Algae Protein Market To Hit Value USD 1.08 Billion By 2025

Posted by Mrudula Karmarkar on December 28th, 2021

The global algae protein market size is projected to reach USD 1.08 billion by 2025, according to a new report by Grand View Research, Inc. Growing shift of consumer preferences from animal-based towards plant-based and other alternative sources of protein is expected to drive the demand for algae protein during the forecast period.

One of the most important applications of the product is dietary supplements, where many nutraceutical manufacturer are increasingly incorporating algae protein as a key ingredient in their formulations owing to the rich nutritional values. For instance, spirulina contains nearly 50-70% of protein by dry weight, which is highest among plant based protein sources, and is being increasingly adopted by confectionery and beverage manufacturers worldwide.

As a result of rising healthcare costs, most particularly in developed economies, consumers are shifting towards functional foods and dietary supplements in order to maintain healthy dietary habits and lifestyles. Moreover, aging population and related disorders are among other major factors driving consumers towards health supplements. The expansion of the nutraceuticals industry is expected to have a significant impact on the growth of the algae protein market over the coming years.

Low cultivation and manufacturing costs, along with the presence of large algae-based companies in the region, are expected to drive the growth of the market in Asia Pacific over the coming years. Changing lifestyles and dietary habits of consumers in the region have had considerable impact on the consumption of protein products in recent years, most notably plant-based products, which further supports the growth of the algae protein market in the region.Algae protein is used for promoting weight loss, reducing fatigue & anxiety, and in case of diabetes, attention deficit-hyperactivity disorder (ADHD), and premenstrual heart diseases among other health issues. Enrichment of the nutrient content in food, positive effect on the immune system, and other health-related benefits of the product are driving the market globally. Moreover, rising sustainability issues such as increase in greenhouse gases and loss of biodiversity during the production of meat have resulted in a shift in consumer preferences toward plant-based and other alternative sources.

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Millennials across the world are increasingly opting for a fit lifestyle as a result of growing health awareness. They are frequently participating in various sports, athletic events, and other fitness activities. Furthermore, millennials are increasingly consuming food products such as meat, eggs, and supplements to strengthen muscles and improve physique. This, in turn, is contributing to the global demand for protein-rich products. Strategic initiatives of key market players are majorly driven by the increasing product demand from end-user industries. Therefore, the global market is expected to witness acquisitions and expansions in the coming years owing to increased product demand. Also, new entrants are anticipated to enter the market on account of the attractiveness of the market.

Algae Protein Market Report Highlights

  • Among products, spirulina accounted for the largest share of nearly 54% of the overall market revenues in 2018. The growing adoption of this product by manufacturers in the nutraceuticals, animal feed, pet food, and personal care industries is expected to drive the segment growth over the coming years
  • On account of benefits such as lowering of blood pressure and cholesterol levels, speeding up of wound healing, and boosting of immunity systems, the chlorella segment is expected to witness increased consumption over the forecast years
  • Among sources, freshwater algae recorded the higher share of revenues in 2018, accounting for nearly 69%. This segment is expected to grow on account of increasing adoption in nutraceuticals and pet food applications worldwide
  • Dietary supplements application accounted for a revenue share of over 42% in 2018. The increasing adoption of plant-based and microbe-based protein sources for dietary supplement formulations, along with growth of the nutraceuticals industry, is expected to drive algae protein demand during the forecast period
  • R&D investments, distribution agreements, and acquisitions are among the major strategies adopted by key players to strengthen their positions in the global market

The protein content of different sources varies drastically; for instance, beef contains nearly 17.4%, whereas beer yeast offers 45%. Manufacturers of food & beverages and nutraceuticals are continually seeking nutrient sources to enhance the protein content of processed food products. Among all the sources, spirulina and chlorella algae contain the highest amount of protein. Therefore, manufacturers of food & beverages, pet food, and nutraceuticals are increasingly using algae as an ingredient in their products. In essence, the demand for algae is expected to witness a surge over the coming years since it is a lucrative source of protein.

The market is moderately fragmented with the presence of medium-sized companies. Corbion; Cyanotech Corporation; Earthrise Nutritional; Far East Bio-Tec Co., Ltd.; E.I.D. - Parry Limited; ENERGYbits Inc.; Rainbow Light; NOW Foods; Prairie Naturals; and Vimergy LLC are the key companies operating in the market. Most of these companies majorly offer products in the powder and tablet or capsule forms.

Large-sized companies are increasingly expanding their research & development and production capacities on account of the increasing demand for the product from end-users. For instance, Corbion acquired SB Oils, a joint-venture between Corbion and Bunge Limited in 2018. With this acquisition, Corbion has complete control over Brazil-based algae facility of their joint venture. Corbion’s overall production of the algae-based product is expected to increase by this development in the coming years

About Grand View Research

Grand View Research, Inc. is a U.S. based market research and consulting company, registered in the State of California and headquartered in San Francisco. The company provides syndicated research reports, customized research reports, and consulting services. To help clients make informed business decisions, we offer market intelligence studies ensuring relevant and fact-based research across a range of industries, from technology to chemicals, materials and healthcare

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Mrudula Karmarkar

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Mrudula Karmarkar
Joined: March 30th, 2020
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