CARRAGEENAN GUM MARKET ANALYSIS

Market Challenges And Opportunities

Market Restraints

Growing usage of carrageenan as a food ingredient in various food items and rising concerns regarding the risk of inflammation and colon cancer in humans is a major factor hindering the demand for carrageenan gum, thereby hampering the market growth of carrageenan gum. According to the Coherent Market Insights analysis, in November 2016, The National Organic Standard Boards voted to remove carrageenan from the national list of allowed substances in organic food. Therefore, the aforementioned factor is restricting market growth.

Availability of cheaper substitute such as agar to replace carrageenan as it has excellent gelling properties owing to the presence of highly soluble fiber content is hindering the market growth of carrageenan gum. Moreover, agar powder is an excellent vegan gelling agent which makes it ideal for making gelatin-based desserts. Therefore, the availability of cheaper substitute for carrageenan gum is hampering the market growth.

Growing application of carrageenan gum in infant’s formula is expected to offer potential growth opportunity to the market of carrageenan gum over the forecast timeframe. Growing urban population, along with improving consumer lifestyle are some of the major factors propelling the market growth of carrageenan-based infant formula products.

Rising demand for personal care products especially in Asia Pacific region is expected to create lots of opportunities for the market of carrageenan gum. Huge demand for personal care products and organic cosmetics products is expected to increase the sales of carrageenan gum ingredients, which in turn augmenting the market growth of carrageenan gum. Therefore, the growing demand for organic personal care products are anticipated to foster market growth over the forecast timeframe.