Agar Market Business Opportunities, Current Trends, Market Challenges in 2026

Posted by anagha on May 9th, 2019

Agar is a hydrophilic colloid composed of a polysaccharide - agarose - an agaropectin that is made from galactose monomer. Agar naturally accumulates in cell walls of certain seaweeds or algae of Gelidium, Gracilaria, and Pterocladia of class – Rhodophyceae. It is extracted from these sources and is prepared in different forms such as powder, strips, and granules. Hot aqueous agar solution of 1.5% is a clear liquid and when it is cooled to 34-43°C it forms a firm gel, which remains in gel form till 85°C. This in turn makes agar a perfect gelling agent.

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Market Dynamics:

Among end-use industries, cosmetics sector is expected to drive growth of the agar market, owing to use of agar as a gelling agent in cosmetic formulations. Agar is used as a thickening and stabilizing agent in skincare products such as facial cream or lotion, foundation, and shaving creams. According to The Cosmetic Toiletry & Perfumery Association annual report 2017, cosmetics industry was valued at over US$ 12.30 billion in 2017 in the U.K, of which 23.6% of the share was accounted by skin care industry. The report also stated that skin care industry in the U.K witnessed a growth of 1.5% in 2017 to reach US$ 2.90 billion in December 2017 from US$ 2.86 billion in December 2016. Agar is also used in hair conditioners, tooth pastes, liquid soaps, and body wash. Therefore, growth of cosmetic industry is expected to propel demand for agar in the global market.

Market Taxonomy:

On the basis of grade, the global agar market is segmented into:

    • Bacteriological
    • Food
    • Industrial

On the basis of application, the global agar market is segmented into:

    • Agarose Preparation
    • Microbial Growth Medium
    • Thickening & Stabilizing Agent
    • Emulsifier
    • Dental Molds

Market Outlook: 

Among regions, Asia Pacific is expected to account for the highest market share in the global agar market, owing to growing food processing industry in economies such as India. Agar is used in food processing as a flavorless thickening agent. According to a report ‘High-Growth Segments of Indian Food and Beverage Industry’ (November 2017) of Indian government’s Ministry of food processing industries, total consumption of the food and beverage segment in India is expected to increase from US$ 369 billion to US$ 1.142 trillion by 2025. Agar is majorly used in confectionery, for setting jellies, cheesecakes, candy fillers, ice cream, sauce, cream thickeners and as clarifying agent in beer brewing. It is also a natural and vegetarian alternative to animal derived gelatin, which is a widely used gelling agent. Therefore, growing food processing industry is expected to propel demand for agar in Asia Pacific.

Key players:

Key players operating in the global agar market include, Java Biocolloid, Meron, Industrias Roko, S.A., AEP Colloids, MSC Co., Ltd., Neogen Food Safety, Agarindo Bogatama, Myeongshin Agar Agar Mfg. Co., Ltd., Agarmex, and Titan Biotech.

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Also See: Agar Market, Global Agar, Food Processing, Market Insights, Market, Agar, Food
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