Seaweeds are microscopic algae that occur on rocky shorelines and in marine and shallow coastal waters. These are the “wonder plants of the sea,” a new, renewable source of food, energy, chemicals, and medications with a wide range of uses in industry, agriculture, biomedicine, and personal care.
In 2022, the market for seaweed was estimated to be worth US$ 7.5 billion and is expected to grow at a CAGR of 11.64% during 2023-2028. India’s export performance in this sector is currently weak and erratic, but with new hubs opening up in states like Tamil Nadu and Lakshwadeep, the sector could have a promising future.
Photo Source: Pexels
India has a vast coastline spanning over 7,500 kilometers and is endowed with a remarkable natural resource – seaweed. Once thought of largely as marine annoyances or delectable seafood, seaweeds are now receiving more attention as a sustainable option for numerous businesses. They are now considered a rich source of economy, environment and nutrition.
Known as the “Medical Food of the 21st Century“, these natural resources are also used to make laxatives and medicinal capsules, in the treatment of goiter, cancer, bone-replacement therapy, and in cardiovascular procedures. Agar, agarose, and carrageenan, which are used in labs, medicines, cosmetics, cardboard, paper, paint, and processed meals, are the main industrial uses of seaweeds. There are 46 seaweed-based industries in India, 21 of which produce agar, and 25 of which produce alginate. But due to a lack of raw materials, they are not operating to their full potential.
Seed stock of seaweeds is traditionally collected from sea bed in shallow waters along the southeastern coast of Tamil Nadu. Its cultivation is a highly remunerative activity involving simple, low cost, low maintenance technology with short grow-out cycle. However, continuous, indiscriminate, and unorganized harvesting has resulted in depletion of natural resources.
Historically, seaweeds have been used in Asian cuisines, especially in Japanese, Chinese, and Korean dishes. However, their potential extends far beyond culinary applications. India’s diverse marine ecosystem provides an ideal environment for seaweed cultivation. Coastal states like Tamil Nadu, Gujarat, Maharashtra, Andhra Pradesh, and Kerala have already begun exploring the potential of seaweed farming. Several species of red, brown, and green seaweeds are being cultivated for both domestic consumption and industrial use. It is been estimated that India’s seaweed industry is worth approximately US $600 million and employs over 2,00,000 people.
In 2022, the market for seaweed was estimated to be worth US$ 7.5 billion and is expected to grow at a CAGR of 11.64% during 2023-2028. Seaweed is exported in two categories:
HS 121221: Seaweeds & other algae, fresh, chilled, frozen or dried, whether or not ground, fit for human consumption… HS 121229: Seaweeds & other algae, fresh, chilled, frozen or dried, whether or not ground, unfit for human consumption…
According to the trade data analysis, Latin-American country Chile is the world’s largest exporter of seaweed for industrial use, with exports of US$ 177.3 million in 2022 an increase of 41.7% YoY. India just ranks 40th in this product for exports with value at just US$ 250,000 in 2022. In the case of Seaweeds for human consumption, the market leader is Indonesia with exports of US$ 374.4 million in 2022, growing by 78% YoY. India’s rank in this category is only slightly better at 37, with a value of US$ 646,000 and negative YoY growth of 42%.
A total of 18 different species, including the giant kelp (Chascón) (Macrocystis pyrifera), luga negra (Sarcothalia crispata), luga roja (Gigartina skottsbergii), chicorea del mar (Chondracanthus chamissoi), and luga columbiana, are produced annually by at least 35,000 fishermen and gatherers in Chile. The country exports of up to 5,00,000 tonnes of seaweed to Spain, the US, China, and Japan.
Data Source: Trademap.org
Over the years consumer preferences have changed significantly as a result of the increased knowledge of environmental welfare, thereby fueling the need for sustainable products. Macro algae is a fast-growing, nutrient-rich alga that absorbs carbon dioxide and releases oxygen, therefore its cultivation is regarded as sustainable. Growing acceptance of veganism and plant-based goods that promote animal welfare is another factor contributing to the increase in demand for the production of macro algae.
The United Nations Conference on Trade and Development (UNCTD) has collaborates with a London-based start-up that uses seaweed to create biodegradable packaging substitutes. Presently, the company is testing seaweed takeaway boxes and edible liquid packaging in Chile and Ghana, where it’s collaborating with the UN and the two nations’ environment ministries.
The UN Ocean Stewardship Coalition created the Seaweed Manifesto in 2020 to emphasise that ocean farming of seaweed and shellfish should be promoted as a nature-based climate solution.
Seaweed, algae, and shellfish are adept at creating high quantities of biomass, consume unusable seawater, and grow on non-arable land, all of which are advantageous from the perspectives of employment generation and economic development. In addition to being used for human sustenance, seaweeds and algae also serve other economic purposes. This includes biodegradable compostable plastic, fertilisers, and soil enhancers.
Several countries such as the US, Japan, Korea, Norway, Ireland, Netherland and Australia are actively researching and developing biofuels from seaweed. While the commercial-scale production of seaweed-based biofuels is still in its early stages, significant progress has been made in terms of research, pilot projects, and feasibility studies. Even though seaweed has been largely used for food consumption, India hasn’t commercially explored all of its potential uses.
India hopes to increase seaweed production to at least 1 million tonnes annually by 2025 with investments of around US$ 86.8 million. The investment is a component of the Blue Revolution programme under India’s Pradhan Mantri Matsya Sampada Yojana (PMMSY). Approved by the government in May 2020, PMMSY aims to “bring about a Blue Revolution through sustainable and responsible development of the fisheries sector in India.” The funding will pay for the establishment of seaweed seed banks, nurseries, tissue culture labs, processing, and marketing facilities, as well as business development and kill training.
The Department of Fisheries, Ministry of Fisheries, Animal Husbandry and Dairying, Government of India has been focusing on progressive growth of the seaweed sector. In this regard, financial assistances are provided for culture rafts and monolines/tubenets along with inputs at unit costs of Rs 1,500 and Rs 8,000 respectively for seaweed cultivation under the PMMSY.
Projects with total cost of Rs. 6,258.085 lac with central share of Rs. 2,089.175 lac have been approved under PMMSY during FY 2020-21 and FY 2021-22 (till date) for various States/Union Territories (UT) and R&D institutions.
It is worth noting that the number of jobs and wages available to individuals will increase because of these investments. The government is also roping big investors to this industry by approving 100% FDI through automatic methods in the fisheries and aquaculture industries.
Moreover, some welcome initiatives are being taken up by states. Last year, A Karthik, Principal Secretary, Animal Husbandry, Dairying, Fisheries and Fishermen Welfare Department, unveiled Tamil Nadu’s policy focus for making Tamil Nadu a modern seaweed hub.
“We are creating a unique opportunity for the investors and entrepreneurs to make Tamil Nadu a one-stop destination for the seaweed sector”, he said. This will involve an integrated, tech-savvy and end-to-end approach catering to the need of fishers, industries and new entrepreneurs of the seaweed industry. A multi-purpose seaweed park is being set up to facilitate technology adoption for productivity enhancement, environmental improvement and the creation of sustainable livelihood opportunities for coastal people, with an investment of Rs 127.72 crore. The Lakshadweep administration has also launched a programme to turn its nine inhabited islands into a hub of seaweed cultivation with the technical support of the ICAR-Central Marine Fisheries Research Institute (CMFRI). With key regions beginning to actively work on opportunities, India’s untapped potential in this sector may finally be leveraged in the coming years.
Very informative and well researched article. Can be useful for people to get into the seaweed business in India.
You must be logged in to post a comment.
Stay ahead in the dynamic world of trade and commerce with India Business & Trade's weekly newsletter.