The global algae protein market is expected to grow at a substantial rate through 2028 owing to increasing adoption in nutraceuticals and food & beverage products due to its high nutritional value.
Algae is gaining much traction as a source of alternative protein primarily on account of the increasing presence of companies in the sector. In recent years, both established and newer entrants in the market have been focusing on product development in order to extend their consumer reach, thereby enhancing overall market dynamics.
In March 2022, Nestl?(C), the Swiss food and beverage giant, expanded its plant-based offerings with a new agreement with Corbion, the Dutch chemicals firm. The two intended to collaborate on the development of microalgae-based components that could be added to animal-free foods to increase nutrition, taste, and product sustainability.
The algae protein market has been categorized in terms of source, dosage form, application, and region. Based on source, the industry has been segmented into seaweed and microalgae.
Under seaweed, the market has been further divided into brown algae, green algae, and red algae. The brown algae source segment is slated to expand at a sturdy CAGR of around 5.8% by 2028. The green algae segment is anticipated to grow at approximately 6.7% CAGR over the review timeline. Moreover, the red seaweed algae segment is speculated to observe an optimistic CAGR of over 5% through the study timeframe.
The microalgae segment is expected to proliferate at above 6.5% CAGR over the forecast years. Under microalgae, the market has been further bifurcated into green algae (chlorella), blue-green algae (spirulina), and others. The others segment, which includes Bacillariophyceae, Chlorophyceae, Dunaliella Salina, and Aphanizomenon flos-aquae, is slated to experience robust growth at a CAGR of above 5.9% through the projected period.
With respect to dosage form, the global algae protein market has been segmented into liquid, capsules, powder, and others. The others segment is speculated to register a sturdy CAGR of around 4.3% through 2028. Other dosage forms of algae protein include paste and tablets.
On the basis of application, the global algae protein industry has been bifurcated into food & beverage, dietary supplements, animal feed, cosmetics, and others. Among these, the animal feed segment is set to develop at approximately 6% CAGR over the review timeframe. The others segment, which involves aquaculture and pet food, is anticipated to expand at a CAGR of above 5% through 2028.
Under food & beverage, the market has been divided into bakery & confectionary, protein drink, breakfast cereals, snacks, and others. The bakery & confectionary segment is poised to grow at around 6.5% CAGR over the study timespan. The breakfast cereals segment is projected to observe significant expansion at around 6.3% CAGR over the review timeline. The snacks segment is primed to expand substantially at a CAGR of more than 6.2% by 2028.
The others food & beverage segment is estimated to showcase strong growth at roughly 3.5% CAGR through the analysis period. Other applications of algae protein in the food & beverage sector comprises dairy products and sauces & dressings.
From the regional standpoint, the Latin America algae protein industry is set to exhibit a positive CAGR of more than 6.5% through 2028. Furthermore, the Middle East & Africa algae protein market is expected to expand at a robust CAGR of nearly 5% between 2022 and 2028.