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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 August 2019, Algatechnologies reported licensing of its microalgae technology that could help in the production of biologics that contains 1,3-glucan.
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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