According to a report by Allied Market Research, the global algae protein market will be worth $709 million by 2028, up from $361.4 million in 2020. The market will register a CAGR of 8.9% over the forecast period.
Algae is considered highly sustainable as it produces a higher protein yield than traditional crops (4-15 tons per hectare per year for microalgae, compared to 0.6-1.2 tons for crops such as soybeans). Another advantage is that algae can be grown in freshwater, saltwater, or on non-arable land. These factors, along with increasing consumer interest in health and wellness following the pandemic, are expected to drive market growth.
The spirulina segment currently leads the market, and this is expected to continue over the forecast period. On the other hand, chlorella will see a slight decline. By region, North America currently dominates the market and will maintain its leading position, but the Asia-Pacific will also see significant growth.
Nutraceuticals and supplements will account for the highest CAGR by application, but the use of algae in functional foods is also an emerging area. According to the report, this could be an “untapped and lucrative opportunity for algae protein manufacturers”.
Algae protein innovations
There have been several notable algae protein innovations in the past year; for example, scientists in Denmark recently revealed that they have used blue-green algae to produce a new type of protein with meat-like fibers that could be used to make sustainable plant-based meat alternatives. Meanwhile, researchers in the UK are working to develop more efficient, affordable methods of extracting protein from microalgae, while also improving its flavor profile to eliminate off-notes.
Another example is Israel’s Brevel, which uses microalgae and fermentation to produce sustainable, functional proteins that do not require agricultural land. The company is collaborating with plant-based food producer Vgarden to develop a high-protein cheese alternative that is expected to launch this year.
“Developed economies such as the US and Europe have seen high traction for plant-based proteins as consumers are increasingly inclining toward vegan and plant-based foods,” says the market report. “The increasing vegan population is expected to increase demand for alternative proteins, including algae, which propels the algae protein market’s growth.”
