Global Marine Algae Market: A Study of Changing Market Dynamics, Growth, Future Prospects, and Russia – Ukraine War impact Analysis, 2016 – 2028
The marine algae market is expected to grow higher in the next forecasted period. The demand for marine algae is highly dependent on the industries that use the algae as raw material, i.e., the food, beauty, and pharmaceutical industries. These industries themselves have been forecasted to see high growths and therefore contribute to a steady rise in demand for marine algae.
Global Marine Algae market has generated revenue of over USD 943.48 million in 2021. It is expected to exhibit CAGR of over 8.07% during the forecast period to reach over USD 1,690.09 million by the end of 2028. While, cumulative growth opportunity offered by the global Marine Algae market stood above USD 9,565.84 million for the analysis period ranging between 2022 to 2028.
Interesting Facts about Marine Algae Industry
Marine Algae produces almost 87% of Earth’s oxygen
Marine Algae is major component of marine ecosystem
Certain species of Marine Algae can be used in pharmaceutical industry
Marine Algae is rich source of minerals and vitamins
There are over thousand species found in Marine Algae
Increasing Investment in R&D to Drive the Future Growth of Marine Algae Market
The biggest driver to the global marine algae market is the rise in research and development and the investment in R&D by leading industries. Marine algae are a relatively new discovery, and widespread research is being conducted on its benefits and uses. Many pharmaceutical companies believe that marine algae can be used to cure fatal and chronic diseases and have conducted large-scale studies on the matter. Research emphasis on marine algae is the foremost driver to the marine algae extracts and products market.
Ever Expanding Application Market for Marine Algae
Some of the major application markets for marine algae include, Marine Sector, Aviation Sector, Road Transport, DHA Production (Protein Sales), DHA Production (Pharmaceutical Applications), Bioplastics, and Others). Another driver to the marine algae market is a change in global lifestyles whereby more and more people are interested in using the newest and best products to enhance their health and beauty. For example, beauty products, cosmetics, vitamins, and other natural health products that use organic ingredients are highly advertised and consumed all over the world. Marine algae products are advertised as organic, highly nutritious, and beneficial, increasing their demand. Also, as veganism and vegetarianism are becoming more popularized, more people search for plant-based proteins. Marine algae food products are in high demand because they offer protein alternatives to these subsets of people.
Challenges Associated with Extraction Process of Marine Algae
One of the most considerable restraints to the marine algae market is the difficult algae extraction process. Not only is the process long and expensive, requiring specific technology and trained extractors, but factors like government regulations, water pollution, oil spills, and waste disposal in water bodies all make the extraction process more difficult.
Environmental Regulations to Arrest the Growth of Marine Algae
Another restraint to the market is the fight for environmental protection and management. A huge movement aims to protect algae colonies from being exploited because of the natural habitat they provide for marine life. The pharmaceutical industries and the beauty and cosmetic industries face huge pushback from this movement.
Open Ponds Cultivation to Lead the Marine Algae Production Technology Segment
Open Ponds Cultivation Technology, Raceway Ponds Cultivation Technology, Closed Photo bioreactor Cultivation Technology, and Closed Fermenter Systems Cultivation Technology are major segments based on Marine Algae cultivation technology. Open pond cultivation technology held over 35% share in global industry in 2021. While, Closed Fermenter Systems Cultivation is likely to grow at a considerable pace over the years to come.
Slow Growth Rate in Developing Countries
Lastly, there is a lack of research and development in developing countries. The marine algae market has not been able to expand much outside of the North American and European regions. The market penetration in African countries is particularly low, so that the R&D and extraction in those countries are significantly low. Extraction of marine algae and the production of algae products are also very expensive, which discourages new players from entering the market.
Large Number of Players to Venture into Marine Algae Industry
Algae Systems LLC, Algae Tec, Algenol, Algix, Dao Energy, LLC, Diversified Energy Corporation, DSM Nutritional Products, Kai BioEnergy Corp., Kent BioEnergy Corporation., LiveFuels, Inc, Phycal LLC, Pond Biofuels Incorporated, Sapphire Energy, Inc. and Solazyme, Inc. are some of the most promising players in global Marine Algae market. Marine Algae industry is rapidly evolving and expected to offer numerous future growth opportunities. In a quest to explore the future opportunities, large number if new entrants are expected to venture in Marine Algae industry oer the span of forecast.
