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  • Published On : Aug 2023
  • Code : CMI6179
  • Pages : 140
  • Formats :
      Excel and PDF
  • Industry : Agrochemicals

The global algaeculture market size is projected to reach US$ 21.27 billion by 2030, from US$ 8.14 billion in 2023, at a CAGR of 14.7% during the forecast period. The increasing demand for sustainable and eco-friendly food and feed products is driving the growth of the algaeculture market. Algae are a good source of protein, vitamins, and minerals, and they can be grown in a variety of environments, making them a sustainable alternative to traditional food and feed sources.

The growing demand for algae-based biofuels is also contributing to the growth of the algaeculture market. Algae can be used to produce biodiesel, bioethanol, and other biofuels, which can help to reduce our reliance on fossil fuels.

Algaculture Market Regional Insights

  • Asia Pacific is expected to dominate the global algaculture market with a market share of over 60% in 2023. The region is home to a large number of algae producers and consumers, and has a favorable climate for algae cultivation. China, Japan, and South Korea are the major markets in the region.
  • North America is expected to be the second largest market for algaculture, with a market share of around 20% in 2023. The United States is the major market in the region, due to the high demand for algae-based food and supplements.
  • Europe is expected to grow at a CAGR of around 6% during the forecast period. The United Kingdom, Germany, and France are the major markets in the region.

Figure 1. Global Algaculture Market Share (%), by Region, 2023

 | Coherent Market Insights

Algaculture Market Drivers

  • Biofuels: Algal biofuels offer a sustainable alternative to traditional fossil fuels. They can be cultivated in a variety of environments, including areas not suitable for agriculture. The potential for algae to yield a higher amount of biofuel per acre compared to terrestrial crops makes it an attractive option for energy production.
  • Food Supplements: Algae like Spirulina and Chlorella are rich in protein, vitamins, and essential amino acids. They have gained popularity as dietary supplements and superfoods.
  • Aquaculture Feed: With the global growth of the aquaculture sector, there's increasing demand for sustainable feeds. Algae are being researched and developed as an ingredient or alternative to fishmeal and soy in aqua feeds.
  • Carbon Capture: Some industries are exploring the potential of algae to capture and utilize carbon dioxide, which can then be used to produce biofuels or other valuable products. This addresses both environmental concerns and provides an economic incentive.

Algaculture Market Opportunities

  • High-Value Products: Extracting high-value products from algae, like omega-3 fatty acids, antioxidants, and certain pigments (e.g., astaxanthin, which has applications in cosmetics and health supplements), can offer lucrative opportunities.
  • Sustainable Packaging: With the world moving away from petroleum-based plastics, algae-derived bioplastics present a sustainable solution for packaging needs in various industries.
  • Biofertilizers: Algae-based fertilizers are rich in nutrients and can serve as an eco-friendly alternative to traditional chemical fertilizers, benefiting organic farming and sustainable agriculture practices.
  • Human and Animal Nutrition: Given the protein-rich nature of some algae, there's an opportunity to develop them as a protein source in food and feed industries.

Global Algaculture Market Report Coverage

Report Coverage Details
Base Year: 2022 Market Size in 2023: US$ 8.14 Bn
Historical Data for: 2018 to 2021 Forecast Period: 2023 - 2030
Forecast Period 2023 to 2030 CAGR: 14.7% 2030 Value Projection: US$ 21.27 Bn
Geographies covered:
  • North America: U.S. and Canada
  • Latin America: Brazil, Argentina, Mexico, and Rest of Latin America
  • Europe: Germany, U.K., Spain, France, Italy, Russia, and Rest of Europe
  • Asia Pacific: China, India, Japan, Australia, South Korea, ASEAN, and Rest of Asia Pacific
  • Middle East & Africa:  GCC Countries, Israel,  South Africa, North Africa, and Central Africa and Rest of Middle East
Segments covered:
  • By Type of Organism: Microalgae, Macroalgae (seaweeds)
  • By Application: Food & Dietary Supplements, Pharmaceuticals, Biofuels, Animal & Aquaculture Feed, Cosmetics, Wastewater Treatment, Others (including bioplastics, pigments, etc.)
  • By Cultivation Technology: Open Ponds, Photobioreactors, Fermenters, Hybrid Systems, Others
  • By End Product Form: Dry Biomass, Liquid Extracts, Powder, Oil
  • By Scale of Operation: Commercial, Research & Development, Pilot
  • By Harvesting Technique: Centrifugation, Flocculation, Filtration, Gravity Sedimentation, Others
  • By Strain Type: Natural Strains, Genetically Modified Strains
  • By Market Type: Bulk Products, High-value Products
  • By Input Sources: Freshwater, Marine Water, Wastewater
Companies covered:

Algenol, Solazyme (TerraVia Holdings), Sapphire Energy, Cyanotech Corporation, Algae Systems, E.I.D.- Parry (India) Limited (Parry Nutraceuticals), Evonik Industries, Cargill, Incorporated, DIC Corporation (Spirulina production), Cellana

Growth Drivers:
  • Biofuels
  • Food Supplements
  • Aquaculture Feed
  • Carbon Capture
Restraints & Challenges:
  • High Production Costs
  • Scalability Issues
  • Harvesting Challenges
  • Technical Challenges

Algaculture Market Trends

  • Technological Advancements: Innovations in bioreactors, photobioreactors, and other cultivation systems are making it easier and more efficient to cultivate algae on both small and large scales.
  • Strain Improvement: There's increasing research into improving algae strains, whether through traditional breeding techniques or genetic modification, to enhance yield, lipid content, growth rates, and resistance to pests or environmental stressors.
  • Integrated Systems: Combining algaculture with other industries, such as aquaculture or agriculture, is becoming more common. The idea is to use waste from one system as a resource for another, promoting circular economy principles.
  • Carbon Capture and Utilization: Many companies and research institutions are focusing on algae's potential to capture carbon dioxide emissions from industrial sources, turning these emissions into valuable products.

Algaculture Market Restraints

  • High Production Costs: In some cases, the cost of cultivating and processing algae can be high, especially when compared to the prices of alternative products or services. This can make some algae-derived products (like biofuels) less competitive.
  • Scalability Issues: Moving from a lab or pilot-scale to commercial-scale production can present challenges, including maintaining consistency, dealing with pests and diseases, and ensuring efficient resource use.
  • Harvesting Challenges: The process of separating algae from water (harvesting) can be energy-intensive and costly, representing a significant portion of the production costs.
  • Technical Challenges: Optimal cultivation conditions can be difficult to maintain. Factors like temperature, pH, light intensity, and nutrient balance need to be consistently managed, especially in open pond systems.

Recent Developments

New product launches

  • Algae-based fertilizer: A company called Algix has launched an algae-based fertilizer that is designed to improve crop yields and reduce the need for chemical fertilizers. The fertilizer is made from a blend of seaweed and microalgae that are rich in nutrients, including nitrogen, phosphorus, and potassium.
  • Algae-based feed additive: A company called Blue Ocean Nutrition has launched an algae-based feed additive that is designed to improve the health and performance of livestock. The feed additive is made from a blend of microalgae that are rich in omega-3 fatty acids, vitamins, and minerals.
  • Algae-based biofuel: A company called Sapphire Energy has launched an algae-based biofuel that is designed to reduce greenhouse gas emissions. The biofuel is made from a strain of algae that is naturally resistant to pests and diseases, and it can be grown in a variety of climates.

Acquisition and partnerships

  • In 2022, Solazyme, a leading producer of algae-based products, was acquired by Amyris, a synthetic biology company. This acquisition will help Amyris to expand its product portfolio and reach new markets.
  • In 2021, BlueNerd Foods, a producer of algae-based snacks, partnered with Tyson Foods, a major food company. This partnership will help BlueNerd Foods to scale up its production and distribution.
  • In 2020, AlgaeCal, a producer of algae-based calcium supplements, partnered with CVS Health, a major pharmacy retailer. This partnership will help AlgaeCal to reach a wider audience.

Figure 2. Global Algaculture Market Share (%), by End Product Form, 2023

 | Coherent Market Insights

Top companies in Algaculture Market

  • Algenol
  • Solazyme (TerraVia Holdings)
  • Sapphire Energy
  • Cyanotech Corporation
  • Algae Systems
  • I.D.- Parry (India) Limited (Parry Nutraceuticals)
  • Evonik Industries
  • Cargill, Incorporated
  • DIC Corporation (Spirulina production)
  • Cellana

*Definition: Algaculture refers to the cultivation of algae, primarily for commercial purposes such as biofuel production, food supplements, pharmaceuticals, and other products.

Frequently Asked Questions

High Initial Investment, Technological Challenges, Market Acceptance, Cultivation Issues & Regulatory Barriers

Sustainable Biomass Production, Biofuels, Health and Nutrition, Bioplastics and Biochemicals & Carbon Capture

The leading component segment in the Algaculture (algae cultivation) market was the production of biofuels, especially biodiesel.

Algenol, Solazyme (TerraVia Holdings), Sapphire Energy, Cyanotech Corporation, Algae Systems, E.I.D.- Parry (India) Limited (Parry Nutraceuticals), Evonik Industries, Cargill, Incorporated, DIC Corporation (Spirulina production), Cellana

Asia Pacific region, particularly countries like China, was leading in the market due to its extensive research, production capabilities, and growing applications.
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