by Algae contains proteins, vitamins, minerals, fibers, antioxidants, and fatty acids essential for human health and nutrition. It is used in various food applications such as baked goods, candy, nutrition bars, sauces, soups, and meat alternatives. The rising demand for algae-based food products owing to their health benefits is expected to drive the growth of the algae market. Algae is also used in dietary supplements and nutraceuticals due to its rich nutritional value. It helps enhance cardiovascular health, brain health, skin health, bone health, and digestive health. The growing awareness about health and wellness is propelling the demand for algae-based nutraceuticals and dietary supplements.
The global Algae Market is estimated to be valued at US$ 201.99 Bn in 2024 and is expected to exhibit a CAGR of 11% over the forecast period 2024 to 2031, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics
The demand for algae-based food and nutraceuticals is expected to drive the growth of the algae market over the forecast period. Algae contain nutrients that are essential for human health. The growing health-consciousness among consumers has increased the demand for algae-based food products as they are rich in proteins, fibers, minerals, vitamins, and fatty acids. Furthermore, algae help improve cardiovascular health, brain health, skin health, bone health, and digestive health, which is propelling their use in nutraceuticals and dietary supplements. The rising awareness about the health benefits of algae-based products is a key driver contributing to the market growth.
Segment Analysis
Algae Market is expected to be dominated by the food & beverage sub segment with a share of over 30% of the market by 2024. Algae finds widespread application in food industry for use as food additives and thickening agents. It is emerging as a viable alternative to protein sources and has gained prominence as a supplementary health food. The use of algae in nutrition and supplements segment is also growing at a rapid pace owing to high protein content and presence of vital micronutrients.
PEST Analysis
Political: Governments across regions are supporting cultivation of algae for various industrial applications through funding and initiatives. This is expected to boost production volumes.
Economic: Lower cost of production and ability to offset carbon footprint is driving investments in algae based solutions from private players. Algae is emerging as sustainable alternative to fossil fuels.
Social: Increasing health awareness and demand for plant-based nutrition is fueling consumption of algae based products. It is perceived as a superfood owing to presence of nutrients.
Technological: Advancements in cultivation techniques, extraction methods and genetic engineering are helping lower costs and increase extraction yield. This is supporting commercialization efforts.
Key Takeaways
The global Algae Market Size is expected to witness high growth over the forecast period of 2024 to 2031 on account of multiple industrial applications across food & beverage, nutraceuticals and biofuel sectors.
Regionally, Asia Pacific domintes currently led by China, India and Indonesia. The large production volumes in the region stems from favorable agro-climatic conditions and strong government backing for algal technologies.
Key players operating in the Algae Market are DyCare, Costaisa, Meditouch, Signo Motus srl, MEYTEC GmbH Informationssysteme, and Raccoon Technologies Poland LLC. The market is observing consolidation activities among key industry participants to enhance production capabilities and product portfolios.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
