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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 in APAC 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 diverse aquaculture sector in APAC, 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. China, a dominant force in the APAC aquaculture market, takes the lead in production. AB Agri Ltd., a key player, contributes to this market by offering algae-based animal feed and ingredients like Spirulina, enriched with Omega-6 fatty acids, essential vitamins (B vitamins), and minerals (iron, magnesium, zinc).
The market shows an accelerated CAGR during the forecast period.
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The role of biotechnology in preserving algae products is notably driving 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. 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.
Growing demand for algae oil is an emerging trend shaping market development. 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.
Increasing disease outbreaks in livestock is a significant challenge hindering 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.
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.
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.
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 in APAC during the forecast period.
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.
The 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, and 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.
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.
The 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.
Market Scope |
|
Report Coverage |
Details |
Page number |
188 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.54% |
Market growth 2024-2028 |
USD 1.31 billion |
Market structure |
USD Concentrated |
YoY growth 2023-2024(%) |
6.52 |
Regional analysis |
APAC, North America, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 37% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
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, and Xiamen Huison Biotech Co. Ltd. |
Market dynamics |
Parent market growth analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Market Segmentation by Application
8 Market Segmentation by Distribution Channel
9 Customer Landscape
10 Geographic Landscape
11 Drivers, Challenges, and Trends
12 Vendor Landscape
13 Vendor Analysis
14 Appendix
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