Seaweed Extracts Market Size, Share, Industry, Forecast and outlook (2024-2031)

Seaweed Extracts Market is segmented By Source (Red Algae, Green Algae, Brown Algae), By Product Form (Powder, Liquids, Flakes, Others), By Application (Food & Beverages, Cosmetics, Pharmaceutical, Dietary Supplements, Others), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2024-2031

Seaweed Extracts Market Overview

[150 Pages Report] Seaweed Extracts Market is estimated to reach at a high CAGR of 8.8% during the forecast period 2024-2031. 

Seaweeds are marine algae that are rich in phosphorous and other nutrients. The extracts derived from these seaweeds have been proven to be helpful in agricultural practices as seaweed extract is natural manure. It is known for boosting crop yield by improving its resistance to frost and diseases and increasing its uptake of inorganic constituents from the soil. Also, the most common type of algae is red algae, which is widely used in the food industry with its derivatives like alginate, agar, and carrageenan are used as food additives. Moreover, seaweed extracts have shown beneficial results in the healthcare and cosmetics sectors. This widening range of applications is boosting the growth of the global seaweed extracts market.

Seaweed Extracts Market Summary

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Seaweed Extracts Market Dynamics

Rising concerns about chemical fertilizers are driving the growth of the market

Growing awareness of environmental and health issues associated with the use of chemical fertilizers is the primary driver for the growth of the global seaweed extracts market. With the growing demand for crop nutrients and concerns associated with chemical fertilizers, the farmers are shifting towards organic fertilizers including seaweed extract fertilizers. According to World Economic Outlook Report, the global demand for total fertilizer nutrients is estimated to grow at 1.8% and is forecast to reach 50.21 million tons by 2020. To meet such higher demand for fertilizers nutrients, seaweed extract fertilizers are being seen as a viable option. As seaweed extracts contain all the necessary growth stimulants like amino acids, antibiotics, gibberellins auxins, and other vitamins, they are being used as a replacement for chemical fertilizers. Another major driver of the seaweed extracts market is the consumption of seaweed extracts in the food industry. South-Asian countries like Japan and China have been seaweed extracts like nori and kelp for years, because of the health benefits provided by the seaweeds.

The key hindrance to the global seaweed extracts market is the complex process of extraction. Another factor that is hampering the growth of the seaweed extract market is the demand for clean-label products. Strict regulatory controls from governments and constant scrutiny of health-conscious consumers have forced stakeholders in the seaweed extract landscape to undertake multiple procedures to seek approval from authorities.

Seaweed Extracts Market Segmentation Analysis

The food industry is the biggest consumer of seaweed extracts

Seaweed extracts are used in the food industry in the preparation of jellies, icings, sauces, aspics, and confections. Seaweed extracts like agar, carrageenan, Ahnfeltia tobuchiesis have been found of great use in the food industry. Agar is used in bread-making as an additive that improves texture and slows down bread staling, which has increased its demand in confectioneries and bakery products. Recently FEFU scientists have recommended another type of red algae named Ahnfeltia tobuchiensis, as a supplement in bakery products to improve their consumer properties.

Seaweed Extracts Market Geographical Share

South-Asian countries led to the growth of the market in the Asia-Pacific

Asia-Pacific dominates the seaweed extracts market, with Japan, China, and South Korea the largest consumers of seaweed extracts. Japan holds a huge market for nori, one of the largely used extracts of red algae used in food and cosmetics, with its market value reaching USD 2 billion. While China is popular for the production and consumption of kelp, a commonly found seaweed species, accounting for nearly 68% of annual production which is 1.5 million tonnes of kelp in 2018. Countries such as India have an agricultural-based economy that increases the use of the product. It is used for vegetables, fruits, and flower crops that result in higher yield. It increases the internal resistance of plants toward pests.

North America led by the US has a substantial share in the seaweed extracts market with its use in the food industry and ongoing research and development activities in organic and herbal products. Their use in cosmetic products including, shower baths has spurred the product demand. Further, their demand in Europe has increased for food as they have high nutrition and protein content. Growing awareness about the beneficial properties of products in the medical segment has resulted in substantial growth in Middle East & Africa.

COVID-19 Impact on Seaweed Extracts Market

The outbreak of novel coronavirus and lockdowns imposed thereby had a negative impact on the global seaweed extracts market. Since, countries with low availability of seaweed had to rely on imports, which came to halt for an indefinite period of time, resulted in low volume sales. According to United Nations Industrial Development Organization, the pandemic had a severe impact on seaweed farmers as demand for seaweed in food and cosmetic industries declined significantly. China is the largest exporter of seaweed extracts globally and trade from the country has been greatly affected during early 2020. As a result, the price of Cottonii seaweed, which is used to produce carrageenan (a thickening, emulsifying, and preserving food and drink additive) fell by nearly 50%.

Seaweed Extracts Market Companies and Competitive Landscape

The global seaweed extracts market is fragmented. Key manufacturers of seaweed extract such as DuPont de Nemours, Inc., Cargill, Incorporated, and CP Kelco are trying to increase their global presence in developing countries. The companies are projected to frame certain strategies in the future to gain a competitive advantage in global seaweed extracts. For instance, in October 2020, Seaweed Energy Solutions (SES) acquired Denmark’s Seaweed Seed Supply, to cultivate 100,000 tons of seaweed. In July 2019, Univar Solutions, a global chemical distributor announced its collaboration with Scotland-based Seaweed and Co., to expand its portfolio with novel seaweed ingredients.