Commercial seaweed refers to varieties of macroalgae or aquatic plants that are farmed and harvested for commercial purposes. They are a source of nutrition and versatile biomaterials with wide applications in food, pharmaceuticals, agriculture, and many other industries. The rising awareness about the health benefits of seaweed and its commercial role as a natural hydrocolloid is stimulating the demand for commercial seaweed. It is used as food additives, thickeners and stabilizers in the food processing industry. In the pharmaceutical industry, it is employed for extracts with medicinal properties. It also finds uses as a fertilizer and feed in agriculture.
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. These players are focusing on R&D activities to develop new product formulations and applications of seaweed.
The commercial seaweed market offers opportunities for players in the form of rising adoption of seaweed as food ingredients, supplements and fertilizers. The increasing global population and demand for organic and natural food products is driving its importance as a food additive. Furthermore, seaweed extracts find widespread application as thickening and gelling agents in various industries like food processing, textiles, pharmaceuticals, etc.
The major seaweed producing regions like Asia Pacific and Europe are poised to witness high growth in commercial seaweed cultivation and processing. Emerging economies like India and China offer lucrative prospects for market expansion owing to the growing domestic demand for seaweed products. Players are investing in production facilities and tie-ups with local farmers to cash in on opportunities in developing Asian and Latin American markets.
Market Drivers
The wide range of health benefits associated with seaweed such as high fiber content, vitamin, mineral and protein richness is a major market driver. The general awareness about seaweed nutrition and its role in overall well-being has been rising significantly of late, boosting commercial cultivation. Furthermore, increased demand for natural, organic and plant-based ingredients from food processing and other industries is also propelling the seaweed market growth.
Market Restraints
High dependence on weather conditions for seaweed cultivation and uncertainties associated with climate change pose a challenge for stable supply. Furthermore, limited availability of technology and infrastructure in developing markets acts as a restraint. Lack of standardized cultivation and harvesting practices also affect the quality and consistency of seaweed production.
Segment Analysis
The commercial seaweed market is dominated by the red seaweed sub segment. Red seaweed is majorly utilized in food applications such as snacks and thickeners. It has high demand due to nutritional properties and texturizing abilities. Within red seaweed, gracilaria and gigartina account for over 50% of market share. The demand for gracilaria is high owing to multi-purpose usage in cosmetics, pharmaceuticals and food products.
Global Analysis
Asia Pacific is the largest and fastest growing region in the commercial seaweed market. Countries like China, South Korea and Japan are major producers and consumers of seaweed. Asia Pacific accounts for over 60% of global seaweed production owing to suitable coastal climatic conditions and high cultivation. Europe is another prominent region due to increasing use of seaweed extracts in food applications and personal care products. Countries like Ireland, Norway and France are leading seaweed cultivators in Europe. North America is also exhibiting steady growth due to growing health awareness and expanding application scope in the region.
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