Seaweed Derivatives Market

Seaweed Derivatives Market Outlook (2023 to 2033)

The Market for Seaweed Derivatives can be expected to expand at a value based CAGR of 4% and show an increase in revenue from US$ 1,767.60 Million to around US$ 2,616.47 Million by 2033.

Seaweed Derivatives Market Size (2023E)	US$ 1,767.60 Million
Projected Sales of Seaweed Derivatives (2033F)	US$ 2,616.47 Million
Value CAGR (2023 to 2033)	4%
Value Share of Top 4 Countries (2022E)	62%

Seaweed Derivatives Consumption Analysis (2018 to 2022) Vs. Market Estimations (2023 to 2033)

The global seaweed derivatives market has witnessed significant growth in the historical period registering a CAGR of 4.25% in the historical period and was valued at US$ 1,767.60 Million in 2023.

Seaweed is a form of algae that grows in seas, and it has been utilized since a long time for various applications. Seaweed produces polysaccharides, usually as storage products, and as part of their cell walls. Seaweed derivatives are polysaccharides of industrial and biomedical relevance that are isolated from red, brown and green seaweed. They are utilized in a variety of formats for various applications in industries such as food & beverages, cosmetics, pharmaceuticals, fertilizers, and feed additives. The global market for seaweed derivatives is estimated to reach an approximate valuation of US$ 2,616.47 Million the forecast period.

What are the Key Trends in the Market for Seaweed Derivatives?

“Seaweed Derivatives- a Potential Bio-fertilizer in Organic Farming”

Conventional food & beverage products contain additives and preservatives, which may have an adverse impact on human health. With the number of health conscious people increasing worldwide, organic products are gaining traction. To gain the most benefits from this scenario, manufacturers have started using organic ingredients without any additives or preservatives.

The ongoing organic trend leads to an increased demand for seaweed derivatives as an additive in organic products, which propels growth of the seaweed derivatives market. Moreover, there is an increasing demand for seaweed derivatives for use in organic farming practices as a potential bio-fertilizer, which is also a positive factor for the seaweed derivatives market.

“Manufacturers Increasing their Focus on Sustainability”

Food & beverage manufacturers are becoming more concerned regarding the production of their ingredients, and strive to make the process sustainable. For a long time, suppliers of seaweed derivatives were not subject to the same amount of scrutiny as suppliers of other ingredients. However, seaweed derivatives producers now risk bad publicity and subsequent brand damage if their companies are associated with unsustainable practices, such as unsafe working conditions and wastage of resources, for instance, water.

Moreover, carrageenan producers have a strong interest in the development of a sustainable business, as they rely on human and natural resources for their own future. Consumers across the globe insist upon companies taking responsibility for the impact of their businesses on the people involved and on the environment.

• Manufacturers seaweed derivatives in Europe are increasingly becoming aware of the importance of sustainable business practices not only in their own companies, but also in their supply chains.

“Increasing Consumption of Processed Food Products Creating Demand for Seaweed Derivatives”

There is a steady increase in consumption of processed food as a result of growing pace of urbanization and increase in the number of working people. Seaweed derivatives are used as food additives in processed food products and have various functional applications. They are used as thickeners, stabilizers, emulsifiers, as well as suspending and gelling agents. The increasing demand for processed food, thus, has a positive impact on the global seaweed derivatives market.

“Growing Use of Seaweed Derivatives in the Pharmaceuticals Industry to Bolster Market Growth”

Seaweed derivative products are widely used in the pharmaceutical industry for drug delivery systems. Seaweed derivatives have many applications- from pharmaceutical drug formulations to tissue engineered scaffolds, and as a carrier/stabilizer in micro/nanoparticles systems. Moreover, the increasing demand for efficient drug delivery agents is expected to boost the demand for seaweed derivatives.

“High Demand for Bio Fertilizers to Augment Growth of Seaweed Derivatives Market”

While chemical fertilizers are used in increasing amounts to increase the productivity of crops, it damages the ecology of the soil and its fertility content. Moreover, excess use of chemical fertilizers is harmful for human health. Thus, agricultural practices are being modified, and there is an increasing preference for organic farming. Eco-friendly in nature, bio fertilizers are used to increase plant growth and development. Seaweed derivatives are gaining popularity as an efficient bio-fertilizer across the globe, as they are known to promote plant growth and improve yield as well as improve stress tolerance in many plants.

“Erratic Supply of Raw Materials Hindering Growth of Seaweed Derivatives Market”

The global seaweed derivatives market is largely dependent on a steady availability of seaweed, which used as a raw material. Clusters of major producers of commercial seaweed lie in particular geographical regions. Disappointing harvests, or any political, environmental, or socio-economic change in major countries of origin can suddenly change the global market situation, and may restrict the market from reaching its full potential.

Country-wise insights

What is the Projected Growth for the Asia Pacific Seaweed Derivatives Market?

East Asia is projected to continue its lead in the foreseeable time period. Besides East Asia, South Asia is emerging as a hub of profitable opportunities for manufacturers. The market in fast developing economies such as India and China are generating substantial revenue through sales of personal care products and ingredients owing to consistently growing demand of these products from a large working population. With the rise of clean label trend, market players in seaweed derivatives landscape have intensified their organic farming ventures in Asian regions to explore untapped areas of application.

Category-wise insights

What is the Segmental Breakdown of the Seaweed Derivatives Market?

By source, the global seaweed derivatives market is segmented as red seaweed, brown seaweed, and green seaweed. By form, the global seaweed derivatives market is segmented into liquid, powder, and flakes. The powder form of seaweed is widely used, owing to the ease in transport and handling, as well as storage. By end use, the global seaweed derivatives market is segmented into food & beverages, agricultural products, animal feed additives, cosmetics & personal care, pharmaceuticals. Seaweed derivatives are used widely as food additives for its various functional properties.

Where is the Maximum Utilization in the End Use Segment for the Seaweed Derivatives Market in the Forecast Duration?

The food & beverage industry has been utilizing seaweed derivatives in various forms for multiple applications. Seaweed derivatives are used as thickeners, emulsifiers, suspending agents, stabilizers, and gelling agents. With increasing demand for natural food additives, the demand for seaweed derivatives from the food industry is expected to increase over the forecast period.

Competitive Dashboard

Some of the prominent players in the global seaweed derivatives landscape that are covered in this study include, but are not limited to, Gelymar S.A., ALGAIA, KIMICA Corporation, Irish Seaweed, Agarmex, New Zealand Manuka Group, Hispanagar, Marcel Trading Corporation, TBK Manufacturing Corporation, Sobigel, Shember, and Humates and Seaweeds Pvt. Ltd. Manufacturers are targeting scaling economies in Asia Pacific to launch their products in order to strengthen their regional presence. Market players are foraying in cosmetics & personal care industry owing to the upsurge in demand for natural ingredients. Major companies across different industries, including food & beverages, are using seaweed derivatives as a promotional tool, establishing their brand image as an ecologically responsible organization.

• In November 2017, DuPont completed the acquisition of the FMC Corporation’s health & nutrition segment, the largest manufacturer of Carrageenan in the U.S. market.
  • The acquisition of FMC’s Health and Nutrition business has significantly enhanced the portfolio of the company by expanding its offerings and giving it access to the fastest-growing pharmaceutical excipients and food ingredients markets.
• In March 2019, CP Kelco announced its plans to invest and build a new innovation center in Atlanta, Georgia, U.S. to serve global consumers. The world-class, state-of-the-art innovation center is expected to open in mid-2020.
• In October 2018, CEAMSA announced Palmer Holland as a national distributor for the United States’ health & nutrition market. Palmer Holland represents CEAMSA’s complete range of pectin, fiber, carrageenan, alginate, and locust bean gum and are specially characterized for stabilizing, gel forming, thickening, and texturizing properties.
• In June 2017, Gelymar S.A inaugurated its new head office in Santiago, Chile. This new location is based in the largest business center of the capital of Chile. Its application technology center has also been transferred to this new office, with the aim to be closer to its clients, and work with them on new product developments and applications.

Seaweed Derivatives Industry Research by Category

By Source:

• Red Seaweed
• Brown Seaweed
• Green Seaweed

By Form:

• Liquid
• Powder
• Flakes

By End Use:

• Food & Beverages
• Agricultural Products
• Animal Feed Additives
• Cosmetics & Personal Care
• Pharmaceuticals
• Others

By Region:

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

Companies Covered in Seaweed Derivatives Market

• DuPont de Nemours, Inc
• Cargill, Incorporated
• CP Kelco
• Compañía Española de Algas Marinas S.A.
• Gelymar S.A.
• W Hydrocolloids, Inc.
• ALGAIA
• KIMICA Corporation
• Arthur Branwell & Co Ltd
• Irish Seaweed /li>
• Agarmex
• New Zealand Manuka Group
• Hispanagar
• Industrias Roko, S.A.
• Marcel Trading Corporation
• TBK Manufacturing Corporation.
• Sobigel
• Iberagar
• Shemberg
• Humates and Seaweeds Pvt Ltd