Asia-Pacific Carrageenan Market – Growth, Trends, and Forecast (2018 - 2023)
The Asia-Pacific carrageenan market was worth USD 244.2 million in 2016 and is estimated to register a CAGR of 6%, during the forecast period 2018-2023. Carrageenan has a wide demand due to its wide use as an ingredient and additive in food, personal care, pharmaceuticals, and other industrial applications.
Philippines is the largest producer of semi-refined carrageenan in Asia-Pacific contributing to over 75% sales in Asia. Many companies have set up shop in Philippines on account of high cultivation rate of Carrageenan and low cost of labor.
Carrageenan is mostly produced in the Asia-Pacific region. Growth in demand of processed foods, low fat meat, and emerging pharmaceutical industry are the driving factors for carrageenan in the Asia-Pacific region. Also, heavy demand for carrageenan is being observed from the cosmetic producers and other regions.
However, certain factors posing as a hindrance to the growth of the Asia-Pacific carrageenan market - its adverse effect on health, such as gastrointestinal and inflammatory ailments. Moreover, substitutes of carrageenan is growing in the market which can further act as a restraint in the growth of Asia-Pacific carrageenan market.
The growing demand for carrageenan in the food & beverage sector, pharmaceutical industries, and others opens up huge opportunity for the Asia-Pacific carrageenan market. Moreover, increased export demand from regions, like North America and Europe as a result of changing life style and shift towards processed food further opens up new opportunities for carrageenan producers in the Asia-Pacific region.
The Asia-Pacific carrageenan market is segmented on the basis of type, application, grade, source, and region. Kappa is the most used carrageenan, as it acts as a stabilizer, emulsifier, and bodying agent in cheese, chocolate, ice cream, and puddings.
Indonesia is the second largest carrageenan producer with a market value of USD 112.4 million in 2016. China is a major exporter of carrageenan to the US and Europe.
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