Algae-based Animal Feed and Ingredients Market Analysis APAC, North America, Europe, South America, Middle East and Africa - US, China, Japan, Germany, UK - Size and Forecast 2024-2028

Algae-based Animal Feed and Ingredients Market Size 2024-2028

The algae-based animal feed and ingredients market size is projected to increase by USD 1.31 billion, at a CAGR of 7.54% between 2023 and 2028.

• The market is poised for exponential growth, driven by the rising demand for meat and seafood, with factors such as enhanced nutrient availability, improved digestibility, and accelerated animal growth contributing to market expansion.
• The diversity of aquaculture, particularly dominated by small-scale players with substantial government support, especially in countries like China, Indonesia, India, and Vietnam, fuels the demand for commercial fish feed, including algae-based animal feed and ingredients and other algae products. China, a dominant force in the APAC aquaculture market, takes the lead in production.

What will be the Size of the Algae-based Animal Feed and Ingredients Market During the Forecast Period?

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How is the Algae-based Animal Feed and Ingredients Market Segmented?

The market research and growth report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028. 

• Product Outlook
  • Feed
  • Feed ingredient
• Application Outlook
  • Poultry
  • Swine
  • Ruminant
  • Aquaculture

• Distribution Channel Outlook
  • Offline
  • Online
  Region Outlook
  • North America
    • The U.S.
    • Canada
  • South America
    • Chile
    • Brazil
    • Argentina 
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • APAC
    • China
    • India
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

By Application

• Algae such as spirulina and chlorella are both rich in proteins, essential amino acids, vitamins, minerals, and antioxidants. These nutrients are essential for the health of poultry, their growth, as well as egg production. Incorporating spirulina and chlorella into poultry feed can help meet the nutritional requirements of birds and promote their overall well-being. Algae contain bioactive compounds that have been linked to various health benefits, including improved immune function, resistance to disease, and tolerance to stress in poultry. Further, the major cost is incurred on poultry feed, as it has a significant impact on the health of birds and poultry product quality. Overall, the poultry application segment is expected to be the leading application segment of the market during the forecast period and hence drive the growth of the market during the forecast period.

By Product

• The market share growth by the feed segment will be significant during the forecast period. The expansion of the livestock industry, including those related to poultry and swine farming and aquaculture, has led to a significant rise in the quantity needed to sustain the growing population of these animals and fish. This expansion is driven by factors such as urbanization, dietary changes, and the increasing demand for animal protein from consumers. 

The feed segment was the largest and was valued at USD 1.67 billion in 2018.  

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• Overall, the increasing demand for algae as an ingredient in animal feed and ingredients reflects a shift toward nutritionally beneficial alternatives. Rising incomes and urbanization, particularly in developing countries, are leading to greater consumption of meat and other animal products. This trend is driving up the demand to support the expansion of livestock production. Overall, the high demand for animal feed is driven by a combination of factors, including population growth, changing dietary patterns, technological advancements, and a focus on animal health and sustainability, which, in turn, will have a positive impact on the growth of the segment of the market growth and trends during the forecast period.

Regional Analysis

APAC is estimated to contribute 37% to the growth of the global market during the forecast period

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• Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional market trends and analysis, and drivers influencing the market's trajectory throughout the forecast period. The increasing production of beef, veal, and chicken in APAC is one of the factors that will drive the growth of the regional algae-based market. Companies in the meat market are increasing their production to meet the rising demand for meat products. This, in turn, will increase the demand for animal products and algae protein in APAC during the forecast period. 

What are the Algae-based Animal Feed and Ingredients Market Dynamics Shaping Growth?

• The algae-based animal feed and ingredients market is gaining significant traction due to the growing demand for sustainable and eco-friendly alternatives to traditional feed ingredients. One of the most promising developments in this space is the use of seaweed, particularly kelp, as a feed source for ruminants such as cows and sheep. Seaweed animal feed, including seaweed feed for larvae and fermented seaweed co-products, is becoming increasingly popular due to its high nutritional value and environmental benefits. Kelp farming is a sustainable agriculture practice that not only provides a valuable feed source but also helps mitigate carbon emissions and reduce the need for land-based farming.
• The plant-based animal feed segment, which includes seaweed feed, is expected to grow significantly in the coming years as the global livestock population continues to expand. Animal feed formulations that incorporate seaweed and other algae-based additives offer improved feeding applications, including better digestibility, increased weight gain, and enhanced animal health. The environmental impact of animal agriculture is a significant concern, and the use of algae-based feed ingredients is seen as a way to reduce the industry's carbon footprint. The aquaculture industry is also exploring the use of seaweed and other algae-based feeds to reduce reliance on traditional fishmeal and fish oil.
• Moreover, the pet nutrition market is also showing interest in algae-based ingredients, with the flesh of animals fed on seaweed-based diets reported to have higher omega-3 fatty acid content, which is beneficial for pet health. The labor-intensive nature of seaweed farming is a challenge, but advancements in technology and automation are helping to address this issue. Overall, the algae-based animal feed and ingredients market offers significant potential for sustainable and eco-friendly alternatives to traditional feed sources.

Primary Market Driver 

• The role of biotechnology in preserving algae products is notably driving algae-based animal feed and ingredients market development. The introduction of biotechnology is leading to an algae products market revolution with a positive impact on the market. Biotechnology, which is a technique of engineering living organisms by modifying them according to specific purposes, has enough potential to modify algae-based products with regard to nutrition and taste. It has been found that many algae species are flexible to genetic engineering, extracting complex proteins and accumulating high levels of recombinant proteins. It plays an essential role in preventing the growth and acid resistance of Escherichia coli (E. coli) in livestock.
• Moreover, such ingredients minimize the risk of metabolic disorders and acidosis and also reduce the chances of hoof injuries and infections in bovine farm animals. Other benefits of adopting such ingredients as stock feed include lower cost of veterinary care, better livestock produce, significantly improved income over feed cost, and increased longevity of livestock. Hence, the market in focus is expected to witness increased demand, which will drive the growth of the market. 
• Additionally, global algae-based animal feed sales, economic sanctions, and commodity prices have also influenced the dynamics of the market for vitamin B-complex ingredients. Supply chain disruptions during the pandemic highlighted the importance of resilient and adaptable sources such as global feedstock production. The increasing awareness of meat consumption and the nutritional benefits of sea kelps or algae, rich in vitamins and antioxidants, further contribute to the market's momentum. As consumers and industries alike prioritize sustainable and nutrient-rich alternatives, the demand for vitamin B-complex ingredients derived from algae-based sources continues to grow, bolstered by their eco-friendly profile and nutritional value.

Key Market Trends 

• Growing demand for algae oil is an emerging trend shaping algae-based animal feed and ingredients market growth.  As awareness of the nutritional benefits of algae oil increases among end-users, the demand for products such as supplements and animal feed containing omega-3 fatty acids derived from algae is rising. This demand is not only from the human nutrition sector but also from the animal feed and nutrition industry, where algae oil is used as a supplement in the food for pets, livestock, and aquaculture. Algae oil is a rich source of omega-3 fatty acids, particularly docosahexaenoic acid (DHA) and eicosapentaenoic acid (EPA). These fatty acids are essential for the health of animals, particularly for brain development, good vision, immune response, and inflammatory response regulation. 
• Further, the omega-3 fatty acids found in algae oil offer various health benefits for animals, including improved coat and skin health, joint health, cardiovascular health, and cognitive function. These benefits are particularly relevant for companion animals such as dogs and cats, as well as livestock and aquaculture species. Algae oil is free from contaminants, such as heavy metals and pollutants that may be present in fish oil due to environmental pollution. All these factors will have a positive impact and drive the growth of the market during the forecast period.

Major Market Challenge 

• Increasing disease outbreaks in livestock is a significant challenge hindering algae-based animal feed and ingredients market growth. Outbreaks of epidemics of contagious diseases that affect livestock lead to the loss of livestock products such as meat, milk, dairy products, and other related products and are a challenge to the animal feed market as well. Consequently, livestock disease outbreaks adversely affect the consumption pattern and also affect the sales and revenue of the animal feed market, including the market. Disease outbreaks disrupt the overall livestock product trade and inhibit sustained investments in livestock production. 
• Additionally, animal husbandry farmers are increasingly adding other ingredients to supplement the animal feed. Food safety authorities do not regularly audit the feed used by farmers, which is a major challenge for the animal feed market as well as the market. All these factors can pose a threat to the market during the forecast period.

Which are the Major Algae-based Animal Feed and Ingredients Market Companies?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market forecasting growth and analysis.

• Key Offering- Algea: The company offers algae-based animal feed and ingredients such as brown seaweed Ascophyllum nodosum, these ingredients are rich in fiber, improve digestion, and promote harmonious growth in animals.
• Key Offering- Alltech Inc.: The company offers algae-based animal feed and ingredients such as Alltech FORPLUS, It is a natural, pure, sustainable, and high-quality energy source that is rich in DHA. Additionally, it is a fish-free, algae-based solution.

The algae-based animal feed and ingredients market growth and forecasting report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• AB Agri Ltd.
• Algea
• Aliga ApS
• Alltech Inc.
• Anpario Plc
• Archer Daniels Midland Co.
• BASF SE
• BIOTECNOLOGIAS APLICADAS SL
• Cargill Inc.
• Cellana Inc.
• Corbion nv
• Cyanotech Corp.
• DIC Corp.
• Evonik Industries AG
• GreenTech Ventures Inc.
• GRIZZLY PET PRODUCTS
• Jedwards International Inc.
• Kemin Industries Inc.
• Koninklijke DSM NV
• Morning Bird Products
• NUQO
• Ocean Harvest Technology Group plc
• Olmix SA
• Solabia Group
• Xiamen Huison Biotech Co. Ltd.

The market analysis and report of qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

What are the Latest Market Developments and News?

• In November 2024, Veramaris, a leading company in algae-based animal feed, launched a new algae oil product designed to replace fishmeal in aquaculture diets. This product offers a sustainable alternative, reducing the environmental impact of traditional animal feed ingredients while providing essential omega-3 fatty acids for fish growth.

• In October 2024, DSM announced a partnership with a global feed manufacturer to develop algae-based protein ingredients for livestock feed. The collaboration aims to address the growing demand for sustainable feed options that can reduce reliance on soy and other traditional protein sources, offering a more environmentally friendly solution.

• In September 2024, Algama, a company specializing in algae-based ingredients, introduced a new algae-based feed additive for poultry. The ingredient improves the nutritional profile of poultry feed by enhancing digestibility and providing a sustainable source of essential nutrients, aligning with the increasing shift towards plant-based and alternative ingredients in animal nutrition.

• In August 2024, Corbion launched an algae-based protein powder for use in pet food formulations. The new ingredient is designed to support healthy growth and development in pets, while also meeting the rising demand for more sustainable and plant-based protein sources in the pet food industry.

Will Innovations Drive Market Growth?

• The algae-based animal feed and ingredients market is experiencing significant growth driven by the surge in demand for sustainable and environment-friendly feed solutions. Utilizing microalgae and single-cell proteins, this market introduces innovative alternatives like algae meal for livestock, ensuring optimal development and general health. With a focus on renewable feedstock, artificial protein replacements, and functional feed ingredients, it addresses sustainability concerns in animal agriculture.
• Collaborations and partnerships, along with technological innovations in algae cultivation and feed technology, play a pivotal role. Regulatory support, research and development initiatives, and consumer preference for nutrient-rich and alternative protein sources further propel the market's advancement in the context of global population growth and the evolving landscape of agriculture and food production.
• Further, the market witnesses a robust demand for algal feed ingredients, marine-based nutrient supplements, and algal-based peptides. While government encouragement fosters small-scale businesses engaged in seaweed aqua-feed-related agriculture activities, global feedstock production faces challenges from economic sanctions, commodity prices, and pandemic-induced supply chain disruptions.
• Amidst these dynamics, the market thrives on addressing environmental concerns in livestock farming and aquaculture, offering nutrient-rich animal nutrition through diverse algae species in feed formulations. Regulatory support and standards, alongside innovations in plant-based animal feed segments, contribute to shaping the market's future.

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What are the Key Data Covered in this Algae-based Animal Feed and Ingredients Market Research Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the size of the market size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market industry across APAC, North America, Europe, South America, and Middle East and Africa
• Thorough analysis of the market's competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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