Global Carrageenan Gum Market - 2022-2029

Global Carrageenan Gum Market - 2022-2029

Market Overview

The global carrageenan gum market valued USD xx million in 2021 and is forecast to reach USD xx million by 2029, growing at a CAGR of xx% during the forecast period (2022-2029)

Carrageenans are polysaccharides (galactose) with varying degrees of sulfation (between 15% and 40%). They are extracted from red seaweeds and are used as thermoreversible gelling agents and thickening agents.. Carrageenans can also be used as a binding agent and improve texture and mouthfeel. Carrageenan is a high molecular weight polysaccharide with repeating galactose units. Moreover, it is also used considered an important weight loss product. It is also beneficial for reducing pain and swelling during injury. In food products, they thicken things such as ice cream, marshmallow fluff, pancake syrup, etc. In the beverage, they act as an excellent emulsifier by keeping the liquid mixed together. The increase in demand for gelling agents and food additives fuels the growth of the carrageenan gum market.

Market Dynamics:

Growing preference among consumers for plant-based ingredients associated with skincare

Carrageenan is a plant-based gelatin like substance often incorporated in skincare products in the past few years. The water-binding ability of carrageenan gum makes it a great emulsifier. It creates a creamy and smooth texture in skincare products such as body lotions, cream deodorants, and shaving creams. Carrageenan emulsifying properties have led to its adoption in skincare, particularly in moisturizers and lotions. Carrageenan gum makes skincare products creamy, smooth and luxurious, making them easy to apply to the face and body. In addition, Carrageenan gum effectively prevents oil-based and water-based ingredients from separating, helping the skin absorb moisture derived from skincare products. Consumers' growing preference for plant-based ingredients in skincare and hair care products will also propel the demand for carrageenan gums throughout the forecast period. Moreover, carrageenan gum is also used to manufacture toothpaste and air freshener products because it has excellent controlling texture and fluidity properties. Therefore, the rising demand for carrageenan gum from the cosmetic industry is expected to propel market growth over the forecast period.

However, the usage of carrageenan as a food ingredient affects the risk of inflammation associated with colon cancer is restrain the market growth. Moreover, the availability of substitutes such as agar to replace carrageenan is expected to hinder the market growth over the forecast period.

Market Segmentation:

The food and beverage segment held the highest market revenue share of xx% in the year 2021

Based on the end-user, the food and beverage segment accounted for the largest share of more than xx% in 2021, and it is expected to remain the major end-use segment over the forecast period. Demand for carrageenan gum from this industry has increased due to its widespread application base as a gelling agent. In other forms of beverages, food-grade carrageenan gum is used to clarify beer and as a refining agent in wine to separate protein. In terms of liquid food products, carrageenan gum's stabilizing and thickening properties promote its application in various processed foods, including ice creams, sour cream, dressings, sauces, and flavored milk. Carrageenan gum is widely adopted as a substitute for animal-derived gelatin in vegan food products. Apart from this, applications in bakery products and confectionaries, particularly in gummy sweets, preparing fondants and syrups, will drive the demand for carrageenan gum in the market.

Geographical Penetration:

Europe is dominating the global carrageenan gum market in the year 2021

Europe is dominating the global carrageenan gum market in 2021. The U.K. and Germany are the leading importers due to the strong demand from end-use industries in these regions. Currently, customers are largely favoring natural ingredients in food and beverages. They are avoiding products that contain preservatives and chemical additives. That result has compelled food and beverage manufacturers to create sustainable additive options, leading to advancements in the carrageenan gum market. In addition, the growing population of vegan consumers in the region is anticipated to boost sales of carrageenan gum in the forecast period.

The Asia Pacific is expected to fastest-growing during the forecast period. The growth of the wealthy middle class in China, India, Russia, Brazil, and Indonesia is also projected to drive the market in the Asia Pacific. China has the largest carrageenan gum market share in the Asia Pacific. The strong industrialization in the country results in significant growth in China's food and beverages industry. Growing demand from the meat industry is creative, lucrative prospects for emerging and global players operating in the carrageenan gum market.

Competitive Landscape:

The prominent players in the global carrageenan gum market are Cargill Inc., TIC Gums Incorporation, Scalzo Food Industries, FMC Corporation, Altrafine Gums, Kachabo Gums, Gelymar SA, FMC BioPolymer, AEP Colloids, and Ingredients Solutions, Inc., among others. The key players operating in the carrageenan gum market are focusing on mergers, acquisitions, and strategic collaborations to strengthen their footprints in the market. Product innovations, research and development, and production facility expansions will remain prominent growth strategies of market players throughout the forecast period.

For instance, in October 2021, Cargill Beauty launched Satiagel VPC 614 Kappa Carrageenan, specifically suitable for high gelling applications and solid formulations.

In October 2021, Ingredients Solutions Inc. expanding product line and supplied a wide variety of specialty hydrocolloids for food and beverage application. The product line includes Agar, Carrageenan, Gellan Gum, Konjac Gum, Locust Bean Gum, Microcrystalline Cellulose, Nalgin Sodium Alginate, Pectin, Propylene Glycol Alginate, Tara Gum, and Xanthan Gum.

In February 2019, Cargill unveiled a new Red Seaweed Promise initiative designed to enhance global supply chain traceability and transparency while conserving the environment.

COVID-19 Impact: Negative impact on the global carrageenan gum market

COVID-19 pandemic has directly impacted the manufacturers' supply chain across the globe and shut down the production facilities to minimize the risk of the spread of the virus. Consumer demand has subsequently reduced as individuals are now keener on eliminating non-essential expenses from their respective budgets as the general economic status of most individuals has been severely affected by this outbreak. All these factors are anticipated to affect the industries negatively and thus act as a restraining factor for the growth of the carrageenan gum market.