June 17, 2024
Commercial Seaweed Market

Commercial Seaweed Market is Estimated to Witness High Growth Owing to Rising Application in Multiple Industries

With the rising use of seaweed extracts and hydrocolloids obtained from seaweeds in food and non-food industries, the commercial seaweed market is gaining significant traction over the recent past. Commercial seaweeds refer to algae grown for the extraction of useful products such as alginates, carrageenans, agar, and others that find major applications across numerous end-use industries. Seaweeds are gaining prominence for their nutritional profile, texture improvising capabilities, and functional properties. They have high fiber, protein, iodine, calcium, and vitamin content. Additionally, seaweed extracts are widely applied as food additives, thickeners, gelling agents, and stabilizers in food products like dairy products, convenience foods, salad dressings & sauces, confectionery, and meat & fish products among others. All these factors are fueling the growth of the commercial seaweed market globally.

The Global commercial seaweed market is estimated to be valued at US$ 12.67 Bn in 2024 and is expected to exhibit a CAGR of 2.5% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the Commercial Seaweed Market Size are E.I. Du Pont de Nemours and Company, Travena Organic Solutions Ltd., Cargill Inc., Roullier Group, Leili Group, Biostadt India Limited, Compo GmbH & Co. KG, Acadian Seaplants Limited, Gelymar SA, BrandT Consolidated, Inc., Seasol International Pty. Ltd., CP Kelco., West Coast Marine Bio-Processing Corp., Chase Organics GB Limited, Indigrow Ltd., Acadian Seaplants, Algaia SA, and The Seaweed Company. The rising consumption of convenience and packaged food & beverages owing to changing lifestyles presents lucrative opportunities for key players in the commercial seaweed market. Additionally, the increasing expenditure on research & development activities focused on developing efficient algae cultivation techniques and seaweed processing methods is expected to drive technological advancements.

Market drivers

primary driver boosting growth of the commercial seaweed market is the surging demand for seaweed extracts and hydrocolloids from food industries. Seaweed based products improve texture, enhance flavors, act as thickening and gelling agents as well as stabilizers in wide range foods. Additionally, burgeoning application of seaweeds across non-food industries such as pharmaceuticals, personal care, animal feed and agrochemicals is further propelling the market growth.

Current challenges in the Commercial Seaweed Market

The commercial seaweed market faces several challenges due to factors like climate change effects, fluctuations in supply and demand, high production costs, and lack of technological advancements. Seaweed farming is heavily dependent on favorable environmental conditions like temperature, sunlight, and nutrient levels in seawater. Climate change causing rising ocean temperatures and acidification poses a major threat. Prices are also volatile due to uncertain demand and supply. Large-scale commercial production also requires substantial capital investments and operating expenses. There is a need for new technologies to monitor farm sites, breed high-yielding varieties, and develop cost-effective harvesting and processing methods.

SWOT Analysis

Strength: Rich source of nutrients and wide applications in food and other industries leading to growing demand.

Weakness: High sensitivity to climate change effects and fluctuating environmental conditions impact production.

Opportunity: Research on cultivating Commercial Seaweed varieties suitable for open ocean farming to expand production.

Threats: Competition from alternative plant-based foods and surging raw material costs can reduce profit margins.

In terms of value, Europe and Asia Pacific are currently the largest geographical regions for the commercial seaweed market. Europe accounts for over 30% share led by major producers like Ireland, Norway, and France. Key factors are close proximity to farm sites and well-established processing facilities. Asia Pacific is the second largest region with countries like China, South Korea, and Indonesia dominating production.

The fastest growing region for the commercial seaweed market is expected to be North America over the forecast period. This is mainly due to rising awareness about health benefits, focus on R&D for sustainable cultivation techniques, and initiatives by governments to support the industry. Production is projected to increase multi-fold in countries like the US and Canada to cater to growing domestic demand as well as exports.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it