Algae Products Market to Reach $4,286.8 Million by 2031-Allied Market Research

According to a new report published by Allied Market Research, titled, “Algae Products Market by Type, Source, Form, and Application: Global Opportunity Analysis and Industry Forecast, 2022–2031,” the global algae products market size is expected to generate $4,286.8 million by 2031, growing at a CAGR of 4.88% from 2022 to 2031. In 2020, the food & beverage segment led the algae products market, followed by personal care. Growth in this segment is supplemented by rise in global population, increase in awareness of healthy food products, and shortage of proteins—a key nutrient in food products.

Upsurge in demand for algae products due to rise in global population coupled with increase in consumption of food is expected to boost the market during the forecast period. In addition, increase in demand for healthy food products is expected to boost the demand for nutritional food additive, which drives the growth of the market. Moreover, surge in demand for aquaculture feed used for fish breeding and increase in demand for omega3 fatty acid are the factors expected to boost the growth of the market. However, consumption of pharmaceutical products such as astaxanthin manufactured using algae causes a decline in calcium level and blood pressure. This is expected to limit the algae products market growth. Conversely, government initiatives to lower the carbon footprint by promoting a various alternative source of energy such as algae-based biofuel is expected to fuel the growth of the algae products market during the forecast period. In addition, technological advancements for reducing the cost of biofuels manufactured using algae as a raw material coupled with the by-product of the process that can be used as stimulator or fertilizer for soil and as a feedstock for animal increases the feasibility of the process boosts the algae products industry growth during the forecast period. Astaxanthin, spirulina, and bioastin astaxanthin are used formulation of natural nutritional supplements, which offer health benefits such as improved immune system, skin cell purification, eyes & brain, improved overall cellular health, and no side effect. However, formulating algae products for these abovementioned applications require  sufficient knowledge in field of chemistry, which eventually results in new formulations that give better results. The government initiative for cultivation of algae for its applications majorly drives the growth of the algae products market. The Department of BioTechnology of the Government of India had a vision in 2020 for the development of viable clean energy from various biomass sources such as algae. The program was later joined by the U.S. Department of Energy, both the government set a joint center to manage development and funding of the project. Similarly, the Canadian Government announced an initiative to build a new algae biorefinery project to cut carbon dioxide footprint and produce vital byproducts such as animal feed at its National Research Council. Other recent development by the Food and Drug Administration of the U.S to increase the serving of astaxanthin from 7.8mg to 12mg is anticipated to be followed by other potential algae ingredient such as beta carotene.

As per the global algae products market analysis, the market is classified depending on application into food & beverages, nutraceuticals & dietary supplements, personal care, chemicals, feed, and pharmaceuticals. According to the algae products market forecast, the food & beverage segment dominated with the largest algae products market share in 2020 and is expected to exhibit significant growth during the forecast period. Algae is a rich source of essential protein, bioactive pigments with medicinal potential, and fatty acids. This essential constituent of algae is required for the production of various food & beverages such as cake, pasta, and confectionery products. Moreover, some the species of algae are used as pigments to provide texture to food products and nutritional additive to increase the quality of food products. These are the key factors that foster the growth of algae products market during the forecast period.

As per the algae products market opportunities, rise in global food demand and decrease in cultivable land available for food production attract various manufactures to shift their preference to algae-based products, which help propel the growth of the market. Furthermore, initiative by various developing and developed countries at “Paris Agreement” to reduce the global carbon footprint by using renewable source of energy such as algae-based biofuel is expected to further drive the growth of the market.

Key Findings Of The Study

• As per the algae products market trends, the food & beverage segment was the highest contributor to the market in 2020 and is projected to grow at a CAGR of 4.77%.
• By type, the hydrocolloids segment accounted for 49.4% of algae product market share market and is expected to grow at a CAGR of 4.67%.
• Asia-Pacific is projected to grow at a CAGR of 6.63% from 2022 to 2031, owing to rise in population coupled with increase in food demand.
• In 2020, the green algae segment is expected to grow at the highest CAGR of 6.19% from 2022 to 2031.

In terms of value, Asia-Pacific and LAMEA collectively contributed 34.0% of global share in 2020. The key players of algae products industry profiled in this report include euglena Co., Ltd., Algae Systems LLC., Cyanotech Corporation, Cargill, Incorporated, Algenol Biofuels Inc., BIOPROCESS ALGAE, LLC, Corbion, Algatechnologies, Cellana Inc., and Earthrise Nutritional.