Algae Products Market Size, Share, Forecast, & Trends Analysis by Type (Hydrocolloids, Lipids, Carotenoids), Source (Seaweed, Microalgae {Chlorella, Spirulina}), Form (Dry, Liquid), Application (Food & Beverage, Nutraceuticals) - Global Forecast to 2031

The Algae Products Market was valued at $3.28 billion in 2023. This market is expected to reach $6.01 billion by 2031, from an estimated $3.53 billion in 2024, at a CAGR of 7.9% during the forecast period 2024-2031.

Algae Products Market Size & Forecast

The growth of the algae products market is driven by consumers’ increasing preference for algae-sourced products, the growth in vegetarianism, the rising demand for natural food colors, and the rapid growth of the nutraceuticals industry.However, complexities in algae production and low awareness regarding the benefits of algae restrain the growth of this market. Furthermore, the growing demand for biofuels is expected to generate growth opportunities for the players operating in this market. However, the risk of algae contamination is a major challenge impacting market growth. Additionally, the increasing adoption of algae products is a prominent trend in the algae products market.

Algae Products Market Growth Drivers

Consumers' Increasing Preference for Algae-sourced Products

Consumers are becoming increasingly conscious of the environmental impacts of their choices and are actively seeking sustainable products. Algae-sourced products offer a range of benefits, including being rich in nutrients, having a low carbon footprint, and being easily renewable. As a result, the demand for algae-based foods, cosmetics, and biofuels, among other products, is on the rise. This trend is expected to continue in the coming years as more people recognize the potential of algae as a sustainable solution. Algae are one of the best sources of omega-3 fatty acids, which have anti-aging properties and offer several benefits, such as preventing heart disease and healing atherosclerosis. Linolenic acid, alphalinolenic acid, eicosapentaenoic acid (EPA), and docosahexaenoic acid (DHA) are natural omega-3 fatty acids. Spirulina is considered a prominent microalga due to its higher production of long-chain polyunsaturated fatty acids, phenolic compounds, volatile compounds, sterols, proteins, amino acids, peptides, vitamins, polysaccharides, and pigments compared to other algae. It contains 15.8% lipids and 4.9% omega-3 fatty acids by weight. Thus, the high nutrient content and benefits of spirulina are boosting the demand for spirulina based products.

Click here to: Get Free Sample Pages of this Report

The benefits of algae are driving the demand for algae-based products, encouraging manufacturers to focus on the development and production of algae-based ingredients and products. For instance, in May 2023, Corbion N.V. (Netherlands) launched AlgaVia, an algal product rich in omega-3 and omega-9 fatty acids for dietary supplement applications. Thus, the benefits of algae ingredients and food & beverage product manufacturers’ increasing focus on the development and production of algae-based products are driving demand among consumers, supporting the growth of the global algae products market.

Growth in Vegetarianism

Algae are rich in protein and vitamins, making them an excellent food/dietary supplement for vegetarians and vegans. Algae also have antioxidant and anti-inflammatory properties and help regulate the immune system. Their high content of complete vegetable proteins, vitamins, calcium, and iron has increased the popularity of algae products among vegetarians and vegans. Algae also contain essential amino acids (compounds that are the building blocks of proteins). Research has shown that dried spirulina contains 70% protein by weight, almost three times more protein than beef.

In recent years, there has been rapid growth in vegetarianism and veganism due to consumers’ increasing health & environmental awareness and compassion for animals. Moreover, vegan diets are generating interest among consumers. According to The Vegan Society, in 2023, approximately 700,000 people participated in the Veganuary campaign, wherein people only eat vegan foods during the month of January. In comparison, there were 692,000 participants in 2022, 582,000 participants in 2021, and 400,000 participants in 2020. Thus, increasing vegetarianism and veganism are expected to boost the demand for algae products, driving the growth of this market.

Algae Products Market Trends

Increasing Adoption of Self-Grooming Products

Personal care and self-grooming trends are driving the demand for cosmetics and personal care products. The adoption of these products is supported by rising disposable incomes and improving living standards. The increasing adoption of self-grooming products is boosting the demand for algae products, especially astaxanthin enriched with vitamins and minerals, which prevents skin problems, including dryness, sunburns, and roughness. Astaxanthin also prevents skin aging. Moreover, astaxanthin derived from Haematococcus pluvialis improves skin health across all layers through the combination of oral supplementation and topical treatment. Spirulina is widely used to improve hair growth and combat hair problems such as thinning and baldness.

Furthermore, the skin care industry uses Chlorella extract due to its anti-aging, refreshing, regenerating, emollient, and anti-irritant properties. Also, the bioactive ingredient extracted from the Porphyridium cruentum species of microalgae is in high demand in the cosmetics industry for its naturally tendering anti-aging, anti-inflammatory, and rejuvenating properties.

Algae Products Market Opportunity

Growing Demand for Biofuels

Greenhouse Gas (GHG) emissions from the transportation sector have been increasing at a faster rate than from any other sector. The transportation sector relies heavily on fossil fuels. Biofuels have emerged as a promising alternative to conventional (fossil) fuels and can be used to reduce dependence on petroleumbased fuels and mitigate climate change. Biofuels provide various benefits, such as reducing greenhouse gas emissions, enhancing energy security, and creating economic opportunities. According to the Iowa Renewable Fuels Association, biofuel reduces particulate matter by 47% and hydrocarbon emissions by up to 67%.

Furthermore, oil prices are rising gradually, and governments are drafting policies to reduce the utilization of fossil fuels to reduce greenhouse gas emissions. Algae are considered a source for biofuel production due to their high oil content and production rates and the limited area of land required for cultivation. Algal lipids are extensively used to produce biofuel.

Furthermore, seaweed is a promising source of biofuels. Growing seaweed is faster and space-efficient and does not require fresh water or fertilizers, unlike other sources like soy, which is also used for biofuel production. Additionally, seaweed does not compete for land area, making it highly suitable for biofuel production. Almost 90% of seaweed is water, which makes it suitable for biofuel-making methods like anaerobic digestion to make biogas and fermentation to make ethanol. Also, many seaweed species, like sugar kelp, have high carbohydrate and low lignin content, which is perfect for making bioethanol. Therefore, the growing demand for biofuels is expected to generate growth opportunities for the players operating in the algae products market.

Algae Products Market Analysis: Key Findings

By Type: In 2024, the Hydrocolloids Segment to Dominate the Algae Products Market

Based on type, the algae products market is mainly segmented into hydrocolloids, algal proteins, lipids, and carotenoids. In 2024, the hydrocolloids segment is expected to account for the largest share of 51.1% of the global algae products market. The large market share of this segment can be attributed to factors such as the increasing consumption of seaweed-based products, the growing demand for biofuels, the rising demand for natural and plant-based ingredients, and the increasing demand for hydrocolloids from various industries.

However, the algal protein segment is projected to witness the highest growth rate of 12.8% during the forecast period of 2024–2031 due to the growing vegan population, increasing demand for naturally derived or sustainably sourced ingredients, rising application in the food & beverages industry, growing gym going population, and growing awareness regarding fitness among consumers.

By Source: In 2024, the Macroalgae/Seaweed Segment to Dominate the Algae Products Market

Based on source, the algae products market is segmented into macroalgae/seaweed and microalgae. In 2024, the macroalgae/seaweed segment is expected to account for the larger share of 73.8% of the global algae products market. The large market share of this segment can be attributed to the abundant availability of seaweed as raw materials, driven by the increasing production of seaweed and growing awareness of the health benefits associated with seaweed products. Furthermore, the active components derived from seaweeds serve various purposes, acting as antioxidants, antibacterial and whitening agents, anti-aging solutions, and anti-acne treatments, contributing significantly to the growth of the seaweed products market. However, this segment is also projected to register the highest CAGR of 8.2% during the forecast period of 2024–2031.

By Form: In 2024, the Dry Segment to Dominate the Algae Products Market

Based on form, the algae products market is segmented into dry and liquid. In 2024, the dry algae products segment is expected to account for the larger share of 72.1% of the global algae products market. The large market share of this segment is attributed to the longer shelf-life and ease of transportation and storage of dry algae products compared to liquid algae products and the increasing use of algae powder in the food, cosmetic, and feed industries. However, this segment is also projected to register the highest CAGR of 8.3% during the forecast period of 2024–2031.

By Application: The Food & Beverage Segment to Witness Highest Demand During the Forecast Period

Based on application, the algae products market is segmented into food & beverage, nutraceuticals, cosmetics, animal feed, and other applications. In 2024, the food & beverage segment is expected to account for the largest share of 33.9% of the global algae products market. The large market share of this segment can be attributed to the increasing consumer preference for foods and beverages containing natural ingredients like hydrocolloids, carotenoids, and algae protein. Furthermore, the rapid growth in population, heightened awareness of the health benefits associated with algae products, shifts in lifestyle patterns toward healthier eating habits, rising demand for functional foods and food additives, and an increase in disposable incomes are anticipated to further fuel the growth of this segment.

However, the cosmetics segment is projected to register the highest CAGR of 9.4% during the forecast period of 2024–2031. The growth of this segment is driven by the rapidly growing global cosmetic industry, the increasing demand for vegan skincare products, and the rising awareness about the health benefits of organic cosmetic products.

Geographical Analysis

Based on geography, the global algae products market is majorly segmented into five regions: North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, Asia-Pacific is expected to account for the largest share of 39.2% of the global algae products market, followed by North America and Europe. Asia-Pacific algae products market is estimated to be worth USD 1.38 billion in 2024. The large share of this market is mainly attributed to the increasing demand for natural ingredients in the rapidly growing food and beverage, nutraceuticals, cosmetic, and animal feed industries. In addition, the presence of a large number of stakeholders engaged in providing algae products for these industries due to the availability of raw materials, favorable climatic conditions for algae production, and cheap labor availability supports the growth of this market. Several government initiatives to promote the cultivation and usage of algae in several industries and the growing demand for healthy food products are further expected to boost the Asia-Pacific algae products market.

However, Europe is slated to register the highest CAGR of 10.8% during the forecast period of 2024–2031, mainly due to the rapidly increasing acceptance of algae products in the food and beverage industry, rising health & wellness trends, growing reluctance towards the usage of synthetic food colors, and growing demand for algae products from the cosmetic and nutraceutical industries.

Algae Products Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last 3–4 years. Some of the key players operating in the algae products market are Algatechnologies Ltd. (A Part of Solabia Group) (Israel), BASF SE (Germany), BDI BioLife Science GmbH (Austria), Bluetec Naturals Co., Ltd (China), Cargill, Incorporated (U.S.), Cyanotech Corporation (U.S.), DIC Corporation (Japan), Lyxia Corporation (a subsidiary of Shenzhen Qianhai Xiaozao Technology Co., Ltd.)(U.S.), Seagrass Tech Private Limited (India), Tianjin Norland Biotech Co., Ltd. (China), Ingredion Incorporated (U.S.), HISPANAGAR S.A. (Spain), COMPAÑIA ESPAÑOLA DE ALGAS MARINAS S A (Spain), W Hydrocolloids, Inc. (Philippines), SNAP Natural & Alginate Products Pvt. Ltd. (India), and Harsha Enterprises (India).

Algae Products Industry Overview: Latest Developments from Key Industry Players

• In September 2023, BDI BioLife Science GmbH (Austria) plans to offer its products in Australia and New Zealand through its exclusive agent and distributor, Trapeze Associates.
• In August 2022, BASF Venture Capital GmbH (Germany), the corporate venture company of BASF SE, and Aqua-Spark (Netherlands), a Dutch investment fund focusing on the global aquaculture industry, are investing in Sea6 Energy Pvt. Ltd. (India) as part of a Series B round. This investment aims to develop an integrated approach to cultivating and utilizing red seaweed as biomass and products. With this investment, Sea6 Energy completed its Series B transaction of USD 18.5 million (INR 1,402 million).
• In July 2021, W Hydrocolloids, Inc. (Philippines) launched two new products, Ricogel 84668 for plant-based burgers and Ricogel 88150 for food applications like marmalade, dulce de leche, and yogurt.
• In February 2021, Algatechnologies Ltd. (a part of Solabia Group) (Israel) launched microencapsulated cold water-dispersible powder containing 2.5% natural astaxanthin extracted from Haematococcus pluvialis microalgae, suitable for use in ready-to-mix supplements, drinks, and suspensions, including sports drinks.

Algae Products Market Research Summary

Key questions answered in the algae products market report: