by The algae market encompasses various algae derived products that find wide applications in industries such as food and beverage, nutraceuticals, cosmetics, animal & pet feed, and biofuel. Algae is a renewable source of proteins, lipids, vitamins, and minerals and are being increasingly utilized as sustainable and eco-friendly alternatives to conventional ingredients in various products. Some popular types of commercial algae include spirulina, chlorella, and dunaliella salina. They are a rich source of nutrients like proteins, vitamins, iron, and antioxidants. Nutraceuticals containing algae helps address various health concerns like heart diseases, arthritis, inflammation and are promoted for their anti-aging properties. Algae are also being employed as natural colors, texturizers and functional ingredients in cosmeceuticals owing to their abundance in essential fatty acids and anti-oxidants.
Global algae market was valued at US$ 4,681.4 Million in 2022 and is expected to reach at 7,927.1 Million during the forecast period (2023 to 2030), exhibiting a CAGR of 6.81 %.
Key Takeaways
Key players operating in the algae market are Cyanotech Corporation, Cargill, DuPont, Kerry, Fuqing King Dnarmsa Spirulina Co., Ltd, Algatechnologies, and AstaReal AB. Over the recent past, there has been a substantial increase in demand for products containing algae extracts owing to rising health consciousness and preference for plant-based and naturally derived ingredients. This has further prompted several new players to foray into the algae production and downstream processing market. There has also been growing geographic expansion of major players with a focus on emerging markets of Asia Pacific, Middle East, and South America. Regional facilities help companies address specific demands and stay close to raw material supply. For instance, Cyanotech established production facilities in Malaysia and Nanjing to serve the growing Asian markets better.
Market key trends
One of the major trends witnessed in the global algae market is the rising focus on developing algae-based foods and natural food colors. Proteins from algae like spirulina and chlorella are being widely added to food products like snack bars, cereals, spreads, dairy alternatives due to their high nutrition value. Algae Market Demand helps producers promote the nutritional content of their foods. Besides, natural pigments from algae are revolutionizing the food color industry. Algae-derived blue and green food colorants are increasingly preferred by manufacturers and consumers alike due to absence of synthetic ingredients. Another significant trend is the growing adoption of algae cultivation technologies. Companies have scaled up production capacities through the use of closed photobioreactors, open ponds and raceway ponds tailored for mass cultivation of select algae strains. This is positively impacting availability and commercialization of algae-based products.
Porter’s Analysis
Threat of new entrants: Minimal capital requirements and lack of brand loyalty or switching costs make it easy for new companies to enter the market.
Bargaining power of buyers: The Algae Market Companies presence of many well-established buyers in food, feed and bioplastics industries allows them to negotiate lower prices from suppliers.
Bargaining power of suppliers: A few large companies control the supply of algal biomass and products, giving them strong influence over prices in the value chain.
Threat of new substitutes: Alternative sources of omega-3s, proteins and plant-based ingredients pose a threat, though algae offer advantages in sustainability and nutrition.
Competitive rivalry: Leading producers compete aggressively on production efficiency, product differentiation and innovative applications to gain market share.
Geographical regions of concentration: North America accounts for the largest share of the global algae market value currently, driven by strong demand and a focus on R&D in the US and Canada.
Fastest growing region: The Asia Pacific region is expected to experience the fastest market growth during the forecast period, as major producers in China, Japan and other countries ramp up output to meet rising local demand for health foods and specialty ingredients.
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*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
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