April 20, 2024

Algae Market Is Expected To Flourish Due To Higher Demand For Protein Alternatives

Algae have versatile applications across industries such as food and beverage, nutraceuticals, cosmetics and personal care, chemicals, and biofuels among others. Algae are a rich source of proteins, nutrients, antioxidants, polyunsaturated fatty acids, and fibers. They are considered as sustainable alternatives to conventional sources of proteins. Increasing vegan and flexitarian population has boosted the demand for plant-based proteins derived from algae globally. Algae are rich in proteins and contain all essential amino acids required by human body. Spirulina, chlorella, and dunaliella are some of the common algae species used in dietary supplements and food products as protein sources. The growing focus on sustainable and clean label ingredients is expected to further drive the algae market over the forecast period.

The global algae market is estimated to be valued at US$ 175.33 Mn in 2023 and is expected to exhibit a CAGR of 11.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Dynamics:
The demand for algae-based protein alternatives and focus on sustainable products are expected to fuel the growth of the algae market over the forecast period. Algae have higher protein content than conventional plant and animal sources and can be used as sustainable alternatives to meat and dairy proteins. The flexitarian population prefers algae-based protein options as they are vegetarian-friendly and provide complete nutrition. Moreover, algae cultivation does not require agricultural land and have lower carbon footprint making them more sustainable than other livestock sources. The growing vegan population globally is shifting towards algae-based food choices thus propelling the market growth.

Segment Analysis
The Algae Market Size is segmented into spirulina, chlorella and other sub segments. Spirulina accounts for over 30% of market share and is dominating the sub segment. Spirulina is rich in nutrients like protein, vitamins and minerals. It is widely used as a dietary supplement owing to its various health benefits.

PEST Analysis
Political
: Most governments are promoting the use of algae as a sustainable source of food, feed, nutraceuticals and biofuel. They are providing subsidies and funding for research and development in algae cultivation and processing.
Economic: Rapid industrialization and urbanization has increased demand for natural and organic ingredients in food and personal care products. Growing health consciousness is a major driver for algae extracts market. Rising disposable incomes in developing nations also contribute to market growth.
Social: Customers are increasingly aware about benefits of algae in maintaining health and appearance. Social media marketing by brands is improving awareness. Algae based products are gaining popularity as superfoods and supplements among health conscious consumers.
Technological: Advances in algae cultivation technology allows production at large commercial scale. Development of new extraction methods helps maximize recovery of high value compounds. Biorefinery concept helps exploit algae for multiple applications and makes production economically viable.

Key Takeaways
The global algae market is expected to witness high growth over the forecast period supported by increasing demand from nutraceuticals, pharmaceuticals, personal care and other industries.

Regional Analysis: North America currently accounts for over 30% of market share driven by growing health awareness and presence of major players. The market is dominated by spirulina owing to its diverse application as a dietary supplement and natural colorant.

Key players operating in the algae market are DyCare, Costaisa, Meditouch, Signo Motus srl, MEYTEC GmbH Informationssysteme, and Raccoon Technologies Poland LLC. These players are focusing on capacity expansion, new product launches and mergers & acquisitions to strengthen their market position. For instance, DyCare recently acquired Italian firm Meditouch to expand its production facilities and product portfolio in European region.

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