Algae biomass contains proteins, fatty acids, vitamins, and minerals that can be used to produce various foods. Algae have a high protein content, contain essential and balanced amino acids, and can be used as a replacement for meat and dairy products in the human diet. Algae lend themselves to producing plant-based meat and dairy alternatives for health- and environmentally-conscious consumers. The demand for plant-based meat and dairy alternatives is rising significantly due to increasing veganism and health trends. Algae can be used as a sustainable plant-based protein source in these food products. The global Algae Market is estimated to be valued at US$ 175.33 Mn in 2024 and is expected to exhibit a CAGR of 11.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
One of the key trends driving growth in the algae market is the increasing use of algae biomass in biofuel production. Most algae strains accumulate natural oils that can be extracted and converted into biodiesel. Algae produce 150 times more oil per acre compared to palm oil, making algae an attractive option for sustainable biofuel production. Several companies are developing algal biofuels at commercial scale, and the commercialization of algae biofuels is expected to gather significant momentum over the forecast period. Algae are also receiving widespread attention for their ability to produce advanced biofuels like bio-jet fuel and biomass-to-liquid transportation fuels. As depletion of fossil fuels and growing focus on renewable energy drives demand for sustainable fuels, the utilization of algae feedstock for biofuel production presents major growth opportunities for players in the algae market.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate due to the rising demand for algae-based products. However, significant capital is required to set up algae farms and R&D facilities.
Bargaining power of buyers: The bargaining power of buyers is high since algae are used as ingredients by various end-use industries like food and beverages, personal care, and animal feed. Buyers can negotiate on pricing and quality standards.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as raw materials like carbon dioxide, nutrients, and water are easily available. However, a consistent supply of algal strains is crucial.
Threat of new substitutes: The threat of substitutes is low as algae offer unique health and nutrition properties that are difficult to replicate. However, plant-based alternatives pose competition.
Competitive rivalry: The competitive rivalry is high due to the presence of several global and regional players focusing on new product innovations.
Key Takeaways
The Global Algae Market Growth is expected to witness high over the forecast period.
Regional analysis: North America accounts for over 35% of the global market share due to the growing demand for algal dietary supplements and increasing soy and dairy alternatives consumption. Asia Pacific shows high potential for growth supported by rising aquaculture industry in countries like China, India, and Japan.
Key players: Key players operating in the algae market are DyCare, Costaisa, Meditouch, Signo Motus srl, MEYTEC GmbH Informationssysteme, and Raccoon Technologies Poland LLC. These companies are focusing on new product innovations and expansion strategies to strengthen their global presence. For instance, in 2022, Signo Motus srl launched an advanced microalgae cultivation system for industrial applications.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it