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Gelatin Definition
Unsweetened and unflavored gelatin is colorless and odorless. When added to a hot liquid, gelatin causes it to cool to a gelled consistency. Gelatin is made of protein that comes from the bones and tissue of cows and pigs. Prior to the invention of granulated gelatin, cooks had to cook down the bones and tissue themselves to extract the gelatin.
Gelatin and Vegetarians
People adhering to a vegetarian diet, which excludes meat, or a vegan diet, which excludes any animal byproduct (including eggs and dairy), usually refrain from eating gelatin due to its origin. That's not to say these people never eat gelled foods. Prepackaged gelled foods marketed to vegans and vegetarians use a nonanimal based gelatin alternative in their products.
Agar Definition
Agar is also tasteless, odorless and colorless when added to food. But unlike gelatin, agar comes from plant life. Agar is made from seaweed, which means it still has protein (though a different type) but also contains minerals. Agar can be used in any recipe that calls for gelatin, though the final result will gel more firmly than it would using gelatin.
Substitution Amounts
Substitute a tablespoon of granulated agar for one tablespoon of granulated gelatin. Because agar has a higher melting and setting point, read the package directions and heat the liquid hotter than necessary for regular gelatin. A dessert with agar added can also gel at room temperature (which couldn't happen with gelatin), though refrigeration is still advised.