by The global Algae Market is estimated to be valued at US$ 175.33 Mn in 2023 and is expected to exhibit a CAGR of 6.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Algae are classified as microalgae, macroalgae and blue-green algae. Microalgae are microscopic photosynthetic unicellular organisms found in freshwater and marine environments. Macroalgae or seaweeds are multicellular algae that can grow to large sizes and live attached to surfaces in shallow coastal waters. Algae are a rich source of nutrients, fatty acids and antioxidants. They are widely used as a food supplement, animal feed ingredient, biofuel and biochemical source. Algae are also used in wastewater treatment, carbon sequestration and environmental remediation applications due to their high growth rate and ability to remove pollutants from water bodies.
Market key trends:
The rising demand for biofuel production from algal biomass is a major trend in the algae market. Microalgae have high photosynthetic efficiency and can be cultivated in non-arable lands without competing for agricultural resources. They can accumulate over 50% of their dry weight as lipids that can be converted to biodiesel. Companies are focusing on developing commercial algae cultivation technologies and genetically modifying algae strains to enhance lipid productivity. Government initiatives and subsidies for commercial scale algae biofuel production will help scale up the technology. The expanding applications of algal extracts in food and nutraceuticals is another key trend. Algae are rich in proteins, vitamins, minerals and polyunsaturated fatty acids. They are used as a base ingredient in dietary supplements, functional foods and infant formulas. With growing health awareness, the demand for algal derived products with proven health benefits will increase significantly.
Porter’s Analysis
Threat of new entrants: The algae market requires high capital investments for infrastructure and R&D. Stringent regulations from environmental agencies also act as a barrier for new companies.
Bargaining power of buyers: Large food and feed companies have strong influence over algae producers due to their dominant position in the market. They can force lower prices and demand stringent quality standards.
Bargaining power of suppliers: The algal suppliers have to depend mainly on a few large algae producers due to high production volumes required. This enables algae producers to dictate pricing and demand customized contract terms.
Threat of new substitutes: Substitutes like plant and animal proteins pose competition. However, algae offers distinct nutritional profile making it difficult to completely replace.
Competitive rivalry: The market is highly concentrated with few global players. Companies compete based on production efficiency,brand, quality, and innovative applications.
Key Takeaways
The Global Algae Market Size is expected to witness high growth, exhibiting CAGR of 6.8% over the forecast period, due to increasing demand for healthy and nutritional foods. The market size for 2023 is estimated at US$ 175.33 Mn.
North America dominates the algae market currently due to rising awareness about veganism and plant-based foods. Asia Pacific is expected to grow at the fastest pace during the forecast period driven by expansion of aquaculture industry in China, Indonesia and India.
Key players operating in the algae market are Cyanotech Corporation, Dic Corporation, Corbion N.V, Valagro SpA, Far East Microalgae Industries Co. Ltd., Beijing Gingko Group, Heliae Development Llc, Pond Technologies Holdings Inc., Algaetech International Sdn Bhd, Fuqing King Dnarmsa Spirulina Co. Ltd., Sun Chlorella Corporation, and Ecoduna Ag. These companies compete based on production efficiency and focus on R&D to identify new applications for algae.
