Seaweed Extracts Market Size, Share, Trends, Growth and Forecast 2032

Seaweed Extracts Industry Prospective:

The global seaweed extracts market size was worth around USD 1.95 billion in 2023 and is predicted to grow to around USD 3.26 billion by 2032 with a compound annual growth rate (CAGR) of roughly 6.00% between 2024 and 2032.

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Seaweed Extracts Market: Overview

Seaweed extracts are derivatives of marine plants such as Ecklonia and Ascophyllum belonging to the blow algae species. Seaweed collected from marine organisms is thoroughly rinsed until the entire saltwater content is removed.

Further, the collected seaweed components are fermented or composted in water until the organic matter forms into usable slurry. Seaweed extracts have found wide-scale applications across industries ranging from animal feed additives to cosmetics & personal care items. In addition to this, seaweed extracts have shown extensive applications in the form of organic fertilizers since they are used as bio-stimulants promoting plant growth.

During the forecast period, the industry for seaweed extracts is expected to deliver exceptional results with growing end-user applications across major industries. However, the cost of cultivation, along with the lack of standard regulatory measures and the impact of climate change on seaweed production, are likely to impact the overall revenue in the industry. During the forecast period, innovations in biofuel production may generate extensive growth in demand for seaweed extracts.

Key Insights:

• As per the analysis shared by our research analyst, the global seaweed extracts market is estimated to grow annually at a CAGR of around 6.00% over the forecast period (2024-2032)
• In terms of revenue, the global seaweed extracts market size was valued at around USD 1.95 billion in 2023 and is projected to reach USD 3.26 billion by 2032.
• The seaweed extracts market is projected to grow at a significant rate due to the rising demand for organic fertilizers in the agriculture sector.
• Based on source, the red seaweed segment is growing at a high rate and will continue to dominate the global market as per industry projections.
• Based on end-user industry, the pharmaceuticals segment is anticipated to command the largest market share.
• Based on region, Asia-Pacific is projected to dominate the global market during the forecast period.

Seaweed Extracts Market: Growth Drivers

Rising demand for organic fertilizers in the agriculture sector to fuel market revenue rate

The global seaweed extracts market is expected to grow due to the growing demand for organic fertilizers worldwide. The agriculture sector relies heavily on pesticides and fertilizers to improve the overall crop production output. Fertilizers are also used to enhance plant quality and encourage higher nutrient uptake.

However, excessive use of chemical fertilizers and pesticides has proven to be harmful not only to the agricultural output but also to the surrounding environment. For instance, according to official statistics, long-term exposure to chemical fertilizers can result in acute health-related effects such as birth defects, stinging eyes, and, in some cases, death. Furthermore, chemical fertilizers are also associated with more serious and chronic medical conditions, including cancer and neurological toxicity. Excess fertilizer can leach into groundwater bodies, resulting in water contamination and environmental pollution. The growing awareness about the side effects of using chemical fertilizers has resulted in increased demand for safer alternatives. Seaweed extracts have shown extensive benefits when used in gardening activities.

Moreover, they are widely regarded for promoting sustainable commercial-grade farming, as seaweed extracts have proven to improve soil health. During crop cultivation, seaweed extracts are used as biostimulants to upgrade plant performance. In June 2023, Cascadia Seaweed along with ReFeed, two emerging companies from Europe operating in the agtech industry, announced a strategic partnership. The collaboration will allow ReFeed to launch Cascadia’s first agricultural product in the commercial market. Cascadia has launched a novel seaweed extract-based plant food in liquid format.

Increasing applications in the production of high-quality animal feed may generate extensive industry revenue

Seaweed extracts are frequently used in the production of animal feed with superior quality. According to market analysis, an optimal dose of additive seaweed extracts can help improve immunity in animals. These components are also known to promote gut health and overall animal growth. The increasing demand for good quality animal feed is expected to drive extensive revenue in the global seaweed extracts market.

In August 2023, CH4 Global, an emerging company working on reducing methane emissions from ruminant livestock with the aid of red seaweed-based feed supplements, announced that it had received USD 45 million in series B funding. The company is expected to use the funds to scale the production of seaweed supplements for animals.

Seaweed Extracts Market: Restraints

High cost of production and availability of less expensive alternatives limit the industry’s growth rate

The global industry for seaweed extracts is projected to be restricted by the high cost of production involved in producing marine organisms-derived components. According to market analysis, seaweed farming is a complex technique requiring specific farming tools and methods.

In addition, the complicated structure of seaweed harvesting, especially in rough and open water bodies, further leads to increased costs of production. In addition, the industry’s overall growth rate is diluted due to the presence of more pocket-friendly and safer alternatives, such as synthetic biostimauls for agricultural applications and plant extracts for cosmetics, among others.

Seaweed Extracts Market: Opportunities

Cosmetics & personal care sector to generate growth opportunities in the future

The global seaweed extracts market is projected to generate growth opportunities due to the growing research & development (R&D) in the cosmetics & personal care industry. Extensive research suggests that seaweed metabolites have excellent whitening, moisturizing, photoprotective, and antioxidant properties. These aspects make seaweed extracts highly popular among cosmetics & personal care item producers. Modern consumers have shown a greater inclination toward organic cosmetic products or items that are chemical-free. As the demand for plant-based cosmetic products grows, investments in large-scale production of seaweed extracts are expected to rise.

In October 2022, a leading skincare and wellness company in England, Hæckels, announced the launch of Hæckels 2.0. The company has reinvested its offerings as the end-consumer demand is steadily evolving. Hæckels 2.0 is focusing on sustainability with the launch of novel products, including Hæckels Home and Hæckels Skin. The latter will consist of products made using seaweed harvested on Margate’s beaches.

Seaweed Extracts Market: Challenges

Climate changes and lack of standard regulations to challenge market expansion

The global seaweed extracts industry is expected to be challenged by the growing impact of climate change on seaweed production and harnessing. In addition, the industry lacks standard regulations governing the use of seaweed extracts across end-use industries. This leads to market players investing in extensive research and compliance activities to meet regional requirements which can be time-consuming as well as resource-intensive.

Seaweed Extracts Market: Report Scope

Seaweed Extracts Market: Segmentation

The global seaweed extracts market is segmented based on source, form, end-user industry, and region.

Based on the source, the global market segments are green seaweed, brown seaweed, and red seaweed. In 2023, the highest demand was listed in the red seaweed segment. In 2023, it dominated nearly 68% of the total market share. The abundant cultivation of red seaweed species is fueling the segmental demand rate. In addition to this, the species are easy to cultivate and deliver end-user applications. The versatile use of seaweed extracts is expected to drive segmental demand in the future.

Based on form, the global seaweed extracts industry is divided into flakes, powder, and liquid.

Based on the end-user industry, the global market segments are agricultural products, food & beverages, animal feed additives, pharmaceuticals, and others. In 2023, the highest growth was listed in the pharmaceuticals segment. During the forecast period, it is expected to deliver a CAGR of more than 6.01% due to increasing investments in innovations related to the use of seaweed extracts in producing medicines. Furthermore, surging investments in pharmaceutical companies will likely promote segmental growth in the coming years.

Seaweed Extracts Market: Regional Analysis

Asia-Pacific to grow at the fastest CAGR during the forecast period

The global seaweed extracts market is expected to be led by Asia-Pacific during the forecast period. Major Asian countries such as China, Japan, and South Korea have a high demand for seaweed extracts, especially in the powder form. The regional market shared nearly 83.05% of the final revenue in Asia-Pacific with powder format, according to market analysis.

The surge in demand for plant-based cosmetic items across Asia countries, with South Korea dominating the skincare industry in regional as well as international markets, has helped the region thrive in the last few years. The popularity of the Korean Glass Skin trend has managed to penetrate neighboring markets, resulting in greater demand for skin care products originating from the region.

Europe is another prominent market offering increased revenue in the coming years. European countries such as France and Italy are home to some of the leading players in the cosmetic & personal care sector, investing heavily in solutions made using natural resources such as seaweed extracts. In addition, the growing consumption of good-quality animal feed across European nations will further drive regional demand rates.

Seaweed Extracts Market: Competitive Analysis

The global seaweed extracts market is led by players like:

• Chase Organics
• Acadian Seaplants Limited
• Dora Agri
• Maxicrop
• Cargill Incorporated
• Leili Group
• Algea
• Technaflora
• Symbrosia Inc.
• DuPont de Nemours Inc.
• BioAtlantis
• Irish Seaweeds
• Seasol
• Kelpak
• Grow More

The global seaweed extracts market is segmented as follows:

By Source

• Green Seaweed
• Brown Seaweed
• Red Seaweed

By Form

• Flakes
• Powder
• Liquid

By End-User Industry

• Agricultural Products
• Food & Beverages
• Animal Feed Additives
• Pharmaceuticals
• Others

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa