Carrageenan Gum Market

Key Points Covered in Carrageenan Gum Market Survey

• Market estimates and forecast 2021-2031
• Key drivers and restraints impacting market growth
• Segment-wise, Country-wise, and Region-wise Analysis
• Competition Mapping and Benchmarking
• Brand share and Market Share Analysis
• Key Product Innovations and Regulatory Climate
• COVID-19 Impact on Carrageenan Gum Market and how to Navigate
• Recommendation on Key Winning Strategies

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Carrageenan Gum Market Historic Sales Compared to 2021-2031 Forecast Outlook

The carrageenan gum market grew at 3.3% CAGR between 2016 and 2020. Speculations regarding the sustainability of carrageenan gum, coupled with unprecedented effects of COVID-19 dampened rate of sales in the market in 2020.  

However, with expedited vaccine drives across the globe, manufactures are resuming the production operations for a speedy recovery. Owing to faster production and improvements in supply chain, the carrageenan gum market experienced y-o-y growth of 4.10% between 2020 and 2021.

FMI projects a positive demand outlook for carrageenan gum with biocompatibility and non-toxicity of carrageenan gum being key factors driving its application, leading to market expansion at a moderate 4% CAGR through 2031.

How Will Demand for Plant-Based Skincare Products Impact Carrageenan Gum Sales?

Carrageenan is a plant-based gelatin-like substance that is often incorporated in skincare products in recent years. The water-binding ability of carrageenan gum makes it a great emulsifier and creates a smooth and creamy texture in skincare products.

Use of carrageenan gum has been popular in the food and beverage industry. Meanwhile, its emulsifying properties have led to its adoption in skincare, particularly in moisturizers and lotions. Carrageenan gum makes skincare products creamy, luxurious and smooth, making them easy to apply on the face and body.

Viscous and emulsifying properties of carrageenan gum make it a popular ingredient in toothpaste, shampoos, conditioners, hair masks, and gels. Carrageenan gum effectively prevents oil-based and water-based ingredients from separating, helping the skin absorb moisture derived from skincare products.

Growing preference among consumers for plant-based ingredients in skincare and hair care products also will propelled the demand for carrageenan gums through 2031.

How Will Applications of Carrageenan Gum in Pharmaceuticals Gain Momentum?

Carrageenan gum has garnered considerable attention in the pharmaceutical industry due to its multifunctional qualities such as antiviral, antibacterial, anticoagulant, and antitumor properties. Incorporation of carrageenan gum-based biomaterials in pharmaceutical formulations is increasing in tissue engineering and drug delivery.

Carrageenan gum readily forms into a strong gel when combined with calcium salts, which makes them soluble in water and maintains the elasticity of the product. This compound is applied in the pharmaceutical industry to as an alternative to neuraminidase inhibitors, particularly in nasal sprays.

Besides this, carrageenan gum-based nanomaterials are finding applications in delivery of therapeutic agents including small molecule drugs, genetic materials, and peptides. Carrageenan gum also is used as a stabilizer in nanoformulations for targeting and localizing therapeutic agents into cells.

Being a thermally responsive material, carrageenan is cost-effective and easy to manipulate. These properties are also promoting its application in tissue and skeletal regeneration, further broadening the growth prospects of carrageenan gum in forthcoming years.

What Will Be the Sales Outlook of Carrageenan Gum in the Food Industry & Beverage Industry?

The kappa variant of carrageenan gum is considered food grade, thereby finding applications in diverse verticals in the food and beverage sector. Carrageenan gum contains 25-30% of ester sulfate which can interact with locust beans to form a brittle gel which is used to stabilize dairy products.

In other forms of beverages, food grade carrageenan gum is used in clarification of beer and as a refining agent in wine to separate protein. In terms of liquid food products, carrageenan gum's stabilizing and thickening properties promote its application in various processed foods including ice creams, dressings, sauces, sour cream, and flavored milk.

Carrageenan gum is widely being adopted as a substitute for animal-derived gelatin in vegan food products. Apart from this, applications in bakery goods and confectionaries, particularly in preparation of fondants, gummy sweets, and syrups will propel sales of carrageenan gum in the market.

Besides this, meat consumption across the world is ascending at a fast pace, and the demand for processed and pre-packed meat products is increasing as a ripple effect. Carrageenan gum is used in meat products to enhance the texture and viscosity and to improve the overall shelf life. These factors are anticipated to push demand for carrageenan gum in the food & beverage sector during the forecast period.

Negative Effects of Carrageenan Gum in Pet Food May Hinder Market Growth

Carrageenan gum is actively used in pet food and animal feed for its thickening and stabilizing properties. Even though carrageenan gum is derived from a natural source such as seaweed, consumers are reporting cases of inflammation and health issues in pets.

The chemical structure of carrageenan gum triggers an immune reaction, leading to gastrointestinal inflammation, ulcerations, intestinal lesions, and malignant tumors in animals.

When carrageenan is mixed with acid instead of alkaline, it generates degraded carrageenan, which is prohibited in human food. Scientists across the globe have shown concerns that foo-grade carrageenan may ‘degrade’ once it enters the digestive system, exposing the intestines to this harmful agent.

Although carrageenan gum is safe for consumption in humans, it can easily cause gastrointestinal problems in animals. As pets consume the same food daily, the harmful effects of degraded carrageenan gum may aggregate. Such concerns may restrict the use of carrageenan gum in pet food and animal feed, which is a major factor restricting market growth.

Country-wise Insights

Why is Demand for Carrageenan Gum Rising in the U.S.?

FMI projects steady expansion of the carrageenan gum market at a 3.90% CAGR in North America, with the U.S. exhibiting positive growth patterns. Growth of the carrageenan gum market in the U.S. can be attributed to expansions in the personal care and pharmaceutical industries.

The U.S. is home to numerous global cosmetics companies that are emerging as prominent end-users of carrageenan gum. Growing consumers’ demand for plant-based ingredients in cosmetics is anticipated to improve sales of carrageenan gum in the market.

Apart from the personal care industry, expansions in the food and beverage industry will also create growth opportunities for players in the carrageenan gum market. Presence of global industries such as Nestle and PepsiCo and other companies retailing bakery and confectionery goods will positively shape the demand outlook for carrageenan gum.

How Will the Market Expand Across the U.K.?

Increasing research and development regarding sustainable ranges of carrageenan gum in the U.K. will push demand in the market. FMI projects the market to expand at a healthy 4.40% CAGR in Europe during the forecast period.

Currently, customers are largely favoring natural ingredients in food and beverages and are avoiding products that contain preservatives and chemical additives. This has compelled food and beverage manufacturers to devise sustainable additive options, leading advancements in the carrageenan gum market.

In addition to this, growing population of vegan consumers in the country is anticipated to boost sales of carrageenan gum in the upcoming years. 

What are the Growth Prospects for Carrageenan Gum Market in China?

China has wide seafood and meat consumer base which demands constant premiumization and developments in food quality. This factor has led to increased sales of processed and pre-cut meat in the country.

Growing demand from the meat industry is creative lucrative prospects for emerging and global players operating in the carrageenan gum market.

Apart from the meat industry, increasing demand from the dairy industry to stabilize products such as milk, yogurt, sour cream, and cheese will solidify sales prospects of carrageenan gum in China.

Category-wise Insights

Applications in Food & Beverage Industry to Continue Rising

As per FMI’s market survey, the carrageenan market is expected to experience high demand from the food and beverage industry during the forecast period. Extensive use in dairy products such as ice cream, yogurt, cheese, and flavored milk will provide tailwinds to sales in the market.

Use of carrageenan gum in bakery and confectionery products as a gelling agent will gain momentum, resulting in positive sales prospects. Furthermore, incorporation of carrageenan gum in processed meat products will gain momentum in the upcoming years, creating growth prospects for market players.

Competitive Landscape

As per FMI’s analysis, top 5 players in the market include E. I. du Pont de Nemours and Co., CP Kelco ApS, FMC Corporation, Kerry Group, and Cargill, Incorporated, accounting for 20-40% of the total market share.

Leading players operating in the carrageenan gum market are focusing on mergers, acquisitions, and strategic collaborations to strengthen their footprints in the market. Product innovations, research and development, and production facility expansions will remain prominent growth strategies of market players throughout the forecast period. For instance:

• In June 2021, CP Kelco announced the extension of its distribution chain with Azelis in India, Malaysia, Indonesia, and Thailand. Azeli’s diverse product range and a proven growth track record make them a good distributor of choice for CP Kelco to expand its operations to other countries across the world. Through this partnership, Azelis will distribute the complete range of CP Kelco’s products.
• In July 2021, Kerry Group acquired biotechnology company Biosearch Life to expand its operations in the food ingredient sector. Biosearch will be integrated in Kerry Group’s global ProActive health platform for 'science-backed branded ingredients.

Scope of Report

Key Questions Answered in the Report

• What is the current carrageenan gum market value?

  The carrageenan gum market will reach a valuation of US$ 881.6 Mn in 2021.

• At what rate did the carrageenan gum market grow between 2016 and 2020?

  The animal feed additive market experienced steady growth, exhibiting a 3.30 % CAGR between 2016 and 2020.

• What are the key trends driving carrageenan gum sales?

  Increasing demand from end-use industries such as food & beverage, personal care, and pharmaceutical, coupled with growing preference towards plant-based additives are key trends driving carrageenan gum sales.

• Who are the leading players in the carrageenan gum market?

  E. I. du Pont de Nemours and Co., CP Kelco ApS, FMC Corporation, Kerry Group, and Cargill Incorporated are the leading players operating in the carrageenan gum market.

• What will be the demand outlook for North America Carrageenan Gum Market?

  North America carrageenan gum market is anticipated to witness steady growth at a 3.90% CAGR.

• What is the market share of leading players in the Carrageenan Gum Market?

  Top players in the carrageenan gum market are estimated to account for approximately 20-40% of the total market share.

• What will be the carrageenan gum market share in Europe?

  The carrageenan gum market in Europe is expected to grow at a healthy pace, exhibiting a 4.40 % CAGR through 2031.

• What is the current market share of Japan and South Korea in the global carrageenan gum market?

  Japan and South Korea will account for 4.3% and 2.9% of the total market share respectively.

Global carrageenan gum market segmentation

By Region

• North America
• Latin America
• Europe
• APAC
• Middle East & Africa

By Application

• Food and Beverages
  • Dairy Products
  • Meat Products
  • Confectionery and Bakery
  • Beverages
  • Salads and Dressings
• Personal Care and Toiletries
  • Toothpaste
  • Air Fresheners
  • Cosmetics
• Pharmaceuticals
• Feed and Pet Food