Expanding Global Algaculture Market is Expected to Reach US$10.7 Billion by 2024 Owing to Rising Demand for Algal Nutraceuticals.
The global algaculture market comprises microalgae and macroalgae production systems used for a variety of applications such as nutraceuticals, feed, food, and renewable energy. Microalgae like spirulina and chlorella are increasingly being utilized in nutraceuticals and dietary supplements due to their high vitamin, mineral, and antioxidant content. The algaculture process involves cultivating algae in controlled environments such as open ponds or closed photo-bioreactors with proper sunlight, CO2, oxygen, and nutrients. This allows for mass production of algae which can then be harvested and further processed. The ability to cultivate algae on non-arable land without disrupting food supply makes algaculture a sustainable approach for meeting growing demand for natural health and wellness products.
The Global algaculture market is estimated to be valued at US$ 10.7 billion in 2024 and is expected to exhibit a CAGR of 14% over the forecast period 2024 to 2031.
Key Takeaways
Key players operating in the algaculture market are Algenol, Solazyme (TerraVia Holdings), Sapphire Energy, Cyanotech Corporation, Algae Systems, E.I.D.- Parry (India) Limited (Parry Nutraceuticals), Evonik Industries, Cargill, Incorporated, and DIC Corporation (Spirulina production). These companies are investing in R&D to develop innovative culture media and harvesting techniques to increase algal biomass productivity and lower production costs.
The demand for algal nutraceuticals and dietary supplements is growing dramatically due to rising health consciousness and shift towards preventative healthcare. Microalgae like spirulina and chlorella are rich in proteins, vitamins, antioxidants, and minerals that can benefit general wellness as well as target conditions like obesity, cardiovascular disease, and diabetes.
Advances in photobioreactors and genetic engineering methods are improving algal strains to produce higher value compounds for specialized nutraceuticals and pharmaceuticals. New technologies enable precise control over culture conditions for maximized and tailored compound output.
Market Trends
Large-scale cultivation - Leading algaculture companies are establishing large-scale open pond facilities as well as closed photobioreactor systems to meet the swelling demand for algae-derived products. Economies of scale help reduce production costs.
Product diversification - In addition to use in dietary supplements, algae biomass is increasingly utilized as a source for unique high-value compounds in cosmetics, bioplastics, biopharmaceuticals, and renewable fuels taking advantage of algae's rapid growth properties.
Market Opportunities
Nutraceuticals - Demand for algae-derived vitamins, minerals, proteins and other bioactives in nutraceutical and functional food & beverage products is poised for strong growth given health and wellness trends.
Sustainable fuels - Development of economically viable systems to produce renewable biodiesel, jet fuel and other biofuels from algae cultivated on non-agricultural lands presents opportunities for energy independence and lowering emissions.
Impact of COVID-19 on Algaculture Market Growth
The COVID-19 pandemic had a significant impact on the growth of the algaculture market. During the early stages of the pandemic in 2020, lockdowns and supply chain disruptions led to decline in production and sales. Moreover, decline in demand from end use industries like food and nutrition products and declining disposable income also affected the market negatively. However, with increasing awareness about health benefits of algae based products, the market is expected to recover steadily in the coming years. Companies are investing more in R&D to develop new algae strains and cultivation technologies. This will help drive sustainable growth of the market post pandemic. Adoption of proper safety measures during cultivation and focus on online sales channels can help boost market recovery. Strong government support for the industry in various regions is also expected to fuel growth going forward.
Geographical Regions with High Algaculture Market Value
North America holds the largest share of the algaculture market in terms of value, accounting for over 30% share. This is attributed to presence of major players, strong research infrastructure, and growing awareness among consumers regarding algae based products. Asia Pacific is also a major market led by countries like China, India and Japan. Supportive government policies, low labor costs and suitable climatic conditions make the region attractive for algae farming. Europe also accounts for sizable share given increasing emphasis on sustainable production of food, feed and fuel using microalgae. Production units in countries like Norway, France and Germany are driving regional growth.
Fastest Growing Geographical Region for Algaculture Market
Asia Pacific region is anticipated to witness the fastest growth during the forecast period for the algaculture market. This is primarily due to expanding aquaculture industry in major Asia Pacific economies like China and India which are highly dependent on algae as fish feed. Rising health consciousness among consumers has also boosted demand for algal supplements. Government support through funding for R&D projects is encouraging small and large companies to invest in setting up new microalgae farms. Significant emphasis on production of renewable biofuels from algae is another factor fueling regional market growth. Countries including Japan, South Korea and Australia are also contributing to regional expansion through implementation of advanced cultivation techniques.
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