Commercial Seaweed Market Size, By Product (Brown, Red, Green), By Form (Dry, Wet), By End User (Animal Feed, Food, Biofuels, Pharma & Personal Care), Industry Analysis Report, Regional Outlook, Covid-19 Impact Analysis, Price Trends, Competitive Landscape, Application Growth Potential & Forecast, 2021 - 2027
The commercial seaweed market is anticipated to see considerable growth by 2027 owing to increasing product demand across various application avenues, such as food, biofuels, animal feed, pharmaceuticals, and personal care, among others.
Seaweed is obtained from either naturally growing (wild) or cultivated (farmed) seaweed. Based on its physical attributes and pigmentation, it is categorized into brown, red, and green seaweed. For many years, seaweed has been a key ingredient in the traditional cuisine of Japan, China, and other countries in the Southeast Asia. Recently, the demand for seaweed has expanded across various industry verticals on account of its nutritional benefits, thereby fueling industry demand.
Moreover, industry players have been actively undertaking several R&D activities to enhance product outlook, which has been favorable for business expansion. For instance, in July 2021, AltaSea at the Port of Los Angeles, a California-based non-profit organization, inked a partnership agreement with the University of Southern California to build an extensive seaweed lab. The 6,000-square-foot lab would house ground-breaking research on regenerative aquaculture as well as the commercial implementation of new aquafarming technology.
Additionally, industry players are strategically expanding their supply and logistics network and diversifying their product line to capitalize on favorable market trends. To cite an instance, in in July 2021, CP Kelco, a major food ingredient provider, joined forces with Azelis, a specialty chemicals distributor, to aid the expansion of its distribution channel. This news came after the company, in June 2021, announced the establishment of its new global innovation center in Georgia to facilitate innovation and technological advancements in efforts to upscale its commercial seaweed business. Thus, strategic collaborations and research activities by prominent industry participants has played a vital role in fostering market growth.
The commercial seaweed market has been bifurcated in terms of product, form, end-user, and region. In terms of end-user, the market has further been segregated into food, animal feed, biofuels , pharma, & personal care, and others. The biofuels sub-segment is expected to expand at a CAGR of over 10% through the forecast period due to surging preference for environment-friendly energy sources.
Biofuels are produced by cultivating large amounts of seaweed in the ocean and then fermenting the biomass to produce methane gas for use as fuel. When compared to fossil fuels, this method of producing biofuel from seaweed produces less pollution, which is anticipated to promote segmental adoption in the coming years. Moreover, the growing need to curb climate change, coupled with supportive government policies and initiatives, would spur biofuel production, which is set to boost segmental growth in the future.
From the regional point of view, the Latin America commercial seaweed market is expected to grow at a CAGR of around 6% over the assessment timeframe. The LATAM region mostly imports seaweed from China and other Asian countries for numerous industrial applications. However, urbanization, increasing economic conditions, and changing consumer lifestyles observed in this region would boost product demand in the food, pharmaceutical, and personal care sectors, which is slated to bolster market penetration across LATAM through the study timeframe.
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