Seaweed Cultivation Market

Seaweed Cultivation Market Size, Growth (2023-2028)

The Global Seaweed Cultivation Market size was at US$ 16.7 billion in 2022, and it is estimated to reach a valuation of US$ 30.2 billion by the end of 2028 with an annual expansion rate (CAGR) of 12.6% between 2023 and 2028.

Market Overview:

Seaweed is a plant-like organism, also known as marine micro seaweed. They generally stick to rocks or other hard substrates in coastal areas. Seaweeds are a species of macroscopic, multicellular seaweed found in seas and oceans around the world. Hydrocolloid and gelatinous substances such as alginate, agar, and carrageenan are derived from seaweed. The classification of seaweed is based on several properties, such as the chemical properties of photosynthetic storage products, the composition of the photosynthetic membrane, pigmentation and other morphological characteristics. Since then, we have promoted the cultivation of seaweed by increasing investment in research and development activities related to seaweed and focusing on the whole world. Currently, seaweed represent more than 90% of the world market demand. Seaweed is beneficial for health in fighting diseases and ailments. Seaweed is used in food, pharmaceuticals, cosmetics, and organic fertilizers and food additives. Red seaweed is a source of carrageenan hydrocolloids and are widely used in the food industry due to their enhanced gelling and thickening properties.

Recent Developments in Seaweed Cultivation Industry:

• In December 2020, Qingdao Xiyun Biotech Group Co., Ltd. (China) expanded a new industrial zone to start in Qingdao High-Tech Industrial Development Zone.
• In January 2019, Gelymar announced a new long-term commercial and development agreement with Algaia, a strategic partner, a strong global player in the field of seaweed and special seaweed extracts.
• In January 2019, Algaia launched a new seaweed-based texturing solution called VegAlg designed to contribute to shape and structure and add juiciness to veggie burgers. The launch of this new product will strengthen market position in the food industry.

Seaweed Cultivation Market Growth:

The demand for seaweed cultivation is expected to increase as the consumption of seaweed for medical use, food extracts and biorefining increases.

REPORT COVERAGE:

Drivers:

Factors such as increased seaweed cultivation practices and the growing market for seaweed as snacks are expected to drive growth of the seaweed cultivation industry during the foreseen period, driven by increased industrial demand, agricultural, global and feed-related applications. To improve the socioeconomic status of small-scale fishers, raise the standard of living in coastal communities, and promote the sustainable use of coastal and marine resources, seaweed cultivation has become an alternative livelihood option. The Asia Pacific sector will dominate the market due to the easy availability of raw materials, favorable weather conditions and low labor costs for seaweed cultivation, while the European region is growing faster due to growing consumer awareness on the health benefits of seaweed. Also, seaweed grow at a faster rate and do not require fresh water or land space. It also does not require industrial fertilizers and pesticides that pose a threat to the environment. Along with the increasing demand for commercial seaweed-derived foods and snacks, increased awareness of the health benefits of the product is supposed to increase human consumption applications. As a result, inexpensive harvesting practices and ease of handling of cultivated seaweed have further encouraged seaweed cultivation in major seaweed-growing countries. Also, as the demand for seaweed snacks increases, the demand for seaweed cultivation is supposed to increase. The increasing demand over the past 50 years has outpaced our ability to meet the demand for natural stocks. The industry is also moving towards adopting new trending technologies such as IoT, machine learning and artificial intelligence to improve seaweed production and drive growth of the global seaweed cultivation market by monitoring biomass and seaweed habitat.

Restraints:

Increased application of seaweed products can lead to harmful impacts on the health of humans because of the presence of toxic elements like heavy metal residues. This has led to a growing global health problem, which is a factor that is holding back the growth of the seaweed cultivation market. The biggest challenge for seaweed manufacturers is the occurrence of natural disasters that affect seaweed production in the coastal regions of seaweed producing countries in the Asia Pacific and South America. Consuming seaweed extracts and seaweed packaging products harvested from aquaculture has certain detrimental effects due to toxic minerals, which cause health problems around the world. Commercially available seaweed products are primarily packaged in plastic containers in the form of partially dried seaweed and sold in tablets and powders. Seaweed collected from wild cattle pose safety concerns due to the presence of heavy metal residues such as arsenic and iodine. The increased intake of these heavy metals present in seaweed can lead to medical complications such as gastrointestinal problems, brain damage, cancer, and kidney disease. Consuming too much seaweed increases the amount of iodine above the required level. This increases thyroid stimulating hormone levels, leading to serious conditions like goiter. These health problems derived from the consumption of seaweed have influenced the growth of this industry by limiting the consumption of seaweed. Natural disasters such as volcanic eruptions, floods, typhoons, earthquakes, droughts, pests and diseases affect the productivity of seaweed cultivation. The occurrence of such a disaster is out of control and represents a significant challenge for seaweed producers. In response to these cases, seaweed producers have opted for the construction of artificial ponds in marine areas (aquaculture) that require seawater. However, the adoption of these alternatives in cultivation technology has an impact on the scale of seaweed production, associated with high costs that create financial difficulties for farmers. Lack of knowledge of the harvest of different types of seaweed among manufacturers is expected to hamper the growth of the global seaweed cultivation market.

Seaweed Cultivation Market Segmentation Analysis:

The market is segmented by form as Powder, Flakes, Liquid and Sheets. Among which, Shaped flakes is the second fastest growing segment during the forecast period. Seaweed flakes are mainly applied to food because they are increasingly used as a substitute for salt. These are used primarily as seasonings. Seaweed provides the human body with zinc, magnesium, biotin, vitamin B12, and iron.

By application, the dairy subsector of the food sector is expected to occupy the majority of the seaweed cultivation market during the foreseen period. Seaweed extracts such as carrageenan, agar and alginate have a wide application in the dairy industry. This extract is used as a thickening and gelling agent in products such as cream, cheese, ice cream, powdered dairy, desserts, and dairy drinks.

Geographical Segmentation Analysis:

• North America - the United States and Canada
• Europe - United Kingdom, Spain, Germany, Italy, and France
• The Asia Pacific - India, Japan, China, Australia, Singapore, Malaysia, South Korea, New Zealand, and Southeast Asia
• Latin America  - Brazil, Argentina, Mexico, and Rest of LATAM
• The Middle East and Africa - Africa and Middle East (Saudi Arabia, UAE, Lebanon, Jordan, Cyprus)

Regional Analysis:

Asia Pacific emerged as the largest regional market for seaweed cultivation in 2019 and will continue to expand with the fastest growth rates in the coming years. The growth is mainly due to increased demand and production in countries such as Indonesia, Korea, China and Japan. Increasing demand for products from the local food industry is expected to expand in the seaweed cultivation market in the Asia Pacific area. As the harvest and consumption of seaweed increases in Japan, China and Indonesia, the Asia-Pacific market is expected to have a significant share of the target market. North America and Europe are supposed to collectively contribute to the global seaweed cultivation market due to increased seaweed production alongside consumption in Germany, the United States, the United Kingdom and France. In addition, increased investment in R&D activities by major US manufacturers, increased demand for seaweed in the food industry, and increased use of seaweed in Germany and the United Kingdom, along with the growing popularity of seaweed baths, they are making the region a lucrative region. Latin America and MEA are expected to experience modest growth rates as consumer awareness of the health and other benefits of seaweed increases in GCC countries, Brazil and South Africa.

Key Players in the Market:

Major Key Players in the Global Seaweed Cultivation Market are

• Roullier Group
• Cargill Inc
• Qingdao Collection Seaweed Industry Group
• Arcadian Seaweed
• Lei Li
• Qingdao Bright Moon Seaweed Group Co., Ltd
• Qingdao Haiyun Biotech Group Co., Ltd
• Seaweed Company
• Seaweed Energy Solution AS
• Seasol
• Seaweeda
• Al Gaia
• Gelymar
• COMPO EXPERT
• CEAMSA and Irish Seaweeds
• Sea Nov and Biostadt India Ltd