Algae is a photosynthetic, oxygen-exhaling, unicellular, or multicellular microorganism with diverse characteristics such as consumption of carbon dioxide and storage of essential nutrients, minerals, and vitamins.
The global algae products market was valued at $2,276.0 million in 2020, and is projected to reach $4286.8 million by 2031, growing at a CAGR of 4.88% from 2022 to 2031. Due to increase in demand for natural products and proactive efforts by market players to formulate algae-based consumable products to meet quality, texture, and nutritional demands of consumers. Earlier, algae was not considered for production of bio fuel as cost of production was high, however, with recent development in process technology and feasibility of process, algae bio fuel can be used as an alternative to fossil fuel.
Rise in global population and increase in demand for food and customization of functional food product portfolio by manufacturers are the key factors expected to boost the growth of the algae products industry.
In addition, application of algae for production of livestock for aquaculture species such as fish for their cultivation fuels the market growth. However, consumption of algae-based prescription drug products, such as sun chlorella, microalgae, and spirulina cause gastrointestinal issues, abdominal issues, and nausea, which can hamper the market growth. Conversely, the development of commercial by-products and algae-based biofuel production technology is anticipated to drive the market growth.
As per the global algae products market analysis, it is segmented into type, source, form, application, and region. Depending on type, the market is segregated into spirulina, chlorella, astaxanthin, beta carotene, and hydrocolloids. On the basis of source, it is classified into brown algae, blue-green algae, red algae, green algae, and others. By form, it is bifurcated into solid and liquid. The application segment comprises food & beverages, nutraceuticals & dietary supplements, personal care, chemical, feed, and pharmaceuticals. The market is analyzed across North America (U.S., Canada, and Mexico), Europe (Germany, France, Italy, UK, Russia, and rest of Europe), Asia-Pacific (China, Japan, India, and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).
Solid segment held the major share of 63.2% in 2020
The top market players in the global algae products market include euglena Co., Ltd., Algae Systems LLC., Cyanotech Corporation, Cargill, Incorporated, Algenol Biofuels Inc., BIOPROCESS ALGAE, LLC, Corbion, Algatechnologies, Cellana Inc., and Earthrise Nutritional.
Hydrocolloids segment held the major share of 49.4% in 2020
Algae Products Market Share, By Type
By type, the hydrocolloids segment dominated the market in 2020, accounting for around 49.4% of the overall algae products market share. This is attributed to the fact that hydrocolloids form gel in the presence of water, influence texture, and viscosity, and hence are used in different food & beverage applications. However, the beta carotene segment is expected to be a significant rate during the forecast period.
Brown Algae segment held the major share of 35.4% in 2020
Algae Products Market Share, By Source
In 2020, brown algae was the leading segment in the global market, owing to composition of high carrageenan and algal protein in brown algae coupled with a wide range of applications.
Food And Beverage segment held the major share of 26.1% in 2020
Algae Products Market Share, By Application
In 2020, the food & beverage segment led the market, as the use of algae increased in food, functional food, food additives, and beverages. However, the personal care segment is anticipated to grow at the fastest rate during the forecast period. Consumers’ desire to look young and development of new natural ingredient are anticipated to drive the algae products market growth during the forecast period. In addition, personalized cosmetic products to target specific skin care problems drive the growth of the market.
North America segment held the major share of 35.0% in 2020
Algae Products Market Share, By Region
North America was the largest market for algae products in 2020, due to rise in population coupled with increased demand for food in the region. In addition, increase in health awareness and rise in disposable income in the countries such as China, India, and Japan boost the consumption of nutraceutical products, thus fueling the growth of the market.
Key Benefits For Stakeholders
- The report provides a quantitative analysis of the current algae products market trends, estimations, and dynamics of the global algae products market forecas from 2020 to 2031 to identify the prevailing market opportunities.
- The key countries in all the majors regions are mapped based on their market shares.
- The Porter’s five forces analysis highlights the potency of buyers and suppliers to enable stakeholders to make profit-oriented business decisions and strengthen their supplier buyer network.
- A comprehensive analysis of factors that drive and restrict the growth of the global algae products market is provided.
- An in-depth analysis of the global algae products market helps determine the prevailing market opportunities.
- The report includes details of the analysis of the regional and global markets, key players, market segments, application areas, and growth strategies.
Algae Products Market Report Highlights
Algae is a diverse group of plants without steam and roots that convert carbon dioxide, nutrient, and minerals from water, and sunlight into organic matter. They are used as replacement for feed additives, fossil fuel, and fish & palm oil manufactured protein used in animal feedstock. An estimated 200,000 species of algae are found across the globe of which 200 species are used for various applications such as feed, food, pharmaceutical, and chemical applications. Algae, a source of essential nutrient, is divided based on thallus color, brown, red, green, and blue green. Among all seaweeds, green algae are consumed on large scale due to high algal protein content and commercial application such as production of organic beta-carotene in Australia; thus it holds a dominant position in the global algae products market.
Increase in prevalence of diseases and rise in demand for quality food product & livestock feed are the prime concerns for consumer inclination for consumption of naturally synthesized algae products. One of the factors that drives the growth of the market includes the approval of chlorella, spirulina, and other algae for use in food, feed, nutraceutical, and dietary supplements as well as the personal care industry. Nori, a species of red algae used to wrap sushi roll, is sold as roasted snack in American grocery stores, owing to migration of occupants from Asia-Pacific countries to Europe and North American countries. In addition, North America focuses on the development of sustainable sea food communities by developing underwater algae garden for algae farming. The technique of farming is known as 3D ocean farming that utilizes entire column of water to grow various species of algae and also helps restore the ocean. R&D on algae leads to increase in its applications such as fertilizer, biofuel, animal feed, and wastewater treatment.
Untapped markets in North America and Europe are anticipated to open new opportunities for the manufacturers of algae products.
However, volatility in the price of algae, quality of water used in algae production, and change in weather condition hamper the growth of the algae market.