Algae Based Ingredients Global Market Report 2024

The global algae based ingredients market has grown strongly in recent years. It will grow from $3.77 billion in 2023 to $4.04 billion in 2024 at a compound annual growth rate (CAGR) of 7.1%. The growth in the historic period can be attributed to growing demand environmental sustainability, demand from cosmetic and personal care industry, government initiatives, consumer awareness.

The global algae based ingredients market is expected to see strong growth in the next few years. It will grow to $5.34 billion in 2028 at a compound annual growth rate (CAGR) of 7.3%. The growth in the forecast period can be attributed to increasing health and wellness awareness, rising vegan and vegetarian populations, demand for natural colorants. Major trends in the forecast period include technological advancements in algae cultivation and processing, government support for algae production and research, expanding applications of algae-based ingredients, product innovations.

The algae-based ingredient market is poised for growth, driven by the increasing consumption of functional foods. Functional foods constitute a category of food products that offer additional health benefits beyond basic nutrition. Algae-based ingredients are utilized in functional foods due to their rich content of essential nutrients, which includes omega-3 fatty acids, antioxidants, vitamins, and minerals. These nutrients contribute to overall health and well-being. As an example, a report from Agriculture and Agri-Food Canada, a government department, revealed that the retail sales value of fortified or functional foods and beverages in the United States increased from $67.9 billion in 2020 to $68.9 billion in 2021. Furthermore, these sales are projected to reach $79.1 billion in 2025, marking a 3.5% increase compared to 2021. Hence, the growing consumption of nutraceuticals and functional foods is expected to be a key driver for the growth of the algae-based ingredient market.

The growing demand for personal care products is set to drive the expansion of the algae-based ingredients market in the foreseeable future. Personal care products encompass a wide array of items aimed at maintaining personal hygiene, enhancing one's appearance, and promoting overall well-being. Algae-based ingredients contribute to the effectiveness and appeal of personal care products, particularly among consumers seeking natural, sustainable, and efficient solutions for their skincare and haircare needs. For instance, as of 2023, the personal care industry impacts the European economy with an annual contribution of approximately USD 31.23 billion (€29 billion), serving 500 million consumers daily, as reported by Cosmetics Europe, a Belgian-based personal care association. Hence, the growing demand for personal care products acts as a driving force behind the algae-based ingredients market.

Regulatory hurdles associated with the utilization of algae-based ingredients in food and pharmaceutical products pose a significant impediment to the market's expansion during the projected period. These challenges may stem from safety concerns or a lack of regulatory endorsements. For example, as of June 2021, the US Food and Drug Administration, a US-based federal agency, collaborates with businesses engaged in the harvesting and incorporation of blue-green algae to ensure their compliance with FDA regulations. This includes adhering to manufacturing standards and ensuring the production of safe products. The FDA rigorously enforces regulations concerning dietary supplements and other foods containing hazardous contaminant levels, deeming them adulterated. Consequently, regulatory challenges linked to algae-based ingredient use in food and pharmaceutical products are hampering the growth of the algae-based products market.

Prominent companies within the algae-based ingredient market are actively engaged in the development of natural and sustainable cosmetic products, incorporating algae extracts into their formulations to enhance their eco-friendly appeal and maintain their market position. Natural and sustainable cosmetics refer to beauty products crafted from natural ingredients and manufactured using environmentally responsible methods. As an example, in April 2023, Upwell Cosmetics Inc., a U.S.-based cosmetics company, introduced an innovative cosmetic wax derived from algae. This sustainable and renewable alternative serves as a replacement for petroleum-based wax in cosmetic and personal beauty care products. This versatile ingredient, sourced sustainably, finds applications in lipsticks, sunscreens, and hair care products, aligning with the growing consumer demand for environmentally friendly components in their choices of personal care items.

In March 2023, J. Rettenmaier & Söhne (JRS Group), a German-based manufacturer known for producing functional cellulose fibers, gels, and composites, completed the acquisition of Algaia SA for an undisclosed sum. This strategic move allows J. Rettenmaier & Söhne (JRS Group) to enhance its capabilities by expanding its production facility and research and development center, thereby reinforcing its market position. Algaia SA, based in France, specializes in biomarine ingredients, particularly algae-based ingredients like seaweed extracts.

Major players in the algae based ingredients market are Cargill Inc., Corbion N.V., CP Kelco U.S. Inc., Bioriginal Food & Science Corp., Cynotech Corporation, Algenol Biofuels Inc., Earthrise Nutritionals LLC, Algenol Biotech, Provectus Algae, Hispanagar SA, TerraVia Holdings Inc., AEP Colloids Inc., Algae Systems LLC, AlgaEnergy S.A., AlgaeCan Biotech Ltd., Algatechnologies Ltd., Algaetech International Sdn Bhd, Henan Gino Biotechnology Co. Ltd., Manta Biofuel LLC, B&V srl, Taiwan Chlorella Manufacturing Company Limited, LUS Health Ingredients B.V., Roquette Klötze GmbH & Co. KG, 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 2023. The regions covered in algae-based ingredients report are Asia-Pacific, 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, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The primary categories of algae-based ingredients include carrageenan, alginates, algae protein, beta-carotene, algae oil, agar, and others. Carrageenan, for instance, is a natural hydrocolloid derived from red seaweed, employed as a thickener, stabilizer, and gelling agent in various food products, including dairy alternatives. These ingredients are sourced from diverse algae types, including red algae, green algae, brown algae, and others, and can be found in liquid and dry forms. They find applications in various sectors such as food and beverages, personal care products, nutraceuticals, pharmaceuticals, animal feed, and more.

The algae-based ingredients research report is one of a series of new reports provides algae-based ingredients market statistics, including the algae-based ingredients global market size, regional shares, competitors with a algae-based ingredients market share, detailed algae-based ingredients market segments, market trends and opportunities and any further data you may need to thrive in the algae-based ingredients industry. This algae-based ingredients market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenarios of the industry.

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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