Algae Omega 3 Ingredient Market - Growth, Trends and Forecasts (2017 - 2022)
Algae is a diverse group of photosynthetic organisms. They are plants which range from microalgae to macro algae. Algae are emerging to be one of the most promising long-term, sustainable sources of biomass and food, feed, and other co-products. The global algae ingredient market value stands at USD XX million in 2016 and is expected to reach USD XX million by 2021 at a CAGR of 7.6% during the forecasted period 2017-2022.
In response to increasing consumer demands for clean label, natural and non-animal sourced and allergen-free ingredients for their food products, TerraVia and Univar, a distributor of food ingredients and provider of value-added services across Europe, Middle East and Africa (EMEA), have signed a distribution agreement across Europe for the AlgaVia® brand of Whole Algae Ingredients. TerraVia’s product lines include Lipid-Rich Whole Algae and Protein-Rich Whole Algae. Lipid-Rich Whole Algae is available in golden and cream varieties, which can replace eggs and dairy fats in a wide range of applications including bakery, beverages and desserts.
Sustainable source=Positive market growth
Algae are generally used in the food industry due to its wide range of different functional ingredients. Algae are rich in essential oils such as omega 3 fatty acids and PUFA which is mainly used in pharmaceutical and health food products. The major drivers for the market are the increased potential applications in food, cheaper source of raw material for industrial production, increased demand of Omega3 fatty acids, sustainable source of production and environmental concerns. The advancement in biotechnology and other feasible extraction technologies has created a good opportunity for the market. The restraining factors of the algae ingredient market are the high production, downstream processing costs and health safety issues of algae-based products. The extraction of algae requires expensive, energy intensive processing technology which increases the cost of production. Also, the products obtained from algae have a low sensory quality that is less acceptable to the end-user which is also affecting the market growth.
The ingredient type market is segmented into omega 3 fatty acids, carrageenan, alginate, agar, beta-carotene, and others which include astaxanthin chlorophyll. Omega 3 fatty acids and PUFA is growing at a faster rate due to its high nutritional facts and increased demand for health foods. Carrageenan and alginate have wide applications in the food industry. Market segmentation on the basis of application type includes food, pharmaceuticals, animal nutrition, cosmetics and others. Food consists of the largest segment due to its increased demand for functional food products. By source, the market is segmented into green algae, red algae, blue-green algae, brown algae and others.
Market segmentation according to geography includes North America, Europe, Asia-Pacific, South America and Africa. North America holds the largest share in the market followed by Europe and Asia-Pacific. However, the new emerging markets of Asia-Pacific such as China, Japan and India are growing at a faster rate.
The major players in the market are :
Archer Daniels Midland Company
Key Deliverables in the Study
A detailed analysis of the new trends in the market
Changing market dynamics in the industry such as increasing potential applications in food due to rising health care & wellness awareness among consumers
Historical, current and projected market size in terms of volume and value
In depth market segmentation on the basis of type into eicosapentanoic Acid (EPA) and docosahexanoic acid (DHA)
North America is the geographical regions exhibiting a promising growth for the market
Competitive Landscape focusing on players such Solazyme Inc, Cargill, DSM, BASF and Archer Daniels Midland Company holding about 50% of the market share
Giving an overall perspective on market performance