Approximately 80% of the life found on Earth constitutes organisms present under the water bodies of the planet. Ocean life is full of bioactive molecules and these are being capitalized by industry players across the world. Algae such as brown algae are important life forms that exist in moist places, it has wide applications in several industries such as pharmaceutical, cosmetics, healthcare, nutrition, and others. The algae products market is highly dependent upon the personal care industry and the dietary supplements industry for its growth in the forecast period. Due to this, the algae scrubbers manufacturers are also experiencing a growth in sales.
In 2018, import value of seaweeds and other algae worth $2 billion, thus reflecting the moderately high demand for oceanic organisms. Algae consist of vital nutritive materials such as vitamins, fatty acids, proteins, essential minerals, and others. Products derived out of algae are also biodegradable and help in reducing carbon footprint, thus helping industries to manufacture products in accordance with environmental conservation. The algae products market size will witness prolific growth with the rise in sales of organic products across the world.
The global algae products market size has been estimated at $4.2 billion in 2018 and the market will further grow with a CAGR of 5.5%, during the forecast period 2019-2025.
North America Taking the Lead in Algae Products Market Growth
North America is leading the algae products market in terms of market size. In 2018, the region held a 35% market share of the total revenue earned by the market globally. The major factor supporting this dominance is the extensive production of algal biomass fuel in North American countries. Biofuel produced out of algae is slowly replacing non-renewable diesel which causes immense air pollution. Furthermore, algal biomass is slowly adopted in the farming systems. The U.S. is increasingly investing in R&D to speed up the production process of algal biomass and biofuel. In July 2019, the Algal Biomass Organization headquartered in Preston, U.S. reported passing a new farm bill, as per the U.S. Department of Agriculture. This bill provides exclusive benefits to algae farmers for the commercialization of algal and improvement in production. Other industries that have contributed to the growth of the algae products market are healthcare, pharmaceutical, etc.
=> The Healthcare Industry- The healthcare industry is a key public sector, where North American countries are increasingly spending. In 2016, the U.S. government spent $3.3 trillion on the healthcare industry. This data has increased with U.S. healthcare venture fundraising reaching a hefty $9.6 billion in 2018. Additionally, Canada has also spent $253 billion in the healthcare industry in 2018. Algae has found a prominent place in the healthcare and pharmaceutical industries. Some algae are used for medicinal purposes such as spirulina, chlorella, and others. Chlorella is being sold in the form of dietary supplements, owing to its nutritional properties. According to the National Health Council, the chronic disease currently affects 133 million Americans and this number has been estimated to reach 157 million by 2020. This statistic reflects the necessity for increasing the consumption of bio-supplements, which has provided impetus to the algae products market. Algae tablets are being increasingly recommended by doctors to treat cholesterol issues, enhance the immune system and improve heart health. These properties of the products will be pivotal to improve the growth of the algae products market in the North American region.
Food and Beverage Industry—The Most Promising Segment of the Algae Products Market
Based on application, the algae products market is segmented into food and beverages, nutraceuticals, dietary supplements, feed, personal care products, pharmaceuticals, and others. The food and beverage industry has emerged as the most promising segment of the market. The segment has been estimated to grow with a CAGR of 4.6%, during the forecast period 2019-2025.
The manufacturing in the food and beverage industry has been disrupted by the inclusion of algae in the production of condiments such as mayonnaise, and others. Microalgae is considered as a rich source of protein, which attracts the food and beverage companies to include it in edible products. But the taste of food products is hampered by microalgae inclusion, which has now become an important area for improvement. Algama, a startup based in New York and Paris has invested in acquiring patents for microalgae to innovate and produce new products. For instance, the company recently manufactured vegan mayonnaise, which uses algae instead of egg fat. This product is in accordance with the growing trend of veganism and organic produce, thereby providing growth to the algae products market.
Additionally, algae are consumed as a whole food in South-East Asian countries such as Japan. This has rendered the food and beverage industry with immense innovation potential in algae-based condiments. Algae such as nori, konbu, wakame, and others are being added to snacks, garnishing, salad dressings, which has further contributed to the food and beverage segment of the algae products market.
Algae will be solicited more in the future to produce food and beverage products. These products will experience high sales owing to their medicinal benefits. Hence, the food and beverage segment will majorly contribute to the algae products market growth.
Algae Products Market: Key Players
The companies with majority of market shares in the algae products market are Koninklijke DSM N.V., Dupont De Nemours, Inc., Cargill, Inc., E.I.D. Parry - Bio-Pesticides, Cyanotech Corporation, BASF, Inc., Kerry, Inc., Corbion N.V., Ingredion Incorporated, Roquette Frères, Fenchem Biotek Ltd., Algatechnologies Ltd, and CP Kelco.
In September 2018, Corbion celebrated the successful rollout of Thrive algae oil, which was a result of the company’s acquisition of TerraVia, a key microalgae product producer. Corbion acquired TerraVia through an auction in September 2017 and planned on catalyzing the production of algae-based materials especially in the food and beverage industry.
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