Algae Products Market

Algae Products Market Overview 2028

The algae products market size is estimated to be valued at US$ 5.3 billion in 2023 and surpass US$ 7.3 billion by 2028. The market is likely to witness a significant CAGR of 6.4% during the forecast period.

Consumers are increasingly seeking natural and sustainable alternatives in various industries, including food, pharmaceuticals, cosmetics, and biofuels. Algae products offer a renewable and eco-friendly source of nutrients, bioactive compounds, and raw materials, making them highly attractive to environmentally conscious consumers.

Algae are known to be rich in essential nutrients, such as proteins, vitamins, minerals, and omega-3 fatty acids. The growing awareness of these health benefits, including immune system support, cardiovascular health, and cognitive function, is driving the demand for algae-based dietary supplements, functional foods, and nutraceuticals.

To know about the assumptions considered for the study, Request for Free Sample Report

To know about the assumptions considered for the study, download the pdf brochure

Algae products Market Insights

Driver: Growth in consumer awareness regarding the health benefits of algae based products

In recent years, there has been a significant shift in consumer preferences towards health and wellness. Consumers are becoming more proactive about maintaining their well-being and are seeking natural, nutrient-rich, and functional foods and supplements. Algae-based products, such as spirulina, chlorella, and seaweed, are recognized for their exceptional nutritional profile, including high protein content, essential vitamins, minerals, antioxidants, and omega-3 fatty acids. As consumers become aware of the specific health benefits associated with algae consumption, they are increasingly incorporating algae-based products into their diets.

Algae are often referred to as "superfoods" due to their exceptional nutrient density. They offer a wide range of essential nutrients that are beneficial for overall health and wellness. For example, spirulina is highly regarded for its high protein content and abundance of vitamins, minerals, and antioxidants. Chlorella is rich in chlorophyll, which supports detoxification and provides numerous health benefits. Seaweed varieties, such as nori and kelp, contain iodine, essential for thyroid function, and are also rich in minerals like calcium and magnesium. The growing awareness of these nutrient-rich profiles is driving consumers to incorporate algae-based products into their diets to enhance their nutritional intake.

Restraint:  Impact of climatic conditions on algae production

Algae growth is highly influenced by temperature and light conditions. Different algae species have specific temperature ranges and light requirements for optimal growth. Variations in climatic conditions, such as extreme temperatures or insufficient sunlight, can affect the growth and productivity of algae. If the climate does not provide the ideal conditions for algae cultivation, it can result in lower yields and slower growth rates, impacting the overall availability of algae biomass for commercial production. This limitation in supply can restrain the algae products market.

Climatic conditions can introduce environmental stressors that negatively impact algae growth and productivity. Extreme weather events like storms, hurricanes, or heatwaves can cause physical damage to algae cultivation systems, disrupt nutrient supply, and alter the balance of the ecosystem. Additionally, changes in climatic patterns, such as variations in rainfall patterns or increased frequency of temperature fluctuations, can create suboptimal conditions for algae growth. Algae may experience increased susceptibility to diseases, changes in metabolic activity, or reduced photosynthetic efficiency under these stressors, leading to lower biomass yields and inferior quality of algae products.

Opportunity: Growing demand in the pharmaceutical industry

Algae are rich in various bioactive compounds, including proteins, polysaccharides, pigments, fatty acids, and antioxidants. These components offer a wide range of nutritional and functional benefits that can be utilized in pharmaceutical formulations. For example, algae-derived proteins can serve as a source of amino acids for therapeutic protein production. Polysaccharides from algae can be used as excipients or drug delivery systems due to their unique physicochemical properties. Pigments such as chlorophyll and carotenoids have antioxidant properties that can be utilized for their potential health benefits. The diverse array of bioactive compounds present in algae opens up opportunities for the development of novel pharmaceutical products.

Algae produce a wide range of bioactive compounds that exhibit potential therapeutic properties. These compounds include antibacterial, antiviral, antifungal, anticancer, anti-inflammatory, and immunomodulatory agents. The pharmaceutical industry is exploring the use of algae-derived bioactive compounds for the development of new drugs and therapeutic agents. For example, compounds like fucoidan from brown algae, spirulina-derived phycocyanin, and microalgae-derived omega-3 fatty acids have shown promising effects in preclinical and clinical studies. These compounds have the potential to be developed into pharmaceutical products to address various health conditions.

Challenge: High production costs restricting the entry of smaller players

Algae cultivation requires specialized infrastructure and equipment, which can be expensive to set up. Depending on the cultivation method, large-scale algae production may require photobioreactors, raceway ponds, or closed bioreactors, all of which involve significant capital investment. Small players may find it challenging to finance the establishment of such infrastructure, limiting their entry into the market.

Algae cultivation requires a constant supply of light, which can be costly when artificial lighting is used. Even in outdoor cultivation systems, energy costs are incurred for aeration, mixing, and temperature control. The high energy requirements for maintaining optimal growth conditions add to the production costs. Small players may struggle to bear these energy costs, making it difficult for them to compete with larger, more established companies.

Algae Products Market Ecosystem

Prominent companies in this market include well-established, financially stable manufacturers of algae products market. These companies have been operating in the market for several years and possess a diversified product portfolio, state-of-the-art technologies, and strong global sales and marketing networks. Prominent companies in this market include DSM (Netherlands), BASF SE (Germany), Corbion (Netherlands), E.I.D Parry (India), International Flavors & Fragrances Inc (US), Cynotech Corporation (US), Earthrise Nutritionals LLC (US),  CP Kelco U.S., Inc (US), Cargill, Incorporated (US), and Algea (Norway).

Based on type, lipids is estimated to account for the largest market share of the algae products market

Based on type, lipids segment is estimated to account for the largest market share. The presence of lipids in algae products allows for their incorporation into functional foods and nutraceuticals. Lipids provide a source of energy and enhance the absorption of fat-soluble vitamins and bioactive compounds. Algae-based lipid ingredients are used in the development of various products, including dietary supplements, protein bars, beverages, and fortified foods.

Blue green algae segment of the algae products market by source is projected to witness the highest CAGR during the forecast period.

Based on source, the blue green algae segment estimated to account for the highest growth rate. Blue-green algae are considered a valuable source of plant-based protein. They have a higher protein content compared to traditional plant sources, such as soybeans and wheat. The protein from blue-green algae is of high quality, containing all the essential amino acids required by the human body. This makes blue-green algae an attractive option for protein supplementation in the form of powders, protein bars, and beverages.

Based on end application, personal care segment is projected to witness the highest CAGR during the forecast period.

Algae extracts and compounds are known to possess various beneficial properties for skin and hair health. They are rich in vitamins, minerals, antioxidants, and bioactive compounds that nourish and protect the skin and hair. Algae-based ingredients are often used in skincare products, such as moisturizers, serums, masks, and cleansers, to provide hydration, improve skin elasticity, promote cell regeneration, and offer anti-aging effects. In hair care products, algae extracts can enhance hair strength, shine, and manageability.

The North America market is projected to contribute the largest share for the algae products market.

There is a growing awareness among consumers in North America regarding the health benefits and sustainability aspects of algae-based products. Consumers are becoming more conscious of their dietary choices and are actively seeking natural, plant-based alternatives for various applications. This awareness has resulted in a rising demand for algae-derived products, including food and beverages, dietary supplements, personal care items, and biofuels.

According to the CRN’s 2021 Consumer survey on Dietary supplements, showed that 80% of Americans are now using dietary supplements, an increase of 7% from 2020. Also the number of Americans viewing the dietary supplements industry as trustworthy has increased: 79% in 2021, compared to 74% in 2020. This leads to higher demand for algae-infused nutraceuticals in the country.

Key Players in Algae products Market

The key players in this include DSM (Netherlands), BASF SE (Germany), Corbion (Netherlands), E.I.D Parry (India), International Flavors & Fragrances Inc (US), Cynotech Corporation (US), Earthrise Nutritionals LLC (US),  CP Kelco U.S., Inc (US), Cargill, Incorporated (US), and Algea (Norway).

Algae products Market Scope

Algae Products Market Segmentation

This research report categorizes the algae products market based on type, source, form, end application and region.

By Type

• Lipids
• Carrageenan     
• Carotenoids      
• Algal protein     
• Alginate

By Source

• Brown algae
• Blue-green algae
• Red algae
• Green algae

By Form

• Solid
• Liquid

By End Application

• Food & beverages
• Nutraceuticals & dietary supplements
• Feed
• Personal care products
• Pharmaceuticals

By Region

• North America
• Europe
• Asia Pacific
• South America
• Rest of the World (RoW)

These players in this market are focusing on increasing their presence through agreements and collaborations. These companies have a strong presence in North America, Asia Pacific and Europe. They also have manufacturing facilities along with strong distribution networks across these regions.

Recent Developments

• In 2021, Azelis was announced as CP Kelco’s exclusive distribution partner across numerous countries and market segments, including GENU Carrageenan product lines, along with others. This new distribution agreement with Azelis in EMEA Region enhanced the company's market and customer expertise to bring the best possible customer experiences and products.
• In 2019, Corbion and Nestlé (Switzerland) entered into a joint development agreement to develop a next-generation platform of algae-based ingredients rich in protein and micronutrients. The agreement will combine Corbion’s microalgae and fermentation capabilities with Nestlé’s expertise in the development of plant-based products. The aim of the joint development agreement is to establish a platform for the production and commercialization of algae-based ingredients.
• In 2019 , Solabia Group (France) acquired Algatech ltd. Solabia Group offers an extensive range of active principles and ingredients used throughout the world by the cosmetics, pharmaceutical, and food industries. The acquisition allowed the companies to benefit from an extended network and base of expertise, as well as new marketing channels and an expanded customer base.

Frequently Asked Questions (FAQ):

To speak to our analyst for a discussion on the above findings, click Speak to Analyst