Algae Extract Market

Algae Extract Market Outlook (2023 to 2033)

The market for algae extracts is anticipated to reach an estimated value of US$ 4,100.1 Million in 2023, growing by 4.0% year over year during the preceding period. By 2033, sales of chicken offal are expected to reach a value of US$ 6,034.3 Million and grow at a CAGR of 3.9%.

Key Trends Listed by Fact.MR :

• Algae Extract as a source of antibiotics, anti-inflammatory and anti-viral compounds
• Advancements in Biotechnology and Extraction Techniques
• Emergence of Algae Extract-based Functional Foods
• Increasing application of Algae Extract in Nutraceuticals
• Adoption of Algae Extracts in Personal Care Products
• Rising Use of Algae Extracts in Natural Flavors and Fragrances
• Algae Extracts for Carbon Capture and Climate Change Mitigation
• Increasing the use of Seaweed (a type of Brown Algae) in the feeding of Ruminants
• Blue-Green Algae Extract as a source of Essential Nutrients for Crop Growth
• Rising Use of Algae Extract as a Source of Plant-based Protein in Pet Food

Algae extract is prepared from the seaweed classes such as red algae, blue-green algae, brown algae, and green algae. Every class contains molecules that improve skin benefits such as amino acids, omega-3 fatty acids, and vitamins A, B, C, and E. Algae extracts in skincare are used for hydration and collagen care. One of the factors boosting the algae extract market is customers' growing awareness of health and fitness.

The market for algae extracts is also having a big impact on the agricultural industry. Algal extracts have been shown to improve soil fertility, promote agricultural output, and offer organic substitutes for artificial pesticides and fertilizers. As nutrient-rich feeds for ruminants and fish, they also help sustainable aquaculture and animal husbandry by lowering reliance on conventional feed sources.

Attributes	Key Insights
Estimated Global Algae Extract Market Size (2023E)	US$ 4,100.1 million
Projected Algae Extract Market Value (2033F)	US$ 6,034.3 million
Value-based CAGR (2023 to 2033)	3.9%
Top 3 Countries’ Value	US$ 1,053.9 million

2018 to 2022 Global Algae Extract Sales Outlook Compared to Demand Forecast from 2023 to 2033

According to the Fact.MR analysis, sales of algal extract increased globally between 2018 and 2022 at a CAGR of 3.5%. The global market for algae extract is estimated to grow at a moderate CAGR of 3.9% over the next ten years.

In the future years, the market for algal extract will experience significant growth due to the increased concerns regarding health among the younger population. The component is increasingly crucial to the manufacturing of pharmaceutical, nutraceutical, and personal care goods.

The agriculture industry has recognized the potential of algae extracts in improving crop yield, soil health, and sustainable farming practices. Algae extracts offer natural solutions for plant growth stimulation, pest control, and soil conditioning, reducing the reliance on chemical inputs.

Adjacent Markets Overview :

Algae Proteins Market :

Attributes	Algae Proteins Market
CAGR (2023 to 2033)	5.5%
Market Value (2033)	US$ 1,351.5 million
Growth Factor	Numerous health advantages of microalgae protein include its capacity to boost nutritional intake and strengthen the immune system. Microalgae protein's numerous health advantages raise the prospect of its use in the nutraceutical industry.
Opportunity	Accelerating demand for nutrition-rich food products and high consumption of protein supplements.
Key Trends	Escalating traction for algal peptides in recent years to treat patients with metabolic disorders, especially the aging population.

Algae Products Market :

Attributes	Algae Products Market
CAGR (2023 to 2033)	5.4%
Market Value (2033)	~US$ 9.15 billion
Growth Factor	Other growth factors that are favorably influencing the global market for algae products include the high demand from the pharmaceutical industry, the growing need for feed and food supplements, and the increase in the global population.
Opportunity	Recent market growth has been impacted by the growing usage of algae in the pharmaceutical and nutraceutical industries. It is projected that the growing use of algal biomass for nutraceutical applications would open up a profitable new revenue stream for algae product makers.
Key Trends	According to estimations, the market for algal products is being driven by consumers' changing dietary preferences and a paradigm shift toward preventative health management measures in response to rising healthcare costs and the growing burden of lifestyle-related disorders.

Algae Oil Market :

Attributes	Algae Oil Market
CAGR (2023 to 2033)	4.7%
Market Value (2033)	US$ 3.1 billion
Growth Factor	Several health benefits are associated with algae oil, which includes high proteins, phycocyanin, and antioxidants in addition to DHA and Omega 3. This is the factor driving the demand in the global algae oil market.
Opportunity	Demand for functional food products with high nutritional content is expected to surge over the next decade. Though, producers selling algal oil are likely to benefit from the growing food innovations, geriatric population, and medical breakthroughs.
Key Trends	The adaptability of natural products and the related health advantages is one of the primary factors improving the growth of natural products and, as a result, the algae oil market.

Country-wise Insights :

North America - CAGR

Country	CAGR (%)
United States	6.4%

Europe - CAGR

Country	CAGR (%)
Germany	5.5%

Asia Pacific - CAGR

Country	CAGR (%)
India	6.1%
Japan	4.3%
Australia	4.0%

North America - BPS Analysis

Country	BPS Analysis
United States	-72

Europe - BPS Analysis

Country	BPS Analysis
Germany	56

Asia Pacific - BPS Analysis

Country	BPS Analysis
India	45
Japan	74
Australia	85

North America - Market Value (2033)

Country	Market Value (2033)
United States	US$ 1,780.03 million

Europe - Market Value (2033)

Country	Market Value (2033)
Germany	US$ 675.8 million

Asia Pacific - Market Value (2033)

Country	Market Value (2033)
India	US$ 571.2 million
Japan	US$ 820.6 million
Australia	US$ 96.5 million

Will the U.S. Retain its Dominance in the North America Algae Extract Market?

Sustainable Development of Algal Biofuels is Driving Up Algae Extract Sales in the U.S.

As per Fact.MR, it is anticipated that the US Algae Extract market would be valued roughly at US$ 1,780.03 million. As a result, it will command a sizable market share of 24.5% in the North American market by 2033

Algal biofuels are becoming more popular as a domestic source of renewable fuel. However, scaling up the production of algal biofuels to even just 5% of the country's transportation fuel requirements with existing technology might lead to unsustainable demands on energy, water, and nutrient resources.

The demand for algae extract has been propelled by the development of technologies and processes for efficient algae cultivation and lipid extraction. Bioreactor, culture system, and cultivation strategy innovations have increased the productivity and scalability of algal biofuel production. However, advances in extraction technologies have allowed for the extraction of a variety of useful components from algae, including lipids, for biofuel uses.

What is Demand Outlook in Germany’s Algae Extract Market?

Germany’s algae industry is a promising emerging sector of the EU Blue Bio-economy

According to Fact.MR analysis, expanding at a CAGR of 5.5%, the algae extract market in Germany is projected to increase from a market valuation of US$ 675.8 in 2023 to US$ 701.4 by 2033.

The EU Bio-economy Strategy intends to assist the long-term growth and development of bio-based industries in the EU while also providing jobs, innovation, and services. Despite the recognized potential of the algae biomass value chain, there are major knowledge gaps regarding the size, capability, organization, and structure of algae production in Europe.

As per the study, 447 algae production units currently exist in Europe. A variety of species, production methods, and commercial applications have been identified throughout European countries. Upscaling of the production volumes and technological and market developments are key drivers to boost the growth of the sector in Europe.

Europe benefits from its extensive coastline, rich marine ecosystems, and abundant freshwater resources, providing an ideal environment for algae cultivation. This availability of coastal and marine resources offers significant opportunities for sustainable algae production, whether through open pond systems, photo-bioreactors, or offshore installations. Algae cultivation not only helps meet the demand for bio-based products but also supports environmental sustainability by utilizing excess nutrients and CO2, thereby reducing eutrophication and greenhouse gas emissions.

The European Union has recognized the potential of algae in the blue bio-economy and has implemented supportive policies and funding programs. These initiatives encourage research, innovation, and business development in the algae industry. Programs such as European Maritime and Fisheries Fund (EMFF) provide financial support and resources to stimulate the growth of algae-related projects, technological advancements, and market entry.

How is the Japan Algae Extract Market Shaping?

Rising Applications of Euglena spp. driving the Japan Algae Extract Market

Algae Extract demand in Japan is anticipated to rise at a CAGR of 4.3% during the forecast period from 2023 to 2033. By the end of 2033, Japan is likely to hold a market share of 13.6% in the East Asia market.

The Japan algae extract market is experiencing significant growth, driven by the variety of applications of Euglena, a unique microalga. Euglena is a single-celled organism that has attracted attention for its potential in various industries, including food and beverages, cosmetics, healthcare, and renewable energy.

The nutritional value of Euglena is one of the primary elements driving the growth of the Japan algae extract market. In Japan, the cosmetics industry has embraced Euglena extract for its skincare qualities. Euglena extracts contain moisturizing, anti-aging, and anti-inflammatory properties, making them popular cosmetic components. The natural and sustainable qualities of Euglena-based skincare products are gaining popularity, matching the rising consumer preference for clean and green beauty products.

Category-wise Insights :

Why Red Algae Type is Preferred the Most for the Extraction?

Biological properties and potential of compounds extracted from Red Algae

Based on algae type, demand is expected to remain high for red algae extract during the assessment period. As per Fact.MR, with a market share of around 34%, the red algae extract segment is projected to reach a valuation of US$ 2232.5 million in 2033.

As per the research study conducted, the large group of seaweeds, consist of approximately 6,000 different species. Red algae are smaller compared to green and brown algae in terms of biological characteristics and are typically found in equatorial regions, including intertidal areas and beyond. These algae are classified based on their color and contain a distinct combination of pigments, such as chlorophyll 'a' and 'd', carotenoids, and phycobiliproteins.

People can consume red algae because it is so nutrient-rich. They are recognized for containing high quantities of protein, minerals, and carbohydrates. According to the Food and Agriculture Organization (FAO), red macroalgae production increased to over 9 million wet tons over the previous ten years, or 47% of all cultivated seaweed production.

Why Food and Beverages Are Dominating the End-Use Segment?

Rising applications of algae extract in Dietary Supplements and Food Ingredients

Within End-use, the Food and Beverages segment is estimated to dominate with a market share of 21.5% to reach a market valuation of US$ 1,297.31 Mn over the forecast period.

Algae are rapidly gaining recognition as "superfoods" in the culinary world since they are employed as main components, flavorings, and natural colors in various kinds of food and beverages. Certain algae strains offer certain benefits that could significantly raise the caliber of food additives and nutritional supplements. These extracts could be used as potential ingredients in veggie smoothies, dry mixes, protein replacements, fruit/vegetable blends, protein bars, and a variety of other foods and beverages since they include distinctive combinations of protein, fiber, minerals, and non-starch polysaccharides.

Consumer preference is growing for food production methods that use fewer antibiotics, hormones, and GMOs. When combined as a dry powder with other ingredients or excipients to create a finished product, new strains of freshwater algae that have never been used for human or animal consumption are being researched for their potential to support a healthy immune system and provide an ideal plant-based source of protein.

Which form of Algae Extract is used the most?

Sales of Powder Form Algae Extract are Gaining Traction

The sales of powder-form algae extract are gaining traction due to several factors that make it a desirable product in various industries. Powder-form algae extract refers to the dried and powdered form of algae, typically obtained from microalgae or seaweed. This form of algae extract offers several advantages, driving its increasing popularity and sales.

The algal extract is versatile and simple to include in many products in powder form. Additionally, compared to its liquid form, algal extract in powder form has a longer shelf life. Algae extract is dried to remove moisture, which preserves the extract's purity and inhibits microbiological growth.

Competitive Landscape :

In the food industry, several prominent companies focus on the production and commercialization of food based on macroalgal biomass and derived products. Producers are focusing on improving strain selection, biomass production, cell disruption, and drying technologies, as well as reducing production costs.

As the demand for algae extract increases, companies are expanding their production capacities and distribution networks to cater to a wider customer base. Companies differentiate themselves by highlighting the unique properties and benefits of their algae extracts, targeting specific market segments.

For instance, in Spain, several companies are producing algae biomass including AgriAlgae®, AlgaeEnergy, Green Sea Bio System One, Algamoil Iberica S.L (Madrid, Spain), etc.

Scope of the Report :

Attribute	Details
Market Size Value in 2023	US$ 4,100.1 million
Market Forecast Value in 2033	US$ 6,034.3 million
Anticipated Growth Rate (2023 to 2033)	3.9% CAGR
Forecast Period	2023 to 2033
Historical Data Available for	2018 to 2022
Market Analysis	Volume (MT) and Value (US$ Million)
Key Regions Covered	North America Latin America Europe East Asia South Asia Oceania Middle East & Africa
Key Countries Covered	Canada United States Mexico Brazil Chile Peru Argentina Germany France Italy Spain United Kingdom Netherlands Belgium Nordic Russia Poland China Japan South Korea India Thailand Malaysia Indonesia Singapore Australia New Zealand GCC Countries South Africa Central Africa Others
Key Market Segments Covered	Algae Type End Use Form Regions
Key Companies Profiled	Solazyme Corbion Cyanotech Algix DIC Corporation Algatechnologies Allmicroalgae Cellana Phytoalgae Algaia Algea Texas A&M AgriLife Research Arizona Algae Products Blue Evolution Biogreen Syngery Aliga microalgae Algarithm Ingredients Algafeed

Algae Extract Market by Category :

• By Algae Type :

  • Red Algae
  • Green Algae
  • Brown Algae

• By End-use :

  • Food and Beverages
  • Health and Medical Sector
  • Animal Feed Sector
  • Pet Food Sector
  • Cosmetics and Personal Care Sector
  • Fertilizers Sector

• By Form :

  • Powder
  • Liquid

• By Region :

  • North America
  • Latin America
  • Europe
  • East Asia
  • South Asia
  • Oceania
  • Middle East & Africa