The global carrageenan market size was valued at USD 741.9 million in 2019 and is expected to expand at a compound annual growth rate (CAGR) of 5.9% from 2020 to 2027. The market is anticipated to be driven by growing demand for thickeners and gelling agents from the pharmaceutical, personal care and cosmetics, and food and beverages industries, specifically in emerging economies of Asia Pacific. The product is used in various food applications, including bakery and confectionery, meat products, dairy products, sauces and dressings, and beverage, as thickening agents, gelling agents, film-former, texturizing agents, and stabilizing agents. A majority of consumers these days are preferring healthy and nutritious foods. Rising preference for products with natural ingredients and various applications of hydrocolloids in the food and beverages industry are the reasons for the uptick in the demand for carrageenan.
In Japan, the personal care and cosmetics application segment generated a revenue of USD 2.97 million in 2019. Rising hygiene awareness and beauty consciousness among consumers are the key factors fueling industry growth. Increasing expenditure on high quality and natural personal care and beauty products among urban consumers is expected to have a positive impact on industry growth.
The primary factor contributing to the wide usage of the product in the food industry is its capability to bind with water and enhance the properties of food ingredients. The global market is witnessing significant growth on account of the growing demand for convenience foods among health-conscious consumers.
The ability of the product to act as a fat replacer in processed food products drives its demand as consumers are preferring low-fat and low-calorie bearing products. The processed food industry has witnessed healthy growth in the recent past and is projected to exhibit a high growth rate in the coming years, impacting the market growth positively.
Companies including CP Kelco; TIC Gums; Prinova Group; Ingredion Incorporated; Ashland Inc.; Kerry Group; Cargill; and DuPont are the key manufacturers of the product globally. Other prominent players include Lauta Carrageenan, Aquarev Industries, MCPI Corporation, Marcel Carrageenan, and TBK Manufacturing Corporation.
Thickener led the market and accounted for a 39.4% share of the global revenue in 2019. Thickeners are substances that are used to increase the viscosity of fluid without changing any other properties. Generally, thickening agents are categorized as food-grade and non-food grade thickeners. These agents are used as additives in the food and beverages industry and are required to be approved by the concerned food administrative bodies.
The growing adoption of natural food thickeners is likely to be a key factor in boosting the market growth. Furthermore, the surge in demand for healthy, nutritional, and convenient food products, which demand carrageenan as a thickening agent, is likely to support industry growth. The growing trend of using clean-label products is creating several opportunities for the development of new products and novel formulations in the food and beverage sector.
Gelling agent is expected to expand at a revenue-based CAGR of 6.0% from 2020 to 2027. The three variants of commercial carrageenan, including iota, lambda, and kappa, exhibit distinctive gelling properties. For instance, lambda carrageenan makes a less rigid, more elastic gel, and kappa carrageenan is used for making the stiff gel.
The growing applications of gelling agents in the bakery and confectionery industry on account of their ability to produce natural texture are expected to boost the industry growth. Such agents act as barriers for fats and oils in processed foods. The shifting consumer demographics and growing consumption of processed food products in the developing economies are anticipated to drive demand for the product as a gelling agent.
The food and beverage application segment held the largest revenue share of 72.4% in 2019. The growth of this segment can be attributed to the increasing demand for processed food products, along with increasing product consumption in the dairy industry. Food and beverage manufacturers primarily use carrageenan owing to its ability to shift the rheology of food systems, including texture and viscosity.
The alteration of viscosity or texture of food helps modify the sensory properties, which enables carrageenan’s demand as a food ingredient to perform specific purposes. Carrageenan finds application in various food formulations, such as toppings, sauces, salad dressings, soups, and gravies. They are also used in desserts, candies, jellies, jams, and ice creams to obtain the desired texture. Future acceptance, functional attributes, and positive endorsement of the product are expected to positively contribute to the product demand in the food and beverage sector.
Bakery products are expected to witness significant growth over the forecast period. Rising demand for organic and natural baked goods and the trend of healthy snacks are expected to drive the demand for the product over the forecast period. The growing use of carrageenan as a thickening and gelling agent for bakery products is surging the product demand.
The pharmaceutical application segment generated a revenue of USD 81.1 million in 2019. It is extensively utilized as excipients in drug delivery systems; as foaming, wetting, solubilizing, stabilizing, emulsifying, suspending, and bioadhesive agents; and as permeation enhancers. Such distinctive properties offer multiple attractive features to liquid oral pharmaceutical formulations. For instance, the product forms an elastic and transparent gel with thixotropic properties, which are very useful in pharmaceutical syrups and emulsions.
Kappa carrageenan held the largest revenue share of 67.7% in 2019 and is expected to witness the fastest growth over the forecast period. It is a natural extract derived from a particular red seaweed species, which are farmed and processed at facilities. It is used as a thickener, emulsifier, stabilizer, gelling, and binding agent. These properties make it a useful ingredient in meat processing. Typical applications of kappa-carrageenan include poultry rolls, turkey breast, and cooked cured ham.
Over 70% of the global carrageenan production is based on kappa carrageenan. It is the most used type of carrageenan in the food and beverage industry, wherein it acts as a bodying agent and emulsifier in ice creams, cheese, puddings, and chocolates. It forms gels with calcium and potassium salts. While calcium creates a brittle, stiff gel, potassium produces an elastic, rigid gel. Kappa also provides the strongest gels of all types of carrageenan; however, they are most prone to bleeding.
Lambda type is cold, soluble in water, and acts as a thickener that develops better mouthfeel in dairy products. It is considered to be a highly sulfated kind of carrageenan majorly used for its ability to impart a creamy sensation and mouthfeel to dairy beverages. It is the only type of carrageenan that needs high temperature for hydration since it has a content of over 35% ester sulfate and a small percentage of 3.6% anhydro galactose imparting high viscosity of these systems.
Europe held the largest revenue share of 31.0% in 2019. Increasing R&D expenditure, along with the rising production of pharmaceuticals in Europe, is projected to bolster the demand for carrageenan in pharmaceutical applications. Furthermore, well-established end-use industries, such as food and beverage, personal care and cosmetics, and pharmaceutical, have contributed positively to the regional market growth.
In 2019, North America emerged as one of the most prominent regional markets for carrageenan. The U.S., followed by Canada, is dominating the industry owing to the growing agricultural activities to achieve high productivity, which has led to high demand for biostimulant products in the region. Biostimulant producers mainly prefer products, such as carrageenan and agar, as their demand is higher from the agriculture segment, where they offer numerous benefits, such as high productivity and superior plant growth. These factors are likely to fuel industry growth.
The demand for the product is mainly driven by the developing processed food industry and growing inclination toward natural ingredients-based convenience food products. However, rising consumer awareness regarding the adverse impacts of chemical additives has led food manufacturers to diversify the natural additives category. Rapid research and development of natural food additives will additionally benefit industry growth.
The Asia Pacific market is likely to expand at the fastest rate over the forecast period owing to the rapid growth of the food and beverage industry in the region. Rising consumer demand for “cleaner label” food products has compelled manufacturers in the region to focus on product innovation over the past few years.
The industry is fragmented in nature with the presence of various participants across the value chain. Several multinational organizations possess the caliber of presenting innovations. These companies are also entering into partnerships with small-sized companies having a strong foothold in the local market. Such partnerships aim to achieve unique selling points for leading industry players.
Moreover, key players in the industry face healthy competition from small-sized and local players as the latter offer cheap and customized products according to the buyer’s needs. Carrageenan ingredients are massively produced in Asia Pacific. Countries in the region, especially the Philippines, have several players that are engaged in producing carrageenan ingredients. Some prominent players in the global carrageenan market include:
DuPont
CP Kelco U.S. Inc.
Ceamsa
W Hydrocolloids Inc.
LAUTA Ltd.
Aquarev Industries
MCPI Corporation
Erik Ocaya and Josh Cabrera
Marcel Trading Corporation
TBK Manufacturing Corporation
ACCEL Carrageenan Corporation
Ingredion Incorporated
Cargill, Incorporated
Ashland
TIC Gums, Inc.
Report Attribute |
Details |
Market size value in 2020 |
USD 780.2 million |
Revenue forecast in 2027 |
USD 1,169.8 million |
Growth Rate |
CAGR of 5.9% from 2020 to 2027 |
Market demand in 2020 |
51.15 kilotons |
Volume forecast in 2027 |
64.13 kilotons |
Growth Rate |
CAGR of 3.2% from 2020 to 2027 |
Base year for estimation |
2019 |
Historical data |
2016 - 2018 |
Forecast period |
2020 - 2027 |
Quantitative units |
Revenue in USD million, volume in kilotons, and CAGR from 2020 to 2027 |
Report coverage |
Revenue and volume forecast, company ranking, competitive landscape, growth factors, and trends |
Segments covered |
Product, function, application, region |
Regional scope |
North America; Europe; Asia Pacific; Central & South America; Middle East & Africa |
Country scope |
U.S.; Canada; Mexico; Germany; France; U.K.; Italy; China; India; Japan; South Korea; Brazil; Argentina; Saudi Arabia; South Africa |
Key companies profiled |
DuPont; CP Kelco U.S. Inc.; Ceamsa; W Hydrocolloids Inc.; LAUTA Ltd.; Aquarev Industries; MCPI Corporation; Erik Ocaya and Josh Cabrera; Marcel Trading Corporation; TBK Manufacturing Corporation; ACCEL Carrageenan Corporation; Ingredion Incorporated; Cargill, Incorporated; Ashland; TIC Gums, Inc. |
Customization scope |
Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope. |
Pricing and purchase options |
Avail customized purchase options to meet your exact research needs. Explore purchase options |
This report forecasts volume and revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends and opportunities in each of the sub-segments from 2016 to 2027. For the purpose of this study, Grand View Research has segmented the global carrageenan market report based on product, function, application, and region:
Product Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)
Kappa
Iota
Lambda
Function Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)
Thickener
Gelling Agent
Stabilizer
Other
Application Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)
Food & Beverage
Bakery
Confectionery
Sauces & Dressings
Dairy Products
Meat Products
Beverages
Others
Pharmaceutical
Personal Care & Cosmetics
Others
Regional Outlook (Volume, Kilotons; Revenue, USD Million, 2016 - 2027)
North America
U.S.
Canada
Mexico
Europe
U.K.
Germany
France
Italy
Asia Pacific
China
India
Japan
South Korea
Central & South America
Brazil
Argentina
Middle East & Africa
Saudi Arabia
South Africa
b. The global carrageenan market size was estimated at USD 741.8 million in 2019 and is expected to reach USD 780.1 million in 2020.
b. The carrageenan market is expected to grow at a compound annual growth rate of 5.9 % from 2020 to 2027 to reach USD 1,169.7 million by 2027.
b. Based on application, the food & beverage segment dominated the carrageenan market with a share of 72.4% in 2019. Shifting consumer inclination towards organic thickeners and increasing demand for carrageenan in the processed food industry are driving the demand for carrageenan market.
b. Some of the key players operating in the carrageenan market include DuPont, CP Kelco U.S. Inc., Ceamsa, W Hydrocolloids Inc., LAUTA Ltd., Aquarev Industries, MCPI Corporation, Erik Ocaya, and Josh Cabrera, Marcel Trading Corporation, TBK Manufacturing Corporation, ACCEL Carrageenan Corporation, Ingredion Incorporated, Cargill, Incorporated, Ashland, TIC Gums, Inc.
b. Wide applicability for the product market in the food & beverage, oil, and gas, pharmaceutical industry owing to its multi-functionality, especially its ability to modify the viscosity of substances are key factors driving the carrageenan market in the forecast period.
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