Agar – Top Global Industry Trends in 2026

The global agar market is witnessing steady growth, driven by the rising demand for plant-based and vegan alternatives, expanding applications in functional foods, and the increasing adoption of clean-label products across food, pharmaceutical, and cosmetic industries. Agar, derived from seaweed, continues to gain prominence as a natural gelling agent and gelatin substitute, supporting diverse industrial applications.

Valued at USD 307.1 million in 2025, the agar market is projected to reach USD 500.2 million by 2035, registering a CAGR of 5%. The expansion is fueled by sustainable seaweed cultivation, particularly in Southeast Asia, and growing incorporation of agar in dairy alternatives, confectionery, sauces, and innovative microbiological applications.

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Quick Stats – Agar Market

• Market Value (2025): USD 307.1 million
• Forecast Value (2035): USD 500.2 million
• CAGR (2025–2035): 5%
• Leading Form (2025): Agar Powder (56% Market Share)
• Top Application Segment: Food & Beverage (35% Market Share)
• Key Growth Region: Western Europe (UK fastest-growing at 5.2% CAGR)

Agar’s versatility makes it a critical ingredient across multiple sectors. In functional foods, it contributes approximately 2.5% of the market, driven by demand for clean-label, plant-based products. In microbiological culture media, it holds nearly 8% market share, reflecting its essential role in laboratories and diagnostics. Its presence in food additives and plant-based ingredients markets ranges from 1.5% to 2%, highlighting its importance as a natural thickener and gelatin alternative.

Government regulations favoring plant-derived ingredients and sustainability have further supported market expansion. Recent innovations include novel agar formulations for tissue engineering and microbiology culture media. Initiatives in countries like India and Indonesia to scale seaweed farming are enhancing raw material availability, strengthening supply chains, and stabilizing costs.

Continuous advancements in biotechnology and microbiology are unlocking new value across the agar supply chain. Strategic collaborations between agar producers and end-use industries are accelerating product customization and market penetration.

Food & Beverage Leads Application Segment

Food and beverage applications dominate, accounting for 35% of the global agar market in 2025. Agar’s gelling and stabilizing properties make it indispensable in vegan confectionery, puddings, dairy alternatives, sauces, and clean-label products. Manufacturers increasingly prefer agar over animal-based gelatin due to its natural origin, cost efficiency, and consistency.

• Agar enhances gel firmness and texture control for diverse formulations.
• Its plant-derived nature makes it ideal for vegan and vegetarian products.
• Widespread use in processed and packaged foods continues to drive demand.

Powder Dominates Form Segment

Agar powder is projected to capture 56% of the global market share in 2025, thanks to its solubility, ease of handling, and consistent performance. Powdered agar allows manufacturers to fine-tune product textures, integrate easily into liquid formulations, and scale production efficiently.

• Uniform dissolution ensures precise measurements for food and pharmaceutical applications.
• Reliable performance makes it suitable for pre-mixed solutions and industrial production.

Regional Insights

The UK is the fastest-growing market at a CAGR of 5.2%, fueled by vegan, functional, and clean-label trends, alongside strong processing capabilities. France and the USA follow, with growth rates of 5.0% and 4.8%, respectively. Germany’s market grows at 4.6%, supported by confectionery and processed foods, while Japan maintains a steady CAGR of 4.2%, reflecting traditional use and biotechnology applications. Emerging markets such as China, Spain, and South Korea are expanding due to enhanced seaweed cultivation and export-oriented production.

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Top Suppliers and Competitive Landscape

The agar market is moderately fragmented, with key players including Merck KGaA, Thermo Fisher Scientific Inc., Neogen Corporation, and HiMedia Laboratories. Companies focus on R&D, sustainable sourcing, and strategic partnerships to develop application-specific agar products. Innovation in bacteriological-grade and medical-grade formulations, alongside geographic expansion, supports competitive differentiation.

The agar market’s trajectory reflects strong potential for growth driven by plant-based trends, technical applications, and ongoing biotechnological innovations. Stakeholders in food, pharmaceutical, and cosmetic sectors continue to capitalize on agar’s multifunctional properties and natural origins, supporting both product development and sustainability objectives.

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