April 18, 2024

Agar Market is Estimated to Witness High Growth Owing to Advancements in Biotechnology

Agar is a gelatinous, sulphated polysaccharide extracted from red seaweeds. It is widely used as a gelling agent in microbiological and cell culture applications due to its excellent gelling properties. Agar finds application in food and beverage, pharmaceuticals, microbiology, and other industries. Advancement in biotechnology has led to the increased use of agar for growing microorganisms, preparing culture media and for gel electrophoresis, which is driving the demand for agar.

The Global agar market is estimated to be valued at US$ 348.37 Bn in 2024 and is expected to exhibit a CAGR of 15% over the forecast period 2024 to 2030.

Key Takeaways

Key players operating in the agar market are Microsoft, Okta, IBM, Oracle, Salesforce, Ping Identity, HID Global, ForgeRock, CyberArk, Micro Focus, Thales, RSA Security, Avatier, ManageEngine, SecureAuth, EmpowerID, SAP, Simeio, One Identity, FusionAuth, Auth0, IDnow, Zephr, Signzy, Civic, Trusona, Beyond Identity, Akamai, Delinea, Optimal IdM, Netwrix, Zoho Vault, Transmit Security.

Key opportunities in Global Agar Market Share include growing pharmaceutical industry and increasing application of agar in plant tissue culture. Advancements in tissue engineering and 3D bioprinting is further expected to drive the demand for agar.

Market drivers:

The primary growth driver for the agar market is the growth of the biotechnology and pharmaceutical industry. Agar finds wide application in microbiological analysis and cell culture. The increasing R&D investment by pharmaceutical companies in developing novel drugs is expected to boost the consumption of agar. Further, the growing awareness about health benefits of seaweeds is prompting industries to increasingly use agar extracts in various Food and Beverage applications such as dairy products, confectionery, bakery, etc. Expansion of biotechnology industry and increasing focus on developing bio-based products are some of the key factors expected to drive the demand for agar over the forecast period.

Current challenges in Agar Market:

The agar market faces few challenges currently which includes supply chain disruptions due to the ongoing Covid-19 pandemic. Raw material procurement has been impacted causing delays in production. Moreover, volatility in raw material prices is another challenge due to changing global trade dynamics. Sustainability is also a key issue as overexploitation of seaweed varieties used to make agar can harm marine biodiversity. Additionally, the market needs to increase investments in R&D to develop new grades of agar with enhanced functionalities to tap new application areas.

SWOT Analysis

Strength: Agar has diverse applications in food, microbiological and other industries. It is a natural and environment-friendly product.

Weakness: Agar industry is fragmented with many small players. Supply chain management needs improvement.

Opportunity: Growing demand for vegetarian and vegan foods and clinical nutrition provides major opportunities. Asia Pacific offers high growth potential.

Threats: Fluctuations in seaweed availability and prices are a threat. Substitute products also pose competition.

Geographical regions of concentration

The Asia Pacific region accounts for the major share in the global agar market in terms of value currently. This is attributed to the high availability of seaweed resources and presence of leading agar producers in Indonesia, Philippines and Japan. China is emerging as a major agar exporter.

Fastest growing region

North America region is projected to witness the highest CAGR during the forecast period. This can be ascribed to increasing health consciousness and expanding application scope of agar in various industries including food, microbiology and cosmetics. Countries like the US and Canada are embarking on new product development using native seaweed varieties to reduce import dependence.

*Note:
1.      Source: Coherent Market Insights, Public sources, Desk research
2.      We have leveraged AI tools to mine information and compile it