Carrageenan Gum Market is Estimated to Witness Growth Due to Rising Demand from the Food & Beverages Industry and Growing Focus On R&D Activities
The carrageenan gum market is estimated to be valued at USD 940.1 Mn in 2024 and register a CAGR of 4.3% over the forecast period of (2024-2031). Carrageenan gum is widely used as a stabilizer and thickening agent in various food and beverage products which is the primary driver of market growth. Furthermore, producers are focusing on research and development activities to develop innovative product applications which is expected to create new opportunities in the market.
Market Dynamics:
The growth of the carrageenan gum market is driven by increasing demand from the food and beverages industry and growing focus on research and development activities. One of the major drivers is the rising demand for carrageenan gum from the food and beverages industry as a stabilizer and thickening agent in products such as dairy, confectionery, and meat. It helps provide texture and stabilize emulsions. The global food and beverages industry has been growing steadily which is increasing the consumption of carrageenan gum.
Additionally, key players in the market are focusing on research and development activities to develop new product applications and innovations. This is expected to support the expansion of utilization of carrageenan gum across various industries
Growing Demand from Food Industry is Driving the Carrageenan Gum Market
The food industry is one of the largest end users of carrageenan gum. Carrageenan gum is widely used as a thickening, stabilizing, and texturizing agent in various food products like dairy products, meat products, confectionery, beverages and others. The global food industry has been growing consistently over the past few decades due to rising population, increasing disposable incomes and changing lifestyle patterns. This growing demand from the food industry for thickening and texturizing ingredients is positively impacting the carrageenan gum market. The food manufacturers prefer using carrageenan gum over other alternatives due to its versatility and ability to enhance the organoleptic and rheological properties of food products. The trend of clean-label and natural ingredients is also driving the adoption of carrageenan gum in various food applications.
Increasing Consumption of Processed Food and Beverages Augmenting Market Growth
With rapid urbanization and changing consumer consumption patterns, the demand for processed and packaged food and beverages has increased significantly all over the world. The consumption of packaged food and beverages has surged tremendously even in developing countries. Carrageenan gum is widely used as a stabilizer, thickener and texture enhancer in various processed and packaged food items like canned meat, soups, dairy products, sauces, etc. It is also used in bakery goods to improve their texture and enhance freshness. The robust growth of the global processed food industry is fueling the demand for additives and ingredients like carrageenan gum. The rising consumption of carbonated soft drinks and packaged fruit juices in developing regions is also propelling the carrageenan gum market growth.
Stringent Government Regulations Pose a Threat
One of the major restraints hindering the growth of the carrageenan gum market is the stringent food regulations and policies imposed by various governments and regulatory bodies. Some studies suggested the potential adverse health effects associated with the consumption of carrageenan gum. This led many countries and organizations like Food and Drug Administration (FDA), The European Food Safety Authority (EFSA) etc. to impose limitations on the use of carrageenan gum in food products. Some countries have even banned the use of carrageenan gum in infant formula and other baby foods. The changing safety standards and labeling policies worldwide have negatively impacted the demand for carrageenan gum in the food industry. The negative publicity due to such studies also dents consumer confidence in carrageenan gum products.
High dependency on Natural Source can Impact Supply
Carrageenan gum is extracted from red seaweeds, which are considered as natural sources for the production of this additive. Any disruption in the supply of raw materials due to environmental factors can impact the manufacturing of carrageenan gum. Natural calamities inhibiting the growth of seaweeds like major droughts can severely affect the availability of carrageenan gum in the market. This reliance on natural source poses supply constraints which limit the market growth to some extent. There are also risks of price fluctuations associated with this natural sourcing that can negatively impact profit margins for market players.
Emerging Economies Opening New Avenues of Growth
The carrageenan gum market is witnessing new growth opportunities in emerging economies due to increasing industrial applications and rising per capita incomes. Countries like China, India, Brazil, Indonesia, etc. are expected to drive significant market demand in the coming years. The rapidly developing food processing industry accompanied by westernization of food habits in developing Asian and Latin American countries will augment the adoption of carrageenan gum. New product innovations and development of value-added applications catering to regional tastes can help market players tap unexplored growth potentials in developing markets. The easy availability of raw materials in these countries is also encouraging domestic manufacturing of carrageenan gum.
Growing Usage in Personal Care Industry Presents Lucrative Prospects
Apart from food applications, the personal care industry is steadily emerging as an important end-use segment for carrageenan gum market. Carrageenan gum is increasingly being used in various personal care products like toothpaste, hair products, skin creams, hand sanitizers and others due to its thickening, stabilizing and binding properties. Its bio-compatibility and safety attributes make it suitable for personal care applications. The robust growth exhibited by the global personal care industry driven by rising focus on personal grooming and evolving beauty standards offers new avenues for market participants. Innovation of novel applications in areas such as organic cosmetics also provides significant opportunities.
Link: https://www.coherentmarketinsights.com/market-insight/carrageenan-gum-market-3443
Key Developments:
- In July 2021, the biotechnology company Biosearch Life was acquired by Kerry Group in order to grow its business in the food additive industry. The Kerry Group's worldwide ProActive health platform will include Biosearch as a source of "science-backed branded ingredients."
- In June 2021, CP Kelco, producer of gellan gum, pectin, xanthan gum, carrageenan and other hydrocolloids for the food, beverage and consumer products industries announced the extension of its distribution chain with Azelis, a service provider in the specialty chemicals and food ingredients industry, in India, Malaysia, Indonesia, and Thailand. Azeli’s diverse product range and a proven growth track record make them a good distributor of choice for CP Kelco to expand its operations to other countries across the world. Through this partnership, Azelis will distribute the complete range of CP Kelco’s products.
- In June 2021, CP Kelco Product confirmed its agreement with Azelis by announcing the launch of its retail distribution network to Azelis. CP Kelco's hunt for a new distributor was resolved by Azelis' prompt reaction and consistent growth in its overall revenue. By means of this distribution channel's expansion, CP Kelco aims to promote its products globally.
Key Players:
CP Kelco U.S., Marcel Trading Corporation, FMC Corporation, E. I. du Pont de Nemours and Co., Gelymar S.A, Kerry Group, Cargill Incorporated, Altrafine Gums, W Hydrocolloids Inc., CEAMSA, LEM Products, and Ingredients Solutions, Inc
