Carrageenan Market Size - By Type (Kappa, Iota, Lambda), By Function (Thickener, Stabilizer, Gelling Agent), By Application (Food [Meat, Dairy, Beverages], Pharmaceutical, Personal Care & Cosmetics), & Global Forecast, 2023-2032

Carrageenan Market Size - By Type (Kappa, Iota, Lambda), By Function (Thickener, Stabilizer, Gelling Agent), By Application (Food [Meat, Dairy, Beverages], Pharmaceutical, Personal Care & Cosmetics), & Global Forecast, 2023-2032

Global Carrageenan Market could grow considerably from 2023 to 2032, driven by increasing demand for convenience foods and ready-to-eat meals. Moreover, growing consumer inclination towards natural and organic food products free from synthetic additives and preservatives will contribute to the market growth in the forthcoming years.

The expansion of the food industry in developing countries such as China and India is among the leading factors driving product adoption. The consistent population growth, rising disposable incomes, and changing food preferences are significantly accelerating food demand in these countries. As per USDA, China’s food processing has increased drastically with the increasing consumer demand for distinguished flavors and food types.

Major companies in this business are focusing on expanding their product portfolios, developing new and innovative applications, and increasing their customer base in several regions. Citing an instance, in March 2022, CP Kelco, a functional ingredients and biotechnology firm, launched a new plant-based solution range for the meat alternative industry. The GENU Texturizer MA-1 is a carrageenan blend extracted from red seaweed. With this, the company aims to expand its product offerings.

The carrageenan market is classified based on type, function, application, and region.

In terms of type, the industry is categorized into kappa, iota, and lambda. The iota segment size could reach a value of USD 395 million by 2032. Iota carrageenan is red seaweed and is widely used as a gelling agent and stabilizer, especially in dairy and dessert products such as ice cream, whipped cream, and custard. The commendable growth of the dairy industry in Asian countries will stimulate product demand over the estimation period.

With respect to function, the industry size from gelling agent segment is expected to grow at more than 7% CAGR between 2023 and 2032. Carrageenan is commonly used as a gelling agent in the food industry to form strong and rigid gels, thus, gaining increased traction. The type of gelling agent can affect the texture and strength of the gel that forms, encouraging food specialists to adopt carrageenan for its exceptional qualities.

Carrageenan finds widespread usage in applications ranging from the food industry, pharmaceuticals to personal care & cosmetics. The market value from the food industry segment will surpass $1 billion by the end of 2032. This can be accredited to its usability in dairy-based beverages such as chocolate milk and protein shakes and non-dairy beverages such as plant-based milk, fruit juices, and sports drinks.

Regionally, the North America carrageenan market is slated to expand at over 6.5% CAGR over 2023-2032, driven by the increasing demand for processed food products. In addition, the growing demand for plant-based and clean-label ingredients and the rising awareness about the functional benefits of carrageenan will transform the regional market dynamics over the next ten years.