The Algae Market is estimated to be valued at US$ 175.33 Mn in 2023 and is expected to exhibit a CAGR of 6.8% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
Algae are aquatic organisms that are a rich source of protein, vitamins, minerals, antioxidants, and polyunsaturated fatty acids. Algae are being widely used in food & beverages, dietary supplements, pharmaceuticals, animal feed applications owing to their health and nutritional benefits. They serve as a sustainable source of proteins, pigments, dietary fibers, and antioxidants.
Market key trends:
Algae has high growth potential due to rising demand for biofuel. Algae can be grown as a feedstock for biofuels such as biodiesel and biomethane. Algae have 30-96% oil content that can be extracted and converted to biodiesel. Algae farming requires much less land and water compared to agriculture crops. Additionally, algae flourish in saline and non-arable land and do not compete with food crops for resources. Government initiatives to reduce fossil fuel dependency and support research and development of renewable fuels are augmenting the demand for algal biodiesels. For instance, U.S. Defense Advanced Research Projects Agency (DARPA) has allocated US$ 24 million for algaculture technologies to achieve scale-up biofuel production from algae through 2021.
Porter's Analysis
Threat of new entrants: Low economies of scale and high initial investment required pose barriers for new entrants in the algae market.
Bargaining power of buyers: The presence of numerous global buyers gives them higher bargaining power over price negotiations in the algae market.
Bargaining power of suppliers: Dependence on few suppliers of raw materials for biomass cultivation and extraction results in higher bargaining power for suppliers in the algae market.
Threat of new substitutes: Availability of alternative ingredients limits threat of new substitutes in the algae market.
Competitive rivalry: Intense competition exists among existing players in the algae market.
SWOT Analysis
Strengths: Algae offer high nutritional value and wide range of applications in various industries.
Weaknesses: High capital investment and high production costs involved in biomass cultivation and extraction processes. Harvesting and drying of algae biomass is also complex.
Opportunities: Increasing demand for algae-based products from nutraceuticals, cosmetics and personal care industries. Growing awareness about health benefits of algae-based foods and supplements.
Threats: stringent regulations pertaining to commercial production and marketing of algae-based products. Climate change poses a threat to consistent biomass production.
Key Takeaways
The global Algae Market Share is expected to witness high growth, exhibiting CAGR of 6.8% over the forecast period, due to increasing demand for algae-based nutrition supplements and food products. North America dominates the global algae market currently due to high consumption of algae-based products.
Regional analysis: Asia Pacific is projected to be the fastest growing region in the global algae market during the forecast period. This is attributed to rising population, growing health awareness and increasing personal disposable income in developing countries such as India and China.
Key players: Key players operating in the algae market are 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. These players are focusing on capacity expansion and new product launches to strengthen their market position.
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