The global algae product sales reached approximately USD 5,531.2 million at the end of 2024. Forecasts suggest the market will achieve a 5.8% compound annual growth rate (CAGR) and exceed USD 9,720.2 million in value by 2034.
Products derived from algae are becoming popular because of their popularity as sustainable and environmentally friendly choices. Algae can be grown in non-potable water which makes it less resource intensive in terms of freshwater and arable land. This makes algae very attractive to the ecofriendly business sector or consumers. Apart from the fact that algae are a nutrient-dense food source, this makes it more common in the health and wellness industry. Companies like Spirulina World and Algenol have moved one step ahead in introducing spirulina-containing supplements high in proteins, vitamins, and antioxidants.
Further, in the biofuel industry, algae are regarded as a promising substitute for oil. Companies like Solazyme Inc., are at the forefront of innovation, which focuses on algae to diesel technology, developing a biofuel that is renewable and with lower greenhouse gas emissions than current fuels on the market. Therefore, this development is important in the global arena where authorities are moving towards the adoption of clean energy.
| Attributes | Description |
|---|---|
| Estimated Global Algae Products Industry Size (2024E) | USD 5,531.2 million |
| Projected Global Algae Products Industry Value (2034F) | USD 9,720.2 million |
| Value-based CAGR (2024 to 2034) | 5.8% |
Also, algae have been incorporated into the production of cosmetics and organic skin products since they are moisturizing and anti-aging. Algenist, a brand in the skin and cosmetic care industry, employed algae extracts in the anti-aging sector, enabling it to capitalize on the growing beauty industry. All these factors combined, point towards multiplication of the sales.
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The below table presents a comparative assessment of the variation in CAGR over six months for the base year (2023) and current year (2024) for the global algae products industry. This analysis reveals crucial shifts in performance and indicates revenue realization patterns, thus providing stakeholders with a better vision of the growth trajectory over the year. The first half of the year, or H1, spans from January to June. The second half, H2, includes the months from July to December.
| Particular | Value CAGR |
|---|---|
| H1 | 4.8% (2023 to 2033) |
| H2 | 5.2% (2023 to 2033) |
| H1 | 5.5% (2024 to 2034) |
| H2 | 5.8% (2024 to 2034) |
In the first half (H1) of the decade from 2024 to 2034, the business is predicted to surge at a CAGR of 4.8%, followed by a higher growth rate of 5.2% in the second half (H2) of the same decade. Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to increase to 5.5% in the first half and remain considerably high at 5.8% in the second half. In the first half (H1) the sector witnessed an increase of 25 BPS while in the second half (H2), the business witnessed a decrease of 15 BPS.
Transforming Water Purification Approaches with Algae
In terms of product application, within the algae products landscape, water purification remains an important application thanks to the rise in the need for greener treatment options. Some companies like Clearas Water Recovery are leading the way in employing algae to clean up wastewater as a contaminant removal technology.
It not only cleans up the water waste but also helps form useful byproducts like biomass that are applicable in other sectors. There is growing interest from both, end consumers and industrial companies, in water treatment that has lower or no chemical impacts on the environment.
These needs have been met with the development of algae-based systems for cleaning water since they are efficient as well. Algix is also one of the firms applying algae to purify water while fetching biomass for bioplastics. As more awareness is highlighted, a greater number of companies are bound to embrace algae-based water treatment technologies.
Utilizing Algae for Carbon Capture
Companies such as Carbon Capture Machine are attempting to create technologies that will make use of algae to extract carbon dioxide from the air. In addition to decreasing greenhouse gas content in the atmosphere, such a process leads to the production of useful biomass that can be utilized elsewhere.
There is growing consumer interest in sustainable as well as eco-friendly approaches to address climate change. Such demand is fulfilled by algae-based carbon capture systems as they present an effective and environmentally benign way of reducing carbon emissions. For instance, Phyco2 is also able to use algae to capture CO2 which is later used to increase the productivity of farming activities.
Boosting Aquaculture with Algae-Based Feed
The incorporation of algae in aquafeeds is proving to be promising because of its nutrition and sustainability attributes. Companies such as Alltech are at the forefront of making valuable contributions by providing such algae-based feed solutions which in turn promote the state of health and growth of the cultivated fish.
Such feeds contain a good quantity of nutrients including omega 3 fatty acids which are important for growing and healthy aquatic organisms. By utilizing algae or other plant protein sources, the need to fish for forage fish for aquaculture feeds can be mitigated while at the same time satisfying the requirements of the consumers.
For instance, this light and flexible approach has been adopted by Veramaris which manufactures algae-derived omega-3 oils for aquaculture. The aquaculture industry is further supported by the need for improved practices of fish farming and increasing concern stemming from the disadvantages of normal aquaculture.
Principal Consultant
Global sales increased at a CAGR of 5.2% from 2019 to 2023. For the next ten years (2024 to 2034), projections are that expenditure on such products will rise at 5.8% CAGR.
The algae products industry holds remarkable growth during the forecast period of 2024 to 2034 due to multiple factors. One of the drivers is the growing venture capital availability for research and development activities. Algenol and Solazyme are among those companies that are heavily funding new technologies for the improvement of algae growth and collection, thereby making the production processes more efficient and less expensive.
Such investment would in turn help reduce the production costs of algae. The food and beverage sectors also play a role in the expansion of the algae products marketplace. Algae are being employed for innovations in food including plant-based meat substitutes.
Besides, the cosmetic and personal care sector also seems to incorporate algae owing to its advantages. The hydrating and anti-aging properties of algae extracts are being used in skincare and hair care products. Companies like Seppic are adding algae to their products to attract the market of those who are looking for organic cosmetics.
Additionally, more and more attention is being drawn to the ecological side of the biomass farming region. Algae can be cultivated in different climatic conditions including non-cultivable land as well as wastewater thereby making it a resource-efficient alternative. This adaptability is gaining interest from different sectors that seek to limit their impact on nature.
The Tier 1 companies in the algae products landscape exhibit substantial market share and geographical presence. These firms usually have extensive funds for research and development and therefore they can come up with new ideas and are the trendsetters.
One of the premier firms is Corbion which manufactures algae-based ingredients for food, feed, and personal care products. DSM, which is also among these players, uses its high biotechnology skills to produce different types of algae nutritional products is also pertinent to mention.
Companies belonging to tier 2 are usually mid-sized companies. They are generally very good at coming up with new ideas and targeting niche markets. For example, Algama specializes in the production of food and beverages with algae for health-oriented people.
Alga Energy is also of this kind, which produces algae bio-fertilizers and biopesticides for agriculture. These companies may not be as well represented as tier-one companies in terms of geographical presence but play an important role in the development of ideas and meeting the various industry demands.
Tier 3 companies include new small-scale companies. Such firms are often involved in the development of new technologies and uses of algae. Notpla, for instance, is designing water-based food containers that are made from seaweed.
Phyco2 is another start-up that uses algae-based carbon dioxide sequestration and conversion. These companies operate in emerging areas where the market size is small because they are operating on a new product. They usually grow their business through funding and collaborations with bigger companies.
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The following table shows the estimated growth rates of the top three territories. USA and China are set to exhibit high consumption, recording CAGRs of 3.9% and 5.7%, respectively, through 2034.
| Countries | CAGR 2024 to 2034 |
|---|---|
| The USA | 3.9% |
| Germany | 4.5% |
| China | 5.7% |
| India | 6.5% |
| Japan | 5.1% |
A strong factor is the growing concern for sustainable agricultural practices. For instance, Heliae Development is manufacturing biofertilizers from algae that improve the soil and the crop yield, thus favorable to USA farmers who are interested in organic farming.
The USA is also witnessing an increasing industry for plant and functional foods. Terravia is utilizing algae to introduce new products that would interest health-conscious individuals such as protein snacks and protein powders. Such nutritional supplements are gaining popularity due to awareness of the health benefits of algae and an increased preference for vegetarian diets. Further, the algae biofuel industry is also benefitting from the growing influence of the government towards renewable energy sources.
Sapphire Energy is among the companies involved in this business where biofuels from algae are produced as a better option than petroleum. This is in line with the country's efforts to battle climate change through reduced carbon footprints by opting for clean energy technologies.
Concerning renewable energy sources, it is worth mentioning that companies such as Algome are creating biofuels and bioplastics made from algae, which is consistent with the goals of the country regarding the reduction of carbon emissions and plastic waste.
The German food sector also records an increase in interest in products based on algae. All microalgae is using algae for the development of natural food ingredients including food colors and dietary supplements to meet the needs of health-conscious consumers, especially in Germany.
Furthermore, an adequate biotechnological base is available in the country for the improvement of the technologies of cultivation and processing of algae. The combination of advanced science and technological capabilities alongside sustainable practices is the driving force behind the increasing expansion of the algae products industry in Germany.
Aquatic biosystems, for instance, produce feed using algae that improves the health and growth of fish and this attracts the aquaculture industry which is looking for greener options. The Indian pharmaceutical industry is also sizing up the use of algae-based products. Algomed is now applying algae to develop new pharmaceuticals including omega-3.
This is further fuelled by the ever-increasing knowledge of the health properties related to algae and a wave of demand for organic and natural health products. Also, there is research on algae fibers for the Indian textile industries to make sustainable apparel. Algaeing is one of the players that specializes in algae-based biodegradable and eco-friendly fabrics. This focus on cutting-edge technology and sustainability is propelling the growth of the algae products industry in India.
| Segment | Lipids (By Product Type) |
|---|---|
| Value Share (2024) | 25.5% |
Lipids from algae have experienced remarkable increases in sales as consumers are looking for ways to promote sustainable and eco-friendly products. Algae is also a very good option as it can produce high amounts of lipids, that to pollution free. Biotechnology has improved the method of lipid extraction making it more effective and cost-friendly.
More focus on enhancing the output of lipids has led to innovation in algae culture techniques with companies such as Solazyme and Algenol at the forefront. Additionally, the versatility of algae lipids in various applications, from biofuels to cosmetics, has expanded their industry reach. Similarly, the increasing awareness of consumers towards the algae products as well as algae products serves to further enhance the industry.
Algal lipids meet the growing demands arising from consumers looking for greener products. Such prospects of the industry are encouraged by new trends as changes in consumer preferences arise. This segment is likely to experience a compound annual growth rate of 4.8% for the period 2024 to 2034.
| Segment | Brown Algae (By Source) |
|---|---|
| Value Share (2024) | 24.5% |
The increase in the sales of brown algae products is attributed to its high content of bioactive substances, such as fucoidan and alginate which have health benefits. Increasingly, such substances are being incorporated into nutraceuticals and pharmaceuticals due to their anti-inflammatory and antioxidant action. Companies like Marinova and Algatech lead from the front in high-quality brown algae product processing using modern extraction techniques.
The cosmetics industry also propels this market growth by incorporating the restorative properties of brown algae extracts. Further, the market expansion was due to the food industry's potential for the use of brown seaweeds as a natural thickener and dietary enhancer.
There is also a segment of customers who appreciate the renewable and harvested nature of brown algae, and so the sales are increasing based on those factors. With the continuing evolution of research and new aspects of application and advantages emerging, this industry is set on continuous developmental growth.
The market of algae ingredient products is cut-throat in its nature with a host of organizations fighting to claim their fair amount of the market share through innovation and collaboration.
For example, firms such as Corbion and DSM are making huge investments in research and development to produce distinctive high-valued products that may fit well within the consumer's needs. Corbion is engaged in the production of algae-derived omega-3 fatty acids that act as a replacement for fish oil but in a more environmentally friendly manner.
However, for manufacturers to counter this trend, they are more than willing to form, alliances and joint ventures. AgaeEnergy has formed a joint venture with Yokogawa Electric Corporation to improve its production and distribution capabilities. The companies are also broadening the field within which their products operate, for instance, biofuels and animal feeds among others.
For instance
As per product type, the industry has been categorized into Lipids, Carrageenan, Alginate, Algal Protein, Carotenoids, and Others.
As per form, the industry has been categorized into Solid and Liquid.
This segment is further categorized into Green Algae, Brown Algae, blue-green algae, Red Algae, Yellow-Brown Algae, and Others.
This segment is further categorized into Food & Beverages, Nutraceuticals & Dietary Supplements, Personal Care, Feed, Pharmaceuticals, and Others.
Industry analysis has been carried out in key countries of North America, Latin America, Western Europe, Eastern Europe, Balkans & Baltic, Russia & Belarus, Central Asia, East Asia, South Asia & Pacific, and the Middle East & Africa.
The global industry is estimated at a value of USD 5,531.2 million in 2024.
Sales increased at 5.2% CAGR between 2019 and 2023.
Some of the leaders in this industry include Algae Systems LLC, euglena Co., Cyanotech Corporation, Cargill, DSM, Kerry, Cargill, Corbion, BIOPROCESS ALGAE, LLC., BASF, and many others.
The North American territory is projected to hold a revenue share of 34.4% over the forecast period.
The industry is projected to grow at a forecast CAGR of 5.8% from 2024 to 2034.
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Algae Products Market
