Market Trends of South America Agar Industry
This section covers the major market trends shaping the South America Agar Market according to our research experts:
Rising Demand For Vegan Food Ingredients
As there has been significant growth in the people shifting toward veganism across the region, vegan products are on the high rise. Agar, that is considered as a vegetarian alternative to gelatin, has witnessed a significant rise in its demand, as vegans do not use gelatin because it is made from animal bones, skin, and connective tissue. It is used mostly in food products, such as puddings, desserts, jelly candy, soups, sauces, and more. Also, frequent launches of new vegan beverages, such as vegan wine and others.
Brazil Continue to Dominate the Regional Market
In South America, Brazil holds a significant share in the agar market. This is primarily due to the rising production of agar on the coasts of Brazil. In Brazil, the exploitation of seaweeds for agar production occurs mainly in the northeastern part of the country. Gracilaria of different species is generally harvested in Brazil, mostly in warm waters, that produces a less resistant agar (agarose) to enzymatic hydrolysis. In addition, companies dominating the Brazilian market are highly focused on research and development, which is helping to leverage the emerging opportunities in the forecast period. Also, strategic agreements of domestic players with international distributors to expand its distribution of products in Brazil, such as Agarmex, are thus boosting the Brazilian market.
