The global Algaculture Market is estimated to be valued at US$ 8.14 Bn in 2023 and is expected to exhibit a CAGR of 14.7% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Overview:
The algaculture market involves cultivation of algae cells in contained water ponds or photobioreactors for harvesting algae biomass. Algae have numerous advantages as they can be used as a renewable source of biofuel, functional food supplements, animal feed, natural pigments and various chemical extracts. Algae cultivation offers a sustainable approach for commercial production of various bio-products without compromising the agriculture land or freshwater resources.
Market key trends:
One of the key trends in the algaculture market is growing popularity of algae-based foods and supplements. Microalgae species like spirulina and chlorella are gaining widespread acceptability in the form of tablets, powders and capsules due to their high nutritional value. Algal proteins help meet the increasing demand for vegan and plant-based food alternatives. Rising health awareness is further driving the demand for algal ingredients in functional foods, beverages and feed industry. Meanwhile, companies are investing in R&D to develop innovative photobioreactor and harvesting technologies to optimize the commercial production of algae biomass.
Porter’s Analysis
Threat of new entrants: The threat of new entrants in the Algaculture Market is low as it requires high initial investments and time for returns on investment. Bargaining power of buyers: The bargaining power of buyers in the Algaculture Market is moderate as buyers have a variety of products to choose from but the health benefits of algae products are increasing the demand.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are substitutes available but scaling-up production requires technical expertise which favors existing suppliers.
Threat of new substitutes: The threat of new substitutes is moderate as other plant-based and seafood sources are available but algae products have distinct nutritional profile and environmental benefits.
Competitive rivalry: Strong as major players invest heavily in R&D and manufacturing facilities to gain cost and product differentiation advantages.
Key Takeaways
The Global Algaculture Market Share is expected to witness high growth, exhibiting CAGR of 14.7% over the forecast period, due to increasing demand for natural ingredients in food and cosmetics industries. The market size for 2023 is estimated at US$ 8.14 Bn.
Regional analysis: North America dominates the Algaculture Market currently owing to substantial investments in R&D. Asia Pacific is expected to be the fastest growing market over the forecast period driven by rising health awareness and disposable incomes in countries like China and India.
Key players operating in the Algaculture market are Algenol, Solazyme, Sapphire Energy, Cyanotech Corporation, Algae Systems, E.I.D.- Parry Limited, Evonik Industries, Cargill, Incorporated, DIC Corporation, Cellana. Key players invest heavily in technologies to lower production costs and extracting novel compounds from algae.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it