Algae Proteins Market

Algae Protein Market Overview

The algae protein market generated a total revenue of USD 750 million in 2022. The industry is anticipated to rise at a healthy CAGR of 5.5% over the forecast period, to attain a market revenue of USD 1,351.57 million by 2033. The rising demand for algae protein can be linked to the growing acceptance of algae as a promising and reliable source of protein.

Algae protein has emerged as an alternative protein and is used in nutraceuticals, feed, and functional food due to its high protein content.

Factors Support the Growth of the Algae Protein Market

• Microalgae protein offers a plethora of health benefits, such as the ability to strengthen the immune system and enhance dietary intake. Many health benefits of microalgae protein increase the likelihood of product utilization in the nutraceutical market.
• Growing consumer interest in plant-based nutritional supplements to invigorate innate strength.
• There is surging consumption of algae protein-based products or medications to reduce weight, assuage symptoms of fatigue and anxiety, and treat attention deficit-hyperactivity disorder (ADHD), premenstrual heart disease, diabetes, and other diseases.
• Heightened demand for the product, owing to its high nutrient content, positive impact on the immune system, and other health-associated benefits, is also pushing the demand for algae protein.
• Altering consumer preferences in favor of plant-based and other such meat alternative sources, as awareness surrounding the adverse impact on biodiversity and release of more GHG emissions during meat production is rising.
• Increasing utilization of algae protein in the application sector, as producers of processed food products, nutraceuticals, and beverages are constantly seeking nutrient sources to enrich their products with high protein content.

Market Challenges

• High cost of production that increases the final price of the finished product may restrict the revenue growth of the algae protein market.
• Some people may suffer allergies post the consumption of algae protein and other related items, which may limit the use of the product.
• Algae cultivation is mainly dependent on climate and humidity. Different climatic elements may impact algae farming differently. This factor might also inhibit the growth prospects of algae protein over the forecast period.

Key Opportunities to Enhance Algae Protein Market Scope

• Surge in government initiatives to encourage the production of algae products.
• Accelerating demand for nutrition-rich food products and high consumption of protein supplements.

Key Trends Influencing the Market Growth

• Increasing use of algae proteins to reduce the risk of certain diseases.
• Escalating traction for algal peptides in recent years to treat patients with metabolic disorders, especially the aging population.

Attribute	Details
Algae Protein Market Value (2023)	USD 791.25 million
Algae Protein Market Forecast Value (2033)	USD 1,351.57 million
Algae Protein Market CAGR (2023 to 2033)	5.5%

(2017 to 2022) Demand Outlook for Algae Protein Market Compared to Forecast Period (2023 to 2033)

The algae protein market attained a market revenue of USD 750 million in 2022. From 2017 to 2022, the market has been influenced by various factors. Increased production of farmed seaweed, with the prominent rise in production seen in Indonesia, is one such factor that propelled market expansion.

In addition to this, the rise in exploitation of microalgae for multiple biotechnological purposes, such as animal feed, cosmeceuticals, alginates, fatty acids, biofuel, and wastewater treatment, has also supported market development in recent years.

According to Future Market Insights (FMI) analysis, the algae protein industry is anticipated to exceed USD 1,351.57 million by the end of 2033, registering a CAGR of 5.5%. FMI details the new trends that are aiding in the market’s upward momentum:

Year	Expected Valuation
2025	USD 880.68 million
2028	USD 1034.13 million
2032	USD 1281.11 million

• Short Term (2023 to 2026): The market in the short term is predicted to be propelled by the growing acceptance of seaweed and microalgae as viable sources of protein. Additionally, due to increasing research activities, there is growing awareness regarding the high level of protein present in some species of microalgae and seaweed, similar to those present in traditional protein sources like meat, soybean, egg, and milk. Several benefits of algae protein in terms of nutritional value and productivity are also projected to boost market development.
• Medium Term (2026 to 2029): The market is projected to be determined by the growing initiatives by key manufacturers of algae protein to save time and make it economically viable for consumers. Furthermore, evolution in the extraction procedure and novel processing technologies for algae protein is also expected to positively influence market development.
• Long Term (2029 to 2033): The long-term growth of the market is projected to be influenced by the soaring concerns regarding the shortage of protein sources in the future. Key decision-makers are preparing in advance for the future food shortage. To address the apprehensions about the future supply of protein, alternative protein sources, and manufacturing processes are required to meet the consumer's demand and anticipated global protein intake.

Category-wise Analysis

Innovations in Algae-based Beverages to Bolster Market Development

The utilization of liquid dosage forms of algae protein is projected to exhibit a 5% CAGR over the forecast period. The consumption of liquefied algae protein provides several benefits, including easy assimilation of a broad range of amino acids, antioxidants, vitamins, and essential nutrients. As a result, many food and beverage companies are incorporating algae to launch unique nutritional offerings into the market. For example:

• In February 2022, FUL Foods introduced Ful Soda, which is a nutritious drink that utilizes spirulina to offer a nutritional boost.
• In May 2021, Sophie’s Bionutrients, a Singapore-based food tech company, launched the world’s first algae milk, which eases the concerns related to lactose intolerance and other allergies.

Algal Supplements to Witness Accelerated Consumption Owing to Plant-based Food Trends

The algae protein finds an extensive application in dietary supplements. The surging demand for plant-based dietary supplements is being invigorated by the growing consumer preference for vegan diets, which is accelerating the manufacturing of algae protein-based dietary supplements. Algae supplements are trying to match the pace of renewable plant sources of minerals and vitamins.

As per the new studies, blue-green algae can help in improving the overall well-being and immunity of consumers. An extensive range of microalgae species has been permitted by the Food & Drug Administration (FDA) for human ingestion under Generally Recognized as Safe (GRAS). These species include Chlorophyta, Cyanobacteria, Spirulina, and others.

Surging Demand for Sustainable Fish Feed and Aquaculture to Push the Demand for Microalgae

Algae protein is highly sourced from microalgae, which are a good source of carbon compounds. This makes microalgae an ideal raw material in the manufacturing of pharmaceuticals, biofuel, cosmetics, and health supplements. Moreover, microalgae are found to have a high level of concentrations of antioxidants like astaxanthin, which is accelerating the research and new product developments in the field of functional foods.

The rising use of astaxanthin-rich microalgae is there in the aquaculture sector as a crustacean and fish feed. The surging focus on developing aquaculture more sustainable is propelling the demand for alternative feeds like larvae, single-cell proteins, microalgae, and fermented CO2.

Country-wise Analysis

Rise in Fitness Enthusiasts in the United States to Catalyze Market Development

The United States algae protein market is projected to be positively influenced by the rise in fitness-conscious consumers. In addition to this, the market is also pulled upward by innovative marketing tactics by key producers who have taken to social media platforms to capitalize on the rising netizens seeking sustainably-sourced protein sources. The market is going to witness an upward growth trajectory, as the demand for plant-based protein alternatives is being widely used in the food and beverage, and feed industries.

The end users of algae protein are walking hand in hand with the emerging trends introduced in the market to increase their relevancy and ensure future demand for their products. As a result, the demand for algae protein is projected to only go upward, given that all the market factors, including environmental influence, are in check.

China to Exhibit Rampant Market Expansion Due to Increasing Algae Protein Exports over the Forecast Period

China is estimated to assume a significant pace over the next 10 years. The market development in China is projected to be influenced by the surge in exports and local demand for plant-based ingredients to cater to fitness-conscious consumers.

Additionally, rising demand for superior-quality nutritional feed products for animal feed is expected to spur market growth. Moreover, the algae protein industry in China is being driven by the soaring personal income of consumers and changing consumer behavior with rising interest in plant-based protein sources.

The algae protein is replete with high protein content, excellent nutritional capabilities, and an amino acid profile. As a result, the substance is finding extensive application in functional food items and processed healthy food items. Additionally, the rising use of algae protein to treat a range of disorders and diseases in humans, like stress, anxiety, hyperactivity disorder, weight loss, arthritis, cancer, and so on, is further projected to boost its demand.

Algae Protein Market Competitors Vying for Larger Market Share

The algae protein industry is characterized by a highly competitive market scenario owing to several multinational and domestic players vying for market share. The key participants in the market are emphasizing partnerships, mergers and acquisitions, capacity expansions, and new product developments to cater to the demands of end-user industries, such as animal feed, cosmetics, and food and beverage, among others.

Recent Market Developments in the Industry Include

• In September 2021, Tofurky, a plant-based meat firm, partnered with Triton Algae Innovations to commercialize meat innovations based on algae, which feature Triton’s ‘essential red’, which is a non-GMO protein-rich alga.
• In August 2022, the microalgae production facility by Duplaco was purchased by Aliga Microalgae, including its material rights and product portfolio. The purchase is in line with Aliga’s strategy to upscale the firm’s production capacity of algae-based products for the food ingredient, dietary supplement, and feed markets. With this purchase, Aliga is estimated to strengthen its position in the European market as one of the leading producers.

Key Players

• Corbion
• Cyanotech Corporation
• Earthrise Nutritional
• Far East Bio-Tec Co. Ltd.
• E.I.D-Parry Limited
• ENERGY bit Inc.
• Rainbow Light
• NOW Foods
• Prairie Naturals
• Vimergy LLC
• Others

Scope of Algae Protein Market Report

Attributes	Details
Forecast Period	2023 to 2033
Historical Data Available for	2018 to 2022
Market Analysis	USD million/ billion for Value and tons for Volume
By Source	Seaweed, Microalgae
By Dosage Form	Capsules, Liquid, Powder, Others
By Application	Dietary Supplements, Food and Beverage, Animal Feed, Cosmetics, Others
By Region	North America; Latin America; Europe; Asia Pacific; The Middle East and Africa
Key Countries Covered	The United States, Brazil, Mexico, Canada, the United Kingdom, Germany, France, Spain, Italy, Russia, Argentina, Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand, Vietnam, Australia, Poland, China, New Zealand, Japan, GCC countries, South Africa, others
Key Players	Corbion; Cyanotech Corporation; Earthrise Nutritional; Far East Bio-Tec Co. Ltd.; E.I.D-Parry Limited; ENERGY bit Inc.; Rainbow Light; NOW Foods; Prairie Naturals; Vimergy LLC; Others

Key Market Segmentation

By Source:

• Seaweed
  • Brown algae
  • Green algae
  • Red algae
• Microalgae
  • Spirulina (Blue-green algae)
  • Chlorella (Green algae)
  • Others

By Dosage Form:

• Capsules
• Liquid
• Powder
• Others

By Application:

• Dietary Supplements
• Food and Beverage
  • Bakery and Confectionery
  • Protein Drinks
  • Breakfast Cereals
  • Snacks
• Animal Feed
• Cosmetics
• Others

By Regions:

• North America
• Latin America
• Europe
• Asia Pacific
• The Middle East and Africa

Frequently Asked Questions

What is the Market Size for Algae Proteins Worldwide?

Algae Protein sales worldwide may create USD 791.25 million market in 2023.

What is the Algae Proteins Market Forecast?

The global market is expected to rise at 5.5% CAGR through 2033.

How Lucrative is the Algae Proteins Market in the United States?

Higher percentage of fitness-conscious consumers makes it the most lucrative region.

What are the Future Uses of Algae Proteins?

Its uses in pharmaceuticals, cosmetics, and biofuel to create higher market opportunities.

What are High Value Products from Algae Proteins?

Algae-based beverages form the high value segment, projected to grow at 5% till 2033.