Market Challenges And Opportunities

Drivers

Surging Demand for Agar-Agar in Food & Beverages Industry

Rising awareness regarding the health benefits of agar as it has various minerals and vitamins such as contains iron, iodine, calcium, phosphorous, and others is expected to serve as a prime driver factor to the market growth. Moreover, growing demand from the food and beverage industry as a thickening and stabilizing agent in various food products is expected to propel the market growth of agar.

The market growth can also be attributed to the rising demand for meat and poultry products where it is used as a preservative. Moreover, rising usage of agar as a substitute for gelatin due to its excellent diffusion property and clarity and less adhesiveness is further expected to foster the market growth of agar.

Market Restraints

Limited Supply of Raw Material

The limited source of agar, as agar is derived from seaweed which is limited is a major factor expected to hinder the market growth of agar. Moreover, production and supply of agar are also limited across certain region, which is also expected to curb the market growth of agar.

With the shortage of raw materials, various companies have stopped selling their agar products. For instance, in 2020, Thermo Fisher Scientific Inc. stopped selling bacteriological agar and technical agar until the next year till 2021, in order to maintain a supply of dehydrated culture media to customers. Therefore, this factor is also projected to hinder the market growth of agar.

Agar Market Report Snapshots