Surge in Agar-Agar Market Price Disrupts the Asian Market Sentiments

The price of Agar Agar is increasing in the APAC market owing to the increasing demand from the end-use industries, including gelatin and confectionary sectors. The price is increased due to the use of Agar Agar in dentistry and medicine.

In India, the price of Agar-Agar slightly increased by 0.4% during June due to the fluctuations in the cost of raw materials. Agar-Agar is significantly used in Asia-Pacific countries, backed by massive seaweed production. In India, Reliance Industries recently revealed that it would make fuels using algae, which will lead to an increase in the overall price of seaweed products. The process of making biofuel would be carried out sustainably to meet the benchmark of UN Sustainable Development Goals. In India, the trend of veganism is significant, boosting the plant-based product. Agar-agar is the vegetarian substitute for gelatin, used in various food & beverages products.

In China, the price of Agar-Agar increased by 5% during June, backed by being the largest exporter. Agar-Agar is significantly used in the food industries where it is used as a gelling agent and in dairy products, but due to its extensive uses, it is used in other forms. Likewise,  it is a  soluble dietary fiber used as a mild laxative to treat digestive system problems. Agar-agar is utilized in drugs and supplements that support bone health since it is a rich source of calcium and magnesium. Thus, the increasing demand for agar-agar across the pharmaceuticals & nutraceuticals industry is propelling the product's market price in China.

As per the ChemAnalyst database, the price of Agar Agar might increase in forthcoming months on the back of the overall increase in demand from downstream sectors, which may further lead to fluctuations in the pricing dynamics of the product across the Asian market.