Carrageenan Market Trends

Growth Drivers

• Surge in the Demand for Bio-Based Food Ingredients to Drive Market Growth
  Manufacturers in the food and beverages industry are increasingly opting for bio-based food ingredients for manufacturing different food products as these ingredients are known to be less toxic as compared to synthetic food ingredients. As such, carrageenan, which is a bio-based food ingredient, is used as a food additive for manufacturing different types of food products. These specialty chemicals enable nutrient and particle suspension and replace fat, and promotes a creamy mouthfeel in several food products. Moreover, these additives also improve sliceability, and further imparts a gelled spoonable texture and retain water and reduce cooking loss. Owing to such numerous benefits, it is used widely to manufacture nutritional supplements, dairy products, pesticides, and skin preparations. On the other hand, the rising awareness and knowledge of bio-based food ingredients in food products amongst the environmentally conscious consumers, along with the increasing usage of carrageenan in the production of bakery products & water-based foods is fueling the demand for the product, which in turn is anticipated to drive the market growth. Moreover, carrageenan is added to the brine solution during the production of hams in order to retain the soluble proteins and to bind free water. Such factors are therefore anticipated to drive the growth of the market during the forecast period.

Challenges

• Availability of Substitutes and Health Effects Related to Carrageenan to Limit Market Growth
  The availability of numerous substitute thickening agents, such as xanthan gum, guar gum, or gellan gum for use in organic products, along with the growing use of modified waxy starch, are some of the major factors anticipated to hinder the market growth in the coming years. Moreover, stringent regulations for the use of carrageenan by regulatory bodies owing to the high inflammatory and toxic properties of carrageenan that impacts the digestive tract, and for causing diseases including rheumatoid arthritis, colon cancer, colitis, and others, are further expected to hinder the market growth.