Northbrook, IL 60062 -- (SBWIRE) -- 08/24/2022 -- The global algae products market size was estimated to be valued at USD 4.7 billion in 2021 and projected to reach USD 6.4 billion by 2026, recording a CAGR of 6.3% during the forecast period. Various factors have played a major role in driving the algae products market growth across the globe. Algae possess properties that make them useful to be incorporated in diversified end products such as ice-creams, cakes, anti-obesity & anti-diabetic agents, aquatic feed ingredients, toothpaste, and moisturizers; their cultivation using both agriculture and aquaculture practices make algae unique among other agricultural products.

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Market Dynamics:

Drivers: Consumer awareness regarding the health benefits of Omega-3

According to the Global Organization for EPA and DHA (GOED), omega-3 is the most researched nutrients in the world, with over 8,000 clinical trials conducted over the last decade. Omega – 3 mainly known as algae-based product in the market. Rising healthcare costs around the world and increasing prevalence & consumer awareness about omega-3 for preventive healthcare have fueled growth in the algae products market.

Restraints: Lack of R&D activities in underdeveloped countries

The lack of research and development in African countries has led to a low adoption in these regions. North American countries witness the highest algae-based products consumption, due to which there is an increase in product innovation and exploration of new applications of algae in the region, while in underdeveloped countries in regions of Africa, the penetration is significantly low, and no R&D activities are carried out to improvise the techniques for extracting seaweeds. Hence, most of the key players do not have production facilities in the region.

Opportunities: Growing demand in the pharmaceutical industry

The potential application of algae includes antimicrobials, antivirals, therapeutic proteins, drugs, antifungals in pharmaceutical industry. For an instance, the powerful water-soluble antioxidants found in algae are polyphenols, phycobiliproteins and vitamins. Antioxidants help in the inhibition of cancer growth by causing regression of premalignant lesions.

Challenges: High production costs restrict the entry of smaller players

Though there is an increase in the adoption of newer technologies to produce low-cost algae. With the increase in focus on R&D activities and overall costs, leading players such as Koninklijke DSM N.V (Netherlands), BASF SE (Germany) and DowDupont (US) account for a high share in the market. The production is usually expensive and consists of extraction, concentration, and purification processes. Following extraction and purification, algae must be formulated for further application. This formulation will also depend on the intended use. The formulation involves complicated processes, due to complicated procedure and various formulation the production cost increases and restrict the local and regional players in the algae products market.

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North America is projected to account for the largest market during the forecast period

The North American algae products market has been experiencing tremendous growth. The US acquired the largest share of the North American market. Growing industries, such as food & beverage, nutraceutical, pharmaceutical, and dietary supplement, have significantly contributed to the growth of the market in the US. The rising population in the country is another factor that is expected to boost the demand for algae products. An increase in health-conscious consumers has led to the increased use of lipids, such as omega-3 in nutraceutical and dietary supplement products, which has offered a market opportunity for algae-based omega-3 products.

Key Market Players:
Key players in this market include DuPont (US), Cargill (US), DSM (Netherlands), BASF (Germany), Corbion (Netherlands), E.I.D Parry (India), CP Kelco (US), Fenchem Biotek (China), Algatech (Israel), Cyanotech Corporation (US).

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