Global Algae-Based Food Products Market - 2024-2031

Overview

Global Algae-Based Food Products Market reached US$ 2.1 billion in 2023 and is expected to reach US$ 3.8 billion by 2031, growing with a CAGR of 7.69 % during the forecast period 2024-2031.

Algae, particularly microalgae like spirulina and chlorella, and macroalgae such as seaweed, are gaining popularity for their impressive nutritional profile, which includes high-quality protein, essential vitamins, minerals, and omega-3 fatty acids. As demand for plant-based and sustainable food options increases, algae-based foods offer a nutrient-rich alternative that appeals to a wide range of dietary preferences, including vegan, gluten-free, and health-focused consumers.

The algae-based food products market is experiencing rapid growth as consumers become more health-conscious and environmentally aware. These products are being incorporated into various categories, from snacks and smoothies to dairy alternatives and energy bars, positioning algae as a key ingredient for the future of food. Algae cultivation is more resource-efficient than traditional crops, requiring less land and water, making it an environmentally friendly choice for manufacturers.

With the increasing shift toward plant-based diets, algae-based products also serve as a crucial source of plant protein and healthy fats. This trend is particularly strong in regions like North America, where 'innovation in algae-based product offerings continues to thrive. As investments in algae research and production rise, the market is expected to continue expanding, meeting the growing demand for nutritious and sustainable food alternatives.

Dynamics

Increasing Investment in Research and Development

The increasing investment in research and development (R&D) is a key driver for the growth of the algae-based food products market, as it enhances the taste, texture, and nutritional benefits of these products, making them more appealing to a broader consumer base. R&D efforts are focused on improving the flavor and palatability of algae-based foods, which historically had a strong, less palatable taste.

Innovations are creating a wider range of products, from protein-rich snacks to plant-based meat and dairy substitutes, expanding the market's reach. Additionally, R&D is helping algae-based foods achieve higher nutritional profiles, meeting the growing demand for functional and health-enhancing foods. A notable example of R&D driving the market is the AlgaeProBANOS (APB) project, launched in July 2023 by the SUBMARINER Network, which illustrates how R&D in sustainability and product diversification.

The EU-funded initiative, backed by over €12 million and involving over 25 partners, focuses on developing sustainable, algae-based products across various industries, including food. The project aims to innovate and promote algae as an environmentally friendly alternative to traditional materials, particularly in the food sector, with an emphasis on nutrient-dense, plant-based products like algae meat alternatives, dairy substitutes, and protein snacks.

Increasing Demand for Sustainable, Plant-Based, and Alternative Food Products

As consumers become more health-conscious and environmentally aware, there is a significant shift towards food options that reduce ecological footprints and align with plant-based dietary choices. Algae, as a versatile and sustainable ingredient, offers solutions to this demand by providing nutritious, eco-friendly alternatives to traditional animal-based and seed-based food products. For instance, microalgae-based cooking oils by Spotlight Foods and Algae Cooking Club.

Introduced in September 2024, these microalgae-based cooking oils are produced through fermentation by feeding plant-based sugars to microalgae. These oils are high in monounsaturated omega-9 fats and low in omega-6 fats, offering a healthier alternative to traditional seed oils. Additionally, their production has a lower environmental footprint compared to conventional oils.

As more people seek alternatives to traditional oils that may be high in omega-6 fats, microalgae-based oils provide an attractive option, which further supports the algae-based food market's growth. The shift towards algae-based products is also reflected in the adoption of these oils by restaurants like Florida's Garden Butcher, which aims to reduce its environmental footprint while offering customers sustainable and health-conscious food options.

High Cost of Production for Algae-Based Food Products

The high cost of production for algae-based food products limits their accessibility and appeal to a wider range of consumers. As production costs remain elevated due to the specialized methods required for cultivating, harvesting, and processing algae, these costs are passed on to consumers through higher retail prices. In price-sensitive markets, where cost is a major factor in purchasing decisions, the premium price of algae-based products makes them less competitive compared to traditional, more affordable food options.

The pricing barrier reduces the potential consumer base, slowing down the widespread adoption of algae-based foods. The market struggles to expand beyond niche segments, and the growth of algae-based food products is constrained. Lower consumer demand due to higher prices can also limit investment in research and development, further impeding innovation and the scaling of production processes that could help reduce costs in the future.

Segment Analysis

The global algae-based food products market is segmented based on source, type, form, distribution channel, application and region.

Versatility and Ease of Use

The global algae-based food products market is segmented based on form into whole/raw algae, powders, flakes, and capsules/tablets. Algae-based powders have become a dominant form due to their versatility, ease of use, and high nutritional content. These powders are packed with essential nutrients. Their concentrated nature allows even small quantities to offer substantial health benefits, making them ideal for smoothies, protein bars, and energy drinks.

Additionally, as consumers increasingly prioritize sustainable and clean-label ingredients, algae powders provide a sustainable, eco-friendly solution for food and beverage manufacturers. With growing demand, manufacturers are expanding the market with new product introductions. For instance, in June 2024, Brevel Ltd. opened its first commercial plant in Israel, designed to produce hundreds of tons of non-GMO microalgae protein powder.

The facility is set to meet the growing demand for alternative proteins, highlighting the shift toward scalable algae-based ingredients. Brevel's breakthrough in algae protein production underscores the increasing importance of algae powders in the alternative protein market. This reinforces the powder's role as a sustainable and market-ready solution for the future of food, driving the segment growth.

Geographical Penetration

Growing Health Consciousness and Environmental Awareness in North America

North America is leading the global algae-based food products market. Consumers in US and Canada are increasingly seeking nutritious, plant-based alternatives, and algae-based foods like spirulina and chlorella that align with these dietary trends. As more people embrace vegan and plant-based lifestyles, which is 4% US population as of the World Animal Foundation algae's appeal as a sustainable and nutrient-dense food source continues to rise.

Additionally, the region's strong focus on sustainability, with algae requiring fewer resources to produce than traditional crops, has made it a popular choice for eco-conscious consumers looking to reduce their environmental impact. According to the United States Environmental Protection Agency, more businesses are integrating sustainability into their strategies to boost growth and competitiveness, with many companies across various sectors seeing significant financial and environmental benefits.

The region also benefits from a robust network of research, investment, and supply chains that support the algae-based food industry. The presence of leading research institutions and innovative companies enables the development of new algae-based products, from protein powders to snacks, which are gaining popularity across the continent, help expand the regional market share.

Competitive Landscape

The major global players in the market include Archer Daniels Midland Company, Cargill, Incorporated, AlgoSource E, Algenol Biotech, Pond Technologies Inc., dsm-firmenich, BASF Human Nutrition, Cyanotech Corporation, Zhejiang Binmei Biotechnology Co., Ltd, and Phycom BV among others.

Sustainability Analysis

The global algae-based food products market is gaining momentum as a sustainable solution to the challenges of food security and environmental degradation. Algae, particularly microalgae like spirulina and chlorella, are highly nutritious, requiring minimal land, water, and fertilizers compared to traditional crops. They absorb carbon dioxide during growth, making them an effective tool for carbon capture.

Furthermore, algae can be cultivated in non-potable water or wastewater, helping to purify these water sources. These environmental advantages, combined with the growing consumer demand for plant-based, healthy foods, position algae as a viable and eco-friendly alternative to conventional food sources. With ongoing technological advancements and greater emphasis on sustainability, algae-based food products have strong potential for growth.

By Source

• Brown Algae
• Red Algae
• Green Algae
• Blue-Green Algae

By Type

• Algal Proteins
• Carotenoids
• Lipids
• Other

By Form

• Whole/Raw Algae
• Powders
• Flakes
• Capsules/Tablets

By Distribution Channel

• Supermarkets/Hypermarkets
• Specialty Stores
• Online Retail
• Other

By Application

• Food & Beverages
• Nutritional Supplements
• Functional Foods
• Animal Feed
• Other

By Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • Germany
  • UK
  • France
  • Italy
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• In November 2024, Umaro Foods and Sway received a $1.5M DOE grant to convert seaweed waste into sustainable bioplastics. Umaro's seaweed protein process produces alginate, which Sway will repurpose using its TPSea resin technology, addressing sustainability challenges like reducing fossil fuel use and resource-intensive agriculture.
• In October 2024, China's Protoga Biotech announced the upcoming launch of the world's first commercial microalgae milk, rich in protein and lutein, and free from lactose and cholesterol.
• In September 2024, v2food and Lgem's AlgaeHUB teamed up to enhance plant-based meat with RepliHue, a red microalgae-derived colorant. This natural ingredient mimics the visual appeal of cooking conventional meat, without relying on synthetic additives like heme. The collaboration aims to scale production and improve the consumer experience of plant-based meats.

Why Purchase the Report?

• To visualize the global algae-based food products market segmentation based on source, type, form, distribution channel, application, and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous Algae-Based Food Products market-level data points with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as excel consisting of key products of all the major players.

The global algae-based food products market report would provide approximately 78 tables, 78 figures and 201 pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies