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Alginate Market Growth & Trends
The global alginate market size is expected to reach USD 1.02 billion by 2027, according to a new report by Grand View Research, Inc., expanding at a CAGR of 4.7% from 2020 to 2027. Increasing product demand from the processed food industry as a superior thickening and gelling agent is expected to augment the growth of the market.
Growth of the food and beverage industry in BRICS and the Middle East owing to increasing domestic consumption is anticipated to heighten the consumption of alginates. Increasing demand for convenience foods on account of the rising affinity of the consumers towards the consumption of these products is expected to further promote the market growth over the forecast period.
Propylene glycol alginate is expected to register high gains on account of its increasing use in the beer manufacturing industry, primarily for stabilization of beer foam. Therefore, rising consumption of beer across the globe due to the surge in female drinkers and expansion of the retail network in developing regions are expected to increase the demand for alginate in the coming years.
Alginate finds broad application in the pharmaceutical sector and acts as an emulsion stabilizer, thickening agent, disintegrant, and film-forming agent for tablets. Rising demand for alginate in the tablet coatings on account of superior performance characteristics is expected to fuel the product demand over the forecast period.
Buyers in the industry lay increased emphasis on product quality and exhibit low price sensitivity. Consumers in the food industry opt for extensive product customization in order to attain gelling, thickening, or stabilizing characteristics, thereby resulting in increased product prices in the economy. As a result, manufacturers are forced to alter their margins and selling prices.
Alginate Market Report Highlights
- The high G type segment accounted for a share of over 52.0% in terms of revenue in 2019 owing to high adoption by the food and beverage industry due to its superior thickening and gelling properties
- By product, sodium alginate accounted for 41.3% share of the global volume in 2019 and is expected to witness significant growth in the years to come. This can be attributed to its widespread application in the food industry and utilization in the production of sauces, dressings, whipped cream, and jellies
- The pharmaceutical application segment is estimated to expand at the fastest CAGR of 5.5% in terms of revenue from 2020 to 2027. The use of alginate fibers formed through the interaction of sodium alginate solution with calcium chloride for wound healing is projected to emerge as one of the primary growth drivers for the segment
- Asia Pacific emerged as the leading regional market and accounted for a 36.58% share of the total volume in 2019. The increasing application scope of alginate in various end-use industries, coupled with the rapid industrialization in the Asian countries including China, India, and Thailand, is anticipated to drive the regional market in the coming years
- The market is highly competitive due to the presence of a large number of companies involved in product manufacturing. Companies strive to locate their manufacturing locations close to the seaweed vegetation in a bid to minimize the high logistic costs incurred for the transportation of wet seaweed.