Agar-Agar Market Size, Share, Growth, and Industry Analysis, By Type (Strips, Powder, Others), By Application (Food & Beverage, Pharmaceutical, Microbiological Research, Cosmetics, Others), and Regional Forecast to 2033

AGAR-AGAR MARKET OVERVIEW

Agar-Agar Market Size was estimated at USD 317.33 million in 2024 and it is expected to grow from USD 331.81 million in 2025 to USD 362.75 million by 2033. The Market CAGR (growth rate) is expected to be around 4.56% during the forecast period (2025 - 2033).

The Market for agar-agar is expanding due to increasing consumers’ concern with natural and plant products in food processing, drugs, and cosmetic production. Originating from red algae, agar-agar is used mostly as a gelling, stabilising and thickening agent widely appealing to vegetarians mostly as a replacement of gelatine extracted from animal tissues. Examples of industries that it is applied in include; in food industry it is used on confectionaries, desert products, dairy products substitutes and in the pharmaceutical industry it works as an emulsifying agent when preparing drugs. This has been due to the effects of health and wellness consumers and also the clean label and organic products trend. For one, agar-agar is rich in fibber and low in calorie, which is perfect for market trends today. Also, there is a growing global trend of functional foods, in which, agar-agar stands to benefit because manufacturers will add it to their meals in the formulation of their functional foods as the market expands.

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KEY FINDINGS

• Market Size and Growth: The Agar-Agar Market size was USD 317.33 Million in 2024, is projected to grow to USD 329.02 Million by 2025 and exceed USD 362.75 Million by 2033, with a CAGR of 4.56%

• Key Market Driver: Rising vegan and plant-based food adoption is pushing demand; over 79 million people globally identify as vegan, many of whom seek alternatives to gelatin like agar.

• Major Market Restraint: Supply chain challenges tied to red seaweed harvesting—used to make agar—have caused up to 12% raw material shortages in certain regions.

• Emerging Trends: Clean label and low-sugar desserts are gaining popularity; over 35% of global bakery launches in 2023 included natural gelling agents like agar.

• Regional Leadership: Asia-Pacific leads the market, especially countries like Indonesia and the Philippines, which together produce over 60% of the global Gracilaria seaweed used in agar production.

• Competitive Landscape: Around 40% of the market share is concentrated among top players such as Marine Hydrocolloids, Meron, and Hispanagar, who have robust distribution networks across Europe and Asia.

• Market Segmentation: Food-grade agar dominates with nearly 68% share, driven by its use in dairy alternatives, confectionery, and bakery products.

• Recent Development: In late 2023, Meron Group expanded its production facility in Kerala, India, adding 20 metric tons of monthly capacity to meet rising export demand.

COVID-19 IMPACT

"Agar-Agar Market had a negative effect due to disruption in supply chain during COVID-19 pandemic"

The Global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

Some measures of disruption occurred in the acceptance of the Agar-Agar Market share that resulted from disruptions of COVID-19, such as restrictions in the global trade, shortage in labour, and logistics. Due to the outbreak of the COVID 19, consequent imposed lock-downs in so many parts of the world the seaweed harvesting and processing industries suffered greatly causing a raw material hitherto and processed seaweed shortage. Restaurants, cafes, and bakeries, which are important consumers of the agar-agar in making mostly desserts and lactose intolerant products, were closed down due to the regulation. Moreover, other disruptions which affected the supply chain changed distribution channels which in turn affected the availability of agar-agar. Source stability was not an issue when the market convulsions were notably volatile in the wake of the pandemic and basic raw material availability remained strong, but when it came to the subsequent fluctuations in demand due to pandemic problems in the industry, the agar-agar supply chain was exposed and required more robust market survival strategies to reliable sources that would work for successful market progress..

LATEST TREND

"Growing Trend of Agar-Agar in Plant-Based and Vegan Food Products to Drive Market Growth"

One of the key trends defining the development of the Agar-Agar Market is its growing application in products for vegetarians and vegan diets. The increasing concern for people who want to avoid using animal products in their foods act as incentives to manufacturers who are now using agar-agar as a natural gelling and stabilizing agent like gelatine but does not contain animal products. The objective of using this ingredient is to make the food protein-rich, and food products with kaempferol have become commonplace, together with the demand for vegan products all over the world. Moreover, the clean-label characteristic of agar-agar, since it is made from seaweed with the least possible processing, makes it fit the preference of the health conscious targets. This trend is forcing well-known food brands and new generation start-ups to explore more options for using agar-agar in their products which expands food applications of this ingredient and fosters the growth of natural and plant-based food industry.

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AGAR-AGAR MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Strips, Powder, Others

• Strips: Strip form agar-agar is generally produced from processed dried seaweed product and finds its main application in traditional Asian foods as the form of gelling agent reconstituted from strips into water and used in the preparation of various dishes.

• Powder: The product is ground into fine powdery texture suitable for dissolving in hot water for use in food products, pharmaceuticals and cosmetics in terms of thickening and stabilizing property.

• Others: Products in this category include agar-agar in forms of flakes or bars, though they are employed in small and specialized uses where special textures are needed.

By Application

Based on Industry Analysis, the global market can be categorized into Food & Beverage, Pharmaceutical, Microbiological Research, Cosmetics, Others

• Food & Beverage: In the food and beverage industry, agar-agar is utilized as vegan gelatine in making of desserts, jellies, dairy products and plant based products.

• Pharmaceutical: In the pharmaceutical sector, Agar-agar is used as a pharmaceutical adjuvant in stabilising and thickening medicinal suspensions, especially in capsule and liquid products.

• Microbiological Research: Agar-agar is used widely in microbiology, especially in laboratories, since it serves as the nutrient culture medium that supports the growth of bacteria, fungi, and other microorganisms in petri dishes because of the formation of gel like structures/agar-agar is important in microbiology laboratories in particular as it acts as growth medium for bacteria, fungi and other related microorganisms in petri dishes since it gels.

• Cosmetics: In cosmetics, agar-agar is used as a stabilizing agent expressed in thickening, text rising and firming, applied especially in creams, lotions and facial masks.
• Others: This comprises food and other uses of agar-agar in industries for which the gelling characteristics of the product are suitable for specific usages in biotechnology, horticultural industries, and other industries.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

"Rising Demand for Plant-Based and Vegan Ingredients to Boost the Market"

One major factor affecting the Agar-Agar Market growth is desire for vegetarian or more specifically vegan products. Following the trend of conscious consumption of foods with little or no ethical and environmental impacts, agar-agar has emerged as a suitable replacement for gelatin due to its derived from plant sources flexibility in application. Its non-GMO attribute appeals to the current nutrition and dietary concerns consumer base, which includes dairy-free applications, vegan products and meat substitutes. This trend is not only in the food and beverage industry but has spread across cosmetic and pharmaceutical industries demanding more agar-agar around the globe.

"Growth of the Microbiological and Biotechnology Sectors to Expand the Market"

Another key factor for the Agar-Agar Market growth is the increases in microbiology and the advance of the biotechnology industry. These fields utilize agar-agar as such that it is an essential culture Media there for the growth of bacteria and fungi. As people are now investing more in healthcare, medical advancements, and laboratory analysis—especially after the COVID-19 crisis—the requirement for accurate growth media has quickly skyrocketed. As agar-agar is biocompatible and stable, it provides the greatest effect in laboratories and microbiological tests and represent great potential for the future as these branches evolve.

Restraining Factor

"High Cost and Supply Chain Disruptions Impede Market Growth"

The most compelling threat currently facing the Agar-Agar Market is the soaring cost of production and unreliable supply. Based on red seaweeds, agar-agar may be produced by certain species of red seaweeds that are limited in places they can be found thereby being sensitive to changes in the environment or geopolitical nature. These constraints raise cost and cause supply unpredictability which poses a major problem to manufacturers because they are unable to easily regulate prices and supply since demand for their products is unpredictable depending on factors such as season changes or the use of the particular product increasing across industries.

Opportunity

"Expanding Use in Nutraceuticals and Functional Foods to Create Opportunity for the Product in the Market"

Evolving consumer awareness about health benefits, especially in smith and BMI related benefits, make Agar-Agar Market barely touched opportunity in the nutraceuticals and functional foods market. That’s why it is perfectly suitable for products concerning weight-loss and digestion improvement due to its high fibber content and satiety effect, and it is natural. As consumers become more informed about health benefits of natural supplements and plant extract additives, agar-agar can be developed as a high-value addition for new generation health supplements to further develop and differentiate the market for manufacturers and product formulators.

Challenge

"Competition from Other Plant-Based Gelling Agents Could Be a Potential Challenge for Consumers"

Competition from other plant-based gelling agents, such carrageen and pectin poses a major challenge to the Agar-Agar Market. These alternatives provide a similar textural profile and are organoleptically more acceptable or cheaper or easier to obtain than red seaweed in certain regions of the world. Manufacturers of agar-agar are challenged to uniquely sell its application benefits such as high stability, clean label in the food, cosmetic and pharmaceutical sectors while dealing with cost considerations where many gelling agents are available.

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AGAR-AGAR MARKET REGIONAL INSIGHTS

North America

North America especially U.S. Agar-Agar Market is an influential consumer of agar-agar due to the growing customer trends towards vegan, plant-based and clean label product demanded in the market. Popular as a gelatine substitute in the food and beverage industry in the region, agar-agar is incorporated into the manufacture of dairy products and desserts, and promotes health foods. The expansion of the nutraceutical industry in which agar-agar is employed in capsules, tablets, and functional food also keeps demand on the incline. Also, the continuing research and development in biotechnology and microbiology particularly in the United States and Canada strengthens this market because the agar-agar is used widely as a culture medium; thus making Northern America strategic in the global market.

Europe

Europe is the leading region for the Agar-Agar Market due to an emphasis on environmental topics and plant-based food. People in European countries are becoming more aware of ethical aspects of food consumption and, therefore, use more friendly-to-environment ingredients such as agar-agar in vegan and organic food products. Currently, Germany, UK, and France have the highest per capita consumption of agar-agar in food and cosmetic industries because of sound policies that support natural products. Moreover, herein biotechnology and pharmaceutical markets in Europe, agar-agar remains vital due to microbiological works, demand for a sustainable product as sustainability, and healthy consumption trends expand.

Asia

Some of the largest consumers of agar-agar are also located in Asia as well as one of the largest producers. The Chinese, the Japanese and Indonesians are the largest producers of seaweed hence a constant and reliable source of raw materials for the production of the final product, agar-agar. Agar-agar is well-known to Asians and it is mainly applied in sweets, jellies and confectionery food products. Also, due to the increasing demand for cosmetic products and improving health awareness among the population of Asia, the biotechnology industry’s expansion and the increasing use of the agar-agar in different spheres. When the local and international demand increases, Asia is well positioned to cement its position in the Agar-Agar Market.

KEY INDUSTRY PLAYERS

"Key Industry Players Shaping the Market through Innovation and Market Expansion"

Key industry players in the Agar-Agar Market are Meron Group, a prominent manufacturer and supplier of superior quality agar suitable for the food and pharmaceutical industries. Asian Food Ingredients Co., Ltd. has a strong concentration in natural food additives and is among the leading Asia producers. Fooding Group Limited has a variety of agar-agar products for use in different functions. Carrageenan Corporation offers a wide range of products which are agar-agar and other seaweed extracts. Also, Kusumgar Agar Pvt. Ltd is famous for extensive research and development in agar products or related items. These firms have the important task in development and modification in the Agar-Agar Market throughout the world.

List of Market Players Profiled

• Agar Sari Jaya (Indonesia)
• Roland Foods, LLC (U.S.)
• Hugestone Enterprise Co. Ltd (Taiwan)
• Justchem International Limited (China)

KEY INDUSTRY DEVELOPMENT

In October 2024: The agar-agar production line of Meron Group saw the company add more capacity in its existing Indonesia base. This development is planned to fulfil the growing global demand for plant ingredients especially in the food, drug and cosmetics industries. The expansion will help Meron Group improve processing capacity and streamline supply services enhancing the company’s capacity to meet the needs of its international clientele while promoting sustainable procurement. It is interesting to note that this move aims at natural and veganism in several fields.

REPORT COVERAGE

There is strong potential in the Agar-Agar Market because of the growing trends across industries for plant-base products, and clean label and vegan foods. That usage it has in food products, pharmaceuticals, cosmetics, and laboratory work in microbiology makes it a vital component in the creation of novel foods and products. A recognised challenge is the production cost and competition from other gelling agents, however there are possibilities due to the development of the nutraceuticals and increased use of the product for uses in functional foods. Production and consumption patterns are most influenced by regional factors, with North America, Europe and Asia being in the forefront. There may be many innovative forms of a product or service that may be more effective in meeting the need of the consumer and the key players in the market are taking expansion and innovation seriously to provide for this aspect of need fulfilment. In total it can be concluded that the overall market for agar-agar will continue to grow since it is consistent with the global trends regarding sustainable, healthy and functional products that are, therefore, both interesting and beneficial for manufacturers and investors.