Potential scale of Scottish seaweed-based industries: research paper

3 Status of the seaweed-based industry in countries comparable to Scotland

3.1.1 A review of the scale and value of the seaweed-based industry sectors in countries considered comparable to Scotland (on the basis of their utilisation of the same or similar seaweed species for commercial purposes) was undertaken via a desk-based review, supplemented by consultation with relevant industry experts^[7], from Scotland and other countries where possible. The purpose of the review was to inform the development of projected future scenarios for the Scottish seaweed-based industry (Section 6), with regard to the supply of raw seaweed material and competition for products and markets.

3.1.2 The case study countries reviewed were Chile, Norway, France, Ireland and Iceland. The general development of the seaweed-based sector in these countries, including the main species harvested and/or cultivated, tonnages, the main products and markets and industry structure (where information was available) are described in detail in Appendix C. A brief summary of the key points is provided below and in Table 2 and Table 3.

3.1.3 In contrast to Asia and Africa, where raw seaweed material is predominately cultivated, in Europe and Chile, seaweed is almost entirely harvested from the wild.

3.1.4 Kelp species dominate production from wild harvesting in Chile, Norway and France where they are mainly used to produce alginates. On a global scale, approximately 40,000 tonnes of alginate is produced annually, the vast majority of which is high M alginate^[8] (properties low gel strength, elastic gel) which Chinese companies can supply at very low costs compared to the European producers (information from stakeholder input). The remaining alginate produced is high G alginate (properties high gel strength, brittle gel). Norway hosts the largest alginate extraction facility in Europe (Dupont) and produces around two thirds of total European production and almost all of the global supply of high G alginate. The global size and value of the hydrocolloid market in 2016 (excluding China) was estimated at €488 million for agar (55,000 tonnes), €258 million for carrageenan (13,000 tonnes) and €237 million for alginate (16,000 tonnes) (CBI, 2018).

3.1.5 The use of seaweeds as food products is established in Chile and France and is likely to increase. This is due to growing interest in the sea vegetable market in western countries in Europe. In 2013, the wholesale value for sea vegetables was estimated to be €24 million (Organic Monitor, 2014). The use of seaweeds in bio-active products (cosmetics, nutraceuticals, and pharmaceuticals) is also expected to grow.

3.1.6 In contrast to Chile, which farms relatively large volumes of red seaweed (Gracilaria) for agar production, seaweed cultivation in Europe is still an emergent industry and small-scale, although in Norway the number of licences granted for the cultivation of seaweeds, companies involved and tonnages harvested from farmed sites have all gradually increased since 2015 (BIM, 2020). Species cultivated in European countries mainly include S. latissima, A. esculenta, and U. pinnatifida for use in human food and animal feed.

3.1.7 The implications of the scope and scale of the seaweed-based industry in these countries in relation to the development of the Scottish industry is considered further within Section 6 (Projected future growth scenarios).

* The range of volumes provided are rounded tonnages between 2009 and 2017 according to FAO (2019).

* The range of volumes provided are rounded tonnages between 2013 and 2017 for Chile (FAO, 2019); 2018 for Norway (BIM, 2020); 2009 to 2013 (Cefas, 2016) and 2018 (BIM, 2020) for France; and 2018 for Ireland (BIM, 2020).

** This volume estimate includes unidentified miscellaneous aquatic plants not included under brown, red or green seaweeds in Cefas (2016) and hence assumed not to refer to the production of seaweed (macroalgae).