This report is executed in collaboration with the European Algae Biomass Association (EABA). Combining Meticulous Research®’ market intelligence services with EABA’s broad expertise in the development of research, technology and industrial capacities in the field of algae, the two organizations have leveraged their research capabilities to come up with the most reliable and accurate market assessments in this field.
The Seaweed Market is expected to reach $23.2 billion by 2028, at a CAGR of 9.1% during the forecast period 2021 to 2028. Also, in terms of volume, the seaweed market is expected to record a CAGR of 9.5% from 2021 to 2028 to reach 11,408.3 KT by 2028. The growth of this market is expected to be driven by factors such as rising consumer adoption for plant-based products, increasing consumption of seaweed-based products, source of high nutrients & minerals, and growing government initiatives to boost seaweed cultivation. Growing demand for biofuels and technological advancements are expected to create lucrative opportunities for manufacturers in the seaweeds market. However, the growing prevalence of natural calamities hinders market growth to some extent.
The Impact of COVID-19 on the Seaweed Market
The COVID-19 pandemic has adversely hit many economies around the world. Government measures to combat the COVID-19 pandemic, such as nationwide lockdowns and quarantines, negatively impacted many industries. Most manufacturers of food products in the F&B sector continue to feel the impact of COVID-19. Social distancing, self-isolation, and city-wide lockdowns have forced the closures of many establishments in countries across Asia, the U.S., Europe, and the rest of the world.
The manufacturers of consumer food & beverage products faced challenges, such as significantly reduced consumption and disrupted supply chains. The food & beverage sector has witnessed a minor decline due to the lockdowns imposed across various countries. This scenario has also negatively impacted the confectionery industry since people are buying only the most essential products. In addition, government bodies have passed various rules and regulations on the purchase of essential goods. Most consumers are buying only essential products, which has significantly lowered the consumption of confectionery items. According to trade organizations in the nutritional products industry, there has been a significant impact on many points in the global supply chain for functional foods and dietary supplements, which has, in turn, lowered the consumption of seaweed biomass among end users, impacting the growth of the seaweed market during 2020-2021.
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In the algae industry, a major slowdown in seaweed sales was witnessed in the first quarter of 2020 due to disruptions in logistics and transportation. The market also witnessed interruptions in the entire value chain from raw materials supply for culture media to production, packaging, and distribution of the final seaweed biomass.
The effects of the COVID-19 pandemic on this market were felt in China starting 2020, as the country is one of the world's largest producers and one of the leading consumers of seaweed globally. In China, factory closures, seaweed processing facilities operating at reduced capacities, and restrictions on the import and export of seaweed biomass strongly impacted the seaweed market in 2020. Moreover, the pandemic also affected the seaweed market in many countries globally, including the U.S., India, Australia, Brazil, and the EU-5 countries. Due to the countrywide lockdown in India, many commercial seaweed production and processing facilities have shut down or are operating at reduced capacities, leading to substantial losses in domestic seaweed production.
The algae industry in Southeast Asia also faced challenges because of the growing severity of the coronavirus pandemic, impacting the distribution of fresh seaweed and its biomass within and across markets in the Asia-Pacific region. In Indonesia, the price of mainly exported Cottonii seaweed, used for producing carrageenan (an additive used to thicken, emulsify, and preserve foods and drinks), has declined by almost 50% trade with China, country’s biggest export market.
Therefore, disruptions in transportation & logistics and reduced production in some countries adversely affected the seaweed market in terms of sales volumes and market revenue in 2020.
Rising government initiatives to boost seaweed cultivation
Seaweed cultivation will go a long way in helping the lives of coastal fisher-families, particularly fisherwomen, farmers, and entrepreneurs. Considering these things, many governments worldwide have set up policies and offer funds to support the seaweed industry within the country. For instance, the Chinese government is encouraging the seaweed industry developments supported by policies, finance & funds, onshore & offshore farming areas, and freshwater resources. The Chinese national government has started the seaweed industry restructure under the pressure of serious environmental and ecological issues (e.g., air and water pollution and disorder competitions on any natural resources). National fishery & aquaculture authority planned that the Chinese aquaculture industry would move into a stable and slow increase period.
Furthermore, there are around 46-50 seaweed-based industries in India that are facing problems due to the short supply of raw materials. To counter this, the Indian government has set up a fund of around INR 640.0 crore (USD 86.37 Million) to strengthen seaweed cultivation inside the country in 2020.
Indonesia, one of the potential producers of seaweed, also takes initiatives towards modernization and developments of their seaweed industry in terms of fetching more export earnings and improving the livelihoods of coastal communities. The government launched various programs to provide better quality seeds, improve farming techniques, and enhance post-harvest and processing technologies. As a result, small fishermen in many areas of Indonesia have changed their profession from fishing to seaweed farming to increase their incomes.
The Scottish Government (SG) is fully supportive of aquaculture's sustainable growth, with due regard to the wider marine environment. The Scottish government has set seaweed cultivation policies to support both employment and the economic wellbeing of many fragile rural communities across Scotland. This includes the support and development of traditional aquaculture sectors and possible diversification into other species, such as seaweed cultivation. Therefore, such rising government initiatives to increase seaweed cultivation are anticipated to drive the seaweeds market's growth across the globe.
Key Findings in the Seaweed Market Study:
In 2021, the red seaweed segment to dominate the seaweed market
Based on type, the seaweed market is mainly segmented into red seaweed, brown seaweed, and green seaweed. The red seaweed segment is estimated to command the largest share of the seaweed market in 2021. The segment is also expected to record the highest CAGR during the forecast period, owing to the rising health consciousness, growing food applications of red seaweeds, and increasing demand for agar and carrageenan hydrocolloids in several industries.
In 2021, the dry form segment to dominate the seaweed market
Based on form, the seaweed market is segmented into dry and liquid forms. The dry form segment is estimated to command the largest share of the seaweed market in 2021. The segment is also expected to record the highest CAGR during the forecast period, owing to the growing demand for seaweed powder from the food and cosmetics industries. Moreover, its several benefits such as comparatively high shelf-life and ease of transport and storage are further expected to support the growth of this market.
In 2021, the food and beverage segment dominated the seaweed market
Based on application, the seaweed market is mainly segmented into food and beverage, extraction of hydrocolloids, animal feed, agriculture, and other application. The food and beverage segment is estimated to command the largest share of the seaweed market in 2021. The segment is also expected to record the highest CAGR during the forecast period, owing to the growing demand for organic foods products, increase in consumption of plant proteins and vegan products, and increase in the utilization of seaweed for human consumption. Moreover, rapid growth in population, increasing awareness towards health benefits of seaweeds, changes in lifestyle patterns and taste preferences among consumers, healthy eating habits, and rising disposable income are further expected to support the growth of this market.
In 2021, Asia-Pacific region to account for the largest share of the seaweed market
Based on geography, Asia-Pacific is estimated to command the largest share of the seaweed market in 2021, followed by Europe and North America. The large share of this regional market is mainly attributed to the presence of several local and regional players, various government initiatives to promote the cultivation and usage of seaweeds in several industries, growing demand for organic food products, and increasing applications of commercial sea vegetables, especially in food. Moreover, large-scale production and huge consumption of seaweeds in the region, owing to the availability of the raw materials, favorable climatic conditions for the production of seaweeds, and cheap labor availability, further support the growth of the seaweed market in the region.
Key Players
The key players profiled in the seaweed market research report are Seaweed & Co. (U.K.), Cargill, Incorporated (U.S.), Green Rise Agro Industries (India), VietDelta Ltd. (Vietnam), Ocean rainforest (Denmark), Thorverk hf. (Iceland), ALGAplus (Portugal), MYCSA Ag, Inc. (U.S.), Baoji Earay Bio-Tech Co., Ltd (China), Shore Seaweed (U.K.), Rongcheng Jingyi Ocean Technology Co., Ltd. (China), Sar Agrochemicals & Fertilizers Pvt. Ltd. (India), and Algea, the Arctic Company (Part of Valagro Group) (Norway), among others.
Scope of the Report
Seaweed Market, by Type
- Red Seaweed
- Brown Seaweed
- Green Seaweed
Seaweed Market, by Form
Seaweed Market, by Application
- Food and Beverage
- Extraction of Hydrocolloids
- Animal Feed
- Agriculture
- Others
Seaweed Market, by Geography
- Asia-Pacific
- China
- Japan
- South Korea
- India
- Indonesia
- Australia
- RoAPAC (Rest of Asia-Pacific)
- Europe
- France
- Norway
- Spain
- Italy
- U. K.
- Germany
- Ireland
- RoE (Rest of Europe)
- North America
- Latin America
- Chile
- Brazil
- Mexico
- Argentina
- RoLATAM (Rest of Latin America)
- Middle East & Africa
Key Questions Answered in the Report-