June 17, 2024

Development of Algae-based Biofuels is Driving the Global Algaculture Market

The global Algaculture market has witnessed significant growth in recent years due to rapid industrialization and rising demand for biodiesel across various industries such as automotive and aviation. Algae are highly versatile microorganisms that can be utilized as sustainable feedstocks for various applications including biofuel production, nutritional supplements, food additives, animal and fish feed, and wastewater treatment. Algae are considered as clean and renewable sources of bioenergy and bioproducts, as their cultivation does not compete with food crops for agricultural land or freshwater usage. Various types of algae such as microalgae, macroalgae, and blue-green algae are commercially cultivated in open ponds and closed photobioreactors using carbon dioxide, nitrogen, phosphorus, and other essential nutrients.

The global Algaculture Market is estimated to be valued at US$ 10.7 million in 2024 and is expected to exhibit a CAGR of 14% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.

Market key trends:

Development of algae-based biofuels is one of the key trends driving growth of the global algaculture market. Algal biofuels have several advantages over traditional biofuel feedstocks such as corn, sugarcane, and soybean as algae have higher photosynthetic efficiency and lipid productivity. Continuous research efforts by market players as well as government organizations are focused on developing cost-effective technologies for commercially producing algal biodiesel and jet fuels. Genome engineering techniques are also being utilized to genetically modify algae strains in order to maximize lipid productivity. Rising fuel and energy costs coupled with stringent environmental regulations have increased adoption of renewable and clean biofuels which is expected to boost demand for algaculture over the forecast period.

Porter’s Analysis

  • Threat of new entrants: Moderate. Production of algae requires large investments in R&D, facilities, and technical expertise which pose barriers for new companies.
  • Bargaining power of buyers: Moderate. Presence of substitute foods puts pressure on prices. However, health benefits of algal products sustain demand.
  • Bargaining power of suppliers: Low. Suppliers of inputs like nutrients and equipment have limited influence due to availability of alternatives.
  • Threat of new substitutes: High. Plant and animal-based replacements for proteins, oils and nutritional supplements exist.
  • Competitive rivalry: Strong. Key players compete on innovation, quality, and cost.

Key Takeaways

The global Algaculture market is expected to witness high growth. North America is currently the largest and fastest growing regional market for Algaculture due to high awareness about health benefits of algal products among consumers. Key players operating in the Algaculture market are Algenol, Solazyme (TerraVia Holdings), Sapphire Energy, Cyanotech Corporation, Algae Systems, E.I.D.- Parry (India) Limited (Parry Nutraceuticals), Evonik Industries, Cargill, Incorporated, DIC Corporation (Spirulina production), Cellana.

Regional analysis: Asia Pacific is projected to be the fastest growing regional market during the forecast period due to rising population, economic growth, and increasing prevalence of lifestyle diseases. China is the largest producer and exporter of Spirulina. Countries like India, Indonesia, and South Korea are also emerging production hubs.

Key players: Key players in the Algaculture market are focusing on strategic agreements, new product launches, and expansion of production facilities to gain competitive advantage. For instance, in 2021, Cyanotech Corporation opened a new production facility in Nevada to meet the growing demand for sustainable nutrition products. Algenol has collaborated with various companies for commercial production of algal fuels and nutraceuticals.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it