Algae Products Market, By Type (Lipids, Carotenoids, Carrageenan, Alginate, Algal Protein), Form (Liquid, Solid), Source (Brown Algae, Green Algae, Red Algae, Blue-green Algae), End Application and region (North America, Europe, Asia-Pacific, Middle East and Africa and South America).
The global Algae Products Market size was estimated at USD 2.2 billion in 2023 and is projected to reach USD 3.18 billion in 2030 at a CAGR of 5.4% during the forecast period 2023-2030.
Algae, both unicellular and multicellular, are microorganisms that perform photosynthesis and release oxygen. These properties enable algae to sequester carbon dioxide and acquire crucial vitamins, minerals, and nutrients. Plants utilize algae as both fuel and sustenance. Algae products, comprising seaweed, chlorella, and kelp, typically exhibit elevated protein content and contain essential amino acids that enhance human metabolic functions, including enzyme production.
The escalation of the worldwide Algae Products market is primarily propelled by the upsurge in the request for natural commodities and proactive initiatives by market participants to devise consumable products based on algae to fulfill the customers' quality, texture, and nutritional needs. In the past, the production of biofuel from algae was not deemed feasible due to high production costs, but with recent advancements in process technology and its feasibility, algae biofuel can be utilized as a substitute for fossil fuel. The surge in the global population and the augmentation in the demand for food, as well as the customization of the functional food product portfolio by manufacturers, are the pivotal factors that are anticipated to amplify the growth of the algae products industry.
On the other hand, Impact of climatic conditions on algae production may hamper the market growth to some extent.
The COVID-19 outbreak had a moderate impact on the market. Manufacturers encountered major issues including supply chain disruptions, labor shortages, partial or complete closure of manufacturing facilities, and difficulties in procuring raw materials during the pandemic. However, the forthcoming period is expected to see a significant rise in demand for algae products as they are known to enhance the human immune system. This projected increase in demand is attributed to the growing consumer awareness regarding algae products, which is expected to drive sales. The COVID-19 disease has led to increased health consciousness and consumer expenditure on healthy food products. Thus, the post-COVID period is expected to have a positive impact on market growth.
The pandemic had a considerable impact on businesses globally, with nations like India and China bearing the brunt of the virus's outbreak. The market for algae products is propelled by evolving dietary preferences and a paradigm shift towards preventive health management practices, which is occurring alongside an increase in healthcare costs and the growing burden of lifestyle-related diseases. The expansion of the geriatric population, as well as the rising incidence of chronic conditions, is expected to drive the growth of algae products on a global scale. Additionally, consumer awareness regarding botanical variations and their functional properties has been a crucial driver. Since algae also supports the development of immunity, it is predicted that there will be a significant increase in sales of algae supplements in the post-COVID-19 era. These factors have led to the expansion of the market and increased demand for Algae Products solutions.
North America to Dominate the Market