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Carrageenan growth forecast to slow

8 Mar 2017

In spite of recording global sales of over 60,000 metric tonnes in 2016, Future Market Insights (FMI) predicts that the global demand for carrageenan gum will witness a considerable decline.

Carrageenan growth forecast to slow

In spite of recording global sales of over 60,000 metric tonnes in 2016, Future Market Insights (FMI) predicts that the global demand for carrageenan gum will witness a considerable decline. Its latest research report projects that, by the end of 2024, the global consumption of carrageenan gum will have grown moderately at 4.3% CAGR and surpassed 88,000 metric tonnes.

According to the report, titled "Carrageenan Gum Market: Global Industry Analysis and Opportunity Assessment, 2016-2024," the common fallacy that renders carrageenan gum as harmful ingredient has been instrumental in the decelerated growth in its global sales. Misconceptions arising from the ambiguous status of carrageenan gum as a viable food ingredient has, according to FMUI, restrained the market from attaining a steady growth. The global carrageenan gum market, which is presently valued over $700 million, is anticipated to register a 4% CAGR and bring in close to $1 billion by the end of 2024.

Limited availability of raw carrageenan is also expected to continue to curb the production of carrageenan gum in the world. A majority of carrageenan gum produced across the globe gets consumed by food and beverage manufacturers, FMI notes; the report reveals how more than half of global carrageenan gum revenues are accounted by food and beverage industries.

Carrageenan gum is, it says, also gaining traction in the production of personal care products and toiletries. In 2016, nearly ten thousand metric tonnes of carrageenan gum were consumed by this segment. Meanwhile, pharmaceutical manufacturers are expected to lower their participation in the global consumption of carrageenan gum, owing to the ingredient's speculative status and prolonged FDA approvals. Carrageenan gum will also be used in production of animal feed and pet food products, revenues from which are projected to surpass $200 million by the end of 2024.

A regional analysis of global carrageenan gum market projected higher demand for carrageenan gum in Europe. The report believes that Europe will contribute to more than 35% of global carrageenan gum revenues throughout the forecast period. Revenues emanating from Europe are also expected to rise at 4.4% CAGR, while the region's carrageenan gum consumption will register growth at 4.8% CAGR. Meanwhile, North America and Asia-Pacific will collectively account for almost 50% of global carrageenan gum revenues through 2024. Latin America's carrageenan gum market, on the other hand, will bring in nearly US$ 120 million in revenues. Middle East & Africa's carrageenan gum revenues, however, will be registering the slowest CAGR over the forecast period.