June 18, 2024

Algaculture Market poised to Witness High Growth Owing to Rising Demand for Algae-based Health Supplements

Algaculture involves the farming of algae in a controlled environment to harvest algal biomass for commercial purposes. Algae supplements have gained immense popularity as they are a rich source of nutrients, proteins, vitamins and minerals. The algae industry cultivates and processes different types of algae such as spirulina, chlorella and astaxanthin. Spirulina is predominantly used in food and feed applications due to its natural anti-inflammatory and antioxidant properties. Algae farming is a sustainable alternative to traditional agriculture as it does not require arable land or freshwater resources.

The global algaculture market is estimated to be valued at US$ 10.7 Million in 2023 and is expected to exhibit a CAGR of 14.5% over the forecast period 2024-2031.

Key Takeaways

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.

Key players: The algaculture industry is dominated by Algenol, Solazyme and Cyanotech Corporation which together account for over 35% of the global market share.

Key opportunities: Rising demand for algal biomass from nutraceuticals, pharmaceuticals, cosmetics and feed industries will drive market growth. The Asia Pacific region presents significant opportunities owing to growing health awareness.

Global expansion: Major players are focusing on capacity expansions and acquisitions to strengthen their global footprint. Increased R&D investments are helping develop new algal strains with higher productivity and nutritional value.

Market drivers

Increased prevalence of lifestyle diseases: Algae supplements effectively address issues like diabetes, obesity, cardiovascular problems and cancer due to their antioxidant and anti-inflammatory properties. Growing prevalence of non-communicable diseases is a key driver for the algaculture industry.

Favorable government initiatives: Several governments are supporting algae production through grants, funding and policy changes to boost the bioeconomy. Notable examples include US, Japan, Australia and EU countries. This is encouraging large scale commercial farming of algae.

PEST Analysis:

  • Political: Regulations on use of algae strains and effluents in agriculture impact the algaculture market. Strict laws ensure environment safety from farming activities.
  • Economic: Rising income levels and health awareness boost demand for algae-based food and supplements. Cost-effective production compared to traditional crops benefits the market.
  • Social: Increasing vegan and flexitarian population appreciate algae as a sustainable plant-based nutrition source. Social media influences consumer preference for natural products.
  • Technological: Advancements in genetic engineering, bioreactors and processing aid large-scale cultivation and extraction of high-value components from algae. Automation reduces operational costs.

The Asia Pacific region accounts for the largest share of the algaculture market value due to expanding food and chemicals industries utilizing algal biomass and extracts. Countries like China, Japan and South Korea are major producers and consumers of Spirulina and Chlorella used in dietary supplements, pharmaceuticals and animal feed.

North America has emerged as the fastest growing regional market propelled by growing health-conscious consumers, research into algae-derived biofuels and investments from agritech companies in production technologies. Stable policies are encouraging private firms to commercialize algae cultivation for food, cosmetics and biofuel industries in the region.

The concentration of algaculture market value is highest in Asia Pacific led by China, Japan and South Korea due to established algae farming industries and rising demand from food, feed and other sectors. North America is witnessing the fastest market growth supported by consumer awareness, technological advancements and favorable policies for business expansion.