Global Agar-agar Gum Market Size, Share, Strategic Business Review By Product (Powder, Strips, Square), By Grade (Food Grade, Bacteriological Grade, Pharmaceutical Grade), By Application (Confectioneries, Bakery and Pastry, Meat, Microbiological and Molecular, Others) , By Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends, and Forecast 2025-2034

Report Overview

The Global Agar-agar Gum Market size is expected to be worth around USD 446.7 Million by 2034, from USD 296.0 Million in 2024, growing at a CAGR of 4.2% during the forecast period from 2025 to 2034.

Agar-agar gum, a natural hydrocolloid derived from red algae, has established itself as a pivotal ingredient across various industries, particularly in food, pharmaceuticals, and biotechnology. Known for its exceptional gelling, thickening, and stabilizing properties, agar-agar serves as a preferred vegetarian alternative to gelatin, catering to the growing demand for plant-based and clean-label ingredients. Its applications span from confectionery and dairy products to microbiological culture media, underscoring its versatility and importance in modern industrial processes.

Several factors are propelling the growth of the agar-agar gum market. The global shift towards plant-based diets has significantly increased the demand for vegetarian and vegan food products, thereby augmenting the need for agar-agar as a gelatin substitute. According to the Good Food Institute, the U.S. retail plant-based food market was valued at $8.1 billion in 2023, reflecting a growing consumer inclination towards plant-based alternatives.

Furthermore, advancements in food technology and the expanding applications of agar-agar in non-food industries are contributing to market expansion. Government initiatives aimed at promoting sustainable and natural ingredients also play a crucial role in fostering market growth.

The global agar industry is valued at over US$ 200 million, with Japan being the predominant producer, contributing approximately 2,500 metric tons annually, accounting for about 37% of the total world production. Other significant producers include Spain (13%), Chile (12%), South Korea (9%), and Morocco (8%).

International trade in agar is robust, with an estimated 10,000 metric tons of raw agar and 3,500 metric tons of final product entering global markets each year. Japan imports a substantial portion of its raw material, primarily from Chile, the Philippines, and South Africa, while also being a major exporter of processed agar products.

Key Takeaways

• Agar-agar Gum Market size is expected to be worth around USD 446.7 Million by 2034, from USD 296.0 Million in 2024, growing at a CAGR of 4.2%.
• Powder held a dominant market position, capturing more than a 63.2% share in the global Agar-agar gum market.
• Food Grade held a dominant market position, capturing more than a 54.1% share in the global agar-agar gum market.
• Confectioneries held a dominant market position, capturing more than a 42.9% share in the global agar-agar gum market.
• Europe stands as a dominant player in the global agar-agar gum market, commanding a significant share of approximately 42.1%, equating to a market value of USD 124.6 million

By Product Analysis

Powder dominates with 63.2% in 2024 due to its easy usage and wide food applications.

In 2024, Powder held a dominant market position, capturing more than a 63.2% share in the global Agar-agar gum market. This leading share can be linked to its versatile usage across various industries, especially in food and beverages where it serves as a vegetarian alternative to gelatin. Powdered agar is preferred for its longer shelf life, ease of storage, and simpler blending into formulations, especially in desserts, jellies, confectionery, and dairy products. Its popularity continues to rise due to increasing vegan and plant-based consumption patterns.

By Grade Analysis

Food Grade dominates with 54.1% in 2024 driven by rising demand for clean-label food additives.

In 2024, Food Grade held a dominant market position, capturing more than a 54.1% share in the global agar-agar gum market. This strong position is mainly due to the increasing use of agar in various food applications, such as confectionery, dairy products, bakery fillings, and meat substitutes. Food manufacturers prefer food-grade agar for its excellent gelling and thickening properties, especially in vegan and plant-based formulations. Its ability to act as a natural, plant-derived stabilizer aligns well with consumer preferences for clean-label and allergen-free ingredients.

By Application Analysis

Confectioneries lead with 42.9% in 2024 owing to strong usage in jellies and gummies.

In 2024, Confectioneries held a dominant market position, capturing more than a 42.9% share in the global agar-agar gum market. This dominance stems from agar’s widespread use in making jellies, fruit candies, marshmallows, and gummy sweets where strong gelling and stabilizing properties are essential. As consumers look for plant-based and gelatin-free sweets, confectionery makers are increasingly adopting agar-agar as a key ingredient. Its neutral taste and firm texture allow it to blend well into a wide range of candy recipes, giving it a major edge over synthetic gelling agents.

Key Market Segments

By Product

• Powder
• Strips
• Square

By Grade

• Food Grade
• Bacteriological Grade
• Pharmaceutical Grade

By Application

• Confectioneries
• Bakery & Pastry
• Meat
• Microbiological & Molecular
• Others

Drivers

Rising Vegan and Plant-Based Demand Boosts Agar-Agar Gum Market

One of the major driving factors for the agar-agar gum market is the growing global shift toward plant-based and vegan diets. As more consumers avoid animal-derived ingredients, the food industry is replacing gelatin—a common gelling agent sourced from animals—with agar-agar, which is entirely plant-based and extracted from red algae. This change is not just a trend but a movement backed by strong numbers.

According to the Good Food Institute (GFI), the U.S. plant-based food market alone was valued at $8.1 billion in 2023, with plant-based meat and dairy alternatives showing consistent growth year-over-year (GFI, 2023). Agar-agar is playing a vital role in this transition, especially in desserts, dairy-free yogurts, gummies, and jellies. Its ability to provide a firm, heat-stable texture without altering flavor makes it the preferred choice for vegan food formulations.

Governments and public health organizations are also pushing for plant-based diets as part of climate action and public health strategies. For example, the United Nations’ FAO promotes sustainable seaweed farming, including red algae, as a means of supporting eco-friendly food ingredients like agar (FAO, 2022). This institutional support is expected to expand seaweed harvesting and reduce production costs, making agar more accessible to manufacturers globally.

The rising preference for plant-derived food ingredients, combined with supportive global food policies and ethical consumerism, is significantly driving the demand for agar-agar gum. As the clean-label and vegan movement strengthens in 2025 and beyond, agar-agar’s role as a reliable, natural, and sustainable thickener and gelling agent is only expected to grow further.

Restraints

Raw Material Supply Fluctuations Limit Market Stability

One major restraining factor for the agar-agar gum market is the inconsistency in the supply of raw materials, particularly red seaweed. Agar-agar is extracted from species like Gracilaria and Gelidium, which are primarily harvested from coastal regions in countries such as Indonesia, the Philippines, Morocco, and Chile. Over the past few years, the industry has faced unstable harvest volumes due to changing sea temperatures, over-harvesting, and limited sustainable farming practices.

According to the Food and Agriculture Organization (FAO), global seaweed production reached 36.2 million tonnes in 2020, but wild-harvested red seaweed accounted for only a fraction of this, making the supply vulnerable to environmental stress. The FAO also noted that environmental issues like ocean warming, pollution, and destructive fishing techniques have negatively affected wild seaweed stocks in key producing regions. This has led to periodic supply gaps, causing price fluctuations in the global agar market.

In 2023, reports from Indonesia’s Ministry of Marine Affairs and Fisheries indicated that red algae production had declined by nearly 20% in some coastal provinces due to rising sea temperatures and disrupted ecosystems. These local shortages can significantly impact global availability, especially when demand from the food, pharmaceutical, and microbiology sectors continues to rise.

Opportunity

Expanding Seaweed Cultivation Opens New Avenues for Agar-Agar Gum Market

A significant growth opportunity for the agar-agar gum market lies in the expansion of seaweed cultivation, particularly red seaweeds, which are the primary source of agar. The Food and Agriculture Organization (FAO) reported that in 2020, global seaweed cultivation reached 35.1 million tonnes, with red seaweeds accounting for 18.1 million tonnes of this production. This substantial output underscores the increasing availability of raw materials essential for agar production.

The FAO emphasizes the importance of sustainable seaweed farming, noting that it not only supports food security but also contributes to environmental sustainability. Seaweed farming requires no fertilizers or freshwater, making it an eco-friendly agricultural practice. Moreover, seaweed cultivation can aid in carbon sequestration and provide habitats for marine life, aligning with global environmental goals.

Government initiatives further bolster this opportunity. For instance, Indonesia, one of the leading producers of red seaweed, has implemented policies to enhance seaweed farming practices, aiming to increase both the quality and quantity of production. These efforts are designed to meet the growing global demand for agar and its derivatives.

Trends

Surge in Plant-Based and Vegan Food Trends

A significant trend propelling the agar-agar gum market is the escalating demand for plant-based and vegan food products. Agar-agar, derived from red algae, serves as a natural, plant-based alternative to gelatin, making it highly suitable for vegetarian and vegan diets. Its gelling, thickening, and stabilizing properties are extensively utilized in various food applications, including confectioneries, dairy alternatives, and bakery products.

Government initiatives and public health recommendations are also influencing this trend. For instance, various health organizations advocate for reduced consumption of animal-based products, encouraging the adoption of plant-based alternatives. This shift not only caters to ethical and environmental concerns but also aligns with health-conscious consumer behaviors.

The rising inclination towards plant-based and vegan diets is a major trend influencing the agar-agar gum market. As consumers continue to seek natural and sustainable food ingredients, the demand for agar-agar is expected to grow, reinforcing its position as a vital component in the evolving food industry landscape.

Regional Analysis

Europe stands as a dominant player in the global agar-agar gum market, commanding a significant share of approximately 42.1%, equating to a market value of USD 124.6 million in 2024. This prominence is attributed to the region’s robust food and beverage industry, stringent regulatory standards, and a growing consumer preference for plant-based and clean-label products.

The European market is characterized by a diverse application landscape, with agar-agar gum being utilized extensively in confectionery, bakery, dairy, and plant-based food products. Countries such as Germany, France, and the United Kingdom lead in consumption, driven by a strong inclination towards vegetarian and vegan diets. The European Union’s regulatory framework, particularly Regulation (EC) No 1333/2008, ensures that food additives, including agar-agar, meet high safety and quality standards, thereby fostering consumer trust and market growth.

Moreover, the region’s emphasis on sustainability and natural ingredients aligns with the properties of agar-agar gum, which is derived from red algae and serves as a natural gelling agent. This alignment has further propelled its adoption in various food applications. The market is projected to continue its upward trajectory, supported by ongoing consumer trends favoring plant-based and clean-label products.

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of MEA

Key Players Analysis

Meron Group is a prominent supplier of agar-agar products, offering a wide range of agar-based ingredients for the food, pharmaceutical, and cosmetic industries. The company focuses on sustainable sourcing and high-quality production processes. With a strong presence in international markets, Meron Group is known for its commitment to innovation and customer satisfaction, making it a key player in the global agar-agar market.

Myeong Shin Agar is a leading manufacturer of agar-agar, specializing in high-quality agar extracted from red algae. The company serves various industries, including food, cosmetics, and biotechnology. Myeong Shin Agar emphasizes research and development, continually advancing its product offerings to meet the growing demand for plant-based and natural ingredients. Its strong market presence in Asia further solidifies its position in the agar-agar market.

Marine Science Co., Ltd. is a well-established producer of agar-agar, supplying products for the food, pharmaceutical, and biotechnology sectors. The company specializes in both traditional and innovative agar products, ensuring consistent quality and sustainability. With an advanced manufacturing process and a focus on meeting international standards, Marine Science Co., Ltd. maintains a strong reputation in the global agar-agar market.

Top Key Players in the Market

• Meron Group
• Myeong Shin Agar
• Marine Science Co., Ltd.
• Agarmex
• Orient Resources Company
• B&V
• Ingredion
• Titan Biotech Ltd
• Central Drug House(P) Ltd.
• Agar Corporation Ltd
• AsionsvChem
• Indoalgas

Recent Developments

In 2024, Agarmex’s strategic participation in events like the Food Tech Summit and Expo in Mexico City underscores its commitment to innovation and industry engagement.

In 2024, Marine Science Co., Ltd. reported a total sales value of RMB 950.4 million, with 52.0% from international markets and 48.0% from China.

Report Scope