Companies Bank on Effective Extraction Technologies to Bolster Revenues in Global Commercial Seaweed Market

Commercial seaweed, a type of macro algae found in arctic, tropical and cold water bodies, are a rich source of vitamins and minerals. This has resulted in their demand in the food, healthcare, and personal care products industries. The global market for commercial seaweed is characterized by stiff competition. However, when it comes to driving revenues, it’s a handful of big names that are at the forefront. Some such big names are Cargill Corporation, E.I. Du Pont de Nemours and Company, CEAMSA, Acadian Seaplants Ltd., Gelymar SA, Leili Group, etc.

A report by Transparency Market Research predicts the revenue in the global market for commercial seaweed to rise at a healthy 10.8% CAGR from 2017 to 2025. Expanding at this rate, the market will likely attain a value of US$26,107.9 mn by 2025 from US$10,570.3 mn in 2016, states the report. Volume-wise, the market is expected to demonstrate a CAGR of 9.9% from 2017 to 2025.  

What factors are serving to boost the market?

A number of factors are positively influencing the growth in the global market commercial seaweeds. At the forefront is the constant efforts by companies to come up with new technologies for extraction to slash costs and increase profits. Besides, higher spends on research and development, augmenting the product portfolio, and uncovering new application areas are also serving to catalyze growth in the industry.

Recent report shows, companies have been quick to recognize an opportunity in the commercial seaweed market. Take for example Blue Evolution, a U.S.-based company that transforms seaweed into pasta products. It has collaborated with both Alaska and out-of-state groups to harvest and process the food in Kodiak. The company shifted its gaze to the new site on account of seeing less than expected yield from its previous location due to high winds and choppy weather. 

Why are red seaweed the most popular product segment?

The different types of seaweeds available in the market are red, brown, and green seaweed. Red seaweed, among them, has a leading share in the market and will likely hold on to it in the foreseeable future too. This is because of their use in a number of traditional Southeast Asian recipes.

Application-wise, the key segments of the global market for commercial seaweed are animal feed, fertilizers, food, pharmaceuticals, cosmetics, etc. Among them, the food segment accounts for a dominant chunk of the market as different types of seaweeds are consumed directly. Further, seaweeds are also used in hydrocolloid industry for gelling products. This has also helped to up demand for seaweed in food industry. 

What makes Asia Pacific a key market?

From a geographical standpoint, Asia Pacific is a key market whose expansion has been primarily driven by India, Japan, and China. The demand for carrageenan is maximum in the region as it is an ingredient in various Asian cuisines. Besides, large tracts of agriculture lands have also served to bolster demand for seaweed based fertilizer. 


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