The global commercial seaweed market size was valued at USD 11.1 billion in 2016 and is expected to register a CAGR of 8.9% over the forecast period. Increasing investments in end-use segments, such as agriculture and animal feed, are expected to drive product demand in the coming years. The human consumption segment accounted for more than 80% of the global market in 2016.
Rising awareness regarding product health benefits along with growing demand for seaweed-derived foods and snacks is projected to boost human consumption segment. The rising demand for aquatic plant extracts, used as gelling and thickening agents in the food and cosmetic industries, is also projected to foster the market growth, primarily in the North American and European regions.
Asia Pacific emerged as the largest regional market in 2016 and is anticipated to expand further at a brisk rate over the coming years. The growth is primarily attributed to the increased demand and production from countries such as Japan, China, South Korea, and Indonesia. Increasing product demand in the regional food industry is projected to propel the Asia Pacific market.
The U.S. regional market was valued at USD 242.7 million in 2015. It was the fastest-growing region in North America on account of the strong presence of end-use industries. The region is estimated to expand further due to increasing awareness about the usage of commercial seaweed in pharmaceutical sector.
Red seaweed emerged as the largest product segment in 2016 with a share of more than 52%. The product is projected to grow at the fastest growth rate over the forecast period. Red seaweed is utilized in various sectors owing to their excellent functional qualities. They are used as food crops offering high amounts of proteins and vitamins. Diverse application scope along with easy availability are some of the major factors fueling the segment growth.
Brown seaweed emerged as the second-largest segment in 2016 with a market share of more than 46%. They serve as a raw material for the extraction of the hydrocolloid and alginate. They are also utilized in the food sector. Foods derived from these seaweeds are considered as a source of iodine.
Brown seaweed also contains iron magnesium, vitamin B-2, B-9, and B-12, and fiber. The segment is projected to register a strong CAGR over the forecast period due to diversified application scope. Rising health awareness along with ongoing R&D activities intended toward the development of product applications is expected to foster the segment growth.
The human consumption segment accounted for approximately 81% of the global market share, and it is projected to grow at the fastest CAGR over the forecast period. Growing population and awareness regarding healthy eating habits along with increased disposable income are some of the major factors driving the segment growth.
Animal feed emerged as the second-largest application segment in 2016. It is projected to gain a higher market share over the forecast period owing to rising focus on improving animal productivity. Seaweed processed as animal feed is known to maximize improve health conditions of livestock.
In the countries, such as India, agriculture application segment is projected to witness a higher demand over the coming years. Increased focus on improving the agricultural productivity in India and China is the major driving factor for the segment.
In 2016, the liquid form of seaweed emerged as the largest segment with a market share of more than 52%. Seaweed in liquid form is utilized as soil conditioners, and foliar fertilizer for plants to provide potassium, minerals, vitamins, and enzymes that stimulate the growth of plants. Growing product demand as insecticides and bio stimulants for plant growth is expected to augment its growth in the global commercial seaweed market.
The powdered form of seaweed is used in human consumption as foods and cosmetic products. They are used as masks, scrubs, and body wraps. Rapidly expanding end-use sectors, such as cosmetics and food and beverage, along with rising consumer focus on beauty and health are projected to drive the segment demand.
Commercial seaweed in the form of flakes is extensively utilized in the food industry. Escalating demand for organic food products is projected to fuel the segment growth. The nutritional value of seaweed remains intact in flakes, thereby making it fit for use in the food processing industry. Dulse flakes are used in salad, cheese, condiment, and hummus.
In 2015, Asia Pacific emerged as the most significant market and accounted for more than 80% of the overall consumption. Rapid industrialization in the region, coupled with regulations aimed at safeguarding the environment are expected to benefit the regional growth. High demands from countries such as Japan, India, and China are expected to be critical contributors toward the market growth.
The Asia Pacific regional market is driven by growing product applications in food, nutraceuticals, pharmaceuticals, adhesives, personal care products, and gels. Europe is likely to expand at a significant CAGR on account of increased seaweed cultivation in countries such as France, Ireland, and U.K. High demand in the healthcare and food sectors is projected to augment the market growth over the coming years.
The market shares a diversified ecosystem, which consists of the upstream manufacturer, end-users, vendors along with stakeholders and government organization. Some of the prominent companies in this market are E.I. DuPont Nemours and Company; Roullier Group; Cargill, Inc.; Biostadt India Ltd.; and Compo GmbH & Co.
Joint ventures and acquisitions are the key strategies undertaken by most of these companies to expand their market share. Most of the key players have also their own distribution network to maintain the product quality. It provides a competitive advantage in the form of cost benefits with increased profit margin.
This report forecasts revenue growth at global, regional, and country levels and provides an analysis of latest industry trends in each of the sub-segments from 2014 to 2024. For the purpose of this study, Grand View Research has segmented the global commercial seaweed market report on the basis of product, form, application, and region:
Product Outlook (Revenue, USD Million, 2014 - 2024)
Form Outlook (Revenue, USD Million, 2014 - 2024)
Application Outlook (Revenue, USD Million, 2014 - 2024)
Regional Outlook (Revenue, USD Million, 2014 - 2024)
Central & South America
Middle East & Africa
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