The global Algae Market is estimated to be valued at US$ 175.33 Mn in 2023 and is expected to exhibit a CAGR of 6.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Algae are mass cultivated species grown for commercial use. They are highly nutritious and used in diverse industries such as cosmetics, food and feed additives, pharmaceuticals, and biofuel production owing to their nutritional content, fatty acids, and antioxidant properties.
Market key trends:
The growing demand for nutraceuticals from algae is driving the market growth significantly. Microalgae are considered an excellent source of vitamins such as A, B1, B2, B3, B6, C, E, and K as well as minerals including iron, magnesium, potassium, zinc, and calcium. They also provide high-quality protein and a variety of antioxidants. Moreover, algae contain essential fatty acids like EPA and DHA that support heart and brain health. Hence, algae are increasingly being used in dietary supplements, functional foods, and infant formula which is supporting the algae market expansion.
SWOT Analysis
Strength: Algae are a sustainable source of protein, nutrients, and bioactive compounds. They have various application in food & beverages, personal care, animal feed, and more.
Weakness: High capital requirements for setting up algae farms and processing units. Fluctuations in weather and climate can negatively impact algae growth.
Opportunity: Increasing consumer demand for vegan and plant-based products is driving the demand for algal ingredients. Growing research on algae biofuels also presents an opportunity.
Threats: Threat from substitute ingredients and easy availability of other plant-based proteins and nutrients can affect the algae market. Stringent regulations around algae cultivation and use of algal products also poses a threat.
Key Takeaways
The Global Algae Market Size is expected to witness high growth, exhibiting CAGR of 6.8% over the forecast period, due to increasing consumer demand for functional foods and nutraceuticals. Algae are a rich source of proteins, vitamins, minerals and antioxidants and find wide application in food products to enhance their nutritional value.
Regional analysis: North America dominated the global algae market in 2023 and is expected to maintain its leading position during the forecast period. This can be attributed to growing health-conscious consumer base and presence of major players in the region. Asia Pacific is expected to be the fastest growing market for algae during the forecast period, led by countries like China, Japan and India. Increasing R&D initiatives around algal cultivation and use in different industries is driving the APAC market.
Key players operating in the algae market are Cyanotech Corporation, Dic Corporation, Corbion N.V, Valagro SpA, Far East Microalgae Industries Co. Ltd., Beijing Gingko Group, Heliae Development Llc, Pond Technologies Holdings Inc., Algaetech International Sdn Bhd, Fuqing King Dnarmsa Spirulina Co. Ltd., Sun Chlorella Corporation, and Ecoduna Ag. These companies are focusing on expanding their production capacities and developing new product portfolio to capitalize on the market growth opportunities.