PUBLISHER: IMARC | PRODUCT CODE: 1819905
PUBLISHER: IMARC | PRODUCT CODE: 1819905
The global algae products market size reached USD 2.03 Billion in 2024. Looking forward, IMARC Group expects the market to reach USD 3.03 Billion by 2033, exhibiting a growth rate (CAGR) of 4.6% during 2025-2033. The increasing consumption of healthy food products, rising usage in the production of medicines, and the growing adoption of a vegan lifestyle represent some of the key factors driving the algae products market share.
Increasing awareness regarding the health benefits of the product
Algae, which also include microalgae, are photosynthetic organisms that are used to produce dietary foods that are said to have a high protein content and other nutritional advantages. This makes them an excellent ingredient for a variety of products, including animal feed, functional food and beverage products, cosmetics, and dietary supplements. Algae and microalgae are a source of protein, but they also have other health benefits due to their numerous bioactive components. Furthermore, microalgae have more pigments than different plant and flower species. The proteins obtained from algae possess full essential amino acid profiles (EAAs) and have a higher protein content than proteins derived from traditional sources including meat, poultry, and dairy products. Additionally, microalgae are a great source of minerals like potassium, iron, magnesium, calcium, and iodine, as well as vitamins like A, B1, B2, B6, B12, C, and E, thereby bolstering the algae products demand. It has been found that a wide variety of microalgae species are high in proteins, carbohydrates, lipids, and other bioactive substances. Certain peptides produced from microalgae have been linked to anticoagulant, immunomodulatory, anticancerogenic, hepato-protective, antioxidant, and hypertensive properties. Furthermore, they have strong probiotic ingredients that improve health by bolstering immunity, aiding in toxin removal, and increasing vitality.
Rising demand for biofuels
The increasing demand for biofuels to replace petroleum-based fuel and supplies is driving the algae products market growth. The market for biofuels is driven by the growing need for a clean, safe, and reliable energy source. The demand for biofuel has also increased due to the growing oil prices and government initiatives to lower greenhouse gas emissions. Several countries have started or increased their renewable energy initiatives. As they offer many advantages over petroleum-based fuel, such as high oil content, high production rates, and the requirement for less area, both macro and microalgae constitute good feedstock for biodiesel. Lipids from algae are often used to produce biofuel, offering numerous lucrative opportunities for the algae products companies.
Growing product demand in the cosmetic industry
The market is expanding due to rising product demand in the cosmetic industry. Skin pigmentation can be reduced or controlled by the anti-inflammatory, collagen-stimulating, and tyrosinase-inhibiting qualities of brown algal fucoxanthin pigment. It promotes cell growth and keeps the skin moisturized. Pigments and isolated algal biomolecules are widely used in cosmetic products. Algae products have anti-inflammatory properties. So, those with sensitive skin can benefit from using them. Algae products can promote a calmer, more balanced complexion by lowering inflammation. Moreover, algae products contain pigments like phycocyanin, vitamin A, proteins, sugars, and carrageenan that are highly beneficial for the skin. They are also added to cosmetics products as skin sensitizers. This rising utilization of the product in skin care products is bolstering the algae products market revenue.
Lipids dominate the market
According to the algae products market report, lipids are dominating the market. Lipids are vital components of algae. They are propelling a growing market for algae-based products. Algae are highly rich in lipids, like omega-3 fatty acids. It is a sustainable source for many applications. Algae-derived lipids are used in the food industry for their nutritional value. Omega-3 fatty acids which are found in certain algae species offer many health benefits. This has led to a rising demand for algae-based supplements, functional foods, etc. Furthermore, lipids derived from algae are also being used as biofuel feedstocks. The rapid growth rate of algae and its lipid-rich composition makes it a good alternative to traditional fossil fuels.
Brown algae holds the largest share in the market
Brown algae is creating a positive algae products market outlook. Brown algae is a diverse group of marine organisms. It is a driving force behind the market growth. This algae consists of many compounds, like alginates, fucoidans, etc., which are used in many industrial and medical applications. In the food industry, brown algae-based alginates are used as versatile thickening and gelling agents. They help in improving the textures of various products ranging from dairy to confectionery. Besides, the nutritional properties of brown algae are increasing the demand for functional food and dietary supplements. The diverse and beneficial properties of brown algae are bolstering the market.
Solid holds the maximum share in the market
Solid forms of algae products are dominating the algae products market growth. They are leading due to their convenience and versatility. These solid forms include powders, capsules, tablets, and bars. They can be easily integrated into the daily lives of consumers, whether as supplements, functional foods, or skincare products. Powdered forms of algae are mainly used in smoothies, protein shakes, and many baking applications. They are rich in proteins, vitamins, and antioxidants. Moreover, solid forms of algae products are also used in skincare items, like masks, creams, and exfoliants. They are gaining popularity for their natural ingredients and skincare benefits.
Offline holds the biggest share in the market
Offline distribution channels are bolstering the market due to their expanding accessibility. Brick-and-mortar stores, pharmacies, and supermarkets provide spaces where consumers can go and engage with algae products firsthand. This fosters brand recognition and customer loyalty. Consumers can also get product demonstrations, sampling, and face-to-face interactions with staff via offline channels. The staff can educate consumers about the benefits of these products, thereby increasing their sales. Moreover, offline channels are preferred by consumers who want to physically examine products before buying them, leading to accelerating sales.
Food and beverages hold the biggest share in the market
The food and beverage sector is leading the market. These products are widely used in the food and beverage sector due to their high nutritional profile. Algae is rich in proteins, vitamins, minerals, and omega-3 fatty acids. This makes them a valuable ingredient in the food and beverage industry. In recent years, algae is also used as a functional food ingredient, thereby increasing its popularity. It is added to various products, like energy bars, smoothies, dairy alternatives, and snacks. It also offers various health benefits to the consumers. Furthermore, algae-based products are known for their versatile nature and sustainability. Therefore, they are preferred among consumers who look for sustainable options.
North America exhibits a clear dominance, accounting for the largest algae products market share
The market research report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America accounted for the largest market share.
The algae products market forecast shows that North America is dominating the market growth. The rapidly expanding cosmetic, food and beverage, nutraceutical, and animal feed sectors generate an increasing demand for natural ingredients, thereby bolstering the product demand. Furthermore, the easy availability of raw materials, favorable climatic conditions for algae products cultivation, and the widespread availability of cheap labor enable the presence of a large number of market players involved in providing algal products for diverse industries. The algae products market recent developments in North America are also anticipated to rise even further due to numerous supportive government programs to promote the production and usage of algae in various sectors and meet the rising demand for healthy food items.
The market research report has provided a comprehensive analysis of the competitive landscape. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:
A large portion of the market is held by prominent international companies like Kerry, Cargill, ADM, and ACCEL Carrageenan. Since big competitors have not yet consolidated the market in these developing regions, the majority of manufacturers are concentrating on growing sales in these areas in order to expand their current production capabilities. Additionally, the companies are concentrating on creating novel methods of manufacture and storage for the nutritional supplement sector, thus offering many algae products market recent opportunities. The major players intend to exploit the client base for upcoming product launches by fortifying their distribution ties with businesses in different regions. For instance, CP Kelco stated in October 2021 that it was expanding its distribution partnership with Azelis throughout Europe, the Middle East, and Africa. Azelis is identified in the new distribution scope expansion as CP Kelco's sole distribution partner in a number of nations and market niches.