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As long as its cost is the same or higher, nothing will come from this. Similarly to synthetic mica in cosmetics. It's not only free from the ethical issues, but also higher quality. And yet, almost all companies continue using natural mica - sourced from India's child labor - because it's cheaper.
Another example is gelatin in jellies. It's disgusting and makes inferior candies, but it's cheaper and so all the companies use it.
The market's invisible hand, eh?
Can you tell me more about gelatin? It makes inferior candies compared to..?
Agar is the best literal gelatin alternative, though it's incredibly rare in jellies.
Where I live, vegan/gelatin-free jellies are usually made with either Pectin or with a mix of wheat flour, coconut oil and rapeseed oil. The latter is fairly common, and somehow makes delicious jellies. Even meat eaters I know agree that they are considerably better.
That's new to me. Where I live agar is the inferior (read: less desirable, cheapest) ingredient to jellies when compared to gelatin (most common, but more expensive than agar) or konjac (best imo).
My personal preference is also konjac, then gelatin. I haven't tried this pectin stuff.
What do you call the jelly made with coconut and rapeseed oil?
Agar may very well be inferior to gelatin. I've only tried it once or twice, because it's insanely rare in my area. And I've never seen konjac jellies, so can't say anything here.
I don't think it has any name of its own. It's just some mass made of wheat flour, coconut oil, rapeseed oil and corn starch (forgot about this one earlier). Also not sure if all these ingredients are always together. You can find this combination in German company Trolli's vegan jellies. Definitely others too, but this one comes to mind right now.
Konjac is from East Asia afaik, a plant extract (probably from a plant of the same name) It has a chewy texture that I really like. Also touted for being zero calories, has become a 'healthy food filler'.
From your description the rapeseed/coconut oil 'jelly' sounds more like a pudding?