According to a new analysis from Fact.MR, the global commercial seaweed market is forecast to reach US$15 billion between 2019 and 2029, with their increasing end use promoting cultivation in European and North American areas.
Fact.MR’s analysis focuses on presenting both historical demand data from 2014 to 2018 and forecast statistics for 2019-2029, with insights based on product types, forms and end users across six regions.
The growing demand for seaweed is encouraging manufacturers to increase their reach and product portfolio in the global market, including Europe which is using approved applications in pharmaceuticals and the food and beverage industry.
The recent past shows that Europe imports about 40 per cent of total seaweed from Indonesia. Inconsistent production is affecting the price of seaweed, which is pushing more players to enter the commercial seaweed market and bring in regularity in production and supply. The trend for organic and natural products is likely to give a rise to marine extract ingredients in cosmetics, health supplements and others.
Regulatory authorities such as WHO and FAO have approved seaweed use in infant formula, while utilisation as a fertiliser in agriculture is also expected to boost growth. Also, companies are investing large sums of money in seaweed extracts for their cosmetics and personal care products range.
Fact.MR’s study also revealed that government grants are opening doors for niche players to enter and grab market share. Key players that hold a significant share in the commercial seaweed market include Du Pont de Nemours & Co., Cargill Inc., Yan Cheng Hairui Food, CP Kelco and others who are also investing in R&D to increase product portfolio in the coming years.
Some of the key takeaways of commercial seaweed market study are:
- APAC accounts for 70 per cent share in global commercial seaweed market and is expected to present an ongoing growth trend.
- Europe and North America collectively are expected to grow the fastest among other regions and are anticipated to grow in terms of value in 2019, owing to abundant government grants.
- The use of Carrageenan from red seaweed in infant supplements is likely to create new revenue streams.
- Red seaweed is expected to acquire more than 50 per cent market share among other seaweed types during the forecast period.
- Emerging economies like China, India and Indonesia are key producers of seaweed.
The inherent properties of seaweed are benefitting various industries. The direct consumption and increased applications will attract players to reap benefits in the long term, while the erratic production and supply owing to environmental factors will affect the pricing of seaweed in the market.