Agar MarketSize and Trends

Global agar market was valued at US$ 276.02 Mn in 2021 in terms of revenue, exhibiting a CAGR of 4.67 % during the forecast period (2022 to 2030).

Based on application, the market is segmented into food & beverages, pharmaceuticals & nutraceuticals, and others. The food & beverages segment accounted for the largest market share in the agar-agar market in 2020; however, the pharmaceuticals & nutraceuticals segment is projected to grow at the fastest CAGR over the forecast period. Agar-agar acts as an appetite suppressant and is used in supplements that aid weight loss. It is also used in supplements that improve digestive health as it absorbs and throws toxins from the intestines and gastrointestinal tract. Furthermore, it is used in supplements that improve bone health. The rising applications of agar-agar in the pharmaceuticals & nutraceuticals industry are driving the market growth.

Market Trends

Acquisitive Demand of Agar in Bakery and Confectionery Industry

In the baked goods industry, due to the ability of agar gels to withstand high temperatures, agar is gaining prominence as a stabilizer and thickener in pie fillings, icings, and meringues. Cakes, buns, others are often pre-packed in various kinds of modern wrapping materials and often stick to them, especially in hot weather by reducing the quantity of water and adding some agar, a more stable, smoother, non-stick icing is obtained. Some agars, especially those extracted from Gracilaria chilensis, are extensively used in confectionery with a very high sugar content, such as fruit candies. Because agar is tasteless, it does not interfere with the flavors of foodstuffs. This contrasts with some of its competitive gums that require the addition of calcium or potassium salts to form gels. Thus, it is highly preferred by the bakery and confectionery manufacturers in the food industry.

Agar Market Report Snapshots