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Algae Extracts Market Set for Steady Growth to USD 10.3 Billion by 2031, Led by Asia Pacific's Over 50% Global Market Share | DataM Intelligence
Algae Extracts Market
Market growth is driven by increasing applications of algae extracts in food, pharmaceuticals, cosmetics, and nutraceuticals, along with rising consumer preference for natural and sustainable ingredients. Additionally, advancements in extraction technologies and expanding research on algae-derived bioactive compounds are further supporting market expansion.
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United States: Key Industry Developments
✅ September 2025: TruSkin launched a new "Collagen Peptide Serum" featuring Green Algae Extract as a key antioxidant for skin elasticity and barrier support, targeting the rising demand in skincare applications.
✅ February 2025: REOME announced a pro-collagen bio-ferment with micro-algae extract for firming skin treatments, set for launch across the US and other regions to enhance anti-aging formulations.
✅ January 2025: LANEIGE introduced the "Moisture Plus Water Burst" range incorporating Marine Algae Extract to promote skin health and soothe irritation in hypoallergenic products.
Asia Pacific / Japan: Key Industry Developments
✅ October 2025: Fuji Oil Japan launched algae-based food ingredients for fortified snacks and beverages, providing plant-based protein and micronutrients to support sustainable nutrition initiatives.
✅ September 2025: Mitsui & Co. developed microalgae extracts rich in antioxidants for nutraceutical and cosmetic uses, targeting health-conscious consumers in Japan and broader Asia Pacific markets.
✅ August 2025: Asia Pacific algae products saw strong growth from cultivation tech advances in Japan and India, boosting supply for food, pharma, and biofuels amid urban demand.
Key Merges and Acquisitions(2025):
✅ A leading producer expanded its North American footprint in the algae extracts sector through strategic acquisitions of specialized cultivation facilities, enhancing extraction capabilities and sustainable sourcing.
✅ European firms bolstered their market positions with investments in algae processing plants and acquisitions of biotech innovators, focusing on high-purity phycocyanin and astaxanthin production.
✅ Major players collaborated on advanced bioreactor technologies for algae extracts, targeting nutraceutical and cosmetic applications to meet rising global demand for natural ingredients.
Market Segmentation Analysis:
-By Type: Microalgae vs Macroalgae
Microalgae lead with 52% market share as of 2025, valued for high yields of bioactive compounds like astaxanthin and spirulina used in nutraceuticals and food fortification.
Macroalgae hold 48% share, driven by abundant polysaccharides like alginates for industrial thickening and stabilization in personal care.
-By Source: Brown Algae Dominates Amid Bioactive Demand
Brown algae commands 41.3-45% market share, prized for fucoidans and alginates offering anti-inflammatory and gelling properties across pharma and food sectors.
Red algae follows at 28%, rich in phycobiliproteins for natural pigments in cosmetics; green algae at 20%, key for chlorophyll in animal feed; others at 7%.
-By Form: Liquid Edges Solid for Versatility
Liquid form holds 51% share, preferred for easy integration into beverages and pharma formulations due to superior solubility.
Solid (powder/dry) takes 49%, favored in nutraceuticals and feed for longer shelf life and concentrated dosing.
-By Application: Food & Beverages Leads Growth
Food and Beverages capture 35% share, fueled by clean-label demand for natural colors and omega-3 enhancers.
Pharmaceuticals & Nutraceuticals follow at 25%, leveraging antioxidants for health supplements; Personal Care at 20% for skincare actives; Animal Feed at 15% for nutrition boosts; others at 5%.
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Why is the Algae Extracts Market Growing?
The rapid expansion of the Algae Extracts Market in 2025 is fueled by several critical factors.
-Rising Demand for Natural Ingredients: Consumer preference for plant-based, nutrient-rich additives in food, beverages, cosmetics, and pharmaceuticals drives adoption, especially for omega fatty acids, proteins, and bioactive compounds from brown algae.
-Technological Advances in Cultivation: Improvements in scalable algae farming and extraction methods enhance production efficiency and cost-effectiveness, supporting broader commercialization.
-Sustainability and Wellness Trends: Growing focus on eco-friendly, clean-label products aligns with algae's renewable sourcing, boosting use in functional foods and skincare amid health-conscious markets in Asia-Pacific regions like China and India.
-Regional Market Expansion: Strong growth in East Asia and South Asia, fueled by investments in green technologies and expanding industries, accelerates global demand.
Regional Insights:
-Asia Pacific commands the largest share of the global algae extracts market, accounting for over 50% in recent assessments, fueled by abundant production in countries like China and India, alongside surging demand in food, cosmetics, and pharmaceuticals sectors.
-North America follows as the second-largest region, holding approximately 23% market share, driven by advanced applications in nutraceuticals, sustainable ingredients, and robust R&D investments in the U.S. and Canada.
-Europe secures the third position with around 18% share, supported by stringent regulations favoring natural extracts, strong cosmetics and personal care industries in Western Europe, and growing adoption in the UK and Germany.
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Key Players:
Cyanotech Corporation | Algenol | Far East Microalgae Industries, Co., Ltd. | Pond Tech | Seagrass Tech Private Limited | E.I.D. - Parry (India) Limited | Firglas | Olmix | Technaflora Plant Products Ltd | Phycom
Key Highlights (Top 5 Key Players) for Algae Extracts Market:
-Cyanotech Corporation produces high-quality microalgae products like astaxanthin and spirulina extracts for health supplements, nutraceuticals, and functional foods.
-Algenol develops algae-based biotechnology for biofuel production and extracts high-value compounds from microalgae for industrial and pharmaceutical applications.
-Far East Microalgae Industries, Co., Ltd. cultivates and processes microalgae to supply extracts such as spirulina and chlorella for food, feed, and cosmetic uses.
-E.I.D. - Parry (India) Limited extracts algae-derived bioactive compounds for nutraceuticals, animal feed, and sustainable agricultural products in the Asia Pacific region.
-Olmix specializes in algae extracts for animal nutrition, plant biostimulants, and human health applications, focusing on bioactive polysaccharides and phycocyanin.
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