The global algae extracts market size is expected to witness substantial growth from 2022 to 2030. Increasing focus on wellness and weight management is driving the demand for protein-rich food products and nutritional drinks among the younger population. The rising consumption of meat as a key source of protein has encouraged animal feed manufacturers to include these extracts in their products.
In May 2022, the Olmix Animal Care division solidified its position in the Moroccan feed industry with the launch of Algimum?, one of its latest algae-based innovations that relies on a combination of biologically active macroalgae extracts.
The algae extracts industry is categorized in terms of source, application, and region.
Based on source, the industry is fragmented into red algae, green algae, brown algae, and others. In 2021, brown algae extract volume reached 179 kilo tons and is projected to exhibit a CAGR of over 4% from 2022 to 2030. Brown seaweed is popularly consumed by individuals who suffer from heart disease, stress, arthritis, high cholesterol, weight loss, or even cancer.
These extracts contain an antioxidant called fucoxanthin, which is considered to help control blood sugar and prevent diabetes. Consumers are also dramatically shifting to natural cosmetic products owing to the carcinogenic risks associated with chemical formulations.
With respect to application, the algae extracts market is segregated into food and beverages, personal care, pharmaceuticals and nutraceuticals, and animal feed. The animal feed segment is estimated to witness more than 5.9% CAGR through 2030 owing to the increasing consumption of meat worldwide.
The production rate of industrial livestock is expected to skyrocket as a result of growing health-consciousness among consumers. Algae extracts are a prominent source of protein for animal feed with several health benefits for animals including improved fertility, better weight management & immune response, lustrous coat, and healthier skin.
These compounds are being added to poultry feed products as it works as a significant source of nutrient with additional health benefits. Feeding microalgae to chickens can increase their body weight and feed efficiency. Replacing of vegetable proteins in animal feed with protein-rich microalgae can also help lower the demand placed on agriculture for human consumption.
In the regional landscape, the Latin America algae extracts market is projected to witness more than 5.9% CAGR between 2022 and 2030. Increasing consumer inclination toward health and wellness products will propel nutraceuticals business in the region, which will, in turn, create a favourable business scenario for algae extract manufacturers. A rapid influx of international investments to boost product development in developing nations such as Mexico, and Brazil.