Carrageenan - Procurement Best Practices & Sourcing Strategies

Procurement Market Intelligence Report

Carrageenan – Procurement Best Practices & Sourcing Strategies

Carrageenan Market – Executive Summary, Hydrocolloids Market Overview, Carrageenan Market Analysis, Market Monitoring Dashboards and Insights, Purchasing Process, Supplier Analysis

1. Executive Summary
1.1. Global Market Outlook
1.2. Supply Market Outlook
1.3. ELINT’s Recommendations for an Ideal Category Strategy
1.4. Category Opportunities & Risks
1.5. COVID-19 Impact
2. Hydrocolloids Market Overview
2.1. Global Supply–Demand Analysis
3. Carrageenan Market Analysis
3.1. Value Chain
3.2. Global Supply–Demand Analysis
3.3. Feedstock Analysis
3.4. Carrageenan Processing and Application
4. Market Monitoring Dashboards and Insights
4.1. Price and Cost Analysis
5. Purchasing Process
5.1. RFP Builder
6. Supplier Analysis
6.1. Procurement Strategy: Best Practices
6.2. Supplier Analysis
6.3. Sustainability Initiatives and Best Practices

What is the projected size of the carrageenan market in 2023?

 

The carrageenan industry is predicted to grow to 1.64 million metric tonnes (MMT) by 2023.

 

What factors contribute to the positive outlook for the carrageenan market?

 

The market’s positive picture is driven by a 2.85% growth in supply, indicating a healthy balance in production and demand forces. An increasing need in the food and beverage industry, clean label trends, and rising pharmaceutical and cosmetics use all contribute.

 

Which regions are significant in the production of carrageenan?

 

The Philippines leads the world in carrageenan production with a 77% share, followed by the European Union (14%), the Rest of the World (9%), and the Asia-Pacific (APAC) region, which is an essential driver in global carrageenan production.

 

Who are the leading players in the Carrageenan market?

 

Cargill Inc., Vikas WSP, Vasundhara Industries, Tate & Lyle Plc., Hindustan Gum Chemicals, Locust Gum Chemicals, and Neelkanth Polymers are key market players. Their partnerships and discoveries contribute to the carrageenan industry’s continued expansion.

DESCRIPTION

Global Carrageenan Market Size

 

As per the latest research statistics, the global carrageenan market is in an ideal state to witness significant growth. According to ELINT Market Research, the carrageenan industry will likely experience a favorable landscape in 2023, with a substantial size of 1.64 million metric tonnes (MMT). These promising numbers indicate a sustainable upward trajectory, pointing towards a growing global demand for carrageenan. Carrageenan is a natural ingredient with vast application in natural and organic products that complement emerging health and wellness trends. A large consumer base is showing their interest in unique products with clean labels, boosting the overall demand for carrageenan.

 

An important factor that makes the carrageenan market look promising is the notable increase in supply at a rate of 2.85%. This growth shows how strong and flexible the market is, as it stays ahead of the growing demand for carrageenan. The wide expansion rate aligns with the complex aspects of the global hydrocolloid industry, which is mainly dependent on carrageenan. The industry’s higher growth rate resonates with the increasing demand for hydrocolloids in numerous sectors, such as food and beverages and pharmaceuticals.

 

Market Definition

 

Carrageenan, a green seaweed product, is essential in many businesses because of its unique properties. It is an integral part of thickening and keeping compositions steady, which makes it liked by many who produce food, drugs, and cosmetics. Carrageenan’s unique qualities quickly gel and stabilize mixtures, making it valuable for many uses. Carrageenan gives things the right thickness and form, finding diverse application scope.

 

Carrageenan Market Drivers

 

  • Pharmaceutical and Nutraceutical Sector Expansion:

 

Carrageenan’s gelling and stabilizing properties apply to pharmaceuticals, nutraceuticals, and the food industry, driving the higher demand. Rapidly expanding pharmaceutical areas contribute to market expansion.

 

  • Rising Demand for Processed Foods:

 

Growing consumer preference for high-quality convenience food products positively influences the carrageenan industry. Its features boost the overall texture and stability of the foods, resulting in a surge in popularity.

 

Carrageenan Market Challenges

 

  • Alternatives and Substitutes:

 

The availability of other hydrocolloids and substitutes challenges the carrageenan industry. Continuous research and development is required to maintain market competitiveness.

 

  • Regulatory Scrutiny:

 

The carrageenan industry faces regulatory challenges, with worries regarding its safety in specific food applications. Overcoming these challenges would necessitate industry collaboration and strict adherence to quality standards.

 

Carrageenan Market Opportunities

 

  • Emerging Applications in Non-Food Industries:

 

Carrageenan exploration in non-food industries such as cosmetics and personal care products offers significant potential. The ingredient’s adaptability and natural profile make it appealing for applications outside the food and beverage industry.

 

  • Geographical Expansion:

 

Opportunities exist for expanding market presence in underserved areas. Carrageenan manufacturers should explore new markets in developing countries with rising demand for processed foods.

 

Carrageenan Market Segmentation

 

  • Application: As per the application scope, the research report classifies the market into food, cosmetics, pharmaceuticals, and others,

 

  • Product Type: The research divides the market into kappa, iota, and lambda carrageenan based on product type.

 

  • Regional Outlook: As per the regional distribution, the research segments the market into Europe, Latin America, Asia Pacific, North America, the Middle East, and Africa.

 

Regional Dynamics

 

The Philippines is the leading carrageenan producer in the region. They have a massive 77% share because of their excellent weather, innovative farming methods, and robust delivery system. The European Union (EU) is second with a 14% share due to stringent policies ensuring quality delivery and growing demand for natural ingredients. The rest of the world (ROW) gives 9%, with countries apart from the Philippines and EU being important because they have different domestic conditions and growing markets.

 

As per the regional industry analysis, the Asia-Pacific (APAC) region will emerge as a significant consumer of carrageenan in 2021, with a high rate of industrialization, a rapidly growing food and beverage industry, and rising awareness among consumers of the health advantages of carrageenan. The recent research assesses the notable sub-categories during 2022-2023, where Guar Gum is in a leading position with a 15.87% share, indicating its vital role in cosmetics, foods, and pharmaceuticals. Xanthan Gum follows the trend with its firm position at second with a 5.9% share, and carrageenan grabs third at 2.3%, complementing its versatile characteristics for the food and pharmaceutical industries. Conversely, corn starch maintains its lead with a 20.6% share because of its massive role in the food and textile sectors.

 

Optimum Contract Length

 

In the highly dynamic carrageenan industry, the perfect contract time is crucial to ensure a smooth supply chain and satisfy the different needs of diverse industries. A 3 to 6-month contract in the food business is an ideal option. This time frame matches the fast nature of the business world. It lets companies quickly change their strategies as people’s choices and market trends shift. In the oil and gas business, where things work on a vast scale, contracts lasting up to 12 months are best. This significant period is essential for making good stock deals and setting the stage for long-lasting work. Constant contact change under three months is the best for other industries. This short-term plan helps businesses other than food and energy to change quickly and manage their changing needs.

 

Cost Drivers

 

Carrageenan (yield decline of 15%): The market faces issues due to a 15% drop in carrageenan yield. Climate fluctuation, agricultural practices, and other environmental factors influencing seaweed development could all be responsible.

 

Price Forecast

 

Despite yield issues, the price outlook for carrageenan in 2023 remains optimistic, with a forecasted increase of 3-5%. Rising demand, supply chain dynamics, and overall market attitude all impact this.

 

Recent Activities in the Carrageenan Market

 

  • M. Huber Corporation recently acquired Biolchim Group, a prominent manufacturer and distributor of specialized plant nutrition solutions. This acquisition comprises the entire Biolchim Group, including West Coast Marine-Bio Processing Corp., which is critical in the manufacturing and delivering seaweeds such as carrageenan.

 

  • NoriZite Nasal Spray, a cutting-edge medication aimed at reshaping respiratory health, has been launched by Birmingham Biotech Ltd. This new nasal spray seeks to give unmatched protection against a range of respiratory infections by including carrageenan, a robust antiviral ingredient. The small package allows for portability, allowing customers to take NoriZite’s protective barrier wherever they go.

 

Carrageenan Market Players

 

The carrageenan market’s key players have a significant impact on its trajectory. Cargill Inc., Tate & Lyle Plc., Hindustan Gum Chemicals, Vikas WSP, Vasundhara Industries, Locust Gum Chemicals, and Neelkanth Polymers are market leaders, significantly contributing to market growth through innovation, strategic partnerships, and global market expansion.

Additional Information

Purchase Option

Multiple User License, Single User License

Quantity
Shopping Basket