Commercial Seaweed Market Size By Product (Red, Green, Brown), By Form (Wet, Dry), By End User (Food, Animal Feed, Pharma & Personal Care, Biofuels), Industry Analysis Report, Regional Outlook (U.S., Canada, Germany, UK, France, Italy, Norway, Ireland, China, India, Japan, Indonesia, South Korea, Thailand, Brazil, Chile, South Africa, Saudi Arabia, Oman, UAE), Growth Potential, Price Trends, Competitive Market Share & Forecast, 2019 – 2025
Latest Update: Sep 2019 | Published Date: Feb 2018 | Report ID: GMI1658 | Authors: Kiran Pulidindi, Tejas Rajpathak Report Format: PDF
Commercial Seaweed Market Size was estimated over USD 55 billion in 2018 and the market will grow by a CAGR more than 7.5% up to 2025.
U.S. Commercial Seaweed Market Size, By End-Use, 2014 – 2025 (USD Million)
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Commercial seaweed market will be facilitated by rising demand from food industry. The consumption of seaweeds initiated long time ago during fourth century in Japan and sixth century in China. Nowadays, they are becoming more popular among consumers owing to benefits such as nutrition rich content, supporting ability to thyroid function and good source of vitamins, antioxidants & minerals. Moreover, they promote weight loss and reduce the risk of heart disease and diabetes. Current worldwide population is around 7.5 billion and is expected to cross 9 billion at the end of 2050. Such trends along with easy availability and rising spending tendency of people will augment the market growth. Consumers in developed countries are becoming health conscious which will attract the product demand in upcoming years. The United Nations has been showing much interest in increasing the seaweed production as it promotes the global food security. Carrageenan farming has an economic potential with minimal capital investment, decent faming technique and short production cycle. A biologist of Wageningen University has presented the findings on reducing the oceans acidification by promoting the sea lettuce growth. As per the biologist study, the lettuce reduces the water acidity as it grows and biologist team also found that a marine garden covering around 180,000 square kilometers could provide enough protein for the global population. The best part in this kind of cultivation is that, the large-scale cultivation can occur in the middle of the ocean, where agricultural production does not affect coastal systems. The above mentioned factors and trends will support the overall market size in future.
Favorable trends associated with global pharmaceutical industry will propel the macroalgae market growth within the forecast time period. The product is used as a smooth laxative and for the production of stable fibers employed in wound dressings. In addition, it is used as a tablet disintegrant and controlled release of medicinal drugs and other chemicals. R&D programs coupled with technological progressions are going to facilitate the growth of pharmaceutical sector in future. Moreover, increasing government expenditure will boost the sector’s growth. These aforementioned trends will positively influence the growth of commercial seaweed industry by 2025.
The market growth may be affected by constantly fluctuating prices of product. The price volatility is attributable to demand-supply imbalance. The supply is not sufficient to meet the high demand thereby leading to rapid price fluctuations. Various factors related to environment, production and distribution are fueling the price volatility and it may slowdown the macroalgae market growth in upcoming years.
Commercial Seaweed Market, By Product
Based on product, the market is segmented into red seaweed, green seaweed and brown seaweed. Red seaweed will grow at a CAGR over 7% during the forecast time span. These seaweeds are small in length, ranging from few centimeters to about a meter. They are primarily used as a food and sources of hydrocolloids such as agar and carrageenan. Brown seaweed registered volume was over 5 thousand tons in 2018 and these products have long length, they are used as a food and raw materials for the extraction of alginates.
Commercial Seaweed Market, By Form
Based on form, the market is divided into wet and dry. Wet seaweed segment recorded around USD 9.5 billion in 2018. Countries such as China, South Korea, Chile, Norway, Japan, Madagascar and other southeast Asian countries are mostly consume the wet seaweeds in the form of salads, curd soups, seasoned snacks an also with rice dishes. Dry seaweed will grow at a CAGR over 7% at the end of forecast period. These products majorly comprises seaweed chips, flakes, powder, etc and are generally mixed with pesto, mustard, oil, sea salt and other food products.
Commercial Seaweed Market, By End-Use
Based on end-use, the market is segmented into food, animal feed, personal care & pharma, biofuels and others. Animal feed captured close to 4% volume share in 2018 and exhibits positive outlook in upcoming years. The product is used as an additive in animal feed especially in the coastal regions. It contains large amount of necessary vitamins and various minerals such as potassium, phosphorous, calcium, sodium, magnesium, chlorine & sulphur. Biofuels segment will grow at a CAGR over 6% by 2025. Seaweed biomass is converted to biofuels by various processes such as fermentation, thermal treatment and anaerobic digestion. Rising global energy requirements will facilitate the demand of biofuels as they are environment-friendly and create less pollution as compared to fossil fuels. Growing need to mitigate climate change in conjunction with supportive government policies & initiatives will trigger the biofuel production thereby bolstering the market growth in upcoming years.
Commercial Seaweed Market, By Region
Asia Pacific will dominate the market within the forecast period. China, South Korea and Japan are the leading consumers in this region. Positive trends associated with food industry triggered by huge population is bound to propel the market growth in upcoming years. Increasing seaweed cultivation activities backed by supportive government policies will boost the seaweed production by 2025. North America will grow at a CAGR over 6% at the end of forecast period owing to rising demand from pharmaceutical industry. According to The European Federation of Pharmaceutical Industries and Associations (EFPIA), North America accounted for nearly half of the global pharmaceutical market in 2017. Huge investments and continuous research and development activities will assist in the growth of regional pharmaceutical industry. This in turn will spur the market growth between 2019 to 2025.
Competitive Market Share
Some of the key producers in commercial seaweed market are Seasol International, CP Kelco, Yan Cheng Hairui Food Co., Ltd., Mara Seaweed, BIOSTADT INDIA LIMITED, Algea AS, Qingdao Seawin Biotech Group Co., Ltd., FMC BioPolymer AS, Indigrow Ltd., Chase Organics GB Ltd., Arcadian Seaplants Ltd., Pacific Harvest, Aquatic Chemicals and Marcel Carrageenan. These companies are trying to gain competitive advantage with the use of various strategies such as expansion of production capacity, mergers & acquisitions and collaboration with distribution centers.
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Nutritional and health benefits of seaweed will aid in catapulting its demand among food industry in future. Additionally, rising need from pharmaceutical, cosmetics, animal feed and biofuel sectors will create positive outlook for the market. However, market growth may be hindered by price fluctuations associated with commercial seaweed.
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