The Total Addressable Market (TAM) for Carrageenan was valued at USD 864.38 million in 2022. It is projected to reach USD 1435.73 million by 2031, growing at a CAGR of 5.8% during the forecast period (2023-2031)
Carrageenan is a polysaccharide that is naturally derived from red algae or seaweeds and is used as an additive for food preparations. The demand for carrageenan is rising significantly on account of the shifting preference toward processed foods. Carrageenan is widely used as an excipient in the pharmaceutical industry. In the cosmetic industry, its salts, such as calcium carrageenan, potassium carrageenan, and sodium carrageenan, are used in the formulation of a variety of cosmetic products, including dentifrices, shampoos, shaving creams, and cleansing products. However, it is believed that the consumption of carrageenan can result in serious health problems, such as inflammation, bloating, irritable bowel disease, and even colon cancer, which might hamper the market growth during the forecast period.
The pharmaceutical industry has been paying close attention to carrageenan gum because it has been demonstrated to have a variety of pharmacological properties. The use of biomaterials derived from carrageenan gum in the medical field is expanding as tissue engineering procedures call for sophisticated developmental testing techniques. When combined with calcium salts, which makes them water-soluble and maintains the product's elasticity, carrageenan gum quickly transforms into a solid mass on its own. Pharmaceutical firms use this as a substitute for parasympathetic nerve inhibitors, primarily in nasal sprays. Carrageenan-based nanomaterials are used to deliver therapeutic agents like small molecule drugs, genetic materials, and peptides in addition to derivatives from carrageenan gum. Additionally, carrageenan gum is used as a nano formulator for local tissue targeting and medicalization of therapeutic agents. Being a material that responds to heat, carrageenan is very affordable and simple to use. There is a higher chance that carrageenan gum will be successful in the near future because of its ability to treat skeletal and connective tissue injuries as well as restore vision.
Carrageenan, a substance used in medicine, is created from fragments of various red algae or seaweeds. Carrageenan is used to treat intestinal issues, tuberculosis, bronchitis, and coughs. The form that the French use has been altered by the addition of acid and high temperatures. This form is used as a bulk laxative and to treat peptic ulcers. Chemicals in carrageenan may lessen intestinal and stomach secretions. Carrageenan has been used as a laxative because it appears to draw water into the intestine in large doses. Carrageenan may also lessen discomfort and swelling.
Dog food and animal feed frequently contain carrageenan gum because of its stabilizing and thickening capabilities. Although carrageenan gum is also derived from a non-synthetic source, consumers have been blaming pet food producers for the unfavorable health effects it has on animals. In animals, the chemical makeup of carrageenan gum causes a systemic allergic reaction that leads to gastrointestinal inflammation, ulcers, intestinal lesions, or tumors. Thus, it can slow down the carrageenan market throughout the forecast period.
In recent years, the plant-based gelatin-like substance carrageenan has become widely used in skincare products. Because of its innate ability to bind water, carrageenan is a powerful emulsifier and produces a smooth, creamy texture. Due to its ability to emulsify, carrageenan gum has gained popularity among food and beverage manufacturers. Due to its emulsifying abilities, moisturizers and lotions, in particular, use it. Skincare products made with carrageenan gum are creamy, luxurious, and smooth, making them simple to apply to the face and body. Carrageenan gum has additional uses in toothpaste, shampoos, conditioners, hair masks, and gels due to its viscous and emulsifying qualities. In order for skincare products to moisturize the skin, carrageenan gum prevents the separation of active ingredients with water and oil bases. The demand for carrageenan increased in the second half of 2032 due to the rising demand for plant-based ingredients as fillers in skincare and hair care products.
| Study Period | 2019-2031 | CAGR | 5.8% |
| Historical Period | 2019-2021 | Forecast Period | 2023-2031 |
| Base Year | 2022 | Base Year Market Size | USD 864.38 Million |
| Forecast Year | 2031 | Forecast Year Market Size | USD 1435.73 Million |
| Largest Market | Europe | Fastest Growing Market | North America |
Europe region is the highest contributor to the market and is expected to grow at a CAGR of xx% during the forecast period as the region possesses a well-established food and beverage industry, which is also one of the most significant contributors to the region's economy. As per FoodDrinkEurope, the food and beverage industry's annual turnover was around USD 1.1 trillion in 2021. The EU is also the largest exporter of food and beverage goods in the world, with 145 billion euros in extra-EU exports and a 67 billion euro trade surplus.
According to Eurostat, the production of raw milk from farms in the European Union stood at 161 million tons in 2021, which was a year-on-year increase of 0.7 million tons. The majority of the milk is used in the production of cheese, which is further boosting the demand for carrageenan in the regional market. Additionally, the seaweeds used in the production of carrageenan are prominently found in the western part of Europe. Thus, the abundance of raw materials for the production of carrageenan provides an impetus to regional market growth.
North America is expected to witness dynamic growth in the market during the forecast period. The rise in demand from the pharmaceutical and personal care industries is to contribute to the expansion of the carrageenan gum market in the United States. The US is home to a number of international cosmetics manufacturers. The market for carrageenan gum is expected to expand as more consumers choose skin care products that use plant-based ingredients. In addition to the food industry, growth in the personal care market will offer players in the carrageenan gum market opportunities for expansion. The need for carrageenan gum will increase dramatically if major multinational corporations like Nestlé and PepsiCo leave the food and confectionery industries.
Asia-Pacific is expected to witness significant growth in the market during the forecast period as carrageenan is widely produced in nations like China and the Philippines. Carrageenan's market is expanding as a result of its widespread use in pharmaceutical products used to make gel-based medications. Carrageenan demand in the area is also being driven by the cosmeceutical industries' rising demand. China has a sizable base of consumers of seafood and meat, necessitating ongoing improvements and development in food quality. This has led to substantial sales of canned, deboned, and processed meat as well as strong profits for the companies that make walking shoes and food. International players will have creative opportunities as new options for automakers emerge from the glycerin carrageenan market. The vital dairy sector will maintain the steady rise in demand for milk products, such as yogurt and sour cream, as it has in China. This will increase sales and market share for the carrageenan gum sector.
The LAMEA region is expected to witness moderate growth in the global market during the forecast period. According to data, the UAE's skincare market generated $1.2 billion in revenue last year, of which 24% came from online sales alone. This growth in the skincare market in the middle-east will propel the market growth of carrageenan.
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The kappa segment is the highest contributor to the market and is expected to grow at a CAGR of xx% during the forecast period. Kappa is the most widely used carrageenan in the market and is extensively used as a gelling agent in dairy products. It is added to cottage cheese and ice creams in order to prevent the separation of whey and control the texture of the ice cream. Additionally, it can also be used with locust bean gums to strengthen the gels and make them less elastic. The increase in the demand for dairy products in recent years, which is primarily driven by the growing population, increasing per capita income, and rising number of health-conscious consumers, fosters segment growth.
The Iota segment is expected to witness a higher CAGR. The Iota-carrageenan structure is also a linear polysaccharide and soluble in hot water. Iota carrageenan gels are thixotropic, which is why they are largely used in cold-filled products. In the food and beverage industry, at low-level usage, iota-carrageenan is used in salad dressings and soy milk.
The food and beverage segment is the highest contributor to the market and is expected to grow at a CAGR of xx% during the forecast period. In the food and beverage industry, carrageenan is primarily used as a thickener, gelling agent, stabilizer, and glazing agent. The food and beverage segment dominates the carrageenan market in terms of both usage and value. Increasing health awareness, coupled with a shifting inclination towards healthy eating habits, has compelled manufacturers in the food and beverage industry to incorporate carrageenan in the products as it is naturally procured. In the daily and alternative segment, it is used as a stabilizer and texturizer for neutral dairy products, such as cheese, yogurts, and butter.
The pharmaceutical segment is expected to grow at a significant rate. Carrageenan is used as a viscosity-enhancing agent for controlled drug release and prolonged retention. It is also used as an inactive excipient in tablet production and can also help in tissue regeneration with therapeutic bio-macromolecules and for cell delivery. Globally, the prevalence of chronic diseases is increasing at an alarming rate on account of the rising geriatric population and sedentary lifestyles, which has compelled governments to invest heavily in their pharmaceutical and healthcare industries. As per the Indian Brand Equity Foundation (IBEF), India plans to invest USD 1.3 billion to increase the production of pharmaceutical ingredients domestically by 2023.
The pandemic has resulted in lockdown in almost all the world countries backed up by stringent government regulations such as the opening of only "essential services," restricted inter and intrastate commute following social distancing. A surge in the adoption of digital services, mainly social media, has been observed. Further, the gradual 'Unlock'leadsto the e-commerce segment's reemergence due to maintaining physical distance while shopping in retail. Thus, a tremendous shift is being observed from physical shopping to online shopping, thereby bolstering the growth of AI in the fashion market.
In January 2022, Cargill Inc opened a food innovation center in India to meet the growing consumer demand for nutritious and healthy food solutions.
In November 2022, Caldic B.V acquired CAIF, which is a supplier of premium and naturally sourced ingredients in West Columbia.
