Carrageenan Market Insight
Carrageenan is a major ingredient in the food industry and is used for its gelling, thickening and stabilizing properties. It has wide applications in both dairy and meat products. It is extracted from red algae and has been used in foods for centuries. There are three types of Carrageenans based on the number of Sulphates per disaccharide namely Kappa Carrageenan (one Sulphate), Iota Carrageenan (two Sulphates) and Lambda Carrageenan (three Sulphates). The global Carrageenan Market was worth USD 762.35 million as of 2016. Carrageenan has around 13.3% share of the global food & beverage hydrocolloids market.
Increasing Demand for Processed Food Driving the Market
The major driver of the carrageenan market is the rising demand for processed foods. Within the processed food ingredients, the rising demand for organic ingredients is driving the market for carrageenan. Other very important factor for the market growth is the large number of functional and health benefits of the product. It acts as a stabilizer, thicker, texturing and gelling agent
The dependence on the raw materials for production results in the unstable pricing of Carrageenan. This might have a negative impact on the market. Increasing concerns over gastrointestinal disorders among the consumers have considerably hindered the carrageenan market. Also, the availability of substitutes such as agar, jelly are hampering the market. The substitutes of carrageenan are pectin, gelatin, guar and xanthan gum comprising 17.7%, 21.5%, 9.9% and 8.0% respectively, of the food & beverage hydrocolloids market.
The commonly used sources in carrageenan are Gigartina, Chondrus, Iridaea, Eucheuma. Carrageenans are used in the food industry applications such as dairy products and meat products, Pharmaceuticals and Cosmetic industry. Carrageenans are classified into three types namely; Iota, Kappa, and Lambda. Kappa is the most used carrageenan, as it acts as a stabilizer, emulsifier and bodying agent in cheese, chocolate, ice cream, and puddings. Iota is used for ready-to-eat meals. Lambda is used for whipped cream. The food grade carrageenan is often mentioned as E407 or E407a in processed food ingredients, which means it has processed seaweed. In a few products, the carrageenan is mentioned as dietary fiber.
World Carrageenan production exceeded 56,000 tons as of 2013, and it has a very competitive market in Argentina, Canada, Chile, Denmark, France, Japan, Mexico, Morocco, Portugal, North Korea, South Korea, Spain, Russia and the USA. The Carrageenan market has witnessed a CAGR of 5.2% in the last three years and is expected to grow consistently. Carrageenan is an important salad ingredient and additive in food, personal care, pharmaceuticals and other industrial applications. Personal care products include cosmetics, hand and body lotions, shampoo, soap, toothpaste and gel fresheners. The largest producer for carrageenan in the Philippines which accounts for around 77% of the world's supply. The Asia-Pacific market for Carrageenan is extremely huge as compared to the North America and Europe markets. China is the main exporter of Carrageenan to both the US and Europe. In the US, Carrageenan has found a major application in chocolate milk where it is used for keeping the chocolate in suspension.
Carrageenan is a regulated food additive, and there are concerns over the maximum quantity (in mg) of carrageenan that can be added to food. The major players in this industry are Marcel Carrageenan, Seatech Carrageenan Company, and FMC BioPolymer. Other key players present in the Carrageenan Market includes, ACCEL Carrageenan Corporation (ACC), Rico Carrageenan, Xieli, Global Ocean, LONGRUN, Greenfresh, Gather Great Ocean, Brilliant, TIC Gums, MCPI, TBK, Cargill, ISI, CP Kelco, CEAMSA, Karagen Indonesia, Danisco, CEAMSA, Shemberg, Gelymar,.
Our report on Global Carrageenan Market covers the following: