Algae Based Ingredients Market Report 2026

The algae based ingredients market size has grown strongly in recent years. It will grow from $4.29 billion in 2025 to $4.59 billion in 2026 at a compound annual growth rate (CAGR) of 7.1%. The growth in the historic period can be attributed to growing use of algae in traditional food products, expansion of aquaculture feed applications, early adoption in nutraceuticals, availability of diverse algae species, initial investments in algae farming.

The algae based ingredients market size is expected to see strong growth in the next few years. It will grow to $6.31 billion in 2030 at a compound annual growth rate (CAGR) of 8.3%. The growth in the forecast period can be attributed to increasing demand for sustainable ingredient sourcing, rising focus on alternative proteins and omega-3 sources, expansion of algae-based pharmaceuticals, innovation in large-scale algae cultivation, growing adoption in clean label formulations. Major trends in the forecast period include expansion of algae-derived functional ingredients, growing demand for plant-based and sustainable nutrients, increasing use of algae proteins and oils, innovation in algae cultivation and extraction technologies, rising adoption across food and pharmaceutical applications.

The rising consumption of functional foods is expected to drive the growth of the algae-based ingredient market. Functional foods are those that go beyond basic nutrition to provide additional health benefits. Algae-based ingredients are incorporated into these foods for their high levels of essential nutrients, including omega-3 fatty acids, antioxidants, vitamins, and minerals, which support overall health and well-being. For example, in February 2024, Nestlé S.A., a Switzerland-based multinational food and beverage company, reported that its “Nutrition and Health Science” segment, which includes functional foods and other health-focused nutrition products, generated CHF 15.27 billion (≈ USD 17.1 billion) in sales in 2023. Therefore, the growing consumption of functional foods and nutraceuticals is propelling the algae-based ingredient market.

Leading companies in the algae-based ingredient market are emphasizing natural and sustainable cosmetic products by integrating algae extracts into formulations to enhance their natural appeal and maintain market position. Natural and sustainable cosmetics are derived from natural materials and produced using environmentally friendly methods. For instance, in April 2023, Upwell Cosmetics Inc., a US-based cosmetics company, launched an algae-derived cosmetic wax as a sustainable and renewable alternative to petroleum-based wax for cosmetic and personal care products. This versatile, sustainably sourced ingredient can be used in lipsticks, sunscreens, and hair care products, catering to growing consumer demand for environmentally friendly product components.

In September 2023, Delhi Land & Finance, an India-based real estate company, acquired Corteva Incorporation’s Alfalfa Breeding Program for an undisclosed amount. This acquisition strengthened DLF's global position in alfalfa breeding, providing elite genetics, an industry-leading brand portfolio, and expanded market access to enhance its presence in the forage industry worldwide. Corteva Incorporation, based in the US, specializes in seeds, crop protection, digital agriculture, and sustainable farming practices, with a strong focus on innovation and research.

Major companies operating in the algae based ingredients market are Cargill Inc., Corbion N.V., CP Kelco U.S. Inc., Bioriginal Food & Science Corp., Cynotech Corporation, Earthrise Nutritionals LLC, Hispanagar SA, TerraVia Holdings Inc., AEP Colloids Inc., AlgaEnergy S.A., AlgaeCan Biotech Ltd., Algatechnologies Ltd., Algaetech International Sdn Bhd, Henan Gino Biotechnology Co. Ltd., Taiwan Chlorella Manufacturing Company Limited, LUS Health Ingredients B.V., Triton Algae Innovations Ltd., AlgaeCytes Ltd., Sophie's Bionutrients Pte. Ltd., AgarGel Industria e Comercio Ltda.

North America was the largest region in the algae-based ingredients market in 2025. The regions covered in the algae based ingredients market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East and Africa. The countries covered in the algae based ingredients market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Italy, Spain, Canada.

The algae-based ingredients market consists of sales of antioxidants, natural colorants, vegan meat substitutes, plant-based milks, snacks, mineral replenishing and moisturizing. Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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