Carrageenan gum is a food product that belongs to the class of polysaccharides and derived from particular species known as red seaweed. It works as a thickener, gelatin, gelling agent and stabilizer and is widely used in the food product such as pudding, milk jelly, ice-cream, flavored/ chocolate milk drinks, custards, cheese analogs, and sports drink. Moreover, it is also used in the air freshener gels products, moisturizer, toothpaste, hair conditioners, and facial products as it offers smoothness, viscosity, excellent gelling agent, and release flavor. Some of the major application of carrageenan gum are food & beverages, personal care & toiletries, pharmaceuticals, and feed & pet food.
The global carrageenan gum market was estimated to be valued over US$ 700 million in terms of revenue in 2018 and is predicted to grow at a CAGR of 4.0% during the forecast period (2019 to 2027)
Increasing usage of carrageenan in the pharmaceutical industry is propelling the market growth of carrageenan gum. Various pharmaceutical manufacturers are using carrageenan widely in various products such as in hard and soft gel capsules. Iota carrageenan is widely used for producing soft gel capsules, whereas kappa-carrageenan gum is used in harder gel products. Moreover, carrageenan gum offer excellent emulsifying property for insoluble drug formulations. Furthermore, carrageenan gum also helps to extend the shelf life of antibiotic suspension. Therefore, rising usage of Carrageenan gum is boosting the market growth.
Growing usage of carrageenan gum in meat products is estimated to accelerate market growth over the forecast period. Carrageenan gum is widely used in meat products in order to offer viscosity and texture. Therefore, the growing demand for processed meat around the globe is propelling the demand for carrageenan gum in the meat processing industry as it imparts hard texture and enhances the shelf life of the product. Therefore, the growing usage of carrageenan gum in meat products is augmenting the market growth. For example, CEAMGEL-9393 is a multifunctional carrageenan that offers excellent properties of texture and water binding capability.
Limited availability of raw materials is anticipated to curb the market growth of carrageenan gum over the forecast period. There is limited source available for raw materials of carrageenan which leads to fluctuating prices. Moreover, carrageenan gum is extracted from red seaweed, which is limited in the world and also the production of carrageenan gum is limited to a few regions in the world, which is further projected to impact the market growth negatively to some extent.
Among application, food & beverages segment dominated the global carrageenan gum market in 2018 with around 54% of market share in terms of volume, followed by feed & pet food and personal care & toiletries, respectively.
Various key players are entering into partnerships/agreements to increase their carrageenan production capacity and enhancing the distribution network for expanding footprint in the global market. This factor is expected to foster the market growth of carrageenan gum. For instance, in September 2016, W Hydrocolloids, Inc., a pioneer in the Philippines seaweed industry, acquired the seaweed the processing facility of Kerry Food Ingredients Cebu, Inc. located in Cebu, in the central Philippines. Another instance of a partnership that took place in September 2015, when Cornelius, an independent distributor of additives and ingredients in Europe, entered into partnership agreement with Compañía Española de Algas Marinas S.A. (CEAMSA) to distribute a range of high-quality hydrocolloids such as alginate, citrus fiber, carrageenan and pectin products in markets in the U.K. and Ireland.
Increasing approval for usage of carrageenan in various organic products is expected to augment the market growth of carrageenan gum over the forecast timeframe. For instance, in April 2018, The US Department of Agriculture (USDA) has allowed the use of carrageenan in organic products, contrary to a recommendation from the National Organic Standards Board (NOSB) to ban the use of the food additive and also The USDA declared that carrageenan will remain on the National List of non-organic ingredients that are allowed in the processing of organic products.
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
Extractors Naturales Gelymar S. A.
Marcel Trading Corporation
Coherent Market Insights is a prominent market research and consulting firm offering action-ready syndicated research reports, custom market analysis, consulting services, and competitive analysis through various recommendations related to emerging market trends, technologies, and potential absolute dollar opportunity.