The challenges of the 21st century require new, sustainable solutions to energy and food problems, sustainably harnessing under-utilized resources and modern capabilities. The ocean and its resources are obvious targets for this approach, and in particular, seaweed (macroalgae) that are abundant, part of Asian cuisine, and yet mysterious to the scientific community and are a treasure trove of economic benefits that must be realized. The International Bioeconomy & Macroalgae Center (IMBC) was established to develop strategies to harness the benefits of macroalgae for the benefit of humanity and held its first annual meeting at UC Berkeley on May 1st and 2nd. Some of the findings are summarized below.
The macroalgae sector must be viewed within the context of the bioeconomy– a transformative concept integrating biotechnology and natural resources to address critical global challenges such as climate change, food security, and sustainable development. The macroalgae sector is referred to as the blue bioeconomy, which is underutilized. Our workshop highlighted the growing economic value of macroalgae, technological innovations, supply chain opportunities, and policy challenges in harvesting them.
The Rise and Promise of the Macroalgae Sector
The macroalgae sector already generates between $12–17 billion annually, and its full potential remains largely unrealized. Macroalgae products span food, pharmaceuticals, agriculture, bioplastics, energy, and carbon sequestration. Asia accounts for 97% of global production, led by China and Indonesia. Demand is growing in North America and Europe. In the U.S., for instance, seaweed consumption is expected to reach $1.5 billion by 2032.
Macroalgae are used across multiple industries, with food and hydrocolloids being the most dominant applications. The human food market alone was valued at $5.3 billion in 2023 and is expected to grow to $7.3 billion by 2028. Hydrocolloids such as agar, carrageenan, and alginate serve as essential inputs for industries like food, cosmetics, pharmaceuticals, and biotechnology, with individual markets ranging from $300 million to $1 billion. Agarose– a high-value agar derivative– is vital for biotechnological applications and is forecast to exceed $3.9 billion by 2033.
Algae also have increasing importance in agriculture (as biofertilizers and feed), livestock (especially in methane mitigation through red algae like Asparagopsis taxiformis), biofuels, and carbon sequestration. These environmental services enhance algae’s appeal as a climate solution, although scalable carbon capture remains a research frontier.
Innovation Supply Chain
Scaling up the macroalgae sector requires both investment in innovation (and building the innovation supply chain) and the implementation of innovations by establishing the product supply chain. Substantial investments in research, investment, and upscaling of new knowledge are required to develop the innovation supply chain. The presentation and conference identified several areas where expanded scientific understanding is required, including genomics, species identification, and biochemical profiling. Fortunately, there are already knowledge-sharing platforms like PhycoCosm and germplasm banks are instrumental in this effort, facilitating biodiversity conservation and industrial innovation.
The next step involves biofoundries for genetic improvement and microbiome analysis to develop robust and high-yield seaweed strains. Precision farming tools, AI, and drone-based monitoring systems can significantly improve production efficiency and sustainability. For example, harvesting technologies like SeaCombine™ and modular systems like GreenWave and Arctic Seaweed offer scalable and climate-resilient cultivation options.
Macroalgae are cultivated both with ocean- and land-based methods. While the former offers scalability and does not compete with arable land, it poses ecological and infrastructural challenges. Land-based systems, such as Oregon Seaweed’s model, offer more control and consistent quality.
Biorefineries are critical in transforming seaweed into multiple value-added products. Techniques such as enzymatic hydrolysis, anaerobic digestion, and green solvents are essential for building efficient and environmentally friendly production systems. Integrated systems like IMTA (Integrated Multi-Trophic Aquaculture) can combine seaweed with shellfish and fish farming to recycle nutrients and boost sustainability.
Product Supply Chains
The product supply chain encompasses cultivation, harvesting, processing, transportation, and marketing. The relationship between innovation and product supply chains is symbiotic: innovative research supports commercial application, and market activities inform scientific priorities. The structure of the supply chain may be vertically integrated or fragmented, depending on firm capabilities, product perishability, and value. Notable firms like Ocean’s Balance and Cascadia Seaweed exemplify integrated models producing food products and agricultural biostimulants. It is crucial to develop product supply chains tailored to local biophysical and economic conditions, with a focus on transportation, input provision, and waste management. Different regions can sustain different algae, which leads to diverse ranges of products and multiple networks of supply chains that will enrich modern and traditional communities alike.
Environmental and Socioeconomic Dimensions of the Blue Bioeconomy
We strive to develop a circular and socially inclusive macroalgae sector. Waste residues can be recycled into biogas or fertilizer, while macroalgae cultivation itself can mitigate nutrient runoff and enhance water quality. The integration of Indigenous knowledge, particularly from First Nations in the Americas, presents opportunities for co-development to respect and integrate cultural values while expanding production.
However, aligning seaweed production with circular principles requires careful supply chain coordination. Discrepancies in demand for co-produced goods (e.g., agar vs. protein) can lead to inefficiencies, which highlights the need for market development and technical innovation. Above all, the macroalgae sector must be economically sustainable, so different kinds of organizations can grow and thrive and produce valuable products sustainably.
Constraints on Expansion
The macroalgae sector faces formidable barriers despite its promises. Research funding lags traditional agriculture. For example, the USDA’s Agriculture and Food Research Initiative (AFRI) had a $445 million budget in 2024, while macroalgae-specific programs like ARPA-E’s MARINER received just $22 million. Infrastructure for macroalgae research (i.e., labs, testing sites, and marine technologies) is sparse.
Inconsistent and opaque regulatory systems also delay new ventures. Licensing seaweed operations can take years, and compliance with unrelated water or food regulations adds to the burden. These challenges deter investors and stall innovation. Consumer unfamiliarity poses another constraint. In the West, algae-based food is not yet mainstream, and thus willingness to pay is low due to a lack of exposure. This limits domestic market development, although environmental awareness is slowly rising. A further barrier is the inertia among large agrifood and energy firms, which are hesitant to embrace macroalgae due to absent supply chains and unproven commercial viability of new products like algae-based proteins or textiles. Financial institutions are also cautious, citing high risk, inconsistent production, and climate vulnerability.
We hope that the center’s research efforts will produce outcomes that enhance the visibility of the sector’s potential, expand the basic knowledge base, and inspire recognition by regulators, banks, and the public about the value of the macroalgae sector and the essential importance of removing constraints to its growth.
Strategic Vision and Conclusion
The meeting concluded with a call for a coordinated, interdisciplinary effort to develop the macroalgae sector. Building a modern macroalgae sector requires a continuous dynamic interface between innovation, policy development, and implementation. It depends on constructive interactions between the public and private sectors, universities, and businesses, and increased awareness from consumers and the general population of the value and benefits of macroalgae.
To move from a $17 billion industry to one potentially worth $100 billion or more, macroalgae must be supported through long-term investment, integrated R&D, regulatory reform, and inclusive stakeholder engagement. Public education is key to increasing market acceptance, and international cooperation can accelerate knowledge sharing and scale-up.
Institutions like the International Bioeconomy & Macroalgae Center (IBMC) are poised to lead this effort, serving as hubs for research, industry collaboration, and policy design. By treating macroalgae as a vital part of the agricultural and environmental economy and investing accordingly, the world can unlock its full potential as a sustainable resource for the 21st century.