Shemberg eyes new markets for seaweed product

MACTAN, Cebu – Shemberg Marketing Corp. (SMC), one of the major players in the global seaweed industry, is eyeing China, India, the ASEAN countries and Australia as possible new markets for carrageenan.

At the same time, SMC is negotiating with several transnational pharmaceutical companies which plan to shift from using animal-based gel capsules to carrageenan-based capsules.

SMC chief executive officer Benson Dakay said his company is planning an intensive marketing campaign to pitch its food grade carrageenan in these new and emerging markets.

"The market has become very competitive especially in traditional markets where we already have a strong foothold, that’s why aside from trying to maintain these markets, we have to find new markets with the greatest potential to have applications for our products, especially our food grade carrageenan," said Dakay.

Currently, the world food carrageenan demand is estimated at 35,000 metric tons (MT) per year. This is supplied by 20 processors and 80 percent of this demand is cornered by 10 major suppliers such as US-based FMC Marine Colloids with a 21-percent market share, Hercles/CP Kelco with 16 percent and Shemberg with 13 percent.

In the next 10 years, worldwide demand for food grade carrageenan which is expected to grow 2.8 percent annually is projected to reach 70,000 MT annually.

In the US, SMC supplies 95 percent of the requirement of the chocolate industry and 30 percent of the processed meat market’s requirements.