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Carrageenan Gum Market: Global Industry Analysis and Opportunity Assessment, 2017-2025

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The food and beverages application segment is expected to expand at a CAGR of 4% over the forecast period. This segment was estimated to create absolute $ opportunity of more than US$ 12,000 in 2016 over 2015, and is likely to record an incremental opportunity of over US$ 140,000 between 2016 and 2024. The food and beverages segment is anticipated to dominate the global carrageenan gum market by revenue over the forecast period. In 2024, the food and beverages segment is expected to contribute a revenue share of more than 52% to the global carrageenan gum market.

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Increasing use of carrageenan gum in processed food is expected to drive its demand in the food and beverages segment

The functional properties of carrageenan gum and its versatility meet the needs and requirements of food and beverage manufacturers, as it improves the properties of food such as texture and stability of liquid content. In beverages, it is used for clarification of beer and as a fining agent in wine to remove protein. It is primarily used as a stabiliser, thickener, protein stabiliser, and particle suspension and emulsifying agent in various processed food products such as salad dressings, ice creams, dairy based products, sour cream and chocolate milk. Carrageenan gum is widely used as a substitute for animal based gelatins in various food products for vegan consumers. Carrageenan gum is also used in diverse food applications such as confectioneries, beverages and bakery products. An increasing consumption of carrageenan gum in various processed foods across the globe is anticipated to boost overall growth of the global carrageenan gum market to a certain extent over the forecast period. Another factor driving global revenue growth of the food and beverages segment is that hydrocolloids, especially carrageenan gum, is used in meat products to impart viscosity and texture. Increasing demand for processed meat products globally is fuelling demand for carrageenan gum in the meat processing industry. Moreover, various manufacturers are offering customers pre-packed sliced meat products that require more control of syneresis. In order to control syneresis, carrageenan gum is added to meat products to impart hard texture and enhance the shelf life of the products. This is expected to contribute to the growth of the food and beverages segment of the global carrageenan gum market during the period of forecast.

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By revenue, the food and beverages segment is projected to dominate the North America carrageenan gum market

Increasing usage of carrageenan gum for application in dairy and confectionery products is expected to drive revenue growth of the food and beverages segment globally over the forecast period. The food and beverages industry in Europe and Asia Pacific is expected to witness favourable growth due to regular introduction of new and innovative products coupled with increasing per capita income levels in the respective regions. The carrageenan gum market in Europe is expected to remain dominant in terms of both value and volume share over the forecast period. The Europe carrageenan gum market is anticipated to hold a revenue share of more than 35% in the global carrageenan gum market by 2024, closely followed by the APAC carrageenan gum market with a revenue share of more than 20%. High demand for carrageenan gum for application in meat processing is anticipated to support the growth of the food and beverages segment over the forecast period in Europe. Increasing consumption of processed foods in Asia Pacific is expected to drive demand for carrageenan gum over the forecast period; while in MEA, a growing preference for carrageenan gum as a stabiliser and emulsifier in processed food products is expected to drive growth of the food and beverages segment over the forecast period.

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