Global algae market was valued at US$ 4,681.4 Million in 2022 and is expected to reach at 7,927.1 Million during the forecast period (2023 to 2030), exhibiting a CAGR of 6.81 %. .
Global Algae Market- Drivers:
Increasing consumption of protein-rich products
Increasing consumption of protein products is expected to boost the growth of the global algae market during the forecast period, owing to evolving living standards of people, and growing health awareness among consumers. Algae protein prevents weight gain, relieves fatigue and anxiety, and treats Attention Deficit-Hyperactivity Disorder (ADHD), and diabetes, among others. Algae is enriched in nutrient content, has positive effect on t immune system, and has other health-related benefits, all these factors are driving the market growth globally. Furthermore, rising sustainability concerns such as increased greenhouse gas emissions, and biodiversity loss during meat production, has shifted consumer preference toward plant-based and other alternative sources. Due to health awareness people around the globe are prefering fit lifestyle.Furthermore, people are consuming products such as algae, meat, eggs, and supplements in order to strengthen their muscles, and to improve their physique. As a result, the global demand for protein-rich products is increasing, and thisis expected to boost the global market growth.
According to Indian Brand Equity Foundation, On December 2022, India is the largest provider of generic drugs globally and is known for its affordable vaccines and generic medications. The Indian Pharmaceutical industry is currently ranked third in pharmaceutical production by volume after evolving over time into a thriving industry growing at a CAGR of 9.43% since the past nine years. Generic drugs, over-the-counter medications, bulk drugs, vaccines, contract research & manufacturing, biosimilars, and biologics are some of the major segments of the Indian pharma industry.
Increasing demand for algea in the pharmaceutical industry
Rising demand of algae from the pharmaceutical industry is expected to fuel the growth of global algae market during forecast period. Algae is used in the pharmaceutical industry as antimicrobials, therapeutic proteins, antivirals, drugs, and antifungals. Polyphenols, phycobiliproteins, and vitamins are powerful water-soluble antioxidants that are present in algae. Antioxidants prevents tumor growth by regressing premalignant lesions. Algae and algae-derived materials are allowed to be used in fertilizing products under the European Union Fertilising Products Regulation 2019/1009 (FPR), either in CE(Conformite Europeenne) -marked products or in products that are authorized under national legislation.
Serum Institute of India Pvt. Ltd., On December 2020, has acquired the Czech arm of US based firm Nanotherapeutics for 72 million Euros (around Rs. 500 crore) as part of its growth strategy. Serum Institute of India, the world's largest vaccine maker by number of doses produced and sold, believes the deal will help increase production capacity of polio vaccines four-fold to more than 200 million doses by 2020 making it the largest injectable polio vaccine maker in the world. The company plans to invest another 40 million Euros (about Rs 280 crore) to upgrade Nanotherapeutics's manufacturing plant over the next two years.
Global Algae Market- Impact of Coronavirus (Covid-19) Pandemic
The COVID-19 outbreak has affected various industries worldwide. Governments across the world implemented strict lockdown measures and social distancing norms in order to restrict the spread of the pandemic. Manufacturing facilities for algae market around the world were shut down during the initial stages of the pandemic. Moreover, the economic crisis after the pandemic lead to a significant delay in the commercial roll-out of the chemicals industry. Small and medium-scale companies are the backbone of technology providers, and are witnessing a steep drop in revenue since the emergence of the pandemic in 2020. Hence, market players in algae market faced numerous challenges such as disruptions in the supply chainduring covid-19. However, all these is expected to be improved in the second half of 2022
Figure 1. Global Algae Market Value Share (%), By Region, 2021
Global algae market analysis conducted across North America, Latin America, Asia Pacific, Europe, Middle East and Africa. North America has largest market share 31.50% in global algae market, Latin America has the second largest share 18.00% in global algae market followed by Asia Pacific, Europe, Middle East and Africa.
Global Algae Market- Restraints
Lack of Research & Development activities in underdeveloped countries
Lack of research and development activities in African countries has led to low adoption of algae in this region. North American countries has witness the highest algae-based products consumption, and this has led to increase in product innovation and exploration of new applications of algae in the region. Underdeveloped countries in Africa such as North Africa, South Africa, Central Africa has low penetration for algae and no R&D activities are performed to improve the techniques for extracting seaweeds. Also, the capital investment and operational costs are considerably high, and this is expected to hinder the market growth.
According to WHO (World Health Organization), on December 2020, In South Africa, the Government has developed a public-private partnership, called The BioVac Institute, geared towards ensuring communities have access to locally made affordable medicines and vaccines. Through technology transfer from pharmaceutical companies in the North, patented medicines are produced locally. The Institute is now exploring new vaccines to tackle conditions specific to the African context which would otherwise not be commercially attractive. This is going a long way towards ensuring equitable and affordable access to medicines.
Algae Market Report Coverage
|Base Year:||2021||Market Size in 2022:||US$ 4,681.4 Mn|
|Historical Data for:||2017-2021||Estimated Year:||2022|
|Forecast Period 2022 to 2030 CAGR:||6.81 %||Forecast Period:||2023-2030|
Cyanotech Corporation, Dic Corporation, Corbion N.V, Valagro SpA, Far East Microalgae Industries Co. Ltd., Beijing Gingko Group, Heliae Development Llc, Pond Technologies Holdings Inc., Algaetech International Sdn Bhd, Fuqing King Dnarmsa Spirulina Co. Ltd., Sun Chlorella Corporation, and Ecoduna Ag.
|Restraints & Challenges:||
Global Algae Market- Trends
Increasing Demand for Algae-based Products
Algae-derived products are marketed as healthy food available in different forms like capsules, tablets, and liquids. In country like China and region like Europe, shift in consumer demand for the dietary supplements category is witnessed. Algae ingredients are mixed with candies, gums, snacks, and beverages, due to its high protein and nutritious nature. Nutraceutical products like nutrient bars, functional beverages, and supplements are prime applications of microalgae. Algae like Arthospira and Chlorella are commonly used in food supplements. Spirulina and Chlorella are most popular algae ty. Algae products are also used in biofuel sector.
For Instance, According to cyanotech reports, Cyanotech Corporation, a world leader in microalgae-based, high-value nutrition and health dietary supplement products, announced financial results for the third quarter and first nine months of fiscal year 2023, ended December 31, 2022. “Sales in the third quarter improved by $712,000, or 14%, compared to the second quarter, as we saw modest improvement in consumer movement on both finished goods and bulk sales. However, both of our online finished good sales and our international bulk sales are still not performing to historical levels. On the international bulk sales, as the global supply chain issues eased, customers made adjustments to their inventory levels that impacted our sales. The inventory levels have improved but are still a headwind. We are focused on taking steps and making changes to improve these sales channels.”
Figure 2. Global Algae Market value Share (%), By Cultivation Technology, 2021
Global Algae Market- Recent Developments
Global Algae Market- Competitive Section
Major players operating in the global algae market include Cyanotech Corporation, Dic Corporation, Corbion N.V, Valagro SpA, Far East Microalgae Industries Co. Ltd., Beijing Gingko Group, Heliae Development Llc, Pond Technologies Holdings Inc., Algaetech International Sdn Bhd, Fuqing King Dnarmsa Spirulina Co. Ltd., Sun Chlorella Corporation, and Ecoduna Ag.
Algae are photosynthetic eukaryotic organisms that grow in aquatic climates, and uses light and carbon dioxide (CO2) to produce biomass. Demand for macroalgae and microalgae food is increasing, owing to health benefits and nutrition. Furthermore, algae offers higher oil yield as compared to biofuel feedstock containing sorghum, corn stover, beet, and corn, and thiscreateimmense opportunities for growth of the global algae market. Increasing research and development activities among manufacturers of algae is expected to fuel the market growth. Increasing demand for reliable, sustainable, and low-cost source of energy in order to ease the petroleum supply chain, and to meet rising demand of algae from the aviation and automotive sector is expected to drive the growth of the global algae market during the forecast period.
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