Algae Products Market

Algae Products Market Outlook (2022-2032)

The global algae products market is currently valued at US$ 4.96 billion and is anticipated to expand at a CAGR of 4.8% to reach US$ 9.1 billion by 2032-end.

Algae are cultivated using both agriculture and aquaculture methods and are incorporated in a variety of end products such as ice cream, cakes, anti-obesity and anti-diabetic agents, toothpaste, aquatic feed ingredients, and moisturisers.

While other products such as agar, alginate, and hydrocolloids are employed as gelling, thickening, suspending, and stabilising agents, nutritional substances such as vitamins, carotenoids, proteins, and fatty acids are isolated as primary and secondary metabolites from algae.

Sales Analysis of Algae Products (2017-2021) Vs. Market Outlook (2022-2032)

Algae are a class of mostly aquatic, photosynthetic, nucleus-bearing organisms that are not real plants since they lack true roots, leaves, stems, and specialised multicellular reproductive systems.

Algae quickly proliferate and simply require sunlight (or another form of energy such as sugar). Worldwide, there are tens of thousands of species of algae. Using enhanced CO2, autotrophic microalgae are grown on land in sizable ponds or closed photobioreactors.

Large fermenters are used to cultivate heterotrophic microalgae using starch or sugar. Seawater is used to grow seaweed (macroalgae).

Many industries use algae for the production of various by-products. They are utilized in fertilizer products, organic farming, animal and aquaculture feed, and also human meals.

The global market for algae products is being driven by growing consumer knowledge of the health advantages of omega-3 fatty acids and cross-industry coverage.

The global algae products market is set to expand at a CAGR of 4.8% and reach a market valuation of US$ 9.10 billion by 2032.

What Market Trends Are Influencing Algae Product Sales?

“Rising Knowledge about Health Benefits of Algae Products”

Omega-3 is a nutrient that has been the subject of the greatest research worldwide, according to the Global Organization for EPA and DHA (GOED), with over 8,000 clinical trials completed in the past ten years.

The market is mostly renowned for omega-3 products made from algae. The market for algae products has grown as a result of rising healthcare expenses across the world and increased consumer awareness about omega-3.

Products made from algae are marketed as nutritious foods and come in a variety of formats, including beverages, tablets, and capsules. There is a change in customer demand for dietary supplements in places such as China and Europe.

As a result of their high protein content and nutritional value, algae are often used as ingredients in candies, gums, snacks, and beverages. Microalgae are used in nutraceutical goods such as nutrient bars, healthy drinks, and supplements.

Chlorella and arthospira are two types of algae that are widely used as food supplements. Chlorella and spirulina have recently seen immense popularity in recent years, thereby augmenting market growth for algae products.

“High Set-up Cost & Low Product Adoption in Developing Nations”

Low adoption in African nations is due to the lack of R&D activities. Consumption of algae-based products is the highest in North American countries, which has led to an increase in product innovation and the exploration of new uses for algae in the region.

In contrast, in less developed African nations, product penetration is much lower and there are no R&D activities to improve the methods for extracting seaweed. As a result, market players have not sent up production facilities in the region.

It is predicted that constraints such as high setup costs for algae production systems will stifle market growth over the forecast period.

Additionally, consuming algae-based prescription medicine products, including spirulina, chlorella, and sun microalgae, can lead to gastrointestinal, abdominal, and nausea-related health issues. This factor is also impeding the overall growth of the global market for algae products to some extent.

Comparative View of Addiction Treatment Markets

Algae Products Market :

Attributes	Algae Products Market
Growth Factor	Rising use of lipids, such as omega-3, in nutraceutical and dietary supplement formulations, as a result of more health-conscious customers to drive the growth algae products market.
Opportunity	Rising demand for feed and food supplements are expected to provide opportunities for the growth of the algae products market.

Algae Supplements Market :

Attributes	Algae Supplements Market
Growth Factor	The increasing consumer demand for plant-based nutrition sources and soaring demand for macro- & micro-algal foods, on account of their functional benefits that extend beyond conventional considerations of health and nutrition, is predominantly fuelling investments in algae supplements development and production.
Opportunity	The demand for plant-based lipids and proteins, along with growing technological advances in algae production and harvesting are some of the factors propelling the global algae supplements market.

Algae Oil Market :

Attributes	Algae Oil Market
Growth Factor	The rising inclination towards organic food products, the demand for natural food ingredients and adaptability of natural products and the related health advantages is one of the primary factor improving the growth of the algae oil market
Opportunity	The growing demand for natural food products and the expansion of the food and beverage industry provide the opportunity for the growth of the algae oil market.

Country-wise Analysis

Will Revenue Growth Keep the Momentum High for the U.S. Algae Products Market?

Rising Preference for Natural Food Products to Improve Algae Products Demand in North America

North America accounts for a 33.7% share of the global algae products market. The growth of the market in the region is attributed to rising algae fat consumption in the region. The US holds the largest share of the North American market.

The other factor that boosts the growth of the algae products market is the rise in disposable income along with a rise in the health consciousness population across the region. Also, the growing prevalence of chronic diseases and allergies to synthetic substances created the demand for natural products to boost the algae product market. Increased use of algae oil products as a natural component in a variety of food products to improve health and wellness.

Another reason that is anticipated to increase the market for algae-based goods is the nation's growing population. The rising use of lipids, such as omega-3, in nutraceutical and dietary supplement formulations, as a result of more health-conscious customers, has created the huge market potential for algae-based omega-3 items.

Due to the rising demand for feed and food supplements as well as existing projects, the Asia Pacific algae products market is also anticipated to expand steadily during the projected period

Why is Europe a Prominent Market for Algae Products?

Surging Application of Algae Products in Food & Beverage and Pharmaceutical Industries to Boost Demand

Europe is estimated to account for a significant market share due to the rise in the food industry in countries such as Germany, France, the UK, and Spain. With rising development in the food & beverage industry and expansion of the pharmaceutical sector, the demand for algae products is expected to accelerate over the forecast period.

Increased usage in dietary supplements and other food products is increasing. This is promoting the growth in the Europe algae product market.

Based on the Application which segment is Projected to Boost the Market?

Growing applications in Food & Beverages to boost the market growth

According to the research, the food & beverage segment is expected to dominate the algae product market in terms of application. The segment is poised to expand at a considerable pace over the upcoming decade. The food & beverage segment leads the algae products market due to the increased use of algae in functional food, food additives, and beverages.

However, the cosmetics & personal care segment is expected to grow at the fastest rate during the forecast period. Due to the increased use of algae in cosmetics products as a natural ingredient.

Start-Ups for Algae Products Market

Some key start-ups in the algae products market include - Algawheel, AlgaBiosciences, Algenol’s among others.

• Algenol’s - cultivating and processing multiple types of algae in a best-in-class production system from the lab to commercial scale. Also, growing, harvesting and processing algae to develop natural products and customized solutions to meet the customer’s needs.

Competitive Landscape

With a significant number of large-scale suppliers commanding a majority of the market share, the global algae products market is fragmented. A majority of businesses are investing heavily in intensive R&D, especially to create environment-friendly products. Key market players are resorting to acquisitions and product portfolio expansion as primary growth tactics.

• Yemoja introduced EPS-Revive, an external polysaccharide sulphate (EPS) topical beauty ingredient produced from a red algae species, as part of a new line of algae-based skincare products, in April 2021. Protein-rich, vitamin-rich, and antioxidant-rich red algae help the skin retain moisture and restore its natural hydration.
• In March 2022- Ingredient company CP Kelco is partnering with food tech startup Shiru to develop and scale up next-generation plant proteins as more sustainable solutions for several common ingredients.
• In July 2021-Solabia-Algatech Nutrition is launching BioGlena for immune support – a 100 percent natural beta-glucan ingredient from whole Euglena gracilis algae. The ingredient boasts a high beta-glucan content of over 55 percent, in addition to complete proteins, essential vitamins, minerals and fatty acids.

Report Scope

Report Attribute	Details
Growth Rate	CAGR of from 2022 to 2032
Base Year for Estimation	2021
Historical Data	2017-2021
Forecast Period	2022-2032
Quantitative Units	Revenue in USD Million and CAGR from 2022-2032
Report Coverage	Revenue Forecast Volume Forecast Company Ranking Competitive Landscape Growth Factors Trends and Pricing Analysis
Segments Covered	Products Sales Channel Regions
Regions Covered	North America Europe Asia Pacific Latin America Middle East & Africa (MEA)
Key Countries Profiled	U.S Canada Brazil Argentina Germany U.K France Spain Italy Nordics BENELUX Australia & New Zealand China India ASEAN GCC Suth Africa
Key Companies Profiled	Cargill Inc. The Dow Chemical Company BASF SE Cyanotech Corporation Kerry Group Ingredion Incorporated Corbion N.V. Roquette Frères CP Kelco Fenchem Biotek Algatechnologies Koninklijke DSM N.V.
Customization	Available Upon Request

Key Segments Covered in Algae Products Industry Research

• Algae Products Market by Product :

  • Hydrocolloids
  • Carotenoids & Pigments
    • Lutein
    • Beta Carotene
    • Lycopene
    • Astaxanthin
    • Fucoxanthin
    • Others
  • Antioxidants
  • Lipids
  • Proteins
  • Others

• Algae Products Market by Form :

  • Powder Algae Products
  • Liquid Algae Products

• Algae Products Market by Application :

  • Food & Beverages
  • Dietary Supplements & Pharmaceuticals
  • Animal & Aquaculture Feed
  • Cosmetics & Personal Care
  • Others

• Algae Products Market by Sale Channel :

  • Direct Sales of Algae Products
  • Indirect Sales of Algae Products
  • Store-based Retailing
    • Hypermarkets/Supermarkets
    • Pharmaceutical/Drug Stores
    • Specialty Stores
    • Others
  • Online Sales of Algae Products

• Algae Products Market by Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia & Oceania
  • MEA