The Europe agar market is forecasted to grow at a CAGR of 4.2% during the forecast period (2020-2025).
- The market is witnessing rapid growth owing to the rising benefits of agar as it has various minerals and vitamins such as iron, iodine, calcium, phosphorous, etc.is expected to serve as a prime drive factor to the market growth. Moreover, growing demand in the food and beverage industry as a thickening agent and stabilizing agent in various food products is expected to fuel market growth.
- Furthermore, its rising application in culture media and dentistry with the growing demand from the pharmaceutical industries has further boosted the market. Also, the acquisitive demand of agar in the cosmetics industry in the production of creams, moisturizers, lipsticks, ointments, and others is propelling market growth.
- Moreover, technological advancements, such as the introduction of metal scrappers provide room for harvesting large quantities of seaweed without putting in much effort, are further expected to boost the production of agar during the forecast period.
Key Market Trends
Rising Demand For Vegan Food Ingredients
As there has been significant growth in the people shifting towards veganism across the region, vegan products are on a high rise. Agar, that is considered as a vegetarian alternative to gelatin has witnessed a significant rise in its demand, as vegans do not use gelatin because it is made from animal bones, skin, and connective tissue. It is used mostly in food products such as puddings, desserts, jelly candy, soups, sauces, and more. Also, frequent launches of new vegan beverages such as vegan wine, and others.
Rising 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, etc., 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 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.
The Europe agar market is competitive and fragmented in nature owing to the presence of many regional and domestic players. Emphasis is given on the merger, expansion, acquisition, and partnership of the companies along with new product development as strategic approaches adopted by the leading companies to boost their brand presence among consumers. Key players dominating the European market include Hispanagar S A, Industrial Roko SA, Setexam, TIC Gums, Inc., and Foodchem International Corporation among others.
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