For the Quarter Ending June 2025
North America
• In Q2, the U.S. Agar-agar Spot Price closely followed the Asian trend, with the Price Index rising in April and May due to limited Chinese supply and firm clean-label demand across dairy alternatives and vegan applications.
• April and May saw higher imports as buyers reacted to early signals of tighter supply, pushing the Price Index up despite stable Agar-agar Production Cost Trend in domestic repackaging and distribution.
• By June, with supply pressures easing in Asia, import prices softened and buyer momentum reduced, particularly as off-season demand from food and beverage sectors stalled.
• The U.S. market experienced moderate procurement from nutraceuticals and OTC health products, contributing to a relatively stable Agar-agar Demand Outlook throughout Q2.
• Inventories remained well-balanced, with forward-booked containers from Q1 and early Q2 arriving smoothly due to robust logistical support from Asia-Pacific ports.
• Some buyers adopted a wait-and-see approach in June, anticipating potential price drops after early-quarter stockpiling, contributing to a modest easing in spot trades.
• The pharmaceutical and microbiological sectors sustained steady requirements, helping stabilize baseline consumption despite general demand cooling in food sectors.
• The Agar-agar Price Forecast for early Q3 leans bearish, with downstream players likely continuing cautious procurement amidst price normalization.
• July 2025 saw a Price Index decline in the U.S. as increased global availability, improved Chinese exports, and soft consumer demand in summer-curtailed buying volumes.
• The regional Agar-agar Spot Price correction in July was largely driven by comfortable inventory positions, reduced urgency from key buyers, and softened Asian quotations.
APAC (Japan)
• The Agar-agar Spot Price in Japan saw a cumulative increase of over 3% across April and May 2025 with the Price Index reaching USD 13,150/MT by May due to strong demand for clean-label ingredients and constrained export volumes from China.
• April’s Price Index rose by 1.57% and was supported by Japan's robust Agar-agar Demand Outlook from the food and nutraceutical sectors, alongside tightly managed inventories and selective imports of premium-grade products.
• In May, a 1.70% increase in prices was recorded due to temporary output reductions in China during Labour Day holidays which tightened global supply and pressuring Japanese buyers to continue active procurement.
• Agar-agar Production Cost Trend remained stable across Q2 in APAC, with no reported hikes in raw materials or inland logistics, thus making demand and export dynamics the primary drivers of price changes.
• The Agar-agar Spot Price corrected by 3.35% in June as supply improved post-holiday in China and Japanese demand dropped following the conclusion of seasonal restocking linked to festivals.
• Stable logistics and uninterrupted port operations in Q2 ensured efficient cargo movement; this helped maintain equilibrium in the market when demand dropped in June.
• By June-end, inventory levels were elevated due to heavy April–May buying, while a subdued Agar-agar Demand Outlook from food processors and limited OTC formulations led to restrained purchasing.
• Pharmaceuticals and laboratory sectors maintained their regular procurement across the quarter, but their stable demand was insufficient to absorb oversupplied stock in June.
• The Agar-agar Price Forecast for early Q3 suggests cautious sentiment, as July likely saw either a flat trend or a mild decline in the Price Index, reflecting surplus inventory and routine-level buying.
• July 2025 prices likely decreased marginally due to underutilized inventories, post-festival demand moderation, and improved Chinese export availability, easing pressure on spot pricing.
Europe
• The Agar-agar Price Index in Europe increased in April–May 2025 in tandem with Asian export trends, driven by strong usage in dairy stabilizers, confectionery, and meat substitutes.
• European buyers faced costlier shipments in April and May due to Chinese supply tightening and high procurement competition from Asian buyers, pushing prices up moderately.
• Although the Agar-agar Production Cost Trend remained unchanged within Europe, landed costs increased due to stronger Asian FOB values and bulk container tightness.
• In June, the Agar-agar Spot Price began to correct as shipment flows normalized and demand across the food sector, especially bakery and ready meals, slowed with the onset of summer breaks.
• Pharmaceutical and lab-grade demand remained consistent through Q2, providing support to the overall Agar-agar Demand Outlook even as the food industry reduced call-offs.
• Some importers reported sufficient safety stocks by June, accumulated in anticipation of earlier supply disruptions, leading to muted fresh bookings.
• July procurement activity was restrained as buyers waited for prices to stabilize and managed high Q2 stock levels without urgent replenishment needs.
• The Agar-agar Price Forecast for early Q3 suggests continued price softness, particularly as Asian-origin costs fall and seasonal demand remains tepid.
• July 2025 recorded a Price Index decline in Europe, driven by lower Asian quotations, healthy inventory levels, and reduced demand across holiday-affected food processing operations.
• Overall, Q2 ended with a well-supplied market, moderated demand sentiment, and clearer visibility of downside pricing risks heading into Q3.
For the Quarter Ending March 2025
North America
During the first quarter of 2025, the North American Agar-Agar market showed relatively stable trends, with price fluctuations appearing modest and directionally neutral. Although no sharp changes were recorded, the market leaned toward a cautiously steady sentiment.
The seasonal transition from winter to early spring helped maintain consistent demand from key sectors such as plant-based food, beverages and nutraceutical formulations, where Agar-Agar plays a critical functional role. Strategic procurement by buyers early in the quarter contributed to a well-balanced inventory position, limiting the need for aggressive purchases in the latter half. While tariff-related concerns remained in the background, they did not significantly disrupt trade flows during the period.
On the supply side, importers benefited from relatively stable freight rates and smoother port operations, especially compared to disruptions observed in the prior year. Though price increases were not observed, this market steadiness reflects a well-managed demand-supply balance, supported by anticipatory procurement and predictable consumption patterns. As such, the quarter can be seen as a phase of quiet consolidation within the broader U.S. Agar-Agar landscape.
Asia Pacific
In the first quarter of 2025, the Asia Pacific market for Agar-Agar witnessed a modest price decline, with average quarterly prices in Japan falling by approximately 2.20% on a CFR Tokyo basis. The decline appeared to stem from a combination of subdued downstream demand and balanced inventory levels across key buyers in the food and beverage sector. Procurement activities remained cautious during the early part of the quarter, particularly around the Chinese Lunar New Year period, which typically slows manufacturing and shipping schedules in the region. This seasonal transition—from winter to spring—also meant that demand from nutraceutical and personal care sectors was somewhat restrained as product pipelines were already sufficiently stocked from prior cycles. Moreover, improved supply availability and smooth logistics operations contributed to a stable market environment, giving buyers the flexibility to negotiate prices. While the overall sentiment remained steady, the soft decline in prices can largely be attributed to strategic inventory consumption and moderate offtake rates. Sellers maintained price discipline to preserve margins, but the market's overall tone leaned slightly toward buyers through the quarter.
Europe
In the European market, the first quarter of 2025 presented a mixed yet calm environment for Agar-Agar pricing. While specific quarterly data points were limited, market cues suggest that prices remained mostly steady with slight room for downward correction in some pockets. Buyers across the continent exercised caution amid soft demand signals from the nutraceutical and food application sectors. The mild winter season, coupled with ample carryover stocks from the previous quarter, reduced immediate procurement pressure. Meanwhile, importers in key European ports managed their inbound shipments prudently, leveraging smoother logistics and cost-effective sourcing opportunities. At the same time, rising vigilance around food-grade product quality and regulatory scrutiny kept suppliers focused on maintaining consistency. Although no dramatic changes occurred, the price environment hinted at a slightly buyer-leaning trend, primarily driven by subdued purchasing momentum rather than any major supply shocks. Looking ahead, market participants in Europe appear to be preparing for potential demand resurgence in the second quarter, especially as the seasonal transition encourages renewed activity in the food and personal care segments.
For the Quarter Ending December 2024
North America
In Q4 2024, Agar-Agar prices in the USA experienced notable fluctuations, influenced by evolving economic and logistical factors. October saw a slight uptick in prices, driven by increased demand following Federal Reserve rate cuts that boosted consumer confidence. This was compounded by supply chain disruptions, including extended port congestion, labor strikes, and concerns over potential tariff hikes under President-elect Donald Trump. These factors led to strained supply-demand balances, pushing prices higher.
In November, the market shifted as prices began to decline, driven by softened demand amid inflationary pressures and high interest rates. The appreciation of the U.S. dollar made imports more affordable, while the resolution of the ILA strike helped alleviate some logistical challenges. Coupled with healthy inventory levels, these factors allowed suppliers to lower prices, benefiting consumers and further softening the market. By December, prices saw continued decline, influenced by waning consumer confidence, a seasonal slowdown in demand, and proactive inventory stockpiling in anticipation of potential strikes in January and the Chinese Lunar New Year. Inflation concerns and uncertainty surrounding tariffs led to cautious purchasing behavior, while abundant supply and competitive pricing strategies placed downward pressure on prices.
Overall, Q4 2024 was marked by volatility, with prices initially rising due to supply chain disruptions and demand surges, followed by a decline as inflationary concerns, supply chain resolutions, and softening demand took hold.
Asia Pacific
In the fourth quarter of 2024, the Agar-Agar market in China experienced a fluctuating trend driven by both domestic and international factors. In October, prices surged due to increased demand from China’s recovering manufacturing sector, boosted by government stimulus measures, a rise in domestic and export orders, and the Golden Week holiday. The depreciation of the yuan further contributed by making exports more competitive. However, in November, prices declined as a result of slowing domestic demand, high inventory levels, and weak international demand due to global economic uncertainties. The easing supply of raw materials from improved seaweed harvesting also contributed to downward pressure on prices. By December, the downward trend continued as China’s disinflation and subdued consumer demand, coupled with softening orders from the USA and Europe due to the holiday season, led to oversupply. Suppliers reduced prices to clear excess inventory, leading to further price cuts. Thus, the market in Q4 experienced a cycle of rising prices followed by a sharp decline.
Europe
In Q4 2024, Agar-Agar prices in Germany experienced fluctuating trends, shaped by a range of economic and market factors. October saw a modest price increase, supported by an uptick in business sentiment driven by optimism surrounding economic recovery and the European Central Bank’s third interest rate cut to 3.25%. This monetary easing spurred spending and investment, while supply chain disruptions at Hamburg’s ports, along with proactive inventory stockpiling, created upward pressure on prices.
However, the trend reversed in November, as weaker demand from key end-sectors and the easing of inflationary pressures led to price declines. A significant drop in consumer spending, combined with a 1.9% decrease in energy costs, reduced production expenses. This allowed suppliers to lower prices to remain competitive and adjust to the softened market conditions.
By December, the downward momentum continued, driven by subdued demand, cautious purchasing behavior amid lingering inflation concerns, and increased import costs due to the euro's depreciation. High inventory levels and year-end clearance efforts contributed to price pressure, while harsh winter weather exacerbated logistical delays and further dampened consumer activity. Overall, Q4 2024 saw a shift from initial optimism to more cautious economic sentiment, leading to a volatile yet declining pricing environment for Agar-Agar in Germany.
For the Quarter Ending September 2024
North America
In Q3 2024, Agar-Agar prices in North America displayed a dynamic pattern, influenced by a range of sector-specific factors. The U.S. market, in particular, experienced marked price variability, leading to an unpredictable pricing environment throughout the quarter.
At the start, prices trended downward, primarily due to stabilizing inflation rates, which had previously spiked above 9% but began to ease. This cooling inflation allowed businesses to reduce overhead expenses, creating an opportunity to lower Agar-Agar prices for consumers. However, as the quarter progressed, prices shifted upward in response to both economic and logistical drivers. Consumer confidence reached a six-month peak, spurred by a more optimistic outlook on inflation and the economy, despite persisting concerns in the labor market. This positive sentiment translated into heightened demand for Agar-Agar, pushing prices up.
To manage the anticipated demand increase and possible supply chain disruptions, market participants proactively expanded their inventories. In summary, Agar-Agar pricing in North America during Q3 2024 saw an initial dip followed by an increase, reflecting the complex interaction of economic conditions, consumer sentiment, and supply chain logistics.
APAC
In the APAC region, Agar-Agar prices displayed a mixed trajectory through the third quarter of 2024, shaped by various factors impacting market dynamics. Early in the quarter, prices declined as demand from key sectors softened, leading to fewer new orders. Rising inflation also fostered a cautious spending climate among consumers, which placed additional downward pressure on prices. However, prices rebounded in August and September as demand strengthened across several sectors both domestically and internationally. This increased demand was compounded by proactive inventory management strategies, as businesses aimed to secure stock ahead of possible disruptions. Supply chain challenges, including port congestion and heightened shipping costs, caused delays and contributed to supply constraints. In Japan, the market experienced some of the most notable price shifts, bolstered by positive economic sentiment and strategic inventory buildup by retailers anticipating peak shipping seasons. By the end of the quarter, Agar-Agar CFR Tokyo in Japan reached $12,900 per metric ton, marking a 6% price increase from the quarter’s first half to the second half, underscoring persistent positive market sentiment.
Europe
In the third quarter of 2024, the Agar-Agar pricing landscape in Europe exhibited a mixed trend influenced by multiple factors. Initially, prices fell due to weaker-than-expected demand in the German market, which prompted market participants to take a cautious stance and focus on maintaining significant inventory levels to meet current consumption needs. As the quarter advanced, however, prices began to rise. This shift was fueled by a robust demand from end-user industries and strategic inventory management by companies preparing for potential disruptions. Favorable macroeconomic conditions further supported this trend. Complicating the situation was the ongoing conflict in the Red Sea, which disrupted global maritime traffic and led to logistical challenges, constraining the supply of Agar-Agar. These supply limitations exerted upward pressure on prices as market dynamics shifted. Additionally, improvements in consumer sentiment, particularly in Germany, were crucial in revitalizing demand and creating a more optimistic market outlook. Despite the various challenges, companies actively sought to bolster their stockpiles in anticipation of shipping delays, reinforcing the upward price trend throughout the quarter.
FAQs
Q1. Why did Agar-agar prices increase in April and May 2025 across most regions?
Agar-agar prices rose in April and May due to limited export availability from China during spring holidays, combined with strong seasonal demand from food, nutraceutical, and laboratory sectors. Buyers in regions like Japan, the U.S., and Europe reacted to these signals by accelerating procurement to avoid potential shortages, thereby driving up the Price Index.
Q2. What caused the Agar-agar price decline in June 2025?
The June price correction was primarily the result of normalized Chinese supply, reduced seasonal demand after restocking, and elevated inventories across key markets. Buyers slowed procurement activity, especially in the food sector, leading to softer spot trades.
Q3. Which sectors contributed most to Agar-agar demand in Q2 2025?
Food & beverage sectors—including dairy alternatives, plant-based formulations, and confectionery—remained the primary demand drivers. Steady purchasing also came from pharmaceutical and microbiological laboratories, ensuring a consistent base level of demand.
Q4. What are the Agar-agar price expectations for early Q3 2025?
A softening trend is anticipated for early Q3, especially in July, as markets remain well-supplied and downstream buyers proceed cautiously. The absence of any new supply constraints or major demand surges may keep prices subdued in the short term.
Q5. Are there any supply-side risks to monitor for the Agar-agar market in H2 2025?
While current supply is stable, buyers should monitor weather patterns affecting seaweed harvesting, as well as shifts in regional import policies or regulatory changes in clean-label ingredients, which could influence supply dynamics in the months ahead.
