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Algae-based Animal Feed Market

Market Study on Algae-based Animal Feed: In the Wake of Favorable Policy Implementation, Strengthening R&D, and Awareness, PMR Foresees Various Opportunities for Algae-based Animal Feed Producers in the Market

A Detailed Analysis of the Algae-based Animal Feed Market Based on Rising Consumption of Meat and Dairy Products, New Product Launches, and Growing Need for Sustainable Nutrition Alternatives for Holistic Animal Health

Algae-based Animal Feed Market

The global algae-based animal feed market is forecast to expand at a CAGR of 4.1% and thereby increase from a value of US$4.3 Bn in 2023, to US$5.7 Bn by the end of 2030.

Attributes

Key Insights

Algae-based Animal Feed Market Size (2023E)

US$4.3 Bn

Projected Market Value (2030F)

US$5.7 Bn

Global Market Growth Rate (CAGR 2023 to 2030)

4.1%  

Historical Market Growth Rate (CAGR 2018 to 2022)

3.5%

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Market Introduction and Definition

The demand for high-protein animal products is rising due to population growth. Animal feed made from algae offers a cost-effective and sustainable source of protein, helping to meet the world's expanding need for dairy and meat. As economies grow, there is a tendency for the middle class to become more numerous and have more purchasing power. The demand for animal products rises due to this demographic shift, which presents a chance to use algae as an alternative and sustainable feed source.

Dietary patterns frequently change due to urbanization, with an increasing preference for animal protein among them. Demand for animal feed, including alternative sources like algae-based feeds, is anticipated to increase as more people embrace diets that include increasing amounts of meat and dairy.

Growing affluence in emerging nations is changing people's eating habits. As consumers consume more meat and dairy products, sustainable and effective feed solutions are required to support livestock and aquaculture production in these locations. Customers seek animal products with improved nutritional profiles as they become more health conscious.

Because of its nutrient-rich makeup, algae-based feed has the potential to produce dairy and meat that are high in nutrients. The premium and specialty meat and dairy products market is expanding along with disposable income. By providing animals with a high-quality and sustainable source of nutrition, algae-based feed can be positioned to meet this demand.

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Market Growth Drivers

Growing Need for Algae-based Animal Nutrition to Boost Immune System

The nutrient-rich content of algae-based animal feed is well known for supplying vital proteins, lipids, vitamins, and minerals. These nutrients are essential for sustaining growth, boosting immunity, and fostering general animal health. Algae-based feed formulations are made to be extremely palatable for animals, improving nutrient uptake. This increased digestibility may benefit the general health and well-being of cattle and aquaculture animals. The special combination of bioactive chemicals and antioxidants found in algae-based feed may help to strengthen the animal's immune system.

Animals with stronger immune systems can better fend off illnesses and environmental stresses, which benefits their overall health. Reducing antibiotics in animal agriculture can be accomplished in part by feeding animals a diet rich in nutrients and well-balanced, like that made from algae-based feed. This is especially crucial because there is a global movement to reduce the amount of antibiotics given to cattle to address antibiotic resistance.

In addition, animal growth rates and reproduction can be optimized using an algae-based diet. Key physiological processes are supported by a balanced nutritional composition, which helps to maintain healthier and more productive populations of livestock and aquaculture. Research has been done on the possibility of certain ingredients contained in algae, such as fatty acids and certain bioactive chemicals, to help mitigate particular health issues in animals. This includes benefits like anti-inflammatory qualities, and the capacity to treat specific metabolic problems. Feed derived from algae may reduce the incidence of common health problems in animals. This may result in more sustainable animal production practices and cheaper veterinary expenses.

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Market Restraints

Health Issues Related with Red Meat

An increased risk of cardiovascular illnesses has been linked to red meat consumption, especially in excess. Red meat's high saturated fat and cholesterol content can aggravate illnesses, including hypertension and heart disease. Plant-based and alternative protein sources, such as animal feed made of algae, may become more popular as health-conscious consumers look for alternatives.

Studies have suggested that a high red meat intake may be associated with a higher risk of developing some cancers, including colon cancer. A preference for meat products from animal-fed alternatives and supposedly healthier diets may result from public knowledge of these links, which may affect consumer decisions.

Supply Chain Complexity Management

The generation of biomass might vary due to the sensitivity of algae cultivation to environmental factors. Variations in algae yields can cause supply chain disruptions, impacting the price and accessibility of animal feed made from algae. Various growth methodologies and algae species present logistical obstacles to the efficient and economical harvesting of algae.

Ineffective harvesting techniques raise expenses, add to delays, and compromise the supply chain's consistency. The nutritional value of algae biomass is contingent upon appropriate storage conditions, as it has a limited shelf life. Spoilage caused by inadequate storage facilities or delayed transit can lower feed quality and cause supply chain disruptions.

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Opportunities

Policy Implementation, R&D, and Mounting Awareness

Governments can encourage algae-based animal feed by offering farmers and feed manufacturers financial incentives and subsidies. This can encourage the wider use of alternative feeds and lower production costs. Algae-based feed product entry and operation into the market can be facilitated by regulatory frameworks that are supportive and clear. Creating market access, labeling, and safety regulations can expedite these procedures.

Enhanced formulations of feed based on algae can be developed through ongoing research and development. Making the feed more efficient and farmer-friendly involves enhancing digestibility, maximizing nutritional value, and addressing certain animal health issues. Innovative technologies for processing and cultivation can be researched to increase the cost-effectiveness, scalability, and efficiency of algal production. Technological advancements can reduce production costs and increase the competitiveness of algae-based feed.

Moreover, campaigns to raise awareness among farmers, feed manufacturers, and consumers should emphasize the advantages of animal feed made from algae. Through education, misconceptions can be debunked, issues can be resolved, and awareness of the benefits to animal welfare, the environment, and the quality of animal products can be raised. Algae-based feed can be positioned as a desired and practical substitute by raising awareness of its nutritional value and sustainability qualities. Marketing campaigns might highlight how feed made of algae complies with consumer demands for environmentally friendly and healthful products.

Analyst’s Viewpoint

The market for algae-based animal feed will grow significantly due to a rise in customer demand for wholesome and sustainable options. Because of its high nutritional content, quick growth, and low land requirements, algae are emerging as a promising alternative to conventional feed as environmental worries about its effects intensify. The growing knowledge of algae's advantages in improving animal health and lowering greenhouse gas emissions is expected to accelerate the market's significant expansion. Algal farming technologies are attracting investments and driving innovation in tandem with the broader sustainability trend: the transition towards plant-based meals for animals.

Algal strains are predicted to be further optimized for increased nutritional content and become an appealing option for feed formulations as biotechnology and genetic engineering progress. Particularly in the aquaculture and livestock industries, the market for algae-based animal feed is anticipated to increase rapidly due to governmental support for environmentally friendly alternatives. Expanding production and guaranteeing cost-effectiveness will be made possible by international alliances and collaborations in research and development.

Businesses using algae-based feed may find a competitive advantage as customer preferences match with ethical and sustainable practices. But to fully realize the potential of this emerging but promising sector, deliberate interventions are needed to address issues like scalability, production costs, and market education. The market for algae-based animal feed has a promising future, one that will be characterized by sustainability, innovation, and a significant influence on the direction of animal agriculture.

Supply-side Dynamics

China is the world leader in the production and cultivation of algae and is home to several significant companies like Qingdao Blue Ocean Technology Co., Ltd., and Hainan Jinyu Group. Their main focus is on growing microalgae, such as chlorella and spirulina, for use as direct feed sources and additives in animal feed. The US substantially contributes to research and development, generating high-quality algal protein for livestock and aquaculture feed. It is home to businesses like Evonik Industries AG, and Corbion NV.

The algae industries in Germany, France, and the Netherlands are flourishing, with businesses such as Algaia, and Microphyt specializing in producing various algal strains for use in animal feed. India is becoming a producer of spirulina and other algae for animal feed, serving its market, and maybe exporting due to a growing emphasis on sustainable aquaculture. Additionally, China is one of the biggest users of algae-based feed, especially for prawns and fish. Prominent aquaculture areas, such as Guangdong and Hainan, use direct feed formulations and supplements based on algae to provide better nutrition and environmental sustainability.

Norway, well-known for its salmon farming sector, uses omega-3-rich algal oil in fish feed to lessen its reliance on oil supplies from wild fish. This keeps farmed salmon's excellent nutritional value and guarantees a sustainable production chain. Growing interest is shown in feeding pigs and poultry with algae-based feed in several European nations, most notably Germany, France, and the Netherlands. Adoption is driven by rising environmental concerns as well as incentives for sustainable methods of animal agriculture.

Market Segmentation

Which Additive Types are Expected to Dominate?

The Feed Preservatives Category at the Forefront

The additive type segment is sub-segmented into feed preservatives, feed emulsifiers, feed acidifiers, feed additives, feed probiotics, feed enzymes, feed colorants, feed flavors, feed sweeteners, nutritional additives, and other feed additives. The feed preservatives segment is expected to dominate the market. Natural preservatives satisfy customer demands for clean-label products by offering an alternative to synthetic ingredients obtained from plant extracts or other natural sources and growing demand for natural preservatives due to consumer preferences for minimally processed, sustainable feed made primarily of algae.

Nonetheless, the feed emulsifiers segment of the algae-based animal feed market is expanding at the quickest rate. An emulsifier found naturally in feed, lecithin improves the dispersion of fats and facilitates improved lipid absorption and digestion. Lecithin is highly sought after in algae-based animal feed formulations to enhance lipid emulsification and promote general nutrient absorption.

What Form of the Animal Feed Spearheads in Demand?

Dry Granules Sought-after Owing to Flexibility in Feed Formulations

The form segment is bifurcated into liquid, and dry granules. The dry market segment is the largest for algae-based animal feed. The flexibility of dry forms in feed composition allows for careful blending with other dry components to achieve precise nutritional profiles. This flexibility is necessary to meet the diverse nutritional requirements of numerous animal species. Nevertheless, the market segment exhibiting the most rapid growth is liquid. Because they are simple, liquid types of algae-based feed can be sprayed, dosed, or mixed with other liquid feed ingredients in various feeding methods.

Which is the Dominant Segment by Livestock?

Poultry Continues to March Ahead in the Livestock Segment, Increasing Demand for Protein Content Drives Growth

The livestock segment is sub-segmented into ruminants, poultry, swine, aquaculture, and other livestock. Poultry represents the greatest market segment for the algae-based animal feed industry. Because algae are high in protein, they offer poultry feed an alternate, sustainable source of protein. The protein content of algae aids chickens' growth and development. On the contrary, aquaculture is the market segment characterized by the most rapid growth. An excellent source of protein for aquaculture feed, algae have a balanced amino acid profile and are high in protein. This is essential to fish and other aquatic species' growth and development.

Top Regional Markets

Growing Technological Advancements to Drive Market Growth in North America, Led by the US

Enhancing algae cultivation, optimizing growth conditions, and raising biomass yield is possible with improved and more effective photobioreactor systems. Algal strains with improved nutritional profiles can be created by genetic modification, resulting in feeds with particular qualities beneficial to animal health. The scalability of algae-based feed production is facilitated by automation in the algal growing and harvesting processes, which boosts productivity and lowers labor costs.

More efficient methods of extracting useful components from algae through advanced bioprocessing and downstream processing ensure larger yields at a lower cost. The utilization of resources is maximized, environmental impact is decreased, and integrated and closed-loop production systems supply a regulated growth medium for algae.

Asian Markets Likely to Benefit from the Rapidly Increasing Population, and Escalating Need for Protein

Population expansion by urbanization drives demand for protein-rich diets as people in many Asia Pacific countries move away from traditional diets and towards more Westernised eating patterns. There is a discernible trend towards diets with higher protein content, including increased consumption of meat and dairy products as income levels rise, and lifestyles change.

Because the middle class in Asia Pacific countries is growing and has more spending power, there is a greater demand for animal products, which creates a need for sustainable and effective sources of animal feed. Growing consumer knowledge of the benefits of eating a nutritious, well-balanced diet pushes consumers to look for protein sources with added health benefits. These health-conscious tastes align with the nutrient-rich qualities of algae-based animal feed.

Competitive Intelligence and Business Strategy

Prominent organizations, including Archer Daniels Midland Company and Corbin (Terra Via Holdings). are at the vanguard of this sector; ADM emphasizes the benefits of algae-based feed's sustainability over conventional feed sources like maize and soy. This entails less deforestation, greenhouse gas emissions, and less water and land usage. They use this message to appeal to food producers and consumers who care about the environment, enhancing their brand's reputation as an ethical and progressive business.

ADM is aware of the necessity of teamwork and experience in a developing industry such as algae-based feed. They actively collaborate to speed up innovation and development with startups, academic institutions, and other business actors. Strategic acquisitions, such as Verdesca, a top provider of microalgae technology, enable them to obtain the people and equipment needed to increase output.

Corbin prioritizes forming direct alliances with sizable farms that use aquaculture and poultry rather than conventional distribution methods. As a result, they can build enduring connections and customize their feed solutions to meet the unique requirements of each farm. By avoiding intermediaries, they can provide competitive prices and guarantee that their feed reaches the final customer effectively.

Corbin makes significant investments in patented technology to cultivate and process algae efficiently. This incorporates sophisticated photobioreactors, improved harvesting methods, and data analysis driven by AI to maximize output. They can keep a competitive edge and set themselves apart from other market participants because they emphasize internal R&D and innovation.

Key Recent Developments

New Product Launch

A US-based start-up called Triton Algae Innovations Ltd. began using freshwater algae species in March 2021. The company launched Plant-Based Tuna, its first retail product made of plant-based algae ingredients, to show consumers the promise of this undersea crop for alternative proteins. Triton has successfully generated plant proteins using a scalable, economical heterotrophic technique using the single-celled algae species Chlamydomonas reinhardtii.

Market Impact: Triton's creative usage of algae may encourage more people to consider this underappreciated resource as a potential substitute for conventional protein sources. This might draw additional funding and investigation into the technology and production of algae, which could result in breakthroughs in the area. The market for alternative proteins, currently dominated by plant-based options like soy and lentils, may become more diverse and open to new players due to the success of Triton's algae-based goods. This could give customers additional options and accommodate various tastes.

(Source: GFI APAC)

The US-based animal feed, meat, brewing, and distilling company Alltech Inc. teamed up with Agolin SA in May 2023 to provide environmentally friendly nutrition solutions that will help cattle productivity and sustainability objectives. The partnership between Agolin and Alltech will benefit farmers and ranchers by assisting them in meeting their sustainability objectives and enhancing the productivity and profitability of the cattle in their herds and supply chains. Agolin S.A. is a Swiss firm that creates and produces animal nutritional solutions and feed additives based on algae.

Market Impact: Farmers raising cattle may use these sustainable feed additives more frequently if Agolin, with its experience in algae-based solutions, and Alltech, with its broad reach and reputation in animal nutrition, are combined. Integrating Agolin and Alltech's technology can enhance cattle performance regarding meat and milk production, feed efficiency, and animal welfare. Farmers and ranchers may benefit financially from this in the long run.

(Source: Alltech)

Algae-based Animal Feed Market Report Scope

Attribute

Details

Forecast Period

2023 to 2030

Historical Data Available for

2018 to 2022

Market Analysis

US$ Million for Value

Key Regions Covered

  • North America
  • Latin America
  • Europe
  • South Asia & Pacific
  • East Asia
  • The Middle East & Africa  

Key Countries Covered

  • United States
  • Canada
  • Germany
  • United Kingdom
  • France
  • Italy
  • Spain
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • Thailand
  • Malaysia
  • Indonesia
  • Australia
  • New Zealand
  • GCC Countries
  • South Africa  

Key Market Segments Covered

  • Additive Type
  • Form
  • Livestock
  • Region

Key Companies Profiled

  • Cargill Inc.
  • Archer Daniels Midland Company
  • DIC Corporation
  • Koninklijke DSM NV.
  • Roquette Freres
  • Sun Chlorella
  • Cellana LLC.
  • Fuji Chemical Industries Co. Ltd.
  • Algama Foods
  • Corbin (Terra Via Holdings)
  • HOWND
  • Yunnan Green-A-Bio-engineering Co Ltd.

Report Coverage

  • Market Forecast
  • Company Share Analysis
  • Competition Intelligence
  • DROT Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives  

Customization & Pricing

Available upon request

Algae-based Animal Feed Market Research Segmentation

By Additive Type:

  • Feed Preservatives
  • Feed Emulsifiers
  • Feed Acidifiers
  • Feed Additives
  • Feed Probiotics
  • Feed Enzyme
  • Feed Colorants
  • Feed Flavors
  • Feed Sweeteners
  • Nutritional Additives
  • Other Feed Additives

By Form:

  • Liquid
  • Dry
  • Granules

By Livestock:

  • Ruminants
  • Poultry
  • Swine
  • Aquaculture
  • Other Livestock

By Region:

  • North America
  • Europe
  • East Asia
  • South Asia & Oceania
  • Latin America
  • Middle East & Africa

 

- Companies Covered in This Report -

  • Cargill Inc.
  • Archer Daniels Midland Company
  • DIC Corporation
  • Koninklijke DSM NV.
  • Roquette Freres
  • Sun Chlorella
  • Cellana LLC.
  • Fuji Chemical Industries Co. Ltd.
  • Algama Foods
  • Corbin (Terra Via Holdings)
  • HOWND
  • Yunnan Green-A-Bio-engineering Co Ltd.

- Frequently Asked Questions -

The market is anticipated to grow at a CAGR of 4.1% during the projected period.

The global algae-based animal feed market size was valued at US$4.3 billion in 2023.

The US held the largest market share in 2023.

Some of the prominent players in the market are Cargill Inc., Archer Daniels Midland Company, DIC Corporation, Koninklijke DSM NV., Roquette Freres, Sun Chlorella, Cellana LLC., Fuji Chemical Industries Co. Ltd., Algama Foods, Corbin (Terra Via Holdings), HOWND, and Yunnan Green-A-Bio-engineering Co Ltd.

The feed emulsifiers segment is expected to grow at the fastest CAGR during the forecast period.

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