The size of global algae market was estimated at US$4.4 Bn in 2021 and is anticipated to increase at a CAGR of more 6% during the following years.
Rising Boom Around Algae-based Biofuel Drives Global Algae Market Growth
Global algae market is constantly expanding due to the functional advantages that go beyond the usual nutritional and health benefits. Furthermore, algae can deliver better oil output than biofuel feedstock containing sorghum, corn Stover, beet, and corn. Huge prospects for the global algae market to flourish as a result. By 2026, the annual biofuel demand is expected to increase by 28% to 186 billion liters. Thus, the demand for algae-based biofuel will increase to achieve this target. Manufacturers' increasing R&D efforts are anticipated to drive global algae market expansion.
One of the key factors anticipated to propel the growth of the worldwide algae market during the forecast period is the rising demand for dependable, sustainable, and affordable sources of energy to alleviate the petroleum supply chain and satisfy the rising demand from the aviation and automotive sectors. Another factor driving the expansion of algae market is the demand for algae in the plastics industry, which is used to create biodegradable plastics. Over the projection period, there is expected to be an increase in the usage of algae in various applications, including food and beverage production, pharmaceuticals, nutraceuticals, cosmetics, fertilizer, and others.
Growing Application in Dietary Supplements to Boost Algae Market Expansion
Demand for plant-based health supplements has increased due to the growing acceptance of natural goods in the dietary supplement business, which is anticipated to drive algae market expansion over the next nine years. Its low amount of saturated and trans fats can also be utilized as a specialty oil in the food business, making it a healthy option. The market is anticipated to benefit from expanding application categories, especially in North America, and Europe. Many new businesses are entering the market all across the world. With the strong government support and minimal technological obstacles in the area, most of these players are based in North America. For instance, in June 2022, TransAlgae, an algae-based company, is seeking to raise US$12 Mn to finish developing an oral therapy for the Whitespot Syndrome Virus (WSSV) in shrimp.
COVID-19 Impact on Global Algae Market
There are significant medical, societal, and economic issues due to the COVID-19 pandemic. Most businesses in the manufacturing sector (53%) anticipate that COVID-19 will affect how they conduct business. The sector's dire predictions have come true with the increase in oil prices, growing supply and demand bottlenecks, resulting slowdown in spending and rising credit market uncertainties. The consumption of food and beverage items has drastically decreased, which has affected players in the business worldwide. Businesses are also dealing with supply chain disruptions due to lockdowns in various regions of the world and limitations on the shipment of supplies. Supply chains have been affected by decreased agricultural productivity, which has disturbed the supply of raw materials, personnel shortages in manufacturing facilities, and issues with the distribution network.
Algae's Nutritional Advantages Significantly Uphold Algae Market in Livestock Feed
The rising usage of algae in livestock feed due to its nutritional advantages drives the algae sector. Most animals, including dogs, cows, buffalos, horses, and cats, require the minerals like phosphorus, zinc, iron, and magnesium, frequently found in algae. Aquaculture regularly uses algae, which are rich in omega-3 fatty acids, as dietary supplements. A billion tonnes of feed are produced worldwide, bringing in more than $400 Bn in revenue. The need for algae is projected to rise in the upcoming years due to the enormous livestock production. There is also an increase in the need for animal feed due to the sharp rise in the consumption of meat and items related to meat. The rapid expansion of fast food chains like KFC, Mcdonald's, Subway, Burger King, and Taco Bell has significantly impacted meat consumption. In 2020, 324 million metric tonnes of beef will be consumed globally, doubling since 1990. Therefore, it is expected that the livestock feed industry will grow quickly in the future, propelling the market's expansion.
Rapid Development in Biofuel Industry Propels Algae Market Growth
The algae sector has struggled to keep up with the biofuel market over the last ten years. However, the product has huge growth potential if the producers can overcome the significant obstacles related to manufacturing raw materials, capital expenses, and production quantities. Manufacturers are anticipated to increase their R&D spending to create sustainable technology for producing algal fuel throughout the forecast period due to the introduction of biofuel requirements worldwide. Algae ponds alone can produce > 58 billion gals (BGY) of biofuels annually in the United States that are placed on non-competitive sites. Additionally, one of the most promising possible sources of renewable energy to help solve the world's energy crises and environmental problems is thought to be biofuels. The ability of microalgae biomass to process biofuels, chemicals, and bio-based goods has demonstrated its potential for assisting in the switch from a petroleum-based economy to a bio-based economy. A greater growth rate without food competition and little to no environmental damage are just a few benefits of using algae as fuel. Algal biofuel is more appropriate for the application since it has a lower density and viscosity than cellulosic biofuel, which has a higher caloric value.
Government Restrictions are Hampering Global Algae Market
The Novel Food Regulation EU 2018/2283 is relevant to algae cultivation. The animal and aquaculture feed material is subject to strict pollution limitations. Pathogen limitations can be imposed legally due to EU Regulation 183/2005 on Feed Hygiene. The EU Organic Farming Regulation 2018/848 outlines the environmental requirements for the production of algae and the acceptance of non-GMO microorganisms in plant cultivation. The algae industry is only getting started. Consequently, the payback period is lengthy. To address these difficulties, sizable capital expenditure and operating expenses are required. These main constraints limit the demand for algae and items made from algae.
With Growing Health Awareness, Nutraceuticals and Dietary Supplements Dominate Algae Market
The nutraceuticals and diet supplement industry will dominate the algal market over the forecast period. The demand for the product is anticipated to expand throughout the projected period due to the growth of the nutraceuticals industry in China, Japan, and India due to the rising domestic use of nutritional supplements. During the COVID-19 lockdown in March, vitamins and TCM were used by nearly four out of ten customers in China. Popular dietary supplements made from algal proteins include spirulina and chlorella, which are available in liquid, powder, tablet, pill, and paste forms. The prevalence of chronic diseases and evolving lifestyles have led to a sharp rise in the demand for various dietary supplements worldwide.
Algae-based Protein Dominate Algae Market on the Back of Changing Consumer Lifestyle
The population's increased awareness of the health advantages of algal proteins is the main element driving the market for these proteins upward. Over the projection period of 2021 to 2028, it is also anticipated that rising disposable incomes, fast urbanization, and economic growth will raise the market's total demand for algal protein. Additionally, it is anticipated that the world's aging population and the strong demand for algae products from the nutraceuticals and pharmaceutical industries would contribute significantly to the growth of the algae protein market. Additionally, the increased use of protein products worldwide due to consumer lifestyle changes and increased health consciousness is boosting the development of algae protein.
North America Gained Majority of Algae Market due to Rising Use of Dietary Supplements
North America will hold the biggest market share for algal products during the projected period. The United States is expected to be the primary driver for algae market in North America. Growing sectors in the food and beverage, nutraceutical, pharmaceutical, and dietary supplement industries have all made major contributions to the market's growth in the US. The nation's expanding population is another reason that is predicted to boost demand for algal products. A growing number of health-conscious customers have increased the use of lipids like omega-3 in nutraceutical and dietary supplement products, opening up a market for algae-based goods. Sales of nutraceuticals and dietary supplements increased by 44 percent ($435 million) in April 2020, during the first wave of the pandemic, compared to the same month in 2019. resulting in the expansion of items made from algae in the area.
Asia Pacific is anticipated to grow at the fastest rate in the market examined throughout the projected timeframe. Large portions of the algae used in food processing are grown in Asian countries like the Philippines, Vietnam, and Indonesia. The area is anticipated to hold a sizeable portion of the carrageenan production industry due to its capacity to cultivate high-quality carrageenan, fueling the market's expansion. The Asia Pacific region's market is expanding thanks to increased nutraceutical consumption, particularly in China. According to surveys, 41% of all Chinese people consume dietary and nutritional supplements daily, causing the nutraceuticals market to reach 174.3 Bn yuan in 2020.
Global Algae Market: Competitive Landscape
For instance, in February 2021, Cargill introduced WavePure ADG 8250, its first seaweed powder item in the WavePure ADG series. This "familiar and versatile" marine ingredient was created to highlight the smooth and creamy textures in dairy products and to provide gelling and thickening capabilities. The red seaweed Gracilaria, which is regarded as a traditional food item in the EU, serves as the sole constituent in the powder. For instance, in October 2020, Cyanotech Corporation announced the release of BioAstin Hawaiian Astaxanthin, a new water-dispersible powder available in 1% and 2% strengths. A potent antioxidant called BioAstin Hawaiian Astaxanthin is made from organic Haematococcus Pluvialis microalgae that are farmed on the Kona Coast of the Big Island of Hawaii.
A few of the players in global algae market include DuPont (US), DSM (Netherlands), Cargill (US), Corbion (Netherlands), BASF (Germany), CP Kelco (US), E.I.D Parry (India), Cyanotech Corporation (US), Algatech (Israel), and Fenchem Biotek (China).
Global Algae Market is Segmented as Below:
Key Elements Included In The Study: Global Algae Market
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