Algae products are gaining popularity as sustainable, nutrient-rich options across industries. Companies like Spirulina World and Algenol lead in algae-based supplements, while Solazyme Inc. pioneers algae-to-diesel biofuels, offering renewable energy with lower emissions. Algae's minimal resource needs make it a top choice for eco-conscious consumers and clean energy innovators.
NEWARK, DE / ACCESSWIRE / October 10, 2024 / The global algae products market, valued at approximately USD 5,531.2 million in 2024, is expected to experience significant growth, projected to surpass USD 9,720.2 million by 2034. With a compound annual growth rate (CAGR) of 5.8% over the forecast period, algae-derived products are emerging as sustainable and nutrient-rich solutions across multiple industries.
The Algae Products Market refers to the global market for products derived from various types of algae, such as microalgae and macroalgae (seaweed). These products are utilized across multiple industries, including food and beverages, pharmaceuticals, cosmetics, biofuels, agriculture, and water treatment, due to their diverse nutritional, environmental, and economic benefits.
Major factors propelling the sales of algae products include:
Global demand for algae products is being driven by growing consumer knowledge of the health advantages of omega-3 fatty acids and cross-industry coverage.
The high demand from the pharmaceutical industry, the expanding need for feed and food supplements, and the rise in the global population are other macroeconomic variables that are favorably affecting the global market for algae products.
Factors such as the increased desire for healthy food items and the rising need for aquaculture feed used for fish breeding are likely to propel the market's growth.
The expansion of public and private efforts supporting aquaculture research and development as well as rising consumer demand for natural ingredients is likely to increase the market potential for the growth of algae-based products.
"The use of algae in water purification is gaining momentum as a sustainable, chemical-free solution. Companies like Clearas Water Recovery and Algix are leading innovations by leveraging algae to clean wastewater and produce valuable byproducts like biomass, reflecting a promising shift towards eco-friendly water treatment technologies." - says Nandini Roy Choudhury, Client Partner at Future Market Insights
Key Growth Drivers
Sustainability and Environmental Benefits
Algae are gaining attention for their ability to grow in non-potable water, reducing the need for freshwater and arable land. This positions algae as a vital solution for businesses and consumers looking for eco-friendly alternatives. Algae's minimal resource requirements make it an attractive option in the health and wellness sector, where it is widely used as a nutrient-dense food source. Companies like Spirulina World and Algenol are introducing supplements rich in proteins, vitamins, and antioxidants, driving the demand for algae-based products.Algae in the Biofuel Industry
Algae are seen as a promising alternative to traditional fossil fuels. Innovative companies like Solazyme Inc. are developing algae-to-diesel technologies, producing renewable biofuels with lower greenhouse gas emissions. As global demand for clean energy grows, algae-based biofuels are expected to play a significant role in reducing carbon footprints.Cosmetic and Skincare Applications
Algae's moisturizing and anti-aging properties are being utilized in the cosmetics industry. Brands like Algenist are leveraging algae extracts in anti-aging products, further driving market growth. The use of organic and natural ingredients in beauty products is expected to continue boosting sales of algae-derived skincare solutions.Aquaculture and Animal Feed
Algae-based feed is gaining traction in the aquaculture industry due to its high nutritional value, particularly its omega-3 fatty acid content. Companies like Alltech and Veramaris are offering algae-derived feed solutions, promoting healthier and more sustainable fish farming practices. This innovation supports the growing demand for responsible aquaculture, contributing to the overall growth of the algae products market.
Country-Specific Insights
Countries |
CAGR 2024 to 2034 |
The USA |
3.9% |
Germany |
4.5% |
China |
5.7% |
India |
6.5% |
Japan |
5.1% |
United States: With a CAGR of 3.9% through 2034, the U.S. market is driven by the demand for algae-based biofuels and sustainable agricultural practices. Companies like Sapphire Energy are advancing algae biofuel production, contributing to the country's renewable energy goals.
China: Growing at a CAGR of 5.7%, China is expected to see high demand for algae-based products, particularly in the food and energy sectors, as the country focuses on eco-friendly practices and cleaner energy.
India: With a projected CAGR of 6.5%, India is emerging as a key market for algae-based pharmaceuticals and textiles, driven by the increasing demand for sustainable health products and eco-friendly fabrics.
Japan Algae Products Industry to Register a CAGR of 5.1% During the Forecast Period
The market for algae products is anticipated to benefit greatly from an increase in the consumption of protein supplements in Japan. The Japanese sports nutrition industry has grown significantly over the past few years as a result of the nation's expanding sports culture. Sales of health supplements and energy drinks have significantly increased as a result of the growing population of sportsmen and bodybuilders, as well as a strong sports infrastructure. Additionally, the pandemic has significantly increased demand for functional foods and nutraceuticals throughout the world, creating a lucrative potential for producers of algae products.
High Demand for Algae in Nutraceuticals and Pharmaceuticals to Open Up Growth Opportunities for Players
The increasing use of algae in the pharmaceutical and nutraceutical sectors has recently had an impact on market growth. It is anticipated that the increasing usage of algae biomass for nutraceutical applications would provide algae product manufacturers with a lucrative new source of income.
Additionally, the expanding industrial use of algae is giving businesses options that have further influenced market expansion. Some companies now provide algae-based CO2 collection and biofuel generation, creating a new source of income for them. For businesses that handle household and industrial wastewater, wastewater remediation by algae products offers a significant opportunity to reduce wastewater treatment expenses.
Latest Trends in the Algae Products Industry
The market for algae products is expected to be driven by consumers' changing dietary preferences as well as a paradigm shift toward preventative health management techniques in response to rising healthcare costs and the growing burden of lifestyle-related ailments. In addition, algae have significant nutritional and protein qualities, making them suitable as both food and feedstock.
The market for food items made from algae is being influenced by rising investment from the food sectors. The total market for algae products is being impacted by rising consumer health consciousness and their increased desire for healthy food items. The simple accessibility of inexpensive substitutes, however, poses a significant obstacle to the industry's expansion.
Competition Outlook
The market of algae ingredient products is cut-throat in its nature with a host of organizations fighting to claim their fair amount of the market share through innovation and collaboration.
For example, firms such as Corbion and DSM are making huge investments in research and development to produce distinctive high-valued products that may fit well within the consumer's needs. Corbion is engaged in the production of algae-derived omega-3 fatty acids that act as a replacement for fish oil but in a more environmentally friendly manner.
However, for manufacturers to counter this trend, they are more than willing to form, alliances and joint ventures. AgaeEnergy has formed a joint venture with Yokogawa Electric Corporation to improve its production and distribution capabilities. The companies are also broadening the field within which their products operate, for instance, biofuels and animal feeds among others.
For instance
In 2024, an Israeli startup, named Brevel, opened a new commercial facility with a capacity of a hundred tons, to produce highly functional and neutral-tasting algal protein. It is said to compete with soy and pea protein. The site will manufacture a white powdered concentrate of 60 to 70% microalgal protein, along with multiple high-value products.
Leading Brands
Algae Systems LLC
euglena Co.
Cyanotech Corporation
Cargill
DSM
Kerry
Cargill
Corbion
BIOPROCESS ALGAE, LLC.
BASF
Others
Key Segments of the Report
By Product Type:
As per product type, the industry has been categorized into Lipids, Carrageenan, Alginate, Algal Protein, Carotenoids, and Others.
By Form:
As per form, the industry has been categorized into Solid and Liquid.
By Source:
This segment is further categorized into Green Algae, Brown Algae, blue-green algae, Red Algae, Yellow-Brown Algae, and Others.
By Processing:
This segment is further categorized into Food & Beverages, Nutraceuticals & Dietary Supplements, Personal Care, Feed, Pharmaceuticals, and Others.
By Region:
Industry analysis has been carried out in key countries of North America, Latin America, Western Europe, Eastern Europe, Balkans & Baltic, Russia & Belarus, Central Asia, East Asia, South Asia & Pacific, and the Middle East & Africa.
Authored by:
Nandini Roy Choudhury (Client Partner for Food & Beverages at Future Market Insights, Inc.) has 7+ years of management consulting experience. She advises industry leaders and explores off-the-eye opportunities and challenges. She puts processes and operating models in place to support their business objectives.
She has exceptional analytical skills and often brings thought leadership to the table.
Nandini has vast functional expertise in key niches, including but not limited to food ingredients, nutrition & health solutions, animal nutrition, and marine nutrients. She is also well-versed in the pharmaceuticals, biotechnology, retail, and chemical sectors, where she advises market participants to develop methodologies and strategies that deliver results.
Her core expertise lies in corporate growth strategy, sales and marketing effectiveness, acquisitions and post-merger integration and cost reduction. Nandini has an MBA in Finance from MIT School of Business. She also holds a Bachelor's Degree in Electrical Engineering from Nagpur University, India.
Nandini has authored several publications, and quoted in journals including Beverage Industry, Bloomberg, and Wine Industry Advisor.
Explore FMI's related ongoing Coverage in Food and Beverage Domain:
The global algae oil market is predicted to rise at a 3.7% CAGR over the forecast period. In 2024, the industry is projected to reach USD 2,442 million.
The global algae fats market is expected to reach a valuation of USD 297.7 million in 2023, accelerating with a CAGR of 5% from 2023 to 2033. Algae fat sales are likely to surpass USD 484.5 million by 2033.
The algae protein market generated a total revenue of USD 750 million in 2022. The industry is anticipated to rise at a healthy CAGR of 5.5% over the forecast period, to attain a market revenue of USD 1,351.57 million by 2033.
The Soy Food Products market is valued at USD 45 Billion in 2022 and is projected to grow at a CAGR of 5.1% during the forecast period, to reach a value of USD 73 Billion by 2032.
The global lactose-free products market size is valued at USD 13.5 billion in 2023. The market is expected to reach USD 23.9 billion by 2033 at a CAGR of 5% from 2023 to 2033.
The global products from food waste market are estimated to reach USD 55,120 million in 2023. The sales of food waste products are projected to expand at a CAGR of 5% to reach USD 85,905.0 million by 2033.
The Algae Omega market is expected to grow at a CAGR of 3.7%. The market value projected to increase is from USD 1,038.5 Million in 2022 to USD 1,493.4 Million by 2032.
The global microalgae-based aquafeed market is estimated to be valued at USD 279.6 million in 2024 and further increase at a CAGR of 7.5% during the assessment period.
The microalgae market is estimated to secure a valuation of USD 11.8 billion in 2023 and is predicted to reach USD 25.4 billion by 2033. The market is capturing a CAGR of 8% during the forecast period.
The global aquafeed market is expected to increase at a CAGR of 6.8% through 2033. The market value is projected to expand from USD 46.8 billion in 2023 to USD 90.9 billion by 2033.
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