Food Grade Carrageenan Market Analysis

Carrageenan, gets its name from ‘carragheen’, a village in Ireland, where seaweed grows along the coast. Carrageenan, which is used in food processing, is mostly grown in Philippines, Indonesia, Vietnam and other nearby Asian countries.

Market Dynamics: 

One of the major drivers of the food grade carrageenan market is the rising demand of processed foods. With increasing awareness about the ingredients of processed foods, the demand for organic ingredients is also on the rise. Other very important factor for the growth in carrageenan market is the multi-functionality of the product. It acts as a thicker, stabilizer, texturing and gelling agent. This replaces a lot of other products used in processed foods. In various studies, it has been found that with food-grade carrageenan (undegraded), a small percentage of degraded carrageenan was present. This resulted in health problems like colon inflammation and ulcers. Due, to this, there goes a controversy, whether carrageenan is good for consumption or not.

Market Segmentation:

The food grade carrageenan market is segmented on the basis of application, function and source. On the basis of application, the market is segmented into dairy, meat & meat products, bakery, confectionary, beverages, sauces and others. On the basis of the function, the food grade carrageenan market is further divided by gelling, thickening, stabilization and coating. And, the source of deriving carrageenan is segmented by marine, animal and plants.

Regional Outlook:

The food grade carrageenan market is segmented on the basis of regions into North America, Latin America, Western Europe, Eastern Europe, Asia-Pacific excluding Japan (APEJ), Middle East & Africa (MEA) and Japan. Asia-Pacific is estimated to hold the largest share in the industry, with rising number of applications. European Union and Latin America are also large producers of food-grade carrageenan, which is exported all over the world.

Market Players:

The major players in the food grade carrageenan industry are, DuPont (U.S.), Cargill (U.S.), Kerry Group (Ireland), CP Kelco (U.S.), Ashland Inc (U.S.), Ingredion (U.S.), TIC Gums (U.S.) and Tate & Lyle (U.K.). Cargill and DuPont are estimated to be the leaders in the industry, with major production in Southeast Asian countries like Indonesia, Vietnam and Philippines. Carrageenan’s, are mostly purchased on the basis of their functionality in specific food applications and not as commodities. Most of the major carrageenan manufacturers concentrate on investing their budgets to maintain active applications in food industry and technical marketing groups to serve the ever-changing needs of their customers.

The report is a compilation of first-hand information, qualitative and quantitative assessment by industry analysts, inputs from industry experts and industry participants across the value chain. The report provides in-depth analysis of parent market trends, macro-economic indicators and governing factors along with market attractiveness as per segments. The report also maps the qualitative impact of various market factors on market segments and geographies.

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