- The global algae products market is expected to grow at a CAGR of 5.8%.
- Rising health awareness among consumers is a key factor driving market demand for algae products.
- Wide availability of substitutes is a key factor resulting in a market slowdown at present.
Algae consist of a large and diverse group of phototrophic, oxygenic, eukaryotic microorganisms. Algae are eukaryotic, which means they have a nucleus. This differentiates them from bacteria and photosynthetic cyanobacteria. Algae also use light as their source of energy for growth and produce oxygen as a byproduct, like plants.
However, algae are different from plants as they do not have any tissue. While on the other hand plants can differentiate their tissues into roots, trunks, and leaves, all very different tissue types. Algae, in contrast, are composed of cells which are generally all the same.
According to the latest report published by Credence Research, Inc. the global algae products market was valued at $32.60 Bn in 2017, expected to grow at a CAGR of 5.8% from 2018 to 2026.
In spite of the differences between plants and algae, many algal species are closely related to plants. But algae are very diverse. Some algae, such as euglena, are closer to single-celled protozoa than to plants. The main unifying characteristic that determines if a species is considered algae is that all algae contain or have a very recent ancestor that contained chlorophyll. Algae are available in different shapes and sizes and contain different valuable substances.
Algae are one of the most useful organisms. Algae are responsible for consuming most of the CO2 and releasing the most amount of oxygen that keeps us alive, algae are also being used in diverse industries and applications. One of the most important products that can be made from algae is biofuels and there are a number of companies working towards it.
Rising health awareness among consumers is a key factor driving market demand for algae products. People all over the world are becoming more health-conscious and focused on preventative health care. Many health risks are associated with the use of products made from synthetic ingredients due to the presence of petroleum-based chemicals, acids, salts, etc. This has resulted in consumers preferring products made from natural ingredients which are non-toxic and also environmentally friendly. To meet this rising demand the manufacturers need to focus on innovative information-based advertising campaigns. Thus the increase in consumer health awareness will continue to drive the growth of the algae products market during the forecast period.
However, the wide availability of substitutes is a key factor resulting in a market slowdown at present. At present algae have been used for many products and applications, and new ones are constantly being discovered. It is used in nutraceuticals, pharmaceuticals, cosmetics, hydrocolloids, biopolymers and bioplastics, animal and fish feed, dyes and colorants, chemicals, lubricants and papers among others. In each, an industry, where algae can be used their synthetic counterparts, is easily available and is likely to be less expensive when compared to algae-derived products. Algae products are premium priced, 3 to 5 times higher than that of their counterparts. However, algae products are more effective than their alternatives.
Based on application, the nutraceuticals segment dominated the global market for algae products in 2017, and is expected to display a similar trend in the coming years as well. High demand for algae products in nutraceutical applications is a key factor driving the market growth.
Europe is expected to retain its dominant position throughout the forecast period as well. Germany, France and the U.K. are expected to lead the algae products market in Europe throughout this period. North America accounted for the second-largest market share in the field of algae products, with the U.S. driving the growth of the market in North America.
The global market for algae products is marked by intense competition from major players operating in this market. Tactical mergers & acquisitions, joint ventures & partnerships, product developments, and expansions among others are some of the key strategies adopted by these players in order to ensure long term sustenance in this industry.
List of Companies Covered: Algaetech International, Alltech Algae, Aurora Algae, Blue BioTech International, Cellana Inc., Cyanotech Corporation, DIC Corporation, Fuqing King Dharma Spirulina Co. Ltd., Parry Nutraceuticals, and Taau Australia Pty Ltd.
By Application Type: Nutraceuticals, Food & Feed Supplements, Pharmaceuticals, Paints & Coatings,
Pollution Control, and Others
By Geography Segment Type: North America (the U.S., Rest of North America), Europe (U.K., Germany, France, Rest of Europe), Asia Pacific (China, Japan, India, Rest of Asia Pacific), and Rest of the World (the Middle East & Africa, Latin America)