely consumed. Agar is also occasionally used as a thickener in ice cream and custard. Compared to gelatin, it is significantly more firm, more heat-resistant, and will stay completely solid at room temperature. It is frequently employed in laboratory and diagnostic studies. Agar is used in many different microbiology research projects because it is a reliable growth medium for cultivating a wide range of bacteria. Labs frequently utilize petri dishes with agar-based nutritional media to cultivate bacteria, fungi, and other microorganisms.

The increase in the demand for agar in the research and microbiology industry is creating opportunities in the agar market over the forecasting period. This is due to the use of agar as a culture medium for the cultivation of microorganisms and bacterial cultures. Agar is frequently used in plant biotechnology, dental prostheses, electrophoresis, chromatography, impression materials, and the production of insects like crickets for sale. There is a rise in demand for agar in different skincare products, moisturizers, and other cosmetics in the cosmetic business. Agar is increasingly being used as a primary ingredient in the production of cosmetic goods such as soaps, lotions, lipsticks, ointments, and creams, among others. Agar usage is expanding in a variety of industries, including air freshener gel, 3D printer ink, horticulture, agriculture, and precision ceramics. The pharmaceutical industry's growing need for agar in suspensions, emulsions, capsules, and suppositories for surgical lubricants is predicted to create a significant growth potential for the agar market. These are the factors that create opportunities for agar market growth over the forecasting period.

Global Agar Market Drivers:

The increase in demand from the food and beverage industry is one of the major driving factors in the Agar market growth. This is due to its favorable properties benefit the industry. Agar contains more than 80% fiber; it is frequently thought of as a hunger suppressor. As a result, many individuals use agar in their effort to lose weight. In many different food recipes, it is frequently used instead of gelatin. Fruit preserves, soup, ice cream, processed cheese, custard, whipped fruit pulp, honey, and butter all use agar as a thickening. Additionally, it is known to be a food additive that is free of calories, sugar, carbs, and fat and has a lot of fiber; it is used to make some medications and to treat disorders like obesity, diabetes, constipation, and others.

The increase in advancement in technology is helping in breakthroughs that boost the agar market growth. These advancements help in boosting the production of agar. An example of this type of breakthrough technology is the metal scrapper. The most recent technology makes agar harvesting easier, boosting agar yield overall. The demand for agar is boosted by increased investment in agar harvesting, better equipment quality, investments in R&D, and growing consumer awareness of wholesome components and culinary items. Additionally, the increase in the prevalence of chronic disorders, such as obesity and diabetes, increases the demand for agar. The main drivers fueling the growth of the global agar market are the rise in regulatory permission for the use of agar as a food additive. These are the major driving factors in the demand for agars in the market.

Global Agar Market Restraints:

The restriction of the supply chain of agar in certain locations is one of the major restraining factors to the agar market share. Agar Market development is expected to be hampered by the fact that agar production and supply are geographically constrained. Some companies have stopped selling their agar products due to a shortage of raw ingredients. For instance, Thermo Fisher Scientific Inc. stopped selling bacteriological agar and technical agar in 2015 but continued to sell dehydrated culture media until the following year. As a result, it is anticipated that this problem will impede the Agar Market size. Agar must be consumed together with an adequate amount of water; otherwise, it may cause swelling and potentially obstruct the esophagus. Vomiting and chest pain are two other side effects caused by agar consumption. 

Impact of COVID-19 on the Agar Market:

The pandemic adversely affected the growth of the agar market. This is due to the lockdown imposed by the government, which led to the closure of manufacturing companies. Additionally, the lack of labor and disruption in supply chain management of raw materials required for the production of agar decreased the demand for the agar market. The lockdown led to restricted transportation across the globe to prevent the spread of COVID-19. The lockdown led to the closure of research labs and microbiology labs, decreased the demand for agar, and led to a decrease in market growth. Hence, the sales of agar decreased. The disruption of imports and exports of agar across the globe decreased the demand for the agar. Agar was also used as a food additive in the food and beverage industry. These are the factors that impacted the growth of the agar market over the forecasting period.

REPORT COVERAGE: 

This research report on the Global Agar Market has been segmented and sub-segmented based on product form, application, and region.  

Global Agar Market - By Product Form:

• Powder
• Strips
• Flakes
• Others

Among these, the powder segment dominates the agar market share due to the powdered form being more stable. The powdered form of agar is easier to prepare and store than other product forms. Transparent color powders are widely used in scientific and commercial applications. The increase in the use of a powdered form of agar in the plant tissue culture media and bacterial cultures increases the demand for agar during market growth. The strips segment is expected to show the fastest CAGR growth in the agar market over the forecasting period. This is due to an increase in demand from manufacturers producing pure vegetarian, vegan food products in huge quantities.

Global Agar Market - By Application:

• Food and Beverages
• Meat Products
• Bakery
• Confectionary
• Snacks/Instant Noodles
• Dairy
• Beverage
• Other Food and Beverages
• Pharmaceutics
• Cosmetics
• Others

Among these, the food and beverages segment dominates the agar market due to these agars being used as a thickening agent in various food products, such as chocolates, etc. The increase in the demand for ice creams, pie fillings, meringues, and other delicacies in the baking and pastry industries is also fueling the market growth rate. For instance, agar producers like Hispanagar SA provide food-grade agar for use in bakery goods; the company makes two different types of agar: gold agar and agarita. The agar contains 80% fiber; hence, there is an increase in demand for agar-based food products as it helps in weight loss. The pharmaceutics segment is expected to show the fastest CAGR growth in the agar market over the forecasting period. 

Global Agar Market – By Region:

• North America
• Europe
• Asia-pacific
• Middle-East and Africa
• Latin America

Regionally, the European region dominates the Agar Market. The European region is expected to show dominance in the Agar market over the forecasting period. This is due to expertise in organic farming and the established market for organic products. Due to their rich culinary traditions, France and Italy set considerable value on high-quality food products, including agar. Agar products with various flavors and great quality are in high demand in the UK due to celebrity and fashion trends. The growing popularity of veganism and vegetarian foods in the UK is driving up demand for agar. The market is growing since agar is increasingly used in the food and beverage industry. The usage of agar in the detection of several illnesses, such as digestive, respiratory, and urinary tract disorders, drives Europe's agar market growth.

The Asia Pacific region is expected to show the fastest CAGR growth in the agar market over the forecasting period. This is due to the increase in urbanization and lifestyle change. Additionally, the increase in disposal income of emerging countries in this region, such as China, Japan, and India, is likely to propel the market growth rate in the coming years. 

KEY MARKET PLAYERS:

Key Market Players in the Global Agar Market are Meron Group, Myeong Shin Agar, MSC Co. Ltd, PTAgarindoBogatama, Agar Corporation Ltd, New Zealand Manuka Group, Agarmex, Hispanagar S.A., Oriented Resources Company, Marine Science Co. Ltd., IndustriasRoko S.A.

RECENT HAPPENINGS IN THE MARKET:

In May 2020, Hispanagar launched QSol, a highly soluble agar that enables low-temperature dissolution.