Agar Agar Price Trend and Forecast

Regional Price Overview

Get the latest insights on price movement and trend analysis of Agar Agar in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Agar Agar Price Trend for the Q1 of 2024

Asia

The Asian agar agar market is dominant over other global markets as it is the key producing region for agar and its feedstock seaweed. Countries like Indonesia, Malaysia, the Philippines, and Thailand are major producers and consumers of agar.

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The region benefits from favorable climatic conditions and abundant seaweed resources, which drive the agar market growth. Indonesia contributes significantly to the global agar supply, cultivating seaweed extensively along its coastlines. Additionally, the increasing adoption of vegan and vegetarian diets, particularly in developed parts of the world, is driving the consumption of agar as a sustainable, plant-based alternative to gelatin, which is usually sourced from animal-based sources. This trend is anticipated to further boost the agar market in Asia. Overall, the Asia Pacific region currently accounts for more than half of the global agar market volume, making it a key player in the industry's growth and development.

Europe

Various ongoing geopolitical tensions and the ever-stretching Russia-Ukraine war have disrupted the supply chains of key agar-producing Asian countries, leading to price hikes and logistical challenges in transportation. Moreover, declining economies in Europe, marked by high inflation and recession fears, have dampened demand from key end-use industries such as food and beverages, pharmaceuticals, and cosmetics.

To mitigate risks from geopolitical disruptions, several alternative trade routes and ways were also worked out. However, the issues in the Red Sea and another war starting between Israel and Hamas in the Middle East further complicated the pricing situation for agar agar in Europe. Given the high demands and supply crunches, an inclined price trajectory was witnessed.

North America

Since the American agar market also depends largely on Asian imports, their price trends showed a striking resemblance during the given period. The supply chain issues pertaining to the disruptions because of multiple wars in key trading regions of the world affected the supply influx in the American markets. Demands saw a rising trend as veganism gained interest. Because of this, a rising price graph was seen for agar during the said time period.

Analyst Insight

According to Procurement Resource, the Agar Agar price trends are expected to rise further in the coming months as the demand exceeds supplies and the supply chain issues also do not appear to be resolving anytime soon.

Agar Agar Price Trend for the October - December of 2023

Asia

Agar-Agar prices in China saw an increase due to a stable rise in the number of new orders from the domestic market. The market sentiment improved compared to the previous quarters. The market dynamics improved due to stabilization in supply and demand, improved logistics, increased purchasing activities, and a more positive outlook among manufacturers. The upward movement in agar-agar prices was further strengthened by steady and accelerated growth in new orders from overseas markets.

Europe

The European sector moved cautiously in the fourth quarter of 2023 but still was able to show some positive movement in the agar agar price trend. The market dynamics of agar agar were based on the functioning of the cosmetic and food industries. Among these, the food sector faced high inflation due to the slow economic recovery of the region, which in turn supported the agar agar price trend.

North America

In the fourth quarter, after stumbling in the initial phase, the consumer confidence agar agar market inclined. This revival of the agar agar market was driven by the rise in sales in the domestic region. The rate of interest remained at the higher end, but the consumer sector showcased increased spending appetite and thus helped in the rise in the agar agar price trend.

This heightened consumer interest was seen in the demand for Agar-Agar in the food and cosmetic sectors. Additionally, the depreciation of the US dollar against the Chinese yuan in November presented a challenge to imports from China, causing a constrained supply in the US market and contributing to the upward trajectory of agar-Agar prices.

Analyst Insight

According to Procurement Resource, the price trend of Agar Agar are expected to be driven by the cosmetic and food industries’ demand in the upcoming quarters.

Agar Agar Price Trend for the July-September of 2023

Asia

In the Asia Pacific countries, the agar agar price trend traced a downward trajectory due to a number of factors. The most significant of them was the slowing down of the momentum of downstream industries and falling economic indicators.

In addition to this, the Asian currency performed poorly as compared to the US dollar, which further accelerated the downfall of the agar agar price trend. However, towards the end of this quarter, a slim hope of improving market sentiments was seen on account of a moderate rise in demand from the manufacturing sector.

Europe

A fluctuating trend in the prices of agar agar was a result of depreciating market sentiments in the European countries. In addition to this, the number of new orders and demand for agar agar declined by several folds in the region, resulting in the initial downfall of the agar agar price trend.

However, as the quarter progressed, the demand dynamics from the pharmaceutical and healthcare industries started to improve and thus contributed to the rise in the prices of agar agar. This positive outlook of the market helped in the growth of consumer confidence and their spending appetite, supporting the inclining trend of agar agar prices.

North America

In the third quarter, the fall in the number of inquiries, sales numbers, and skyrocketing rates of inflation resulted in a decline in the price trend of agar agar. To curb the problem of inflation and to keep the economy afloat, the banks had to increase their interest rates, which, in turn, had an adverse effect on the overall sentiments of agar agar market. But soon, as seen in the Asia Pacific and European countries, the prices of agar agar started to improve. In view of the shortage of supply, increasing prices of oil and poor trading activities helped in the northward movement of agar agar prices.

Analyst Insight

According to Procurement Resource, the price trend of agar agar is expected to rise with the support of the rising interest of end-user industries.

Agar Agar Price Trend for the First Half of 2023

Asia

In the first quarter of 2023, the price trend of agar agar was affected by the rising uncertainties in the feedstock market. The initial months of the first quarter were not favorable for agar agar prices as the market witnessed a decline in demand and the negative effect of the rising level of inventories. However, in the last phase of the first quarter and throughout the second quarter, the price trend inclined consistently.

During this phase, the demand from downstream industries in both domestic and international sectors and the reduction in the level of inventories supported the agar agar market activities. The uncertain economic conditions of the market led Asia-Pacific countries to slow down their production rates, thus causing the level of inventories to decline.

Europe

In the first quarter, the ongoing Russia-Ukraine conflict and ups and downs in demand from the downstream industries contributed to high uncertainty in the price trend of agar agar. However, the second quarter proved to be favorable for the rise in the prices of agar agar.

The major driver of agar agar demand was the food and beverages sector. This spike in demand in the European countries was not countered by the existing level of inventories that supported the rise in the price trend of agar agar. In addition to this, the economic activities of the region also improved, exerting a positive influence on agar agar prices.

North America

The first quarter of 2023 was affected by the negative impact of the global pandemic and the reduction in sales of downstream businesses. However, the decline was short-lived, and from the second month of the first quarter throughout the second quarter, the price trend of agar agar inclined. It was supported by restricted supply, high rates of procurement from food and beverage industries, and inflation in fuel and food prices.

Analyst Insight

According to Procurement Resource, the price trend of Agar Agar is expected to showcase a mixed trajectory as the trend seems to be supported by the rise in demand from the downstream industries but the rising rates of inflation still prove to be a persistent challenge.

Procurement Resource provides latest prices of Agar Agar. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.