The market is expected to grow from US$ 323,657.68 thousand in 2021 to US$ 459,415.30 thousand by 2028; it is estimated to grow at a CAGR of 5.1% from 2021 to 2028.

Agar-agar is a gelatinous product extracted from red algae seaweed. Commercially, Glaciralia and Gelidium species are used for extracting agar-agar. However, other species such as Pterocladia and Gelidiella can also be used for extracting agar. Agar-agar is significantly used as a thickening and gelling agent in various foods & beverages, such as jellies, candies, desserts, caramel fillings, jams, icing, pies, bakery dough, yogurts, dairy desserts, fermented milk, and canned meat products. Bacteriological Agar is utilized in the growth and in vitro propagation of plant tissue; it is also used as a gelling agent in culture medium formulation. The lack of inhibitors, which might alter the ideal growth of bacteria, is the major benefit of bacteriological agar. Transparency, hysteresis, and batch-to-batch repeatability are among the key features of bacteriological agar. The increasing demand for agar-agar for various applications is driving the growth of the agar-agar market.

Based on form, the agar-agar market is segmented into powder, flakes, and others. The powder segment accounted for the largest market share in 2020. Agar-agar is commonly sold in powdered form. It is more stable and easy to use than other forms, such as flakes and bars. It can be effectively used in various food formulations, such as bakery products, jellies, ice-creams, and cakes glazes & icings. Powdered dry agar-agar is soluble in water and other solvents at a temperature ranging from 95?C to 100?C. Agar-agar powder is also used in various non-food applications, including plant tissue mediums and bacterial cultures.

Based on region, the agar-agar market is segmented into North America, Europe, Asia-Pacific (APAC), the Middle East & Africa (MEA), and South & Central America (SAM). In 2020, Asia-Pacific held the largest share of the global agar-agar market; it is projected to register the fastest growth over the forecast period. China, Indonesia, Japan, South Korea, and the Philippines are the significant seaweed producers in Asia-Pacific. According to the Food and Agriculture Organization of the United Nations, in 2019, 97% of the total seaweed production was from Asia. The development of seaweed farming in eastern Asia has considerably impacted the agar industry, both in yield and quality of products produced. Moreover, the availability of raw materials for the production of agar-agar has also provided cost benefits to the agar manufacturers operating in Asia-Pacific. These factors are further expected to boost the growth of the agar-agar market across the region. Furthermore, agar-agar is one of the integral parts of various Asian cuisines. This factor fuels the demand for agar-agar across the Asia-Pacific food & beverage industry. Moreover, people in the region are increasingly adopting the veganism trend. Agar-agar is a vegan-friendly alternative to gelatin. Therefore, the rising veganism trend in the region is also expected to support the growth of agar-agar market across Asia-Pacific in the coming years.

The leading players in the agar-agar market include Agar Sari Jaya; Agar Swallow Indonesia; Gino Biotech; Hugestone Enterprise Co., Ltd.; Justchem International Limited; Meron; Pt. Agarindo Bogatama; Pt. Kappa Carrageenan Nusantara; Pt. Surya Indoalgas; and Roland Foods, LLC.

The overall size of the global agar-agar market has been derived using primary and secondary sources. To begin the research process, exhaustive secondary research has been conducted using internal and external sources to obtain qualitative and quantitative information related to the market. Also, multiple primary interviews have been conducted with industry participants to validate the data and gain more analytical insights into the topic. Participants in this process include industry experts such as VPs, business development managers, market intelligence managers, national sales managers, and external consultants such as valuation experts, research analysts, and key opinion leaders-specializing in the agar-agar market.