Carrageenan Market Size, Share & Industry Analysis, By Type (Lota, Kappa, Lambda), By Application(Food and Beverages (Dairy, Bakery, Meat Products), Pharmaceuticals, Cosmetics and Personal Care) and Regional Forecast, 2024-2032

Carrageenan is a natural hydrocolloid additive obtained from the red Chondrus crispus seaweed. The global carrageenan market has witnessed significant growth in the past few years on account of its rising demand from the food & beverages industry. Carrageenan is an additive that is used to emulsify, thicken, and preserve the food and dairy products. They are available in three variants – iota, kappa, and lambda. Carrageenan is incorporated in various foods such as bakery, dairy, whipped cream, and sauces. The growing demand for natural food additives, especially the gelling, and emulsifying agents is anticipated to fuel the global carrageenan market.

The increasing demand for hydrocolloids from various non-food industries such as pharmaceuticals and personal care is also expected to propel the carrageenan market. The pharmaceutical industries utilizes carrageenan as an inactive excipient for tablet production. Carrageenan is often used as a thickening agent in cosmetic products like moisturizers and creams. These attributes of carrageenan make it more desirable among the end-user application sectors, which has aided in its product sales performance.

Key Market Driver -

Wide Application in Food and Beverages

Key Market Restraint -

Presence of Other Substitutes

The rising trend among the consumers for convenience foods like ready-to-drink and ready-to-eat products has led to the extensive incorporation of carrageenan as a gelling and stabilizing agent in these food products. Carrageenan is added in jelly, pie filling, chocolate, and also as a fat substitute in the meat. These properties of carrageenan have supported its market performance positively. However, the availability of other substitutes in the market like xantham gum and guar gum is a major restraint for the carrageenan market.

Key Players Covered:

Some of the key companies that are present in the global carrageenan market are MCPI corporation, Marcel Carrageenan, Accel Carrageenan corporation, TBK Manufacturing corporation, Cargill, Incorporated, Ingredients Solutions, Inc., Shemberg Marketing Corporation, AEP Colloids Inc., Scalzo Trading Co Pty Ltd., P.T. Cahaya Cemerlang, Danlink Ingredients (Pty) Ltd.

The kappa is the most widely used variety in food products such as cheese, icecreams, and chocolate puddings as a firming agent. It facilitates in producing non-dairy cheese products, which gives a similar texture and melt-ability. Iota is used in ready-to-eat food, and lambda is used for preparing whipped cream. Carrageenan is extensively used in dairy and meat products owing to its shelf-life extension properties. It also assists in maintaining the texture of the milk-based beverages like milkshakes due to its gelling and stabilizing properties. Carrageenans are added with brine to preserve the ham as it reacts with the water while keeping the soluble proteins intact. These qualities of carrageenans are anticipated to impact the market positively.

Regional Analysis:

Asia Pacific is witnessing a significant growth rate due to the abundant production of carrageenan in countries like Phillippines and China. The broad incorporation of carrageenan in pharmaceuticals for the manufacturing of gel-based medicines has also aided in its market growth. The increasing demand from the cosmeceutical industries is also driving the carrageenan market in the region.

Europe is one of the leading market owing to its large imports of carrageenan from the Asia-Pacific, due to the growing demand from the manufacturers of processed foods. Germany, France, the United Kingdom, and Spain are the potential markets for carrageenan due to the increasing demand from the food and beverage sector, such as bakery and dairy.

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North America is anticipated to witness significant growth in the forthcoming years. The U.S. is one of the leading importers of carrageenan from China and Phillippines due to the increasing demand from the processed food sectors. The manufacturers are incorporating carrageenan widely for the production of convenience foods.

Segmentation

Key Industry Developments

•  In April 2019, Cargil signed an agreement with Caldic to expand its distribution range of carrageenan, xanthum and pectin in Nordics, while helping Caldic to expand its product portfoilio in Nordics.