What Fueled The Previous Growth In The Algae Based Ingredients Market?
The algae based ingredients market has seen considerable growth due to a variety of factors.
• In the recent past, the algae-based ingredients market has experienced substantial growth. The market size is set to rise from $4.04 billion in 2024 to $4.32 billion in 2025, signaling a compound annual growth rate (CAGR) of 7.0%.
This growth throughout the historic period is largely due to factors such as increased environmental sustainability, heightened demand from the cosmetic and personal care sectors, government efforts, and rising consumer awareness.
What Can Be Expected from the Algae Based Ingredients Market Size?
The algae based ingredients market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for ingredients derived from algae is projected to witness robust expansion in the coming years, with an estimated worth of $5.81 billion in 2029, increasing at a compound annual growth rate (CAGR) of 7.7%.
The predicted growth during the forecast period is due to an enhanced awareness about health and wellbeing, a growing number of people choosing vegan and vegetarian diets, and a surge in demand for natural colorants. The key trends influencing this forecast period are improvements in technology used for the cultivation and processing of algae, government initiatives promoting production and research of algae, widening application scope of algae-based components, and product innovations.
What Are the Critical Driver Fuelling The Algae Based Ingredients Market's Growth?
The escalating consumption of functional foods is anticipated to stimulate the growth of the algae-based ingredient market. Functional foods are a category of victuals that go beyond merely offering necessary nutrition and offer additional health benefits. Algae-based ingredients in these foods are leveraged for their high content of essential nutrients, including omega-3 fatty acids, antioxidants, vitamins and minerals, all of which uphold comprehensive health and wellness. A report by Agriculture and Agri-Food Canada, a department of the Canadian Government, released in February 2022 stated that these functional foods are expected to touch $79.1 billion in 2025, reflecting a 3.5% rise from 2021. Thus, escalating consumption of nutraceuticals and functional foods is projected to fuel the algae-based ingredient market growth. The escalating demand for personal care merchandise is anticipated to spur the growth of the algae-based ingredients market going forward. Personal care products include a broad array of goods used for personal hygiene, improving appearance, and promoting holistic well-being. Algae-based ingredients augment the effectiveness of personal care products and resonate with consumers seeking natural, sustainable, and effective skin and hair care solutions. As per Cosmetics Europe, a Belgium-based personal care association, some 500 million consumers use personal care products daily to boost their well-being and safeguard their health. Interestingly, the personal care industry contributes around USD 31.23 billion (€29 billion) annually to the European economy. Consequently, the increasing demand for personal care products is expected to drive the algae-based ingredients market.
How Is The Algae Based Ingredients Market segmented?
The algae based ingredients market covered in this report is segmented –
1) By Ingredients: Carrageenan: Alginates, Algae Protein, Beta Carotene, Algae Oil, Agar, Other Ingredients
2) By Source: Red Algae, Green Algae, Brown Algae, Other Sources
3) By Form: Liquid, Dry
4) By Application: Food And Beverages, Personal Care, Nutraceuticals, Pharmaceuticals, Animal Feed, Other Applications
Subsegments:
1) By Carrageenan: Kappa Carrageenan, Iota Carrageenan, Lambda Carrageenan
2) By Alginates: Sodium Alginate, Calcium Alginate, Potassium Alginate
3) By Algae Protein: Spirulina Protein, Chlorella Protein, Other Algal Protein Sources
4) By Beta Carotene: Natural Beta Carotene, Synthetic Beta Carotene
5) By Algae Oil: Omega-3 Algal Oil, Omega-6 Algal Oil
6) By Agar: Agar Powder, Agar Flakes
7) By Other Ingredients: Phycocyanin, Algal Sugars, Algal Extracts
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How Are Emerging Trends Reshaping The Dynamics Of The Algae Based Ingredients Market?
Major corporations involved in the algae-based ingredient market are concentrating on natural and sustainable cosmetic goods through the inclusion of algae extracts in their mixes to bolster their organic attractiveness and maintain their market standing. Cosmetics that are sustainable and derived from natural resources, and are produced through eco-friendly processes, fall under this category. For example, Upwell Cosmetics Inc., which is based in the US, introduced a ground-breaking cosmetic wax developed from algae in April 2023. This innovative product serves as a renewable and sustainable alternative to waxes derived from petroleum for use in beauty care and cosmetic items. This multi-purpose ingredient, sourced responsibly, is suited for lipstick, hair care products, and sunscreens. The innovative component caters to the escalating consumer expectations for eco-friendly elements in their product choices.
Who Are the Key Players In The Algae Based Ingredients Market?
Major companies operating in the algae based ingredients market are:
• Cargill Inc.
• Corbion N.V.
• CP Kelco U.S. Inc.
• Bioriginal Food & Science Corp.
• Cynotech Corporation
• Algenol Biofuels Inc.
• Earthrise Nutritionals LLC
• Algenol Biotech
• Provectus Algae
• Hispanagar SA
• TerraVia Holdings Inc.
• AEP Colloids Inc.
• Algae Systems LLC
• AlgaEnergy S.A.
• AlgaeCan Biotech Ltd.
• Algatechnologies Ltd.
• Algaetech International Sdn Bhd
• Henan Gino Biotechnology Co. Ltd.
• Manta Biofuel LLC
• B&V srl
• Taiwan Chlorella Manufacturing Company Limited
• LUS Health Ingredients B.V.
• Roquette Klötze GmbH & Co. KG
• Triton Algae Innovations Ltd.
• AlgaeCytes Ltd.
• Sophie's Bionutrients Pte. Ltd.
• AgarGel Industria e Comercio Ltda.
What Is The Most Dominant Region In The Algae Based Ingredients Market?
North America was the largest region in the algae-based ingredients market in 2024. The regions covered in algae-based ingredients market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
