The global algae products market is estimated at USD 3.98 Billion in 2018 and is projected to grow at a CAGR of 5.4%, to reach USD 5.17 Billion by 2023.
Algae-derived products find applications in multiple industries such as food & beverage, feed, nutraceutical, personal care, and pharmaceutical. This is expected to be a major driver for the growth of the algae products market. Moreover, the direct consumption of algae as a food product makes it a reliable food alternative with high nutritional value, which is a necessity for the growing population. This factor can also be considered as a driver for this industry.
On the basis of application, the food & beverage segment accounted for the largest share, followed by the nutraceutical and dietary supplement segment, in 2017. Algae-containing food & beverage products are gaining popularity due to greater awareness regarding the health benefits of these products. Growing consumer preference for alternative protein sources has also led to the demand for algae-based food ingredients in convenience food and health drinks. Moreover, the growing vegetarian and vegan population in North America and Europe is expected to drive the demand for algae products in food, leading to the market's subsequent growth.
The algae products market, on the basis of type, is segmented into lipids, carrageenan, carotenoids, algae protein, alginates, and others (that include dried algae, algal flour, and agar). Lipids accounted for the largest market share in 2017. Algae have become the key alternative sources for the production of lipids to fulfill the growing demand from the vegan population.
On the basis of source, brown algae-derived products accounted for a larger market share in 2017, followed by blue-green algae. Brown algae (seaweed) possess nutraceutical properties; they are anti-hypothyroid, anti-rheumatic, antibacterial, anticoagulant, and antioxidant; hence, they find applications in the nutraceutical industry as well, contributing to the growth of this market.
Algae Products Market
North America accounted for the largest share of the algae products market in 2017. This market is driven by the rise in health-conscious consumers due to the growing incidences of diseases and conditions such as diabetes and high-blood pressure, and also the high demand for plant-derived protein that has been fueling the market for algae products.
The major restraining factor for the algae products market is the impact of weather on algae cultivation. For instance, changes in rainfall pattern, occurrences of natural calamities such as floods and storms will hamper the production of algae, particularly in Asia Pacific and South American countries and in some parts of the US.
Companies such as Cargill (US), DowDuPont (US), and BASF (Germany) have acquired leading market positions through the provision of a broad product portfolio, along with a focus on diverse end-user segments. They are also focused on innovations and are geographically diversified.
Key Topics Covered:
2 Research Methodology
3 Executive Summary
4 Premium Insights 4.1 Attractive Opportunities in the Algae Products Market 4.2 Algae Products Market, By Application 4.3 Algae Products Market, By Form & Region 4.4 Asia Pacific: Algae Products Market, By Type & Country 4.5 Algae Products Market, By Source
5 Market Overview 5.1 Introduction 5.2 Market Dynamics 5.2.1 Drivers 126.96.36.199 Multi-Industry Coverage 188.8.131.52 Growth in Consumer Awareness Regarding the Health Benefits of Algae-Based Products 184.108.40.206 Alternate Food Source and Food Ingredient 5.2.2 Restraints 220.127.116.11 Impact of Climatic Conditions on Algae Production 5.2.3 Opportunities 18.104.22.168 Government and Private Initiatives to Support Research & Development in Algaculture 22.214.171.124 Growth in Demand for Natural Ingredients By Consumers 126.96.36.199 Easy Cultivation of Algae 5.2.4 Challenges 188.8.131.52 High Processing Cost 5.3 Supply Chain Analysis
6 Algae Products Market, By Type 6.1 Introduction 6.2 Lipids 6.3 Carrageenan 6.4 Carotenoids 6.5 Algal Protein 6.6 Alginate 6.7 Others
7 Algae Products Market, By Source 7.1 Introduction 7.2 Brown Algae 7.3 Blue-Green Algae 7.4 Red Algae 7.5 Green Algae 7.6 Others
8 Algae Products Market, By Form 8.1 Introduction 8.2 Solid 8.3 Liquid
9 Algae Products Market, By Application 9.1 Introduction 9.2 Food & Beverages 9.3 Nutraceuticals & Dietary Supplements 9.4 Feed 9.5 Personal Care Products 9.6 Pharmaceuticals 9.7 Others