Algae is the base of the aquatic food chain and is the fastest-growing plant on earth. It grows in fresh and saltwater and uses photosynthesis to convert carbon dioxide into carbohydrates like other plants do with sunlight.
This makes it a promising feedstock for biofuel production because it has a high oil yield per acre compared to other forms of biomass. The global market for algae products is expected to develop at a CAGR of 10% during 2016-2022, according to Future Market Insights’ latest report titled “ Algae Products Market: Global Industry Analysis Overview & Opportunity Assessment 2024.”
Algae are eukaryotic organisms that possess photosynthetic pigments. They have chlorophyll A, chlorophyll B, and carotenoid stains. Algae are discovered in marine, freshwater, and terrestrial environments. They can be unicellular or multicellular with multi-specialized tissues such as flagella or vestigial organs like eyespots.
According to the algae products market report, the increasing demand for algae products in various industries, such as food & beverage and pharmaceuticals, is anticipated to drive the development of this market over the forecast period.
The global market is set to grow at a CAGR of 10.9% during the forecast period 2017-2024. The market was valued at USD 6.3 billion in 2016 and is projected to attain USD 15.1 billion by 2024, growing at a CAGR of 10.2% from 2017 to 2024.
Algae products are used in various applications, such as nutritional ingredients, functional foods, food additives, and feeds. The market for algal biomass is expected to witness substantial growth over the forecast period owing to its use in renewable energy production, such as biofuel synthesis.
The market for algae oil is expected to expand at a CAGR of roughly 8% during the forecast period due to its high demand across various industries, such as personal care & cosmetics applications, agrochemicals, industrial lubricant & greases, and more.
Algae oil is currently the most widely used algae product. It holds more than 50% of the market share among all products in the industry. The algae oil market size is projected to grow with an average CAGR of over 6% until 2028.
The growing demand for algal products in the pharmaceutical industry because of their potential use as medicinal agents further drives the algae products market. The rising trend for consumers seeking natural alternatives compared to chemical-based products has given rise to companies manufacturing algae-based food items such as smoothies, juices, and ice cream.
Algae products have been used for centuries in many Asia countries such as China, Japan, and South Korea. The growing popularity of healthy food products across developed economies like the US, Canada, & Europe has prompted several companies to increase investments in research on new sources of protein. That can be caused commercially under strict regulatory norms.
Conclusion
The increasing health awareness among consumers and growing demand for innovative products are the primary drivers of this industry. The worldwide algal products market was estimated to be worth $14.0 billion in 2019 and is anticipated to be worth $22.3 billion by 2027, registering a CAGR of 6.8% from 2020 to 2027.
The growth of the global market can be attributed to factors such as demand for healthy food products and increasing consumer awareness regarding healthy food items. And growing consumer preference for natural ingredients over artificial ones.
Additionally, rising demand from emerging economies such as China & India is expected to boost the growth of this market during the forecast period (2020-2027). However, high production costs may hinder the development of this market during the forecast period (2020-2027).