Table of Contents
Overview
New York, NY – May 14, 2025 – The global Agar-Agar Gum Market is steadily growing due to its wide use in food, pharmaceuticals, and cosmetics as a natural gelling and stabilizing agent. In 2024, the market was valued at USD 296.0 million and is projected to reach USD 446.7 million by 2034, expanding at a 4.2% CAGR from 2025 to 2034.
US Tariff Impact on Agar-agar Gum Market
President Trump’s proposed tariffs, including a 10% universal tariff and reciprocal tariffs on over 60 countries, could significantly disrupt the U.S. food and beverage industry. These additive tariffs, such as 34% on China, 24% on Japan, 46% on Vietnam, and 20% on the EU, will increase costs for imported goods. With 17% of the U.S. food supply coming from imports, these levies will raise prices, impacting importers, distributors, retailers, and consumers in a complex and challenging market environment.
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President Trump’s proposed tariffs, including a 10% universal tariff and reciprocal tariffs on over 60 countries, could significantly disrupt the U.S. food and beverage industry. These additive tariffs—such as 34% on China, 24% on Japan, 46% on Vietnam, and 20% on the EU—will increase costs for imported goods. With 17% of the U.S. food supply imported, these levies will raise prices, impacting importers, distributors, retailers, and consumers in a complex market environment.
The 34% tariff on Chinese imports will sharply increase costs, particularly for fresh and processed fruits, vegetables, apple juice, garlic, spices, tea, and shrimp. In 2023, China exported roughly $450 billion to the U.S., including $1.3 billion in fish, $850 million in animal and vegetable oils, and $1.3 billion in vegetables, fruits, and nuts. As China supplies over 80% of global garlic, these tariffs will significantly affect supply chains and consumer prices.
Key Takeaways
- Agar-agar Gum Market size is expected to be worth around USD 446.7 Million by 2034, from USD 296.0 Million in 2024, growing at a CAGR of 4.2%.
- Powder held a dominant market position, capturing more than a 63.2% share in the global Agar-agar gum market.
- Food Grade held a dominant market position, capturing more than a 54.1% share in the global agar-agar gum market.
- Confectioneries held a dominant market position, capturing more than a 42.9% share in the global agar-agar gum market.
- Europe stands as a dominant player in the global agar-agar gum market, commanding a significant share of approximately 42.1%, equating to a market value of USD 124.6 million
Report Scope
| Market Value (2024) | USD 296.0 Million |
| Forecast Revenue (2034) | USD 446.7 Million |
| CAGR (2025-2034) | 4.2% |
| Segments Covered | By Product (Powder, Strips, Square), By Grade (Food Grade, Bacteriological Grade, Pharmaceutical Grade), By Application (Confectioneries, Bakery and Pastry, Meat, Microbiological and Molecular, Others) |
| Competitive Landscape | Meron Group, Myeong Shin Agar, Marine Science Co., Ltd., Agarmex, Orient Resources Company, B&V, Ingredion, Titan Biotech Ltd, Central Drug House(P) Ltd., Agar Corporation Ltd, AsionsvChem, Indoalgas |
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Key Market Segments
By Product Analysis
- In 2024, Powdered agar-agar gum commanded a 63.2% share of the global market, driven by its versatility in food and beverage applications. As a plant-based gelatin alternative, it’s favored for its long shelf life, easy storage, and seamless integration into desserts, jellies, confectionery, and dairy. Rising vegan and plant-based diets continue to boost their popularity.
By Grade Analysis
- Food-grade agar-agar gum dominated in 2024 with a 54.1% market share, fueled by demand for clean-label food additives. Widely used in confectionery, dairy, bakery fillings, and meat substitutes, it offers superior gelling and thickening properties. Its natural, plant-based nature aligns with consumer preferences for allergen-free, vegan-friendly ingredients.
By Application Analysis
- In 2024, Confectioneries led the agar-agar gum market with a 42.9% share, driven by their use in jellies, gummies, marshmallows, and fruit candies. Agar’s strong gelling and stabilizing properties, neutral taste, and firm texture make it ideal for plant-based, gelatin-free sweets, giving it an advantage over synthetic gelling agents.
Regional Analysis
- Europe leads the global agar-agar gum market, holding a 42.1% share valued at USD 124.6 million in 2024. This dominance stems from a strong food and beverage sector, strict regulations, and rising demand for plant-based, clean-label products. Agar-agar is widely used in confectionery, bakery, dairy, and vegan foods, with Germany, France, and the UK driving consumption due to growing vegetarian and vegan trends.
- The EU’s Regulation (EC) No 1333/2008 ensures high safety and quality standards for agar-agar, boosting consumer confidence and market growth. As a natural gelling agent derived from red algae, agar-agar aligns with Europe’s focus on sustainability and natural ingredients, fueling its adoption. The market is set to grow further, driven by ongoing consumer preference for plant-based and clean-label products.
Top Use Cases
- Confectionery Production: Agar-agar gum is widely used in making jellies, gummies, and marshmallows. Its strong gelling properties create a firm, smooth texture ideal for plant-based candies. As a vegan alternative to gelatin, it meets the rising demand for clean-label sweets, appealing to health-conscious and vegan consumers.
- Dairy Alternatives: Agar-agar stabilizes and thickens plant-based yogurts, cheeses, and milk. It mimics the creamy texture of dairy, enhancing mouthfeel in vegan products. Its natural origin aligns with clean-label trends, making it popular among manufacturers catering to the growing vegan and lactose-intolerant consumer base.
- Bakery and Pastry: In baked goods like cakes and pastries, agar-agar prevents cracking in icings and glazes. Its heat-resistant gels maintain stability during baking, ensuring consistent texture. This makes it a go-to choice for bakers seeking natural stabilizers for high-quality, visually appealing products.
- Meat Substitutes: Agar-agar enhances texture in plant-based meat products, providing a firm, chewy consistency. It stabilizes emulsions in vegan sausages and burgers, improving shelf life. Its plant-derived nature supports clean-label demands, making it ideal for manufacturers targeting the booming plant-based protein market.
- Beverage Clarification: Agar-agar clarifies fruit juices and beverages by removing impurities. Its gelling properties help settle particles, ensuring clear, visually appealing drinks. This natural solution is favored in the beverage industry for producing high-quality, clean-label products that appeal to health-conscious consumers.
Recent Developments
1. Meron Group
- Meron Group has expanded its agar-agar production capacity with a new facility in India, focusing on high-purity food-grade agar. The company also introduced organic-certified agar-agar to meet rising demand for clean-label ingredients in Europe and North America.
2. Myeong Shin Agar
- Myeong Shin Agar launched a low-sulfur, premium agar-agar line for pharmaceutical applications, improving gel strength and clarity. The company also secured a new export deal with a European food manufacturer, strengthening its global presence.
3. Marine Science Co., Ltd.
- Marine Science developed a high-performance agar-agar for vegan cheese alternatives, responding to the plant-based food boom. The company also invested in sustainable seaweed farming to ensure eco-friendly raw material sourcing.
4. Agarmex
- Agarmex partnered with a major U.S. food brand to supply non-GMO agar-agar for dairy-free desserts. The company also enhanced its R&D efforts to create customized agar solutions for the nutraceutical industry.
5. Orient Resources Company
- Orient Resources expanded its agar-agar exports to Southeast Asia, targeting bakery and beverage manufacturers. The company also improved processing technology to reduce production costs while maintaining quality.
Conclusion
The Agar-Agar Gum Market is steadily growing, driven by increasing demand for natural and plant-based ingredients. Asia-Pacific, particularly countries like China and India, leads in both production and consumption, thanks to abundant seaweed resources and a strong food processing industry. In contrast, North America and Europe are significant consumers, influenced by a growing preference for clean-label and vegan products. Powdered agar-agar remains the most popular form due to its ease of use and adaptability across various applications.
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