Global Commercial Seaweed Market - 2022-2029

Global Commercial Seaweed Market - 2022-2029:

Market Overview

Commercial Seaweed Market is forecasted to reach at a CAGR of 11.01% during the forecast period (2022-2029).

Commercial seaweed is grown in seas, lakes, rivers and other water bodies and is available in various types such as red, green and brown. Various species of seaweed are edible and used commercially in the food industry. Some seaweed species are used as fertilizer or as sources of polysaccharides. Brown seaweed is widely distributed in colder zones and is absent from tropical waters. Red seaweed has various species like dulse, Gelidium, Chondrus, and laver. Seaweeds are used as a source of iodine. Commercial seaweed is used in candies, jellies and ice cream to impart the desired texture. Increasing demand for edible seaweed in food applications like toppings, sauces, salad dressings and soups drives the market growth. Also, increasing demand for plant-based products drives market growth.

Market Dynamics: Increasing demand for commercial seaweed in animal feed industry drives the market growth

Animals like sheep, cattle, and horses that live in coastal areas eat seaweed, especially in European countries where brown seaweed is available in a large amount. The availability of seaweed for animals increases with the production of seaweed meals. Dried seaweed is milled to a fine powder and used as animal feed. Norway is the early producer of seaweed meal, using Ascophyllum nodosum variety. In France, seaweed feed is made from the Laminaria Digitata variety. In Iceland, both Ascophyllum and Laminaria species are used for making animal feed, and in the United Kingdom, the Ascophyllum variety of seaweed is used for preparing seaweed. The dried form of seaweed can be stored for one year without deterioration. Seaweed is a rich source of minerals like potassium, phosphorus, magnesium, calcium, sodium, chlorine and sulphur, trace elements and vitamins. Trace elements are essential for mammals in small quantities for the proper functioning of enzymes and proteins, which are involved in many physiological, biochemical and metabolic processes that contribute to growth and production. For poultry, Ascophyllum meal is essential to increasing the iodine content of the eggs. For pigs, seaweed consumption is beneficial for increasing the meat yield. Consumption of seaweed is good for cattle and sheep to increase milk production. Some studies showed that regular consumption of seaweed is beneficial to increasing milk production, which helps increase farmers' income. Norway alone produces about 15 000 tons of seaweed meal annually. Companies in Australia, Canada, Ireland, Norway, the United Kingdom and the United States of America were advocating the use of seaweed meal as a feed additive for sheep, cattle, horses, poultry, goats, dogs, cats, and other animals. The immunity system of some animals is boosted by the regular consumption of Canadian seaweed meals. These factors drive the market growth in the forecast period.

Market Segmentation: Red segment accounted for the highest share in global commercial seaweed market

Based on the type, the commercial seaweed market is segmented into Red, Brown and green. The red seaweed segment dominates the market due to its remarkable functional properties. Red algae are a rich source of vitamins, minerals, calcium, magnesium and antioxidants. They are a source of dietary fiber as they can promote healthy circulation, lower bad cholesterol and regulate blood sugar levels. They perform a good role in skin nourishment and help to boost immunity. It also helps to regulate blood sugar levels. It is consumed by various organisms such as crustaceans, fish, worms and even humans. Red algae are a rich calcium source and also a vitamin supplement. The high nutritional value of the red algae increases the consumption of various organisms’ which drives market growth.

Geographical Penetration: Asia Pacific is the dominating region during the forecast period

Asia Pacific dominated the market growth due to increasing demand for natural, healthy and nutritious food like commercial seaweed. India is the largest producer of seaweed. According to the Central Marine Fisheries Research Institute, Kerala, India, has the potential to produce around 9.7 million tons of seaweed per year. India has 342 potential sites for cultivating marine plants and algae. The government of India supports the cultivation of commercial seaweed. For instance, in 2020, the government allocated around US$84 million to encourage the cultivation of nutrition-rich seaweeds and marine plants. As cattle feed, an increase in seaweed consumption in India helped grow the region's market. Seaweed is used to minimize cow fewer. It also helps in improving resistance to diseases as well as aids in maintaining the balance of micronutrients. It is also used to improve fat and Iodine level in cattle milk. The growing use of commercial seaweed in the feed industry helps grow the Asia Pacific market. In September 2022, a China research team in Qingdao, Shandong province found a new variety of brown seaweed named kelp that brought substantial profits to seaweed farmers. Kelp is large brown seaweed with a long, tough stalk and a broad frond divided into strips.

Competitive Landscape:

There are various established participants in the industry and local manufacturers; hence, the market is fragmented. Some major key players are Cargill Inc., Biostadt India Limited., Acadian Seaplants Limited, Gelymar S. A., DuPont, Roullier Group, Compo GmbH & Co. KG, BrandT Consolidated, Inc. and CP Kelco among others. Some major key players launched new products in the market to expand their product portfolio. For instance, in Feb 2021, Cargill launched a new product named wave pure red seaweed powder. This powder is made entirely from Gracilaria red seaweed, considered a traditional food ingredient in Europe. Gracilaria is the most readily available seaweed species and most widely consumed as food. Some key players follow mergers, collaborations and acquisitions to expand their business. For instance, in July 2020, Cargill partnered with The Nature Conservancy and its local supplier C-Weed Corporation to improve seaweed farming. This partnership helped to improve seaweed production and boost local farmers' incomes while conserving marine environments in Tanzania. In June 2019, Algaia and Gelymar had a partnership on seaweed ingredients. Both the companies decided to use a joint commercialization channel in the United States. Gelymar and Algaia marketed their products in the North American region through AIDP Inc., Algaia's current United States distributor. In May 2019, Gelymar completed Chile's US$15m carrageenan production capacity expansion. The company is the third largest carrageenan producer globally and completed its capacity expansion program at two of its plants in southern Chile.

COVID-19 Impact:

Negative impact on the global commercial seaweed market

Covid 19 severely affected the farming activities of seaweed in India, and the supply chain was also disturbed. In India, 33.88 % of the farmers do not harvest seaweed on time, leading to massive decay due to lack of demand, resulting in significant economic loss. The frequency of traders visiting farmers' sites was also reduced owing to the fear of getting infected. Government restrictions on traveling and social distancing negatively impacted the supply chain of commercial seaweed. Covid 19 directly affected seaweed farmers as demand for raw materials decreased, and prices were fallen. The price of mainly exported Cottonii seaweed, used for producing carrageenan (family of natural linear sulfated polysaccharides extracted from red edible seaweeds), has declined by almost 50% since trade with China, the biggest export market of seaweed, has been disrupted. Home-based micro-enterprises, mainly led by women and which produce seaweed-based food and drinks, are suffering particularly from declining sales. These factors negatively impacted commercial seaweed worldwide.

However, according to the Seaweed Industry Association of Indonesia, the spike in medical testing worldwide has created an opportunity for the industry to offer new products, such as high-bacto agar from Gracillaria, which serves as a laboratory medium for COVID-19 testing that positively impacted on the commercial seaweed market.

The global commercial seaweed market report would provide an access to approximately 61 market data tables, 55 figures and 170 pages