Asia Pacific Region Witnessing the Highest Growth in Seaweed Cultivation Market

The report "Seaweed Cultivation Market by Type (Red, Brown, Green), Method of Harvesting (Aquaculture, Wild Harvesting), Form (Liquid, Powder, Flakes, Sheets), Application (Food, Feed, Agriculture, Pharmaceuticals), and Region - Global Forecast to 2025", The market size is estimated to be valued at USD 16.7 billion in 2020 and is projected to reach USD 30.2 billion by 2025, recording a CAGR of 12.6% during the forecast period, in terms of value. Seaweeds are plant-like organisms that are also known as marine microalgae; they are generally attached to a rock or other hard substratum in coastal areas.

Market Dynamics

Drivers: Rise in seaweed farming practices propelled by global demand

To uplift the socio-economic status of small-scale fishermen, raise the living standard of the coastal community, and to promote the sustainable usage of coastal and marine resources, seaweed farming has become an alternative livelihood option in tropical developing countries. Furthermore, seaweeds grow at a higher rate and do not require fresh water or land space. They also do not require industrial fertilizers and pesticides that pose a threat to the environment. As a result, economical harvesting practices, together with the ease in handling cultivated seaweeds, have further encouraged seaweed farming across key seaweed-producing countries.

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Restraints: Natural calamities hindering the production of seaweeds

The biggest challenge for seaweed manufacturers is the occurrence of natural calamities, which affects the production of seaweeds in the coastal areas of seaweed-producing countries in the Asia Pacific and South American regions. Natural calamities, such as typhoons, floods, droughts, earthquakes, volcanic eruptions, and pests & diseases, affect the productivity of seaweed farming. The occurrence of such calamities is uncontrollable and poses a significant challenge to seaweed farmers. In response to such instances, seaweed farmers have shifted to building artificial ponds in off-marine areas (mariculture), requiring seawater. However, the adoption of such alternatives in cultivation techniques is associated with high costs that pose a financial challenge to the farmers, thereby affecting the scale of seaweed production.

Opportunities: Increase in technological developments

The cultivation of seaweed is majorly undertaken in the Asia Pacific region. After cultivation, this seaweed is then dried and exported to developed regions such as Europe and North America for further processing and to derive extracts to be used in end-user industries. Also, due to the lack in technology in the Asia Pacific region, labor engagement is higher, which adds to operational costs. Thus, to reduce labor engagement, implementation of new technologies, such as direct seeding technologies, automated harvesters, can be introduced in various Asian countries.

Challenges: Toxicity associated with the consumption of seaweeds

The consumption of seaweed extracts and seaweed packaged products harvested from aquaculture has certain harmful effects due to toxic minerals, which lead to health concerns globally. Seaweed products that are sold commercially are majorly in the form of partially dried seaweeds that are packaged in plastic containers and sold in the form of tablets and powder. Seaweeds harvested from wild stock have safety concerns associated due to the presence of heavy metal residues such as arsenic and iodine. Higher intake of these heavy metals present in seaweeds can lead to medical complications, such as cancer, brain damage, gastrointestinal problems, and kidney diseases.

The consumption of excess seaweed increases the quantity of iodine above the required levels. This raises the levels of thyroid-stimulating hormone, thereby causing serious conditions such as goiter. These health concerns caused by the intake of seaweed products have restricted the consumption of seaweeds, thereby affecting the growth of this industry.

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By application, dairy sub-segment in the food segment is projected to account for the largest share in the seaweed cultivation market during the forecast period

The seaweeds used in the dairy products under the food segment dominates the application segment throughout the forecasted period. Seaweed extracts such as agar, carrageenan, and alginate have wide applications in the dairy industry. These extracts are used as a thickening and gelling agent in products such as cheese, creams, desserts, ice creams, dairy powder, and dairy drinks. Alginates are also used as stabilizers to improve the viscosity of milk drinks, such as chocolate milk drinks.

Increase in the application of seaweed extracts such as agar, carrageenan, and alginate in processed food driving the market

The food segment is estimated to dominate the market for seaweed cultivation, by application, in terms of value, in 2020. Seaweeds are widely regarded as a health food, owing to the presence of nutrients such as high iodine, calcium, magnesium, iron, vitamins, antioxidants, and fiber. This has been driving the market for seaweeds as a source of food in regions such as North America & Europe. In processed food, seaweeds have a wide range of applications: as a thickening and gelling agent in products, such as sausages, bread, creams, cheese, dairy drinks, and candies. Additionally, the use of seaweeds for the manufacturing of low-calorie ice creams and cakes is likely to fuel the market growth.