High-Growth Forecast for Commercial Seaweed in Food Additives

Author : Nishant Sherkhane | Published On : 10 May 2024

Commercial Seaweed Market is a global multi-billion dollar market that includes edible and non-edible seaweeds cultivated and harvested across the globe. Seaweed is cultivated and harvested for its nutritional properties as a food additive in cuisines across Asia. It is also used as a gelling agent and thickening agent in food, pharmaceutical, industrial and personal care products due to its texturing capabilities. Seaweeds help improve soil conditions and prevent coastal erosion promoting sustainable aquaculture farming.

The Global Commercial Seaweed Market is estimated to be valued at US$ 12.67 Bn in 2024 and is expected to exhibit a CAGR of 2.5% over the forecast period 2024 to 2031.

Key Takeaways

Key players operating in the Commercial Seaweed Market Size are E.I. Du Pont de Nemours and Company, Travena Organic Solutions Ltd., Cargill Inc., Roullier Group, Leili Group, Biostadt India Limited, Compo GmbH & Co. KG, Acadian Seaplants Limited, Gelymar SA, BrandT Consolidated, Inc., Seasol International Pty. Ltd., CP Kelco., West Coast Marine Bio-Processing Corp., Chase Organics GB Limited, Indigrow Ltd., Acadian Seaplants, Algaia SA, and The Seaweed Company. The increasing demand for seaweed as a food additive across culinary traditions in Asia and other parts of the world is expected to drive growth of the commercial seaweed market over the forecast period. Technological advancements in seaweed cultivation techniques such as integrated multi-trophic aquaculture promises to further boost production volumes to meet the rising demand.

Market Trends

Demand for commercially farmed seaweed is expected to outstrip supply owing to the various nutritional and texturing benefits of seaweed. Seaweed production through intensive aquaculture farming is emerging as a viable solution to bridge this demand-supply gap. Sustainable aquaculture technologies and practices that promote circular bioeconomy are fast gaining traction. Development of value-added seaweed products tailored for specific industries such as pharmaceuticals, personal care and nutrition are expanding market opportunities.

Market Opportunities

The increasing popularity of vegan, vegetarian, organic and clean label foods presents a massive opportunity for seaweed producers to provide seaweed as a versatile plant-based ingredient. Emerging economies in Asia, South America and Africa with long coastlines are investing in seaweed cultivation to boost local agri-business and employment. This is expected to open new regional commercial seaweed markets globally over the forecast period.

Impact of COVID-19 on Commercial Seaweed Market
The outbreak of COVID-19 pandemic in early 2020 had a negative impact on the commercial seaweed market globally. The imposition of lockdowns and restrictions on seaweed cultivation, harvesting, processing and trade activities hampered the seaweed market growth significantly during the initial months of the pandemic. However, with easing of lockdowns and restarting of operations from mid-2020, the seaweed market activities gradually resumed. Despite challenges, the pandemic also led to rise in demand for seaweed-based products like carrageenan and agar which are used in various medical and healthcare applications like COVID-19 testing kits, vaccines, masks etc. This boosted the seaweed market growth and offset the declines during the early lockdown period. Going forward, the seaweed market is expected to regain momentum in post-COVID scenario supported by increased focus on immunity boosting and nutritious foods along with use of bio-based alternatives like carrageenan.

Geographical regions with high Commercial Seaweed Market concentration
Asia Pacific region dominates the global commercial seaweed market in terms of value, accounting for around 60% share. Countries like China, Philippines, Indonesia are the major producers and consumers of seaweeds in Asia. Abundant availability of seaweed resources and developed seaweed farming industry are the key factors for high market concentration in Asia Pacific. Within Asia, China is the global leader in seaweed production, consumption as well as seaweed-based products trade.

Fastest growing region in the Commercial Seaweed Market
Europe region is expected to witness the fastest growth in the global commercial seaweed market during the forecast period. Presence of developed economies with high health awareness, stringent regulations favouring bio-based products and growing adoption of vegan foods are driving the seaweed market growth in Europe. Countries like Ireland, Norway, France are emerging as major seaweed cultivators in recent years. Increasing investments in seaweed farming projects and expanding applications of seaweeds in industries like food, pharmaceuticals, personal care are projected to aid Europe’s position as the fastest growing regional market over the coming years.

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