Impact Analysis of Covid-19
The complete version of the Report will include the impact of the COVID-19, and anticipated change on the future outlook of the industry, by taking into the account the political, economic, social, and technological parameters.
Carrageenan Gum Market 2017-2027
Carrageenan gum is extracted from seaweed and is ideal for food additives as they have various range of gelling and emulsifying properties. Moreover, it is also used to treat various medical conditions such as bronchitis, coughs, tuberculosis, and intestinal problems. Also, it is used as a thickening agent, binder, and as a stabilizer in various medications and food. Additionally, it is also used consider as important weight loss products. It is also beneficial for reducing pain and swelling during injury. In food products they thicken things such as ice cream, marshmallow fluff, pancake syrup, etc. and in the beverage, they act as an excellent emulsifier by keeping the liquid mixed together.
The global carrageenan gum market is projected to reach over US$ 1100 million by the end of 2027, in terms of revenue, growing at CAGR of 4.0% during the forecast period (2019 to 2027).
Growing usage of carrageenan gum in processed food as thickener, protein stabilizer, particle suspension and emulsifying the agent is predominantly fueling market growth. It is used in ice creams, dairy-based products, salad dressings, sour cream, and chocolate milk. Furthermore, it is also used across food applications such as beverages, confectioneries, and bakery products. Therefore, the growing consumption of carrageenan gum in various processed foods is anticipated to propel the overall market growth of carrageenan gum.
Growing demand for carrageenan gum from the cosmetic industry is estimated to foster market growth over the forecast period. Carrageenan gum is used in the production of skincare products such as shaving creams, cream deodorants, and body lotions. Moreover, carrageenan gum is also used in manufacturing toothpaste and air freshener’s product, because it has excellent controlling texture and fluidity property. Therefore, rising demand for carrageenan gum from the cosmetic industry is expected to propel the market growth over the forecast period.
Regionally, Europe dominated the global carrageenan gum market in 2018, reporting 35% market share in terms of revenue, followed by Asia-pacific and North America, respectively.
Figure 1. Global Carrageenan gum Market, Revenue Share (%), By Region, 2018
Growing usage of carrageenan as a food ingredient in various food items and rising concerns regarding the risk of inflammation and colon cancer in humans is a major factor hindering the demand for carrageenan gum, thereby hampering the market growth of carrageenan gum. According to the Coherent Market Insights analysis, in November 2016, The National Organic Standard Boards voted to remove carrageenan from the national list of allowed substances in organic food. Therefore, the aforementioned factor is restricting market growth.
Availability of cheaper substitute such as agar to replace carrageenan as it has excellent gelling properties owing to the presence of highly soluble fiber content is hindering the market growth of carrageenan gum. Moreover, agar powder is an excellent vegan gelling agent which makes it ideal for making gelatin-based desserts. Therefore, the availability of cheaper substitute for carrageenan gum is hampering the market growth.
Growing application of Carrageenan Gum in infant’s formula is expected to offer potential growth opportunity to the market of carrageenan gum over the forecast timeframe. Growing urban population, along with improving consumer lifestyle are some of the major factors propelling the market growth of carrageenan-based infant formula products. This is expected to foster market growth. For instance, in June 2015, the Joint Expert Committee on Food Additives released a technical report regarding the safety of carrageenan in infant formula.
Rising demand for personal care products especially in Asia Pacific region is expected to create lots of opportunities for the market of carrageenan gum. Huge demand for personal care products and organic cosmetics products is expected to increase the sales of carrageenan gum ingredients, which in turn augmenting the market growth of carrageenan gum. Therefore, the growing demand for organic personal care products are anticipated to foster market growth over the forecast timeframe.
Figure 2. Global Carrageenan gum Market – Opportunity Analysis
Growing focus of manufacturers to launch various blends of carrageenan gum in a variety of beverages with excellent consistent quality is expected to accelerate the market growth of carrageenan gum. For instance, in May 2015, Cargill launched a new range of sustainable carrageenan – Satiagel ABN 500 – which is mainly sourced from farmed seaweed. This range of carrageenan can be used in various beverages and offers various health benefits such as supports the digestive system and manages stomach irritation
Rising focus of carrageenan gum manufacturers to promote usage of carrageenan gum, by participating in various international events such as trade shows, etc. to expand their customer base is expected to foster the market growth of carrageenan gum. For instance, in March 2016, W. Hydrocolloids Inc. participated in Food Ingredients China (FIC) 2016, which is an international event, to showcase its carrageenan and other hydrocolloid products and expand customer base. Another example, in September 2016, FMC Corporation’s Health and Nutrition Business showcased carrageenan-based soft gel capsule technology – SeaGel – at the Supply Side West Trade Show in Las Vegas, U.S.
Figure 3. Global Carrageenan gum Market, Revenue Share (%), By Application, in 2018
On the basis of application, in 2018, food & beverages segment accounted the largest market share of 55% in terms of revenue, followed feed & pet food and personal care & toiletries, respectively.
Key players active in the global carrageenan gum market are CP Kelco U.S., Marcel Trading Corporation, FMC Corporation, E. I. du Pont de Nemours and Co., Extractos Naturales, Gelymar, Ingredients Solutions, Inc., Kerry Group, Cargill, Incorporated, Altrafine Gums, W Hydrocolloids, Inc., and CEAMSA.
Few Recent Developments
- In May 2015, Cargill Incorporated introduced a new range of carrageenan obtained from seaweed – Satiagel ABN 500 – as a part of its texturing solution offerings
- In May 2015, Cargill, Incorporated introduced a new range of carrageenan, Satiagel ABN 500, obtained from seaweed as a texturing solution under its emulsifiers and texturizers portfolio
- In September 2016, FMC Corporation exhibited solutions under its health and nutrition segment, targeting the pharmaceuticals and nutraceuticals and nutrition industries, at Supply Side West, 2016, which is an exhibition focusing on dietary supplement, food and beverages and others that brings together suppliers and buyers
- In June 2015, in collaboration with the International Formula Council, the company conducted and funded a study attesting to the safety of carrageenan in food consumed by infants. The Joint Expert Committee on Food Additives (JECFA) reviewed the event and concluded that carrageenan can be used in infant food, for special medical purposes at a concentration up to 1000mg/l.