Algae Products Market Size was valued at USD 12.75 billion in 2023. The Algae Products market industry is projected to grow from USD 13.66 Billion in 2024 to USD 22.24 billion by 2032, exhibiting a compound annual growth rate (CAGR) of 6.27% during the forecast period (2024 - 2032). As healthcare expenses rise, food tastes are changing, and the focus is shifting to preventative health management techniques which are the key market drivers enhancing the market growth.
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Market CAGR for algae products supplements is being driven by the rising demand for biofuels to replace petroleum-based fuel and supply. The rising need for a safe, reliable, clean energy source drives demand for biofuels. Additionally, rising oil costs and implementing government measures to decrease greenhouse gas emissions have raised the demand for biofuel. Many nations have launched or expanded their programs for renewable energy. Both microalgae and macroalgae make excellent biodiesel feedstock because they have numerous benefits over petroleum-based fuel, including high oil content, high production rates, and the need for less land. Lipids from algae are frequently utilized to make biofuel.
Seaweed is also a potential source of biofuels. Compared to other sources like soy, which is also used for manufacturing biofuels, growing seaweed is quicker, more space-efficient, and requires no use of freshwater or fertilizer. Seaweed is also very good for biofuel because it doesn't compete for land. Seaweed contains between 85 and 90 percent water, making it ideal for processes like anaerobic digestion, which produces biogas, and fermentation, which produces ethanol. Additionally, several seaweed species, such as sugar kelp, have the ideal high carbohydrate to low lignin concentration ratio. Growing seaweed is speedier, more space-efficient, and uses no freshwater or fertilizer compared to other sources like soy, which is also used to make biofuels. Due to its lack of competition for space, seaweed is also excellent for biofuel. Seaweed is perfect for processes like anaerobic digestion, which yields biogas, and fermentation, which yields ethanol, since it contains between 85 and 90% water. Additionally, several seaweed species, like sugar kelp, offer the right balance of low lignin and high carbohydrates. In addition to being a source of protein, algae, and microalgae have additional health advantages due to several bioactive components. Moreover, microalgae have greater pigment concentrations than various plant and flower species. The essential amino acid (EAA) profiles of proteins generated from algae are complete. These proteins have a greater protein content than traditional ones, including meat, poultry, and dairy goods. Several microalgae species are said to be abundant in lipids, proteins, carbohydrates, and other bioactive substances. Thus, these factors are driving Algae Products market revenue.
Based on the source, the Algae Products market segmentation includes macro-algae- edible seaweed, kelp, micro-algae- chlorella, spirulina, and others. The macro-algae- edible seaweed segment dominated the market, accounting for 45% of market revenue. Owing to increased seaweed production and growing knowledge of the health benefits of seaweed products, seaweed is widely available as a raw material. Additionally, the active ingredients in seaweeds are employed in several sectors as an antioxidant, antibacterial whitening agent, anti-aging, anti-acne, and moisturizing, further promoting the expansion of the market for seaweed goods across the world.
Based on application, the Algae Products market segmentation includes food supplements, feed supplements, nutraceuticals, pharmaceuticals, pollution control, paints and colorants, and others. The food supplements category generated the most income. The increasing customer preference for food and drinks that contain natural components such as hydrocolloids, carotenoids, and algal protein. Additionally, the large market share of this industry is anticipated to be supported by the population's rapid growth, growing awareness of the health benefits of algae products, changes in lifestyle patterns, healthy eating practices, rising demand for functional foods and food additives, and rising disposable income.
Figure 1: Algae Products Market, by Application, 2023 & 2032 (USD billion)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
By Region, the study provides market insights into North America, Europe, Asia-Pacific, and the Rest of the World. The North American Algae Products market area will dominate this market; the sizeable food and beverage industry in North America, the growing use of algae products in food and beverage production, the emergence of health and wellness trends, the growing opposition to the use of artificial food colors, and the expanding demand for algae products from the cosmetic and nutraceutical industries are the key factors driving the growth of this market.
Further, the major countries studied in the market report are The U.S., Canada, German, France, the UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil.
Figure 2: ALGAE PRODUCTS MARKET SHARE BY REGION 2023 (%)
Source: Secondary Research, Primary Research, MRFR Database and Analyst Review
Europe's Algae Products market accounts for the second-largest market share. Many pharmaceutical companies use algae to make antibacterial, antiviral, neuroprotective, and antifungal drugs. Further, the German Algae Products market held the largest market share, and the UK Algae Products market was the fastest-growing market in the European region.
The Asia-Pacific Algae Products Market is expected to grow at the fastest CAGR from 2023 to 2032. The rapidly expanding food and beverage, nutraceutical, cosmetic, and animal feed sectors generate enormous demand for natural ingredients. Additionally, the availability of raw materials, favorable climatic conditions for algae cultivation, and the availability of inexpensive labor enable the presence of a sizable number of stakeholders involved in providing algal products for these sectors. The market for algal products in the Asia-Pacific is also anticipated to rise due to numerous government programs to encourage the production and use of algae in several sectors and the rising demand for healthy food items. Moreover, China's Algae Products market held the largest market share, and the Indian Algae Products market was the fastest-growing market in the Asia-Pacific region.
Leading market companies are making significant R&D investments to diversify their product offerings, which will drive the Algae Products market's expansion. Important market developments include new product releases, contractual agreements, mergers and acquisitions, greater investments, and collaboration with other organizations. Market participants also engage in several strategic actions to increase their worldwide presence. The market for algae products industry is becoming more competitive. Therefore, it needs to offer reasonably priced products to grow and thrive.
Manufacturing locally to reduce operating costs is one of the primary business strategies manufacturers employ in the worldwide Algae Products industry to assist customers and expand the market sector. The market for algae products industry has recently provided some of the most important benefits. Major market participants such as Algatechnologies Ltd, Arizona Algae Products, LLC, BASF SE, BDI-BioLife Science GmbH, and others are working to boost demand by investing in research and development activities.
Cyanotech Corporation cultivates microalgae and rents space in the Natural Energy Lab of Hawaii on the Kona Coast on the island of Hawaii. The business makes Hawaiian Spirulina Pacifica and BioAstin Natural Astaxanthin. In October 2020, the introduction of BioAstin Hawaiian Astaxanthin, a novel water-dispersible powder delivery form at both 1% and 2% concentrations, was announced by Cyanotech Corporation. A potent antioxidant called BioAstin Hawaiian Astaxanthin is made from organic Haematococcus pluvialis microalgae farmed on the Kona Coast of the Big Island of Hawaii.
Founded in Wilmington, Delaware, and headquartered in Minnetonka, Minnesota, Cargill, Incorporated is a privately held American multinational food conglomerate. Established in 1865, it had the highest revenue of any privately held company in the US. It would be ranked number 15 on the Fortune 500 as of 2015, behind McKesson and before AT&T, if it were a publicly traded business. The trading, buying, and distribution of grains and other agricultural products, including palm oil, the trading of energy, steel, and transportation; the raising of livestock and the production of feed; and the production of food ingredients like starch and glucose syrup, vegetable oils and fats for use in processed foods and industrial use are some of Cargill's key businesses. In February 2020, Using Gracilaria red seaweed, which is regarded as a traditional culinary component in the European Union, Cargill launched the WavePure ADG series.
Key Companies in the Algae Products market include
Algae Products Industry Developments
September 2022: The Danish business Aliga Microalgae (Aliga) purchased a sizable chlorella algae factory in the Netherlands. The business intends to market its chlorella algae products using a cutting-edge production facility.
April 2022: Koninklijke DSM N.V. is extending two of its line extensions for its 'life' brand of omega-3-derived products from algae. With the addition of Life's OMEGA and Life's DHA to the product range, the firm aimed to provide a quality and potent omega-3 substitute for fish oil. Life's OMEGA O1030DS, which derives both EPA and DHA from a single, sustainable source, is DSM's most efficient algal omega-3.
| Report Attribute/Metric | Details |
| Market Size 2023 | USD 12.75 billion |
| Market Size 2024 | USD 13.66 billion |
| Market Size 2032 | USD 22.24 billion |
| Compound Annual Growth Rate (CAGR) | 6.27% (2024-2032) |
| Base Year | 2023 |
| Market Forecast Period | 2024-2032 |
| Historical Data | 2018- 2022 |
| Market Forecast Units | Value (USD Billion) |
| Report Coverage | Revenue Forecast, Market Competitive Landscape, Growth Factors, and Trends |
| Segments Covered | Source, Application, and Region |
| Geographies Covered | North America, Europe, Asia Pacific, and the Rest of the World |
| Countries Covered | The U.S., Canada, German, France, UK, Italy, Spain, China, Japan, India, Australia, South Korea, and Brazil |
| Key Companies Profiled | Cellana Inc, Algaetech International Sdn Bhd, DIC Lifetec Co.Ltd, Parry Nutraceuticals Limited, BlueBio Tech, Alltech Inc., and Cyanotech Corporation |
| Key Market Opportunities | · improving commercial by-products, developing technologies for producing ethanol from algae, and exploring untapped markets in new regions |
| Key Market Dynamics | · increasing usage of algae in the pharmaceutical sector increasing use of algae in cattle production increasing understanding of the health advantages |
Algae Products Market Highlights:
Frequently Asked Questions (FAQ) :
The Algae Products market size was valued at USD 12.75 Billion in 2023.
The market is projected to grow at a CAGR of 6.27% during the forecast period, 2024-2032.
North America had the largest share in the market.
The key players in the market are Cellana Inc, Algaetech International Sdn Bhd, DIC Lifetec Co.Ltd, Parry Nutraceuticals Limited, BlueBio Tech, Alltech Inc., and Cyanotech Corporation.
The macro-algae- edible seaweed category dominated the market in 2023.
The food supplements had the largest share in the market.
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Senior Research Analyst I have a bachelor's degree in mechanical engineering and an mba. i have more than two years of expertise in the retail, food, and beverage, chemical, and material industries, and hence have developed a sound cross-domain expertise. a firm believer in lifelong learning and sharing of knowledge. having a proclivity for hatching ideas and trying to absorb as much information as possible in a short amount of time. introducing corporates to the data and insight, which enables them to move from probability to possibility, has been my key areas of interest.
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