May 18, 2024

Algaculture Market is expected to be Flourished by Increasing Demand for Proteins from Algal Sources

Algaculture or algal farming is the process of cultivating algae in places such as oceans, ponds, and photo bioreactors. Algae are used to produce essential proteins, biofuels, nutraceuticals, and chemicals. They are cultivated as a source of food and feed proteins to meet the increasing global demand. Microalgae such as spirulina are cultivated for production of superfood supplements rich in proteins and other nutrients. Macroalgae or seaweeds are farmed along coastal areas and used to produce food ingredients, thickeners, hydrocolloids, and nutraceuticals. The global algaculture market is estimated to be valued at US$ 10.7 Million in 2024 and is expected to exhibit a CAGR of 14% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:

One of the key drivers for the growth of algaculture market is the increasing demand for proteins from algal sources. With rising world population and incomes, the demand for food and feed has surged rapidly. However, traditional sources of proteins from animals are not sustainable to meet this demand. Moreover, production of livestock-based proteins leads to emissions of greenhouse gases. Algal proteins provide a more sustainable alternative as they can be produced in controlled systems without emissions. Microalgae like spirulina and chorella are rich in complete proteins and can supplement dietary proteins. Macroalgae farming also provides proteins in the form of seaweeds used in foods. The driver of increasing demand for algal proteins is expected to boost investment and innovations in large-scale algaculture.

The increasing demand for algal proteins referred from the heading is one of the key drivers fueling investments and innovations in algal farming systems and technologies. With traditional animal protein production causing emissions, algal proteins have emerged as a more sustainable alternative. Microalgae like spirulina and chorella cultivated through algaculture provide essential complete proteins that help meet the surging global demand for food and feed proteins amid rising human populations and incomes. Macroalgae farming along coastal areas also produces edible seaweeds used as a source of proteins in foods. This driver of rising protein demand from algal sources is thus fueling the overall growth of the algaculture market over the forecast period.

Segment Analysis

The global algaculture market is dominated by cultivation sub segment. Around 60% of the global algae production is through cultivation methods as it allows production of algae in controlled environment throughout the year. The cultivation segment is further divided into open ponds and closed photo bioreactors. Photo bioreactors are dominating the cultivation sub-segment and capturing more than 50% market share due to its benefits like higher production yields and prevent contamination.

PEST Analysis

  • Political: The governments across regions are promoting algae production due to its environmental benefits. Favorable policies for R&D in algae cultivation and usage is contributing to the market growth.
  • Economic: Rising disposable incomes and health awareness is positively impacting the demand for algae based products. The development of cost effective production technologies will further accelerate the market expansion.
  • Social: Increasing preference for plant-based and organic products is augmenting the adoption of algae in food and cosmetics industry. Rapid urbanization is also fueling the growth.
  • Technological: Continuous innovations in cultivation methods like LED lighting and automated harvesting systems are improving the production yields. Advancements in genetic engineering are helping development of algae with desirable traits.

Key Takeaways

The global algaculture market is expected to witness high growth during the forecast period. Regionally, Asia Pacific dominated more than 35% of the market share majorly driven by countries like China, India, Japan and Indonesia. The region is anticipated to retain its dominance majorly due to presence of vast cultivable lands and large consumer base.

Regional analysis: Asia Pacific region captured more than 35% market share in 2024 majorly driven by China, India, Indonesia and Japan. This can be attributed to factors like suitable environmental conditions, fertile lands and government support for algae production. China dominates the Asia Pacific algae production with around 66% share due technical advancements and its emergence as global hub for major seaweed production.

Key players operating in the algaculture market are Algenol, Solazyme (TerraVia Holdings), Sapphire Energy, Cyanotech Corporation, Algae Systems, E.I.D.- Parry (India) Limited (Parry Nutraceuticals), Evonik Industries, Cargill, Incorporated, DIC Corporation (Spirulina production), Cellana.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it