Algae Products Industry – Trends & Forecast on Agricultural and Food Industry

The algae products market is projected to grow from USD 5.87 billion in 2025 to USD 8.07 billion by 2030, registering a CAGR of 6.6% during the forecast period. Steady growth in the market is driven primarily by rising consumer awareness of the health benefits associated with algae. Increasing demand for natural, nutritious, and plant-based food options—alongside preferences for better taste and texture—continues to expand opportunities for algae-derived products. Algae provide valuable nutrients such as omega-3 fatty acids (including DHA) and algal proteins, making them especially attractive to vegetarian and vegan consumers. However, high production costs remain a key challenge, particularly for small-scale companies striving to meet quality standards, which may constrain overall market expansion.

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Red algae segment expected to grow significantly

Among algae product sources, red algae are poised for notable growth during the forecast period. Species such as Porphyra (47% protein by dry mass) and Palmaria palmata (35% protein by dry mass) are widely consumed in Asian and Western markets due to their high protein content and appealing flavor. Red algae also play a vital ecological role, contributing 40% to 60% of global oxygen production, supporting both terrestrial and aquatic ecosystems. Their commercial value is particularly significant in regions like Japan and the North Atlantic, where they are regarded as essential food sources.

Animal feed to hold a substantial market share

The use of algae in animal feed is rapidly increasing. Algae-based aquafeed has demonstrated both nutritional and economic benefits. Research published in the Journal of the Institute of Food Technology indicates that incorporating specific microalgae species into fish diets can reduce feed costs by up to 50% while enhancing nutrient density. Owing to their rich profiles—containing essential fatty acids, amino acids, carbohydrates, carotenoids, and vitamins—both microalgae and macroalgae have become sustainable and effective nutritional sources for livestock, poultry, and aquaculture.

Asia Pacific to record the highest CAGR

The Asia Pacific region is anticipated to witness the fastest growth in the algae products market during the forecast period. Major contributors include China, Japan, India, and Australia & New Zealand, all of which possess expansive coastlines ideal for cultivating marine and freshwater algae. The region’s tropical climate supports the world’s greatest diversity of algae species, driving production and market adoption.

Rising population levels across Asia Pacific are boosting demand across the food & beverage, pharmaceutical, and personal care sectors, further propelling market growth. Edible seaweeds—such as Kombu (Laminaria japonica), Nori (Porphyra sp.), and Wakame (Undaria pinnatifida)—are widely used in traditional Chinese and Japanese cuisines, including soups, salads, cooked dishes, and sushi.

Beyond food applications, seaweeds play a crucial role in producing hydrocolloids and phycocolloids and are extensively utilized in pharmaceuticals, cosmetics, agriculture, biofuels, and animal feed additives. Given their abundant primary and secondary metabolites, algae-derived products have strong potential in the food and nutraceutical industries, offering substantial growth prospects for the market across the region.

Leading Algae Products Companies:

The report profiles key players such as DSM-Firmenich (Netherlands), BASF (Germany), Cyanotech Corporation (US), Cargill, Incorporated (US), CP Kelco U.S., Inc. (Tate & Lyle) (US), Corbion (Netherlands), E.I.D.-Parry (India), Kerry Group plc (Ireland), AlgaTech Ltd. (Israel), Algenol Biotech (US), Cellana Inc. (US), Fenchem (China), Fuji Chemical Industries Co., Ltd. (AstaReal Co., Ltd.) (Japan), Algea (Norway), KD Pharma Group SA (Switzerland), and others.

The algae products market is estimated at USD 5.3 billion in 2023 and is projected to reach USD 7.3 billion by 2028, at a CAGR of 6.4% from 2023 to 2028. Algae products have diverse applications across various industries, including food and beverages, pharmaceuticals, cosmetics, animal feed, biofuels, and wastewater treatment. The versatility of algae and their ability to be processed into different forms, such as powders, extracts, and oils, make them attractive ingredients for a wide range of products, driving market growth.

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Driver: Growth in consumer awareness regarding the health benefits of algae-based products

In recent years, there has been a significant shift in consumer preferences towards health and wellness. Consumers are becoming more proactive about maintaining their well-being and are seeking natural, nutrient-rich, and functional foods and supplements. Algae-based products, such as spirulina, chlorella, and seaweed, are recognized for their exceptional nutritional profile, including high protein content, essential vitamins, minerals, antioxidants, and omega-3 fatty acids. As consumers become aware of the specific health benefits associated with algae consumption, they are increasingly incorporating algae-based products into their diets.

Opportunity: Growing demand in the pharmaceutical industry

Algae are rich in various bioactive compounds, including proteins, polysaccharides, pigments, fatty acids, and antioxidants. These components offer a wide range of nutritional and functional benefits that can be utilized in pharmaceutical formulations. For example, algae-derived proteins can serve as a source of amino acids for therapeutic protein production. Polysaccharides from algae can be used as excipients or drug delivery systems due to their unique physicochemical properties. Pigments such as chlorophyll and carotenoids have antioxidant properties that can be utilized for their potential health benefits. The diverse array of bioactive compounds present in algae opens up opportunities for the development of novel pharmaceutical products.

Based on type, lipids is estimated to account for the largest market share of the algae products market

Based on type, lipids segment is estimated to account for the largest market share. The presence of lipids in algae products allows for their incorporation into functional foods and nutraceuticals. Lipids provide a source of energy and enhance the absorption of fat-soluble vitamins and bioactive compounds. Algae-based lipid ingredients are used in the development of various products, including dietary supplements, protein bars, beverages, and fortified foods.

Blue green algae segment of the algae products market by source is projected to witness the highest CAGR during the forecast period

Based on source, the blue green algae segment estimated to account for the highest growth rate. Blue-green algae are considered a valuable source of plant-based protein. They have a higher protein content compared to traditional plant sources, such as soybeans and wheat. The protein from blue-green algae is of high quality, containing all the essential amino acids required by the human body. This makes blue-green algae an attractive option for protein supplementation in the form of powders, protein bars, and beverages.

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The North America market is projected to contribute the largest share for the algae products market

There is a growing awareness among consumers in North America regarding the health benefits and sustainability aspects of algae-based products. Consumers are becoming more conscious of their dietary choices and are actively seeking natural, plant-based alternatives for various applications. This awareness has resulted in a rising demand for algae-derived products, including food and beverages, dietary supplements, personal care items, and biofuels.