Analysis by Product (Spirulina, and Chlorella); by Source (Freshwater, and Marine Water); and by Application (Dietary Supplements, Food Product, and Animal Feed) – Global Supply & Demand Analysis & Opportunity Outlook 2023-2035
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The global algae protein market is estimated to garner a revenue of USD 2 Billion by the end of 2035 by growing at a CAGR of ~6% over the forecast period, i.e., 2023 – 2035. Further, the market generated a revenue of USD 800 Million in the year 2022. The growth of the market can be attributed to the growing demand for food all around the globe. By 2050, the demand for food is anticipated to rise by anywhere from about 58% to approximately 97%. Hence, the demand for algae is estimated to increase. Algae are utilized in the food business as functional food additives and food supplements. To enhance the quality of fish, fish products, and oils, algae is also added to meat products such as pasties, steaks, frankfurters, and sausages. Another category of items that are supplemented with algae are those that are made from cereals, such as pasta, flour, and bread. Owing to their characteristics, algae are additionally employed to create fermented, useful foods.
Moreover, algae have many advantages, including the ability to be grown in self-contained facilities where farmers may recycle nutrients and a growth rate that is ten times faster than that of conventional crops. Certain algae species could provide essential vitamins, minerals, and omega-3 fatty acids to a human diet and have protein levels over 39% of dry mass. Hence, all these factors are estimated to boost the demand for algae in the market. Additionally, algae are known to be healthier as compared to all other protein rich food. Hence its demand is high among people who are on a diet or follow a healthy lifestyle regime.
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Base Year |
2022 |
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Forecast Year |
2023-2035 |
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CAGR |
~6% |
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Base Year Market Size (2022) |
~ USD 800 Million |
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Forecast Year Market Size (2035) |
~ USD 2 Billion |
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Regional Scope |
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Growth Drivers
Rise in Population - According to UN estimates for 2022, the world's population might reach 8.5 billion people in 2030 and 9.7 billion by 2050. The population is predicted to peak at 10.4 billion people in the 2080s and stay there until 2100. Hence, global food demand is increasing as a result of this development and also rising earnings in developing nations, which affect people's diets by making them eat more meat and protein.
Surge in Vegan Population - Across the world, there were about 80 million vegans in September 2021, or slightly more than 1% of the population.
Growth in Fish Farming
The total number of fish growers and fishermen in the globe in 2020 was about 57 million.
Upsurge in Geriatric Population - According to the World Health Organization, one in six individuals worldwide would be 60 or older by the year 2030. From 1 billion people in 2020 to 1.4 billion people at this point, more people would be 60 years of age or older. Hence, the demand for algae protein is estimated to increase. Elderly persons are estimated to have chronic diseases and may have more difficulty getting the nutrients they need from their diet. As a result, functional foods made from algae may help enhance nutrient intake without adding more calories. This is important for middle-aged adults, since they tend to become less active and do not expend as much energy as they once did, which could also lead to various age-related ailments. Algae create a wide range of biologically active substances that are unique to them and may not be found in other species. They have also been mentioned in relation to potential medical applications. As a result, they are highly promising as a source of useful components.
Challenges
The global algae protein market is segmented and analyzed for demand and supply by application segment into dietary supplements, food product, and animal feed. Out of these, the food product segment is anticipated to garner the highest revenue by the end of 2035. The growth of the segment can be attributed to growing population which is further estimated to boost the demand for food. Moreover, there has been a rise in the disposable income of the people owing to which they demand more food products. Consumers in the United States spent an average of 10.3% of their disposable personal income on food in 2021, which was split between food consumed at home (5.2%) and outside of the home (6.4%). (5.1 percent). Hence, the demand for algae protein is growing, since it is rich in protein. For instance, cold water seaweed called porphyra develops in shallow, chilly waters. It has a high ratio of vitamins, about 44% carbs, and approximately 34% proteins. It is used to make marine vegetable products in East Asia, such "amanori" in Japan.
The global algae protein market is also segmented and analyzed for demand and supply by source into freshwater, and marine water. Amongst which the marine water segment is expected to grow significantly over the forecast period. Seaweeds, sometimes known as marine algae, are a staple of traditional Asian cuisine, especially in Japan and Korea. It is eaten as a snack or used as a seasoning in dishes or soups. As one of the richest vegetables in terms of these minerals, sea algae are thought to be present in all species. This is probably their greatest advantage. They are also renowned for having high potassium and magnesium concentrations. Moreover, it has been proven that consuming them enhances and maintains the health of the skin, hair, and nails. In addition to helping people lose weight and get rid of fat deposits, marine algae could also help people get rid of mucus buildup that might result from drinking too much milk. Hence, owing to this the segment is anticipated to grow.
Our in-depth analysis of the global algae protein market includes the following segments:
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By Product |
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By Source |
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By Application |
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The Asia Pacific algae protein market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035, backed by rising demand for vegan food, along with surge in awareness among people regarding health and wellness. India would have about 1 billion residents as of 2022, second only to China, which would have approximately 2 billion people. Moreover, about 23% of Indians are severe vegetarians, approximately 8% are vegans, and about 7% are pescatarians. Moreover, algae protein has increased in popularity owing to the rising demand for protein powders and nutritional supplements. Additionally, macroalgae have been used by other indigenous groups and in Asian cuisine for ages. Currently, bread, beverages, and candies all contain macro- and microalgae in the form of pills and powder. Microalgae are not only employed as animal feed, despite the fact that some aquaculture species, such as mollusks, depend on them for sperm production.
The North America algae protein market, amongst the market in all the other regions, is projected to grow with the highest CAGR during the forecast period. The US has a growing vegan population and rising demand for plant-based meat, much as every other region owing to factors such as health, environment and ethical region. As consumers search for alternatives to meat and dairy-based proteins, plant-based proteins have grown in popularity in the US and Canada. This has fueled the expansion of the North American algae protein market. Moreover, a large number of people play sport in this region. Hence, the need for supplements containing powdered algal protein would increase since athletes must achieve their protein intake goals. The market expansion is also accelerated by an increase in the use of plant-based derivatives to improve skin health. Also, since more people in this region are overweight, the adoption of plant-based derivatives is increasing.
Additionally, the market in the Europe region is also estimated to grow significantly over the forecast period, backed by consumer demand for alternative protein sources, which is increasing in the region. Moreover, since algae is ideally suited to the expanding trend towards healthier and more naturally functioning meals, it is anticipated to flourish in the coming years owing to its diverse uses. However, to change consumer preconceptions, it would be essential to educate them about the nutritional advantages of algae. Hence, in order to increase consumer acceptance, businesses are placing a major emphasis on taste, for instance by pairing algae with well-known flavours. This is since many European customers are not yet accustomed to eating algae outside of sushi.
In 2023, market players might incur losses due to huge gap in currency translation followed by contracting revenues, shrinking profit margins & cost pressure on logistics and supply chain.
Controlling Inflation has become the first priority for global economies from last quarter of 2022 and to be followed in 2023. With skewed economic situations, rise in interest rate by governments to control spending and inflation, spiked oil and gas prices, high inflation, geo-political issues including U.S. & China trade war, Russia-Ukraine conflict to intensify the global economic issues.
The interest rates in the U.S. may be less sensitive in 2023 as compared to 2022; sigh of relief for businesses. Positive business sentiments, healthy business balance sheets, growth in construction spending (private construction value in 2022 stood at $1,429.2 billion, 11.7 percent (±1.0 percent) above the $1,279.5 billion spent in 2021, Residential construction in 2022 was $899.1 billion, up by 13.3 percent (±2.1 percent) from $793.7 billion in 2021, non-residential construction touched $530.1 billion, 9.1 percent (±1.0 percent) above the $485.8 billion in 2021.) showcases minimal impact of recession in the country.
Similarly, spiked spending in the European and major Asia economics including, India, China & Japan to showcase less impact on the global demand.
Ans: The major factors driving the growth of the market are growing food system crisis, rise in population, surge in vegan population, and others.
Ans: The market is anticipated to attain a CAGR of ~6% over the forecast period, i.e., 2023 – 2035.
Ans: Presence of substitute, high cost for algae products, and sensitive production for algae protein estimated to be the growth hindering factors for the market expansion.
Ans: The market in the Asia Pacific region is projected to hold the largest market share by the end of 2035 and provide more business opportunities in the future.
Ans: The major players in the market are Corbion, Cyanotech Corporation, Earthrise Nutritionals LLC, Roquette Frères, and more.
Ans: The company profiles are selected based on the revenues generated from the product segment, the geographical presence of the company which determines the revenue generating capacity as well as the new products being launched into the market by the company.
Ans: The market is segmented by product, source, application and by region.
Ans: The food product segment is anticipated to garner the largest market size by the end of 2035 and display significant growth opportunities.
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