Algae is a photosynthetic, oxygen-exhaling, unicellular, or multicellular microorganism with diverse characteristics such as consumption of carbon dioxide and storage of essential nutrients, minerals, and vitamins.
The global Algae products market was valued at USD 2,276.0 Million in 2020, and is projected to reach USD 4286.8 Million by 2031, growing at a CAGR of 4.88% from 2022 to 2031.
Due to increase in demand for natural products and proactive efforts by market players to formulate algae-based consumable products to meet quality, texture, and nutritional demands of consumers. Earlier, algae was not considered for production of bio fuel as cost of production was high, however, with recent development in process technology and feasibility of process, algae bio fuel can be used as an alternative to fossil fuel.
Rise in global population and increase in demand for food and customization of functional food product portfolio by manufacturers are the key factors expected to boost the growth of the algae products industry.
In addition, application of algae for production of livestock for aquaculture species such as fish for their cultivation fuels the market growth. However, consumption of algae-based prescription drug products, such as sun chlorella, microalgae, and spirulina cause gastrointestinal issues, abdominal issues, and nausea, which can hamper the market growth. Conversely, the development of commercial by-products and algae-based biofuel production technology is anticipated to drive the market growth.
As per the global algae products market analysis, it is segmented into type, source, form, application, and region. Depending on type, the market is segregated into spirulina, chlorella, astaxanthin, beta carotene, and hydrocolloids. On the basis of source, it is classified into brown algae, blue-green algae, red algae, green algae, and others. By form, it is bifurcated into solid and liquid. The application segment comprises food & beverages, nutraceuticals & dietary supplements, personal care, chemical, feed, and pharmaceuticals. The market is analyzed across North America (U.S., Canada, and Mexico), Europe (Germany, France, Italy, UK, Russia, and rest of Europe), Asia-Pacific (China, Japan, India, and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).
The top market players in the global algae products market include euglena Co., Ltd., Algae Systems LLC., Cyanotech Corporation, Cargill, Incorporated, Algenol Biofuels Inc., BIOPROCESS ALGAE, LLC, Corbion, Algatechnologies, Cellana Inc., and Earthrise Nutritional.
By type, the hydrocolloids segment dominated the market in 2020, accounting for around 49.4% of the overall algae products market share. This is attributed to the fact that hydrocolloids form gel in the presence of water, influence texture, and viscosity, and hence are used in different food & beverage applications. However, the beta carotene segment is expected to be a significant rate during the forecast period.
In 2020, brown algae was the leading segment in the global market, owing to composition of high carrageenan and algal protein in brown algae coupled with a wide range of applications.
In 2020, the food & beverage segment led the market, as the use of algae increased in food, functional food, food additives, and beverages. However, the personal care segment is anticipated to grow at the fastest rate during the forecast period. Consumers’ desire to look young and development of new natural ingredient are anticipated to drive the algae products market growth during the forecast period. In addition, personalized cosmetic products to target specific skin care problems drive the growth of the market.
North America was the largest market for algae products in 2020, due to rise in population coupled with increased demand for food in the region. In addition, increase in health awareness and rise in disposable income in the countries such as China, India, and Japan boost the consumption of nutraceutical products, thus fueling the growth of the market.