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Industrial Algae Market by Cultivation Technology (Open Pond Cultivation Technology, Raceway Pond Cultivation Technology, Closed Photo Bioreactor Cultivation Technology, Closed Fermenter Systems Cultivation Technology) by Distribution Channel (Marine Sector, Aviation Sector, Road Transport, DHA Production (Protein Sales), DHA Production (Pharmaceutical Applications), Bioplastics, Others): Global Industry Size, Share, Statistics and Forecast 2015 - 2027

Industrial Algae Market Analysis

The industrial algae market includes several applications of algae. Today, algae are used as a cleaner alternative and an essential ingredient for food, cosmetics, fuel, transport, pharmaceuticals, and textile. The industrial algae market is expanding at a flourishing rate. Covid and the overall increase in health and environmental awareness are helping the global market for industrial algae reach new heights each passing second.  

Global Industrial Algae market is expected to witness CAGR of 9.03% during the forecast period. The revenue generated by the global Industrial Algae market in 2020 was over USD 5,125 million and expected to generate revenue worth USD 10,333 million in 2027. The incremental growth opportunity offered by the global Industrial Algae is estimated to be USD 58,311 million between 2021 and 2027.     

industrial-algae-market

Interesting Facts about Industrial Algae Industry

  • There 40,000 plus varieties of algae found around the world
  • Algae found mainly in marine and freshwater ENVIRONMENT  
  • Algae is capable of removing huge amount of carbon dioxide
  • Industrial algae are widely used in preparation of food ingredients
  • Industrial algae production cost is around USD 1,000 to USD 1,250

Recent Trends and Role of Covid’19

The industrial algae sector has been experiencing a steady increase over the years. Recently, it has been one of the few international markets that saw a favourable trend even amidst the uprise of Covid’19. Today, the global market for industrial algae is worth more than USD 10.3 billion and is expected to reach around $6.5 billion by 2026.

The pandemic has caused heavy reliance on healthy alternatives. People prefer spending a bit more on commodities that don’t pose a danger to their well-being. The shift in the behavioural trend is encouraging manufacturers to shift towards using healthier substitutes to promote medical assurance. The increased demand for nutritious and eco-friendly commodities ensures the high potential for the future of industrial algae. As supply continues to rise, the industrial algae sector is sure to experience a higher than forecasted growth in the years to come.  

Increasing attention on weight-consciousness and skincare

The industrial algae sector has been thriving for quite a few years. The first driver is the increasing attention on weight-consciousness and skincare. Algae are essential highlights of dietary supplements and anti-aging and glowing skincare products. That’s why it’s no surprise that as the significance of the skincare routine continues to rise, so does the development of the industrial algae sector.

Environmental protection

Moreover, environmental protection is one of the most trending concepts nowadays. Because of this, cost-efficient and green-friendly substitutes are being preferred more by the consumer side. The worldwide industrial algae market continues to rise in fame due to algae’s bio-hydrogen and biodiesel attributes. Algae-based products are effective not just for human food by livestock and land-based crops.

Marine Sector, Aviation Sector, Road Transport, DHA Production (Protein Sales), DHA Production (Pharmaceutical Applications), Bioplastics and Others are some of the beneficiaries of industrial algae. The demand for industrial algae us mainly driven by the growing use of algae in aforementioned industries.

Technological advancements

Open Pond Cultivation Technology, Raceway Pond Cultivation Technology, Closed Photo Bioreactor Cultivation Technology and Closed Fermenter Systems Cultivation Technology are most important and prominent cultivation technologies used by the manufacturers. Technological advancements are leading to better and more extensive research and development procedures. They are helping to offer cheaper and easier algae extraction and production methods. Because of that, the interest of manufacturers in using algae for their production continues to grow even more.

Furthermore, demand for industrial algae continues to peak in the pharmaceutical industry. Algae are known for their antibacterial, antifungal, and therapeutic features. That’s why medical companies and research firms have started using industrial algae for manufacturing health supplements to reduce diseases and promote fitness.

High Cost of Technology

Even though more algae extraction procedures continue to develop, the cost of buying and using such advanced equipment is still relatively high. And that’s the primary restraint smaller manufacturers or less-developed economies face today. So, although industrial algae are cheaper than their substitutes, their extraction is undoubtedly a costly milestone to overcome.

Some of the major players who have incurred huge R&D investment include but not limited to Algenol, Sapphire Energy, Inc., Solazyme, Inc., Diversified Energy Corporation, DSM Nutritional Products, Dao Energy, Kai BioEnergy Corp., Algix, Algae Tec, Pond Biofuels Incorporated, LiveFuels, Inc, Algae Systems LLC, LLC, Phycal LLC and Kent BioEnergy Corporation.

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Frequently asked questions about global Industrial Algae industry

Likewise other industries, COVID 19 also taken a toll on Industrial Algae market with around 14.59% decline in 2020 in its revenue as compare to 2019

North America is the largest regional market with highest share in the total volume of Industrial Algae consumed in 2020

Ever expanding application base for industrial algae

Open Pond Cultivation Technology dominated the Industrial Algae market in 2020 with over 25% share in 2020

Marine and DHA Production were the largest applications of Industrial Algae in 2020 with over 35% share

Industrial Algae Report Scope

Report Attribute Details
Market Value in 2020 USD 5,125 Million
Market Value in 2027 USD 10,330 Million
CAGR 9.03% between 2021 and 2027
Benchmarking Year 2020
Past data 2016 – 2019
Forecast period 2021 – 2027
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Published Date:  Dec 2021
Category:  Chemicals
Report ID:   60467
Report Format:   PDF
Pages:   141
Rating:    4.2 (32)
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