Algae products market - 2023-2030

Algae products market - 2023-2030

Global Algae Products Market reached US$ 5.41 billion in 2022 and is expected to reach US$ 9.16 billion by 2030, growing with a CAGR of 6.2% during the forecast period 2023-2030.

As consumers increasingly prioritize plant-based diets and sustainable food choices, there is growing demand for algae products as a renewable and eco-friendly source of nutrients, proteins, and functional ingredients. Algae-derived ingredients are gaining recognition for their unique nutritional profile and functional properties, including high protein content, essential fatty acids, vitamins, minerals, antioxidants, and bioactive compounds.

Companies are innovating and diversifying their product portfolios to include a wider range of algae-based products, including food ingredients, dietary supplements, cosmetics, animal feed, biofuels, and pharmaceuticals, to capitalize on the versatility and potential applications of algae. In April 2022, MiAlgae, a biotech company, announced the launch of the omega-3 product NaturAlgae for aqua feed and pet food.

Food and beverages account for over half of the market share due to the growing demand for functional food and beverages. Similarly, Asia-Pacific dominates the algae products market, capturing the largest market share as the region’s growing algae production and development of algae products. In June 2023, WTH Foods announced the expansion of its presence in European and Southeast Asian markets with the launch of microalgae-based vegan seafood products.

Dynamics

Health and Wellness Trend

Algae are rich sources of essential nutrients such as vitamins, minerals, proteins, and omega-3 fatty acids. Algae-derived compounds such as spirulina, chlorella, and astaxanthin are sought after for their antioxidant, anti-inflammatory, and immune-boosting effects. Consumers are turning to algae supplements and functional foods as a convenient way to support their health and wellness goals.

Algae-based ingredients are increasingly being incorporated into functional foods, beverages, and dietary supplements due to their health-promoting properties. In March 2021, Triton Algae Innovations announced the launch of plant-based algae ingredients and its first retail product – a tuna analog – to show consumers the potential of the underwater crop in alternative proteins. Triton uses a single-celled algae species called Chlamydomonas reinhardtii, which can generate plant proteins.

Expanding Applications in Various Industries

Algae-based ingredients are increasingly being used in the food and beverage industry as functional ingredients, natural colorants, and flavor enhancers. Moreover, algae-derived supplements are gaining popularity among health-conscious consumers seeking natural alternatives to traditional supplements. Algae species like spirulina, chlorella, and astaxanthin are prized for their antioxidant, anti-inflammatory, and immune-boosting properties.

Algae extracts are valued ingredients in the cosmetics and personal care industry for their moisturizing, anti-aging, and skin-nourishing properties. In November 2022, Merck launched 2 new marine cosmetic ingredients such as RonaCare JouvaMer and RonaCare ReviMer. By promoting the synthesis of collagen, RonaCare JouvaMer, an extract from Pelvetia canaliculata brown algae, acts as an anti-aging enhancer and minimizes wrinkles. It also maintains and safeguards the extracellular matrix, resulting in smoother, denser skin.

High Production Costs

Despite advancements in algae cultivation techniques, the production of algae-based products can still be relatively expensive compared to conventional alternatives. According to the U.S. Department of Energy (DOE) Office of Scientific and Technical Information (OSTI), an estimated $1,137 is spent on producing one short tonne (st) of algae at the baseline level.

Factors such as infrastructure costs, labor expenses, and energy requirements for cultivation, harvesting, and processing contribute to the overall production costs, making algae products less competitive in price-sensitive markets. Algae cultivation and harvesting also require skilled labor for tasks such as monitoring growth conditions, maintaining equipment, harvesting biomass, and processing algae into final products. Labor costs can contribute significantly to overall production expenses.

Segment Analysisn

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

Rising Demand for Healthy & Nutritional Food

Algae-derived ingredients like spirulina, chlorella, and seaweed are incorporated into health foods, dietary supplements, and functional beverages due to their high nutritional value and potential health benefits. These products are marketed for their antioxidant properties, immune-boosting effects, and potential to support overall health and well-being. In February 2023, GC Rieber VivoMega, introduced VivoMega Algae Oils. It is a high-concentration, vegan Omega-3 generated from microalgae found in the ocean.

Algae-based proteins are gaining popularity as plant-based alternatives to animal-derived proteins. Algae proteins are rich in essential amino acids and have a high digestibility, making them suitable for use in protein bars, shakes, and meat substitutes for consumers seeking sustainable and vegan-friendly options. Hence, with the growing demand for plant-based food, the demand for algae products in the food and beverage industry is also growing.

Geographical Penetration

Rising Demand for Health and Wellness Products in Asia-Pacific

The Asia-Pacific region has witnessed a growing awareness of health and wellness among consumers, leading to increased demand for functional foods, dietary supplements, and nutraceuticals. Algae-based products, such as spirulina and chlorella supplements, are rich in nutrients, antioxidants, and bioactive compounds, making them popular choices among health-conscious consumers in the region.

Governments in the Asia-Pacific region have been proactive in supporting the development of algae-based industries. Under the Blue Revolution program, Pradhan Mantri Matsya Sampada Yojana (PMMSY), passed in May 2020, India hopes to increase seaweed production to at least 1 million tonnes annually by 2025 with an investment of roughly $86.8 million. These types of government initiatives lead to high algae production which directly drives the algae products market growth in that region.

COVID-19 Impact Analysis

With the heightened focus on health and wellness during the pandemic, there has been a surge in demand for immune-boosting supplements. Algae-derived products like spirulina and chlorella, known for their rich nutrient content and immune-enhancing properties, witnessed increased sales as consumers sought natural remedies to support their immune systems.

The pandemic led to disruptions in global supply chains, affecting the availability of raw materials, transportation, and logistics. Algae cultivation and processing operations faced challenges such as labor shortages, restricted movement of goods, and delays in shipments, impacting the production and distribution of algae products. While COVID-19 causes an increased demand for immune-boosting supplements which drives the algae products market growth, it has disrupted the supply chain which hinders its market growth.

Russia-Ukraine War Impact Analysis

The Russia-Ukraine war disrupted supply chains for key inputs used in algae cultivation, such as fertilizers and agricultural chemicals. Interruptions in the supply of these inputs affected the production of algae-based products, leading to potential shortages and price fluctuations. The conflict disrupted agricultural activities in both countries including crop cultivation and harvesting. Any disruptions in agricultural production in Ukraine may indirectly impact the availability and cost of agricultural inputs used in algae cultivation worldwide.

By Type
• Alginate
• Carrageenan
• Hydrocolloids
• Algal Protein
• Lipids
• Carotenoids
• Others

By Form
• Liquid
• Solid

By Source
• Red Algae
• Brown Algae
• Green Algae
• Blue-green Algae
• Golden Algae
• Others

By Application
• Food & Beverage
• Cosmetics
• Pharmaceuticals
• Chemicals
• Fertilizers
• Animal Feed
• Others

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 November 2023, ZALG, a French producer of algae-based food innovations, introduced a new product, crispy seaweed sticks. It comes with two flavors available — lemon zest and onion.
• In May 2023, WNDR Alpine, a ski and snowboard company Phase Series, introduced a new range of activewear featuring 100% petroleum-free wicking technology made from microalgae rather than fossil fuels.
• In September 2022, Danish-based Aliga Microalgae acquired Duplaco, a Netherlands-based chlorella microalgae production facility. The company intends to market its chlorella algae products using a contemporary production facility.

Competitive Landscape

The major global players in the market include BASF SE, DSM, ADM, Corbion, CP Kelco U.S., Inc., Cyanotech Corporation, Polaris, DIC Corporation, ALGENOL, Cellana Inc.

Why Purchase the Report?
• To visualize the global algae products market segmentation based on type, form, source, 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 products 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 products market report would provide approximately 70 tables, 72 figures and 186 Pages.

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