Algae Extracts Market - 2024-2031

Algae Extracts Market - 2024-2031

Global Algae Extracts Market reached US$ 6.1 billion in 2022 and is expected to reach US$ 10.3 billion by 2030, growing with a CAGR of 6.8% during the forecast period 2024-2031.

Algae extracts have become increasingly popular among consumers due to their nutrient-dense properties. They are widely used in various industries, including food, pharmaceuticals, and cosmetics. Additionally, these extracts possess anti-bacterial, anti-oxidative, antimicrobial, and anti-inflammatory properties, making them even more valuable and driving further growth in the market.

Manufacturing sectors are actively creating inventive products and integrating them into diverse applications. For instance, in May 2022, Netherlands-based Aliga developed a new variety of golden chlorella. Enabling the inclusion ad nutrients in plant-based food. These developments can help in driving the market growth.

The red algae segment dominates the global algae extracts market. North America dominates the other regions, as the manufacturing companies are launching different products using the algae extracts to reach the consumer's demand in this region, hence it can help in driving the global algae extracts market.

Dynamics

Growing the Usage of Algae Extracts in Various Industries

The demand for algae extracts is rising across various industries because they offer essential nutrients, vitamins, and other beneficial properties. This has led to the inclusion of algae extracts have skin-nourishing properties, highly used as an ingredient in various cosmetic products. Also, algae extracts are used in the pharmaceutical industry for their medicinal properties.

In addition, manufacturers are prioritizing the use of algae extracts and the development of innovative products of personal care products in their portfolios. For instance, in August 2023, BASF SE launched Seanactiv fucoidan-rich algae extract to refresh and revitalize the eye contour. The seanactiv harnesses the power of fucus vesiculosus fucoidan to limit visible signs of aging and fatigue around the eyes.

Increasing Research and Development Activities in Algae Extracts

Advancements in biotechnology have a vital role to play in the creation of genetically modified algae strains with improved characteristics, such as higher yields, and others. These improvements can result in more sustainable and productive algae cultivation. Therefore, increasing investment in research and development (R&D) is crucial for driving algae growth.

In addition, numerous manufacturing companies are involved in extending their product portfolios by launching a diverse range of products. For Instance, in November 2022, Merck KGaA launched two new cosmetic active ingredients RonaCare JouvaMer and RonaCare ReviMer, specifically developed for natural skin renewal for the market.

High Production Cost

High production costs can significantly restrict the growth of the algae extract market. Cultivating algae requires specific nutrients such as nitrogen and phosphorus, as well as energy to maintain optimal growth conditions like temperature, light, and nutrient levels. These requirements can contribute to higher production costs. According to Hazewinkel, the founder, co-owner, and chief commercial officer of the Dutch firm LGem, the cost price per kilogram of algae is too high due to the demand for labor, water, and energy. It currently ranges from 300 to 900 euros.

Segment Analysisn

The global algae extracts market is segmented based on type, source, form, application and region.

Increase in Red Algae in the Cosmetic Industry

The red algae segment accounts for the maximum share in the global algae extract market. Cosmetic companies are increasingly using red algae in their products due to its hydrating properties, rich antioxidants, and amino acids, which provide anti-aging benefits and moisturize the skin. Therefore, the wide applications of red algae in various cosmetic products can contribute the market growth.

In addition, cosmetic companies are developing different cosmetic products by using algae extract. For instance, in June 2020, Organic Bioactives launched its OceanDerMX portfolio of multifunctional skincare ingredient blends, made with hand-harvested New Zealand red algae extract. OceanDerMX imparts natural anti-aging, moisture-binding, antioxidant, and pollution-protecting elements to cosmetic products by enhanced delivery, as well as added actives.

Geographical Penetration

Product Developments in North America

North America has been a dominant force in the global algae extracts market and its significance has only grown in the post-2020 era. Consumers in this region are highly adopting algae extracts across various industries offering a wide range of benefits. Therefore, these factors can contribute to propelling the global algae extract market.

Furthermore, manufacturing companies in this region are continuously developing various products with algae extract to meet consumer demand. For instance, in June 2023, two regenerative agtech companies, Cascadia Seaweed, and Refeed Canada, partnered to launch Cascadia’s first agricultural product—a liquid plant food made from seaweed extract. ReFeed seaweed extract is a natural liquid plant food crafted from the extract of cultivated, cold-water kelp. It contains essential nutrients for growth and is ideal for a wide range of growing purposes.

Competitive Landscape

The major global players in the market include Cyanotech Corporation., Algenol, Far East Microalgae Industries, Co., Ltd., Pond Tech, Seagrass Tech Private Limited, E.I.D. - Parry (India) Limited., Firglas, Olmix, Technaflora Plant Products Ltd, and Phycom.

COVID-19 Impact Analysis

The COVID-19 has affected economies and industries in various countries due to lockdowns. Many companies shut down various plants and factories has affected the global supply chains and negatively impacted the manufacturing, delivery schedules, and sales of products in the global algae extract market.

Microalgae could potentially have a positive impact on COVID-19. Various studies conducted during the COVID period suggest that the extract from the blue-green microalgae A. platensis might serve as an appealing resource for combating COVID-19, contingent on the techniques employed for culturing, harvesting, drying, and extracting its bioactive substrates. The production scheme for microalgae biomass primarily involves two processes: (I) the Build-Up process and (II) the Pull-Down process.

By Type
• Microalgae
• Macroalgae

By Source
• Red Algae
• Green Algae
• Brown Algae

By Form
• Solid
• Liquid

By Application
• Food and Beverages
• Personal Care
• Pharmaceuticals & Nutraceuticals
• Animal Feed

By Region
• North America
U.S.
Canada
Mexico
• Europe
Germany
UK
France
Italy
Russia
Rest of Europe
• South America
Brazil
Argentina
Rest of South America
• Asia-Pacific
China
India
Japan
Australia
Rest of Asia-Pacific
• Middle East and Africa

Key Developments
• In March 2023, the JRS Group, a leading manufacturer of functional ingredients from plant-based raw materials, acquired Algaia SA, a producer and specialist of sustainably-produced seaweed extracts and hydrocolloids.
• In September 2022, Danish-based Aliga Microalgae acquired Duplaco, a Netherlands-based chlorella microalgae production facility. Aliga Microalgae, the food tech company aims to increase its production scale of chlorella algae products and innovate in the food ingredients industry.
• In April 2023, Macro Oceans, a California-based seaweed biotechnology startup, announced the completion of the first phase of its pilot facility in Sacramento. The facility is a 12,500 sq ft facility that scales up its novel bioprocessing technology, allowing it to offer unique bioactive ingredients to cosmetic brands nationwide.

Why Purchase the Report?
• To visualize the global algae extracts market segmentation based on type, source, form, application and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of algae extracts market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global Algae Extracts market report would provide approximately 70 tables, 61 figures and 210 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies