Global Algae Protein Market - 2023-2030

Market Overview

Algae proteins are derived from marine algae and freshwater algae by extracting, harvesting, and drying the algae. They have an extremely nutritious profile due to the good quality of amino acids and high protein content. They are used in preparing animal feeds, dietary supplements, and food beverages. Algae protein is marketed to encourage weight loss and prevent heart disease, diabetes, and fatigue. Moreover, the high consumption of protein products worldwide due to changes in lifestyles and the rise in health consciousnesses among consumers is also lifting the growth of the algae protein market.

The global algae protein market was valued at USD YY million in 2022. It is forecasted to reach USD YY million by 2030, growing at a CAGR of 8.12% during the forecast period (2023-2030).

Market Dynamics: Increasing health concerns and the availability of essential proteins and nutrients

Consumers are becoming more conscious of their snacking habits and are increasingly adopting healthier foods such as algae protein due to their metabolic benefits. Healthy snacking is also well-regarded as a supplement to weight loss, as these snacks provide the body with important vitamins and nutrients. Over the forecast period, the global algae protein market is expected to be driven by growing demand for weight control and healthy snacking.

According to European Algae Biomass Association, by 2050, the world will need to produce 70% more food to feed a population of 10 billion people. These foods will need to meet a high nutritional standard while reducing their impact on the environment. The companies Unilever Food Solutions and Algenuity recognize the key role that diverse, plant-based proteins like microalgae will play in transitioning toward this new food system. Chlorella Vulgaris, a widely recognized (micro)algae, is a nutrient-rich, plant-based source of protein and fiber with a low environmental footprint. Chlorella possesses several additional beneficial nutrients, including antioxidants, vitamins, minerals and essential fatty acids. It has been consumed globally for many years, yet its high chlorophyll content, which gives plants their green color and a bitter taste and smell, has proven a barrier to its inclusion in mainstream diets. These factors may drive the algae protein market.

The availability of a wide range of protein substitutes may impede the use of algae proteins in food products. While algae are emerging as a popular source of nutrients and proteins and are being added to fortified food products, the presence of different protein-based food products is a key challenge. Additionally, meat remains a crucial part of the diet for many people, despite the ongoing shift toward plant-based protein and vegan food alternatives. For instance, according to a survey published in Food Research International involving 4322 respondents across 5 EU countries, 40% of those respondents remained inclined towards animal-based foods with relatively low interest in switching to plant alternatives.

Market Segmentation: The spirulina algae type segment had the highest share in the global algae protein market

Spirulina provides a rich green color to smoothies and protein shakes. This algae is great for heart health as it helps lower cholesterol while having anti-inflammatory effects. Due to its high vitamin content, spirulina is extensively commercialized for sports nutrition products. Spirulina is a high-protein source of plant-based foods, containing approximately 50% to 70% protein by dry weight. Spirulina's low nucleic acid content, high vitamin and mineral content, and easy digestibility of the cell wall relative to other microbes have attracted a variety of food and feed manufacturers. Animal feed also contains high amounts of spirulina, making it a strong and soaring market in the coming future.

Consumption of algae protein in liquid form offers many benefits, such as easy absorption of a wide range of vitamins, antioxidants, amino acids, and essential nutrients. Multiple foods and beverage companies are adding algae to introduce unique nutritional offerings. For instance, in February 2022, Ful launched Ful Soda, a healthy drink that uses spirulina to provide a nutritional boost. Furthermore, developments in plant-based dairy will offer lucrative scope for the use of algae. The Singapore-based food tech company, on 4 May 2021, Sophie's Bionutrients introduced the world's first-ever algae milk, eliminating the concerns associated with lactose intolerance and other allergies. The milk replacement is made with Sophie's Bionutrients signature micro-algae protein flour with the same essential amino acids as micro-algae. The flour is then homogenized with water to create a dairy-free alternative.

Geographical Penetration: Asia Pacific the dominating region during the forecast period

Asia Pacific is expected to emerge as the fastest-growing regional market over the forecast period due to rising exports and domestic demand for plant-based ingredients are driving the growth of the global algae protein market. Changing dietary patterns has encouraged manufacturers to utilize algae proteins in bakery & confectionery, protein drinks, breakfast cereals, snacks, and many other products. Growing consumer inclination towards protein-based diets and the inclusion of plant-based or natural ingredients into daily diets have boosted the adoption of algae protein in Asia.

China is one of the region's largest manufacturers of plant-based ingredients due to the easy obtainability of raw materials in the country. According to Food and Agriculture Organization, global cultivation of algae, dominated by marine macroalgae known as seaweeds, grew by half a million tonnes in 2020, up by 1.4 percent from 34.6 million tonnes in 2019. Some major producing countries, including China and Japan, experienced growth in 2020. In addition to the 178 million tonnes of aquatic animals, algae produced 36 million tonnes (wet weight) in 2020, of which 97 percent originated from aquaculture. Algae production has experienced impressive growth in the past few decades, at 12 million tonnes in 2000 and 21 million tonnes in 2010. However, it increased by only 2 percent in 2020 compared with 2019. Asian countries confirmed their role as major producers, with a share of 97 percent of the total production of algae. 5 The remaining 6 percent of finfish comprised diadromous species. As the leading producer, China alone accounted for 58 percent of the overall total in 2020, followed by Indonesia (27 percent) and the Republic of Korea (5 percent).

Competitive Landscape:

The global algae protein market is competitive in nature, with many domestic and multinational players competing for market share. Emphasis is given to the merger, expansion, acquisition, and partnership of the companies, along with new product development, as strategic approaches adopted by the leading companies to boost their brand presence among consumers. Some major global key players in the algae protein market include Carbion Biotech Inc., Nutress, Nutrex Hawaii Inc., Cyanotech Corporation, Far East Bio-Tech Co Ltd., Earthrise Nutritionals LLC, Rainbow Light, Allmicroalgae, Energybits and Heliae Development LLC. Further, market key players are also planning to strengthen their distribution relationships with firms across various regions by merging or acquiring to leverage the customer base for future product launches.

For instance, on 14 June 2021, the company Polaris launched Omegavie DHA 800 Qualitysilver algae oil, designed to answer challenges in the value chain, including R&D and regulatory concerns. These microorganisms comprise vitamins, proteins, pigments, and enzymes, providing PUFAs from plant-based and sustainable origins. In July 2020, the companies Unilever and biotech start-up Algenuity announced a new partnership to delve into the huge potential of microalgae in innovating future foods for Unilever's plant-based portfolio. Algenuity, which specializes in developing microalgae for consumer products, will work with the R&D team within Unilever's Foods and Refreshment (F&R) division to explore ways of bringing foods made with microalgae to the market.

COVID-19 Impact: Positive impact on the global algae protein market

The onset of the COVID-19 pandemic prompted research activities to identify effective solutions to combat the coronavirus infection. Some studies suggested that algal nutraceuticals could act as immune boosters against COVID-19 and other viral illnesses. Subsequently, the increased importance of algal nutraceuticals, particularly spirulina-based products, has augmented consumer demand, which has played a vital role in industry expansion during the pandemic.

Algae is used as one type of medicine for the virus in the pandemic in some areas. It also positively impacted the global algae protein market to increase demand. For instance, MIGAL Galilee Research Institute used algae at a lab in Iceland by Israeli company Vaxa, which received European Union funding to explore natural treatments for Covid-19. The research indicated that when the algae extracted was included in optimum quantities. There was a 70% reduction in the release of TNF-α proteins, which is very encouraging that the algae extract might be used to prevent cytokine storms if given to patients soon after diagnosis.

The global algae protean market report would provide access to approximately 61 market data tables, 53 figures and 170 pages.

Algae production, consumption, and export are high all over the Asia Pacific region. It pushes novel and veteran players to join the market or expand their product lines using these algae. The footprint of algae-based products is primed for growth in Asia-Pacific in the coming years. The market for algae-based products is moving upward with good momentum. Although algae are quite a phenomenon in Asia-Pacific, slowly and steadily, their roots have spread to Europe and North America.