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.
Algae are a diverse group of aquatic organisms capable of photosynthesis. They come in various shapes and sizes, and are found in both freshwater and marine environments. Algae are highly nutritious and serve as an excellent source of proteins, vitamins, minerals, polyunsaturated fatty acids (PUFAs) such as DHA and EPA. Algae are widely being used as nutritional supplements and food ingredients in various applications such as bakery & snacks, beverages, dairy & frozen desserts, dietary supplements, animal & pet food etc. owing to their nutritional profile. With increased focus on sustainable and plant-based food options, algae present an eco-friendly alternative for deriving nutrients without depleting natural resources or harming the environment.
Market key trends:
The algae market is witnessing increasing adoption driven by rising consumer preference for plant-based and sustainable food options. Algae cultivation requires less water and arable land compared to traditional crops and provides high yields of proteins and nutrients. This has motivated food manufacturers to incorporate algae into various food products for enriching nutritional content in a resource efficient manner. In the animal feed industry, algae finds wide usage as a feed additive for poultry, aquaculture and livestock farming to improve health, increase productivity and yield better quality meat and dairy products. Companies are also investing in developing algal biomass for producing renewable fuels such as biodiesel in order to reduce dependence on fossil fuels. Ongoing research into economic harvesting and large-scale production of algae will further help unlock its potential across diverse applications in the coming years.
Threat of new entrants: The threat of new entrants in the algae market is moderate due to high capital required for R&D and commercial production. However, collaborative efforts and technological advancements are lowering the entry barriers.
Bargaining power of buyers: The bargaining power of buyers is high due to the presence of numerous global as well as regional players offering a variety of algae products. Buyers can negotiate on price and quality.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as the key raw materials required are widely available. However, factors such as certification processes and quality standards are leading to supplier concentration.
Threat of new substitutes: The threat of substitutes is low as algae provide unique nutritional and textural properties that are difficult to replicate. However, alternative sources of proteins and polysaccharides pose a minor threat.
Competitive rivalry: The global algae market is a highly competitive space with innovators continuously focusing on new product launches and capacity expansions to gain market share.
The global Algae Market Share is expected to witness high growth, exhibiting CAGR of 6.8% over the forecast period, due to increasing demand for nutritional supplements and growing use in biofuels.
Regional analysis: North America dominates the global algae market currently due to presence of major players and growing demand for algae-based products from various end-use industries in the region. Asia Pacific is expected to grow at the fastest pace in the coming years led by rising health-conscious consumers, growing aquaculture industry and supportive government initiatives in countries like China, Japan and India.
Key players: 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 players are focusing on new product launches, capacity expansions and partnerships to gain competitive advantage.
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it