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Algae Protein to Replace Soybean Protein as the Dominant Force in the Plant-based Space

Algae protein shows rapid growth in the plant-based raw materials market. Estimates predict the market will be worth $1.2billion by 2023. Currently, spirulina tops the algae sector, both in production volume and market sales. On a global scale, the US is the market leader and has invested heavily in R&D. China is the world’s largest producer of microalgae (spirulina, chlorella etc.)

According to UBS [1], the plant-based protein market is expected to increase in the next decade, and the global plant-based protein market will soar from $4.6 billion in 2018 to $85 billion by 2030.

The plant-based meat substitute industry has been a favourite of investors in recent years. The sector is dominated by soybeans and pea protein. However, the global algae-protein market is estimated to have grown to $690.8 million in 2018 [2]. The sector is expected to grow at a compound annual growth rate (CAGR) of 6.6% in the future. By 2023, the global algae-protein market scale is predicted to reach $1.2 billion [2]

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Algae proteins are mainly derived from marine algae and freshwater algae. Freshwater algae, such as spirulina and chlorella, accounted for nearly 69% of the industry's revenue in 2018 [2]. Spirulina contributed nearly 54% of the total market value. 

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According to EABA & Meticulous Research [3], the global spirulina market is on trajectory to grow at a CAGR of 9.4% from 2019 onwards and reach a value of $629.6 million by 2025. In terms of volume, it is likely to increase at a CAGR of 13.6% from 2019 and reach 68.03k tons by 2025.

Foreign and Domestic Algae Protein Enterprises

The current global algae-protein market is relatively fragmented and is still in the early stages of exploration and expansion.

On the one hand, competition between companies has yet to form. Although most of the overseas enterprises are mainly engaged in algae production and R&D, they are proficient in different areas. For example, E.I.D. Parry and Corbion, which was founded much earlier than its competitors, are involved in utilizing a variety of algae, and their products will also be used in the pharmaceutical field while young companies like Triton Algae Innovations focuses on using red algae to produce plant-based meat. Has Algae applies marine microalgae and macro-algae into foods.

The U.S. is home to a large number and a variety of algae companies, including microalgae companies. In Europe, there are just a handful of microalgae companies, for example, Allmicroalgae

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China is the leading producer of spirulina. It has nearly 70 spirulina plants with an annual output of more than 9,000 tons [2], accounting for more than 60% of the global market. In addition, many enterprises are committed to developing related health foods and beauty products.

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Among them, Green A Biological Engineering Co., LTD. (绿A生物, Yunnan province) is the world's largest spirulina company in terms of its investment in scientific research and its overall production and output volume. Its annual output of high-quality natural spirulina powder is 1000 tons [2], accounting for 40% of the world's total output.

The Future of Algae Food in the Asia-Pacific Market

According to Future Market Insights [2], the Asia-pacific market will see the fastest increase in demand for natural food additives and dietary supplements in the global market.

  • China: the government encourages the intake of plant protein

According to the National Nutrition Plan (2017-2030) [4], by 2030, the dietary intake of animal protein should be reduced by 50% nationwide, and the reduced animal protein should be replaced by plant protein, with algae protein being one of the essential alternatives.

On a gram for gram basis, microalgae produce the highest protein content. China has already become one of the major producers of microalgae globally, aligning itself with global trends towards increased consumption of microalgae. However, because microalgae production has inherent technical barriers, requiring, for example, protein separation technology, production costs remain high.

To know more about plant-based food market in China, please click here.

  • Japanese prefer chlorella

The Japanese market favors chlorella because it is believed to be more beneficial than spirulina and easier to absorb [5]. According to incomplete statistics from KENKO (a Japanese website), there are more than 500 kinds of chlorella products sold in the Japanese market. Furthermore, in Japan, chlorella has been the NO.1 health product in terms of sales for 20 consecutive years [5].

  • South Korea: widely used in food

In South Korea, the size of the chlorella market quadrupled in 2014 compared with the previous year (24 billion K.R.W.), reaching 57 billion K.R.W. [5]. The demand for children's milk, drinks, instant noodles, and other additives made from its extract (C.G.F.) has also increased noticeably.

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