Algae Products Market by Type (Lipids, Carotenoids, Carrageenan, Alginate, Algal Protein), Form (Liquid, Solid), Source (Brown Algae, Green Algae, Red Algae, Blue-green Algae), End Application and Region - Global Forecast to 2028
[259 Pages Report] The market for algae products market is estimated at USD 5.3 billion in 2023; it is projected to grow at a CAGR of 6.4% to reach USD 7.3 billion by 2028. Consumers are increasingly seeking natural and sustainable alternatives in various industries, including food, pharmaceuticals, cosmetics, and biofuels. Algae products offer a renewable and eco-friendly source of nutrients, bioactive compounds, and raw materials, making them highly attractive to environmentally conscious consumers.
Algae are known to be rich in essential nutrients, such as proteins, vitamins, minerals, and omega-3 fatty acids. The growing awareness of these health benefits, including immune system support, cardiovascular health, and cognitive function, is driving the demand for algae-based dietary supplements, functional foods, and nutraceuticals.
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Algae products Market Dynamics
Driver: Growth in consumer awareness regarding the health benefits of algae based products
In recent years, there has been a significant shift in consumer preferences towards health and wellness. Consumers are becoming more proactive about maintaining their well-being and are seeking natural, nutrient-rich, and functional foods and supplements. Algae-based products, such as spirulina, chlorella, and seaweed, are recognized for their exceptional nutritional profile, including high protein content, essential vitamins, minerals, antioxidants, and omega-3 fatty acids. As consumers become aware of the specific health benefits associated with algae consumption, they are increasingly incorporating algae-based products into their diets.
Algae are often referred to as "superfoods" due to their exceptional nutrient density. They offer a wide range of essential nutrients that are beneficial for overall health and wellness. For example, spirulina is highly regarded for its high protein content and abundance of vitamins, minerals, and antioxidants. Chlorella is rich in chlorophyll, which supports detoxification and provides numerous health benefits. Seaweed varieties, such as nori and kelp, contain iodine, essential for thyroid function, and are also rich in minerals like calcium and magnesium. The growing awareness of these nutrient-rich profiles is driving consumers to incorporate algae-based products into their diets to enhance their nutritional intake.
Restraint: Impact of climatic conditions on algae production
Algae growth is highly influenced by temperature and light conditions. Different algae species have specific temperature ranges and light requirements for optimal growth. Variations in climatic conditions, such as extreme temperatures or insufficient sunlight, can affect the growth and productivity of algae. If the climate does not provide the ideal conditions for algae cultivation, it can result in lower yields and slower growth rates, impacting the overall availability of algae biomass for commercial production. This limitation in supply can restrain the algae products market.
Climatic conditions can introduce environmental stressors that negatively impact algae growth and productivity. Extreme weather events like storms, hurricanes, or heatwaves can cause physical damage to algae cultivation systems, disrupt nutrient supply, and alter the balance of the ecosystem. Additionally, changes in climatic patterns, such as variations in rainfall patterns or increased frequency of temperature fluctuations, can create suboptimal conditions for algae growth. Algae may experience increased susceptibility to diseases, changes in metabolic activity, or reduced photosynthetic efficiency under these stressors, leading to lower biomass yields and inferior quality of algae products.
Opportunity: Growing demand in the pharmaceutical industry
Algae are rich in various bioactive compounds, including proteins, polysaccharides, pigments, fatty acids, and antioxidants. These components offer a wide range of nutritional and functional benefits that can be utilized in pharmaceutical formulations. For example, algae-derived proteins can serve as a source of amino acids for therapeutic protein production. Polysaccharides from algae can be used as excipients or drug delivery systems due to their unique physicochemical properties. Pigments such as chlorophyll and carotenoids have antioxidant properties that can be utilized for their potential health benefits. The diverse array of bioactive compounds present in algae opens up opportunities for the development of novel pharmaceutical products.
Algae produce a wide range of bioactive compounds that exhibit potential therapeutic properties. These compounds include antibacterial, antiviral, antifungal, anticancer, anti-inflammatory, and immunomodulatory agents. The pharmaceutical industry is exploring the use of algae-derived bioactive compounds for the development of new drugs and therapeutic agents. For example, compounds like fucoidan from brown algae, spirulina-derived phycocyanin, and microalgae-derived omega-3 fatty acids have shown promising effects in preclinical and clinical studies. These compounds have the potential to be developed into pharmaceutical products to address various health conditions.
Challenge: High production costs restricting the entry of smaller players
Algae cultivation requires specialized infrastructure and equipment, which can be expensive to set up. Depending on the cultivation method, large-scale algae production may require photobioreactors, raceway ponds, or closed bioreactors, all of which involve significant capital investment. Small players may find it challenging to finance the establishment of such infrastructure, limiting their entry into the market.
Algae cultivation requires a constant supply of light, which can be costly when artificial lighting is used. Even in outdoor cultivation systems, energy costs are incurred for aeration, mixing, and temperature control. The high energy requirements for maintaining optimal growth conditions add to the production costs. Small players may struggle to bear these energy costs, making it difficult for them to compete with larger, more established companies.
Algae Products Market Ecosystem
Prominent companies in this market include well-established, financially stable manufacturers of algae products market. These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Prominent companies in this market include DSM (Netherlands), BASF SE (Germany), Corbion (Netherlands), E.I.D Parry (India), International Flavors & Fragrances Inc (US), Cynotech Corporation (US), Earthrise Nutritionals LLC (US), CP Kelco U.S., Inc (US), Cargill, Incorporated (US), and Algea (Norway).
Based on type, lipids is estimated to account for the largest market share of the algae products market
Based on type, lipids segment is estimated to account for the largest market share. The presence of lipids in algae products allows for their incorporation into functional foods and nutraceuticals. Lipids provide a source of energy and enhance the absorption of fat-soluble vitamins and bioactive compounds. Algae-based lipid ingredients are used in the development of various products, including dietary supplements, protein bars, beverages, and fortified foods.
Blue green algae segment of the algae products market by source is projected to witness the highest CAGR during the forecast period.
Based on source, the blue green algae segment estimated to account for the highest growth rate. Blue-green algae are considered a valuable source of plant-based protein. They have a higher protein content compared to traditional plant sources, such as soybeans and wheat. The protein from blue-green algae is of high quality, containing all the essential amino acids required by the human body. This makes blue-green algae an attractive option for protein supplementation in the form of powders, protein bars, and beverages.
Based on end application, personal care segment is projected to witness the highest CAGR during the forecast period.
Algae extracts and compounds are known to possess various beneficial properties for skin and hair health. They are rich in vitamins, minerals, antioxidants, and bioactive compounds that nourish and protect the skin and hair. Algae-based ingredients are often used in skincare products, such as moisturizers, serums, masks, and cleansers, to provide hydration, improve skin elasticity, promote cell regeneration, and offer anti-aging effects. In hair care products, algae extracts can enhance hair strength, shine, and manageability.
The North America market is projected to contribute the largest share for the algae products market.
There is a growing awareness among consumers in North America regarding the health benefits and sustainability aspects of algae-based products. Consumers are becoming more conscious of their dietary choices and are actively seeking natural, plant-based alternatives for various applications. This awareness has resulted in a rising demand for algae-derived products, including food and beverages, dietary supplements, personal care items, and biofuels.
According to the CRN’s 2021 Consumer survey on Dietary supplements, showed that 80% of Americans are now using dietary supplements, an increase of 7% from 2020. Also the number of Americans viewing the dietary supplements industry as trustworthy has increased: 79% in 2021, compared to 74% in 2020. This leads to higher demand for algae-infused nutraceuticals in the country.
Key Market Players
The key players in this include DSM (Netherlands), BASF SE (Germany), Corbion (Netherlands), E.I.D Parry (India), International Flavors & Fragrances Inc (US), Cynotech Corporation (US), Earthrise Nutritionals LLC (US), CP Kelco U.S., Inc (US), Cargill, Incorporated (US), and Algea (Norway).
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Report Metric |
Details |
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Market size available for years |
2019–2028 |
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Base year considered |
2022 |
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Forecast period |
2023–2028 |
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Forecast units |
Value (USD) |
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Segments covered |
Algae Products Market by Type (Lipids, Carotenoids, Carrageenan, Alginate, Algal Protein), Form (Liquid, Solid), Source (Brown Algae, Green Algae, Red Algae, Blue-green Algae), End Application and Region - Global Forecast to 2028 |
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Regions covered |
North America, Europe, Asia Pacific, South America, and RoW |
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Companies covered |
DSM (Netherlands), BASF SE (Germany), Corbion (Netherlands), E.I.D Parry (India), International Flavors & Fragrances Inc (US), Cynotech Corporation (US), Earthrise Nutritionals LLC (US), CP Kelco U.S., Inc (US), Cargill, Incorporated (US), and Algea (Norway) |
This research report categorizes the algae products market based on type, source, form, end application and region.
Based on type, the algae products market has been segmented as follows:
- Lipids
- Carrageenan
- Carotenoids
- Algal protein
- Alginate
Based on source, the algae products market has been segmented as follows:
- Brown algae
- Blue-green algae
- Red algae
- Green algae
Based on the form, the the algae products market has been segmented as follows:
- Solid
- Liquid
Based on the end application, the algae products market has been segmented as follows:
- Food & beverages
- Nutraceuticals & dietary supplements
- Feed
- Personal care products
- Pharmaceuticals
Based on the region, the algae products market has been segmented as follows:
- North America
- Europe
- Asia Pacific
- South America
- Rest of the World (RoW)
These players in this market are focusing on increasing their presence through agreements and collaborations. These companies have a strong presence in North America, Asia Pacific and Europe. They also have manufacturing facilities along with strong distribution networks across these regions.
Recent Developments
- In 2021, Azelis was announced as CP Kelco’s exclusive distribution partner across numerous countries and market segments, including GENU Carrageenan product lines, along with others. This new distribution agreement with Azelis in EMEA Region enhanced the company's market and customer expertise to bring the best possible customer experiences and products.
- In 2019, Corbion and Nestlé (Switzerland) entered into a joint development agreement to develop a next-generation platform of algae-based ingredients rich in protein and micronutrients. The agreement will combine Corbion’s microalgae and fermentation capabilities with Nestlé’s expertise in the development of plant-based products. The aim of the joint development agreement is to establish a platform for the production and commercialization of algae-based ingredients.
- In 2019 , Solabia Group (France) acquired Algatech ltd. Solabia Group offers an extensive range of active principles and ingredients used throughout the world by the cosmetics, pharmaceutical, and food industries. The acquisition allowed the companies to benefit from an extended network and base of expertise, as well as new marketing channels and an expanded customer base.
Frequently Asked Questions (FAQ):
Which are the major companies in the Algae products market? What are their major strategies to strengthen their market presence?
The key players in this includes DSM (Netherlands), BASF SE (Germany), Corbion (Netherlands), E.I.D Parry (India), International Flavors & Fragrances Inc (US), Cynotech Corporation (US), Earthrise Nutritionals LLC (US), CP Kelco U.S., Inc (US), Cargill, Incorporated (US), and Algea (Norway). These players in this market are focusing on increasing their presence through agreements and collaborations. These companies have a strong presence in North America, Asia Pacific and Europe. They also have manufacturing facilities along with strong distribution networks across these regions.
What are the drivers and opportunities for the Algae productsmarket?
Algae products have diverse applications across various industries, including food and beverages, pharmaceuticals, cosmetics, animal feed, biofuels, and wastewater treatment. The versatility of algae and their ability to be processed into different forms, such as powders, extracts, and oils, make them attractive ingredients for a wide range of products, driving market growth.
Which region is expected to hold the highest market share?
The market in North America will dominate the market share in 2022, showcasing strong demand from algae products market in the region. Sustainability and environmental consciousness are important factors driving the demand for algae-based products in North America.
Which are the key technology trends prevailing in the algae products market?
Genetic engineering techniques are being used to enhance desirable traits in algae, such as improved growth rates, lipid production, or the synthesis of specific compounds. By manipulating the genetic makeup of algae, researchers can develop strains that are more efficient and productive, leading to higher yields of desired compounds such as lipids, proteins, pigments, or bioactive molecules. Genetic engineering also enables the customization of algae strains for specific applications or environmental conditions.
What is the total CAGR expected to be recorded for the algae productsduring 2023-2028?
The CAGR is expected to record a CAGR of 6.4% from 2023-2028.
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The study involved four major activities in estimating the algae products market size. Exhaustive secondary research was conducted to collect information on the market, peer market, and parent market. The next step was to validate these findings, assumptions, and sizing with industry experts across the value chain through primary research. Both the top-down and bottom-up approaches were employed to estimate the complete market size. After that, market breakdown and data triangulation were used to estimate the market size of segments and subsegments.
Secondary Research
In the secondary research process, various secondary sources, such as Hoovers, Bloomberg BusinessWeek, and Dun & Bradstreet, were referred to, to identify and collect information for this study. These secondary sources included annual reports, press releases & investor presentations of companies, white papers, certified publications, articles by recognized authors, gold & silver standard websites, regulatory bodies, trade directories, and databases.
Primary Research
The market comprises several stakeholders, such as raw material suppliers, processors, end-product manufacturers, and regulatory organizations in the supply chain. The demand side of the market is characterized by the presence of manufacturing companies and government organizations, service providing company officials, government and research organizations, and research officers. The supply side is characterized by the presence of key CEOs and vice presidents, marketing directors, product innovation directors and related key executives from manufacturing companies and organizations operating in the market, and manufacturing and marketing companies. Various primary sources from both the supply and demand sides of the market were interviewed to obtain qualitative and quantitative information.
Given below is the breakdown of the primary respondents:
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Market Size Estimation
Both the top-down and bottom-up approaches were used to estimate and validate the total size of the algae products market. These approaches were also used extensively to estimate the size of various subsegments in the market. The research methodology used to estimate the market size includes the following details:
- The key players were identified through extensive secondary research.
- The COVID-19 impact on market size of algae products was determined through primary and secondary research.
- All percentage share splits and breakdowns were determined using secondary sources and verified through primary sources.
- All the possible parameters that affect the market covered in this research study were accounted for, viewed in extensive detail, verified through primary research, and analyzed to obtain the final quantitative and qualitative data.
Data Triangulation
After arriving at the overall market size from the estimation process described above, the total market was split into several segments. To complete the overall market engineering process and arrive at the exact statistics for all segments, the data triangulation and market breakdown procedures were employed, wherever applicable. The data was triangulated by studying various factors and trends from both the demand and supply sides. In addition, the market size was validated using both top-down and bottom-up approaches. It was then verified through primary interviews. Hence, three approaches were adopted—top-down approach, bottom-up approach, and the one involving expert interviews. Only when the values arrived at from the three points match, the data is assumed to be correct.
Algae Products Market Report Objectives
- Determining and projecting the size of the algae products market, with respect to type, application, form, source, and regional markets, over a period, ranging from 2021 to 2026.
- Identifying the attractive opportunities in the market by determining the largest and fastest-growing segments across regions.
- Providing detailed information about the impact of COVID-19 on algae products supply chain and its impact on various stakeholders such as suppliers, manufacturers, and retailers across the supply chain.
- Providing detailed information about the key factors influencing the growth of the market (drivers, restraints, opportunities, and industry-specific challenges)
- Analyzing the micro markets, with respect to individual growth trends, prospects, and their contribution to the total market
- Identifying and profiling the key players in the algae products market and impact of COVID-19 on the key vendors.
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Providing a comparative analysis of market leaders on the basis of the following:
- Product offerings
- Business strategies
- Strengths and weaknesses
- Understanding the competitive landscape and identifying the major growth strategies adopted by players across the key regions.
- Analyzing the value chain and products offered across key regions and their impact on the growth of the prominent market players
- Providing insights on key product innovations and investments in the algae products market.
Available Customizations
Geographical Analysis
- Further breakdown of the Rest of Europe algae products market, by key country
- Further breakdown of the Rest of Asia Pacific algae products market, by key country
Segmentation Analysis
- Market segmentation analysis of other types of algae products
- Market segmentation by other applications
Company Information
- Analyses and profiling of additional market players (up to five)
Generating Response ...
Growth opportunities and latent adjacency in Algae Products Market