The Algae Products Market is projected to reach $5.55 billion by 2030, at a CAGR of 7.8% during the forecast period of 2023 to 2030. In terms of volume, the algae products market is projected to reach 460,870.9 tons by 2030, at a CAGR of 9.0% during the forecast period of 2023–2030. The growth of the algae products market is driven by consumers’ increasing preference for algae-sourced products, the growth in vegetarianism, the rising demand for natural food colors, and the rapid growth of the nutraceuticals industry.
However, complexities in algae production and low awareness regarding the benefits of algae restrain the growth of this market. Furthermore, the growing demand for biofuels is expected to generate growth opportunities for the players operating in this market. However, the risk of algae contamination is a major challenge impacting market growth. Additionally, the increasing adoption of algae products is a prominent trend in the algae products market.
Key Players
The report includes a competitive landscape based on an extensive assessment of the key strategic developments adopted by leading market participants in the industry over the past 3-4 years. The key players profiled in the global algae products market research report are Algatechnologies Ltd. (A Part of Solabia Group) (Israel), BASF SE (Germany), BDI BioLife Science GmbH (Austria), Bluetec Naturals Co., Ltd (China), Cargill, Incorporated (U.S.), Cyanotech Corporation (U.S.), DIC Corporation (Japan), Lyxia Corporation (a subsidiary of Shenzhen Qianhai Xiaozao Technology Co., Ltd.)(U.S.), Seagrass Tech Private Limited (India), Tianjin Norland Biotech Co., Ltd. (China), Ingredion Incorporated (U.S.), HISPANAGAR S.A. (Spain), COMPAÑIA ESPAÑOLA DE ALGAS MARINAS S A (Spain), W Hydrocolloids, Inc. (Philippines), SNAP Natural & Alginate Products Pvt. Ltd. (India), and Harsha Enterprises (India).
Consumers' Increasing Preference for Algae-sourced Products Driving the Market Growth
Consumers are becoming increasingly conscious of the environmental impacts of their choices and are actively seeking sustainable products. Algae-sourced products offer a range of benefits, including being rich in nutrients, having a low carbon footprint, and being easily renewable. As a result, the demand for algae-based foods, cosmetics, and biofuels, among other products, is on the rise. This trend is expected to continue in the coming years as more people recognize the potential of algae as a sustainable solution.
The coronavirus pandemic significantly impacted people’s lifestyles, making them more health conscious. Also, people increased their spending on healthy and immunity-boosting products. According to World Bank data, the global per capita income increased from USD 10,630 in 2010 to USD 11,570 in 2019. Thus, higher disposable incomes are enabling consumers to spend more on healthy food products containing antioxidants, vitamins, minerals, and probiotics. Algae are considered healthy due to their high nutrient content.
Furthermore, algae are one of the best sources of omega-3 fatty acids, which have anti-aging properties and offer several benefits, such as preventing heart disease and healing atherosclerosis. Linolenic acid, alphalinolenic acid, eicosapentaenoic acid (EPA), and docosahexaenoic acid (DHA) are natural omega-3 fatty acids. Spirulina is considered a prominent microalga due to its higher production of long-chain polyunsaturated fatty acids, phenolic compounds, volatile compounds, sterols, proteins, amino acids, peptides, vitamins, polysaccharides, and pigments compared to other algae. It contains 15.8% lipids and 4.9% omega-3 fatty acids by weight. Thus, the high nutrient content and benefits of spirulina are boosting the demand for spirulinabased products.
The benefits of algae are driving the demand for algae-based products, encouraging manufacturers to focus on the development and production of algae-based ingredients and products. For instance, in May 2023, Corbion N.V. (Netherlands) launched AlgaVia, an algal product rich in omega-3 and omega-9 fatty acids for dietary supplement applications. Also, in February 2023, GC Rieber VivoMega AS (Norway) launched a line of VivoMega algae oils, which are ocean-derived, high-concentration vegan omega-3 oils sourced from microalgae. Furthermore, Nisshin Pet Food has launched 73 new products containing chlorella. Tohato has launched 21 new food products containing chlorella, 16 of which are sweet biscuits/cookies, 4 are corn-based snacks, and 1 is a potato snack. Also, U.S.-based company Suja Life has launched six new juice products, three nectars, and two fruit/flavored drinks containing chlorella.
Thus, the benefits of algae ingredients and food & beverage product manufacturers’ increasing focus on the development and production of algae-based products are driving demand among consumers, supporting the growth of the global algae products market.
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Key Findings in the Global Algae Products Market Study:
In 2023, the Hydrocolloids Segment is Expected to Dominate the Algae Products Market
Based on type, the algae products market is mainly segmented into hydrocolloids, algal proteins, lipids, and carotenoids. In 2023, the hydrocolloids in algae segment is expected to account for the largest share of the global algae products market. The large market share of this segment can be attributed to factors such as the increasing consumption of seaweed-based products, the growing demand for biofuels, the rising demand for natural and plant-based ingredients, and the increasing demand for hydrocolloids from various industries.
However, the algal protein segment is projected to register the highest CAGR during the forecast period of 2023–2030 due to the growing vegan population, increasing demand for naturally derived or sustainably sourced ingredients, rising application in the food & beverages industry, growing gym going population, and growing awareness regarding fitness among consumers.
In 2023, the Macroalgae/Seaweed Segment is Expected to Dominate the Algae Products Market
Based on source, the algae products market is segmented into macroalgae/seaweed and microalgae. In 2023, the macroalgae/seaweed segment is expected to account for the largest share of the global algae products market. The large market share of this segment can be attributed to the abundant availability of seaweed as raw materials, driven by the increasing production of seaweed and growing awareness of the health benefits associated with seaweed products. Furthermore, the active components derived from seaweeds serve various purposes, acting as antioxidants, antibacterial and whitening agents, anti-aging solutions, and anti-acne treatments, contributing significantly to the growth of the seaweed products market. However, this segment is also projected to register the highest CAGR during the forecast period of 2023–2030.
In 2023, the Dry Segment is Expected to Dominate the Algae Products Market
Based on form, the global algae products market is segmented into dry and liquid. In 2023, the dry algae products segment is expected to account for the largest share of the global algae products market. The large market share of this segment is attributed to the longer shelf-life and ease of transportation and storage of dry algae products compared to liquid algae products and the increasing use of algae powder in the food, cosmetic, and feed industries. However, this segment is also projected to register the highest CAGR during the forecast period of 2023–2030.
In 2023, the Food & Beverage Segment is Expected to Dominate the Algae Products Market
Based on application, the global algae products market is segmented into food & beverage, nutraceuticals, cosmetics, animal feed, and other applications. In 2023, the food & beverage segment is expected to account for the largest share of the global algae products market. The large market share of this segment can be attributed to the increasing consumer preference for foods and beverages containing natural ingredients like hydrocolloids, carotenoids, and algae protein. Furthermore, the rapid growth in population, heightened awareness of the health benefits associated with algae products, shifts in lifestyle patterns toward healthier eating habits, rising demand for functional foods and food additives, and an increase in disposable incomes are anticipated to further fuel the growth of this segment.
However, the cosmetics segment is projected to register the highest CAGR during the forecast period of 2023–2030 due to the rapidly growing global cosmetic industry, the increasing demand for vegan skincare products, and the rising awareness about the health benefits of organic cosmetic products.
In 2023, Asia-Pacific Dominates the Overall Algae Products Market
Based on geography, the global algae products market is majorly segmented into five regions: North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2023, Asia-Pacific is expected to account for the largest share of the global algae products market. The large share of this market is mainly attributed to the increasing demand for natural ingredients in the rapidly growing food and beverage, nutraceuticals, cosmetic, and animal feed industries. In addition, the presence of a large number of stakeholders engaged in providing algae products for these industries due to the availability of raw materials, favorable climatic conditions for algae production, and cheap labor availability supports the growth of this market. Several government initiatives to promote the cultivation and usage of algae in several industries and the growing demand for healthy food products are further expected to boost the Asia-Pacific algae products market.
However, Europe is slated to register the highest CAGR during the forecast period of 2023–2030 owing to the rapidly increasing acceptance of algae products in the food and beverage industry, rising health & wellness trends, growing reluctance towards the usage of synthetic food colors, and growing demand for algae products from the cosmetic and nutraceutical industries.
Report Summary:
Particular
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Details
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Page No.
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417
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Format
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PDF
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Forecast Period
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2023–2030
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Base Year
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2022
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CAGR
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7.8%
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Market Size (Value)
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$5.55 Billion by 2030
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Market Size (Volume)
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460,870.9 Tons by 2030
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Segments Covered
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By Type
- Hydrocolloids
- Carrageenan
- Alginate
- Agar
- Other Hydrocolloids
- Algal Protein
- Lipids
- Carotenoids
- Astaxanthin
- Beta Carotene
- Lutein
- Other Carotenoids
By Source
- Macroalgae/Seaweed
- Red Seaweed
- Brown Seaweed
- Green Seaweed
- Microalgae
- Spirulina
- Chlorella
- Dunaliella Salina
- Haematococcus Pluvialis
- Nannochloropsis
- Other Microalgae Sources
By Form
By Application
- Food & Beverage
- Food
- Dairy
- Bakery & Confectionary
- Other Food Products
- Beverages
- Nutraceuticals
- Cosmetics
- Skin Care
- Hair Care
- Other Cosmetics Products
- Animal Feed
- Other Applications
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Countries/Regions Covered
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North America (U.S., Canada), Europe (Germany, France, U.K., Italy, Spain, Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, Australia, Rest of Asia-Pacific), Latin America (Brazil, Mexico, Argentina, Chile, Rest of Latin America), and Middle East & Africa
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Key Companies
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Algatechnologies Ltd. (A Part of Solabia Group) (Israel), BASF SE (Germany), BDI BioLife Science GmbH (Austria), Bluetec Naturals Co., Ltd (China), Cargill, Incorporated (U.S.), Cyanotech Corporation (U.S.), DIC Corporation (Japan), Lyxia Corporation (a subsidiary of Shenzhen Qianhai Xiaozao Technology Co., Ltd.)(U.S.), Seagrass Tech Private Limited (India), Tianjin Norland Biotech Co., Ltd. (China), Ingredion Incorporated (U.S.), HISPANAGAR S.A. (Spain), COMPAÑIA ESPAÑOLA DE ALGAS MARINAS S A (Spain), W Hydrocolloids, Inc. (Philippines), SNAP Natural & Alginate Products Pvt. Ltd. (India), and Harsha Enterprises (India).
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Key Questions Answered in the Report: