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The algae-based food additive industry is driven by the growing demand for natural and sustainable ingredients in the food and beverage industry. Algae-based additives, such as carrageenan, agar, and alginate, are increasingly used as thickening, gelling, and stabilizing agents in products like dairy alternatives, desserts, and processed foods. Rising consumer awareness of health benefits, including rich nutrient content like omega-3 fatty acids, antioxidants, and vitamins, boosts market growth. Additionally, advancements in algae cultivation and extraction technologies are improving product quality and reducing costs. However, challenges such as regulatory hurdles and competition from synthetic additives may hinder widespread adoption.
The market size of algae-based food additive reached USD 178.1 million in 2024 and is set to grow at a 7.1% CAGR from 2025 to 2034, driven by increasing consumer preference for natural and sustainable ingredients.
The carrageenan segment held a dominant 48% market share in 2024 due to its widespread use as a thickening and stabilizing agent in various food products.
The U.S. market was valued at USD 44.2 million in 2024, supported by rising health consciousness and demand for plant-based, nutrient-rich ingredients like omega-3 fatty acids and proteins.
Key players in the market include BASF, BlueBioTech, Cargill, Corbion, Cyanotech Corporation, DSM, DuPont, Enovix Corporation, Evonik Industries, and JRS Pharma.