In the year 2023, the overall value of the global algae-based animal feed market is estimated to stand at USD 4,467.4 million. With an average annual growth rate of 3.7%, the market for algae-based animal feed and components is anticipated to retain steady growth over the next ten years.
By the end of this projection period in 2033, the revenue growth of the overall market is forecasted to conclude at USD 8,158.1 million.
Algae-based Animal Feed Market Trends
| Report Attribute | Details |
|---|---|
| Algae-based Animal Feed Market Share (2023) | USD 4,467.4 million |
| Market Anticipated Forecast Value (2033) | USD 8,158.1 million |
| Market Projected Growth Rate (2023 to 2033) | 3.7% |
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According to the survey, the total sales of algae protein for animal feed were valued at nearly USD 3,454.7 million back in the year 2018. In the following years, the demand for algae-based animal feed surged at an astounding 6.6% rate per year until the year 2022.
By the end of the year 2022, the overall demand for animal feeds obtained from algae, in terms of value, was found to be USD 4,230.7 million
| Attributes | Details |
|---|---|
| Algae-based Animal Feed Market Size (2018) | USD 3,454.7 million |
| Market Size (2022) | USD 4,230.7 million |
| Market (CAGR 2018 to 2022) | 6.6% |
The global algae-based animal feed sales dropped significantly during the years 2020 and 2021, essentially impacting its industrial production negatively. Economic sanctions, an increase in commodity prices, and unexpected disruptions in the supply chain caused inflation in the prices during this period.
However, the pandemic prompted studies to examine algae's potential for use in animal feeds as an effective method for the feed security of farm animals.
Global feedstock production is expected to increase at a rapid pace, with rising meat consumption ultimately creating higher opportunities for the market. So, the use of sea kelps or algae has been recognized as an affordable and reliable source of animal nutrients by farm animal owners.
Numerous studies have proved the lucrative return from the use of vitamins, antioxidants, amino acids, and other elements in appropriate amounts in animal feeds. Moreover, the ethical constraints over the use of feeds obtained from animal sources, like fish feed, have further popularized this plant-based animal feed segment.
The need for seaweed feed such as microalgae, larvae, single-cell proteins, and fermented CO2 is expanding since there is a growing focus on agriculture sustainability. On top of that, the growing trend for environment-friendly feed or renewable feedstock is expected to boost the demand in the coming days.
The utilization of algal proteins in feedstock production may be hampered by the availability of a large variety of artificial protein replacements. Such alternate protein sources for livestock are also figured out to be cheaper in comparison to algae meal for livestock.
Even though the trend for more algal biomass in livestock nutrition is growing, a considerable amount of farmers still depend on feedstock available locally. So, the marine algae for animal diets face the greater challenge of extending supply chains to remote areas with a higher share of the livestock population.
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The market for algae-based animal feed in the United Kingdom is anticipated to grow at a 5% CAGR over the course of the forecast period.
Algal-based animal feed manufacturers are expected to have plenty of chances to scale their business due to the presence of a sizable aquaculture industry. Moreover, the conducive marine ecosystem of the United Kingdom has made it a leading producer of algae-based feedstock for the whole of Europe.
China is known for its algae cultivation and is also currently the leading producer of seaweed-based animal supplements in Asia. Over the forecasted years, the demand for algae protein feed in the country is expected to progress at 7.6% CAGR.
Moreover, the strong insurgence of the pharmaceutical industry for innovation in the animal feed sector is expected to drive the industry in China. Stricter laws governing the upkeep of animal feed and livestock quality have been implemented, creating a huge demand for environment-friendly animal nutrition.
India, with a huge base of animal-rearing activities, holds lucrative opportunities for the introduction of algal biotechnology in animal feed. As per our analysis, the country could witness a year-on-year growth rate of 7.3% till 2033 in sales of algae-based food additives.
Increased usage of algal protein in the cattle and animal feed sector is expected to improve the outlook for the sector in India in the future. Furthermore, India is making investments in the development of small-scale industries for the production of algae-based animal feeds to provide employment opportunities in remote areas.
The table below illustrates the sheer difference in predictions for the adoption of algae-based protein-rich feed in emerging countries in comparison to developed economies. The popularity of algal protein in Western countries is mostly due to the inclination towards climate-friendly feed, while in others, it’s more about feed conversion ratio.
| Regional Market Comparison | CAGR (2023 to 2033) |
|---|---|
| United Kingdom | 5% |
| India | 7.3% |
| China | 7.6% |
As per our analysis, the demand for microalgae-derived algal protein is projected to grow at a promising rate over the projection years. Due to their abundance in carbon molecules, microalgae for animal nutrition are gaining prominence in the animal husbandry sector.
Microalgae feed is particularly high in astaxanthin for which it is being added to vegan animal feed on a larger scale in aquaculture.
The demand for spirulina feed supplements, on the other hand, has attracted the attention of several industries owing to its higher return capacity. Moreover, this segment is gaining higher traction in the algae-based pet food category, making it very lucrative over retail sales channels.
The sales of algae-based animal feed in liquid form are anticipated to grow at a CAGR of over 5% between 2023 and 2033. Liquid form of algae protein provides the advantage of simple absorption as well as more options for addition to other feeds for animals.
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The overall market is highly localized due to the diverse sourcing of seaweed cultivation and processing. However, some players have managed to acquire a significant share of the global market with their extensive supply chains and sources of raw materials.
In the overall market for algae-based animal feed and additives, technological advances have become the main trend that is intensifying the market competition. In the coming days, the rivalry among the leading players is mostly expected to be around the development of algae-derived Omega 3 for livestock.
Recent Developments by the Algae-based Animal Feed Manufacturing Industries
Aliga Microalgae Company acquired a manufacturing plant of the Duplaco Microalgae Incorporated in August 2022, along with rights to several product lines. The company aims to increase the company's ability to produce algae-based solutions that can be used in food ingredients, nutritional supplements, and feed industries.
In addition to this, the Aliga Company is expected to improve its standing as a leading algal-based animal feed supplier in Europe.
To illustrate the potential of the underwater crop for alternative proteins, Triton Algae Innovations unveiled its plant-based algae components in March 2021. The institution uses a single-celled algae species called Chlamydomonas reinhardtii, which can produce plant proteins using a scalable, economically viable heterotrophic technique.
| Attribute | Details |
|---|---|
| Forecast Period | 2023 to 2033 |
| Historical Data Available for | 2018 to 2022 |
| Market Analysis | USD million or billion for Value and Units for Volume |
| Key Regions Covered | North America; Latin America; Europe; Middle East & Africa (MEA); East Asia; South Asia and Oceania |
| Key Countries Covered | United States, Canada, Brazil, Mexico, Germany, Spain, Italy, France, United Kingdom, Russia, China, India, Australia & New Zealand, GCC Countries, and South Africa |
| Key Segments Covered | By Additive Type, By Form, By Livestock and By Region |
| Key Companies Profiled | Cargill Inc.; Archer Daniels Midland Company; DIC Corporation; Koninklijke DSM NV.; Roquette Freres; Sun Chlorella; Cellana LLC.; Fuji Chemical Industries Co. Ltd.; Algama Foods; Corbin (Terra Via Holdings); HOWND; Yunnan Green-A-Bio-engineering Co Ltd. |
| Report Coverage | Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives |
| Customization & Pricing | Available upon Request |
The global market is likely to grow at 3.7% through 2033.
The overall market is predicted to be valued at USD 8,158.1 million by 2033.
The market was valued at USD 4,230.7 million in 2022.
The microalgae segment provides for higher amount of feedstock globally.
China could witness 7.6% CAGR in algae-based animal feed production through 2033.
1. Executive Summary 2. Market Overview 3. Market Dynamics 4. Global Market - Pricing Analysis 5. Global Market Demand (in Value (USD Million) and Volume (MT) Analysis 2018 to 2022 and Forecast, 2023 to 2033) 6. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, by Additive Type 6.1. Feed Preservatives 6.2. Feed Antioxidants 6.3. Feed Emulsifier 6.4. Feed Acidifiers 6.5. Silage Additives 6.6. Feed Prebiotics 6.7. Feed Probiotics 6.8. Feed Enzyme 6.9. Feed Colorants 6.10. Feed Flavors 6.11. Feed Sweeteners 6.12. Nutritional Additives 7. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Livestock 7.1. Ruminant 7.2. Poultry 7.3. Swine 7.4. Aquaculture 7.5. Pet Animal 8. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, By Form 8.1. Liquid 8.2. Dry 8.3. Granules 9. Global Market Analysis 2018 to 2022 and Forecast 2023 to 2033, by Region 9.1. North America 9.2. Latin America 9.3. Europe 9.4. East Asia 9.5. South Asia 9.6. Oceania 9.7. Middle East & Africa 10. North America Market Analysis 2018 to 2022 and Forecast 2023 to 2033 11. Latin America Market Analysis 2018 to 2022 and Forecast 2023 to 2033 12. Europe Market Analysis 2018 to 2022 and Forecast 2023 to 2033 13. East Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033 14. South Asia Market Analysis 2018 to 2022 and Forecast 2023 to 2033 15. Oceania Market Analysis 2018 to 2022 and Forecast 2023 to 2033 16. MEA Market Analysis 2018 to 2022 and Forecast 2023 to 2033 17. Country-level Market Analysis, 2022 18. Market Structure Analysis 19. Competition Analysis 19.1. Cargill Inc. 19.2. Archer Daniels Midland Company 19.3. DIC Corporation 19.4. Koninklijke DSM NV 19.5. Roquette Frères 19.6. Sun Chlorella 19.7. Cellana LLC 19.8. Fuji Chemical Industries Co., Ltd. 19.9. Algama Foods 19.10. Corbion (TerraVia Holdings) 19.11. HOWND 19.12. Yunnan Green-A-Bio-engineering Co Ltd. 20. Assumptions and Acronyms Used 21. Research Methodology
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Algae-based Animal Feed Market
