Algae Products Market – Trends Forecast Till 2030

Market Snapshot

Market Overview

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.

Delvens Industry Expert's Standpoint

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.

Market Portfolio

Key Findings

• The type segment is further fragmented into Lipids, Carotenoids, Carrageenan, Alginate, Algal Protein. The lipids segment is expected to account for a larger market size during the forecast period. The inclusion of lipids in algae-derived goods permits their assimilation into utilitarian victuals and nutraceuticals. Lipids furnish an energy reservoir and intensify the uptake of fat-soluble vitamins and bioactive compounds. Algal lipid constituents are employed in the genesis of diverse commodities, encompassing dietary appendages, protein bars, beverages, and enriched foods.

• The source type segment is further bifurcated into Brown Algae, Green Algae, Red Algae, Blue-green Algae. The Blue green algae is the largest market during the forecast period. Blue-green algae are highly regarded as a significant reservoir of plant-derived protein. In comparison to conventional plant sources such as wheat and soybeans, they possess a superior protein content. The protein derived from blue-green algae is of exceptional quality, encompassing all the fundamental amino acids that are indispensable for the human body. These features render blue-green algae a compelling alternative for protein supplementation, available in the form of protein bars, powders, and beverages.

• The end application segment is further bifurcated into Food & beverages, Nutraceuticals & dietary supplements, Feed, Personal care products and Pharmaceuticals. Personal care to account for a larger market size during the forecast period. Algae extracts and compounds are widely acknowledged to possess manifold advantageous properties for the health of skin and hair. They are replete with vitamins, minerals, antioxidants, and bioactive compounds which serve to nourish and safeguard the skin and hair. In the realm of skincare products, such as moisturizers, serums, masks, and cleansers, algae-based ingredients are frequently employed to endow hydration, improve skin elasticity, promote cellular regeneration, and confer anti-aging effects. Within the sphere of hair care products, algae extracts have the ability to amplify hair strength, shine, and manageability.
   
• The market is also divided into various regions such as North America, Europe, Asia-Pacific, South America, and Middle East and Africa. North America is estimated to account for the largest market share during the forecast period. In North America, there is a growing awareness among consumers regarding the health benefits and sustainability aspects of algae-based products.

Regional Analysis

North America to Dominate the Market

• North America is estimated to account for the largest market share during the forecast period. In North America, there is a growing awareness among consumers regarding the health benefits and sustainability aspects of algae-based products.
   
• Moreover, the Consumers are becoming more conscious of their dietary choices and are actively seeking natural, plant-based alternatives for various applications.