Potential scale of Scottish seaweed-based industries: research paper

C Review of International Seaweed-based Industry Activity and Markets

C.1 Introduction

C.1.1 This appendix provides a brief overview of the global seaweed industry with respect to global seaweed production and uses. A series of case studies are then presented summarising information relating to the current status of the seaweed-based industry in other countries considered comparable to Scotland on the basis of their utilisation of the same or similar seaweed species for commercial purposes (Chile, Norway, France, Ireland, and Iceland), focussing on (where the information was available):

• Production methods (i.e. wild harvesting and/or cultivation), volumes and recent production trends;
• Species harvested/cultivated and products; and
• Product markets and value.

C.1.2 This information was then considered in the development of possible future scenarios for the Scottish seaweed-based industry, particularly with regard the supply of raw seaweed material and competition with regard to products and markets (see Section 6 in the main report).

C.1.3 It should be noted that in general, data relating to production volumes of seaweed (wild harvested or cultivated), markets and value were relatively sparse, out-of-date and/or inconsistent between sources. However, a summary of key points has been compiled at the end of the appendix.

C.2 Global overview

C.2.1 The global seaweed industry has been estimated to be worth €8.1 billion per year (Barbier et al. 2019). Global production^[45] of aquatic plants, mostly seaweeds, reached 32.9 million tonnes in 2017, of which 31.8 million tonnes (96.6%) was harvested from aquaculture (i.e. cultivated; FAO, 2019). This production of aquatic plants has grown from 13.5 million tonnes in 1995 (FAO, 2018). The production of seaweed (from cultivation and wild harvest combined) is dominated by Asian countries, primarily China and Indonesia, but with the Philippines, South Korea, Japan and Malaysia also being key seaweed producing countries (Cefas, 2016; FAO, 2018, FAO, 2019). The only countries outside of Asia that ranked within the top ten producers of marine aquatic plants (cultivated or harvested) in 2017 were Chile (1.3% of the 2017 total) and Norway (0.5%) (FAO, 2019).

C.2.2 Seaweeds are primarily cultivated (farmed) in Asia and Africa, as opposed to Europe and America where seaweeds are almost entirely harvested from the wild (Figure C1).

C.2.3 Globally, 97.4% of production is of red and brown seaweeds (Cefas, 2016). These types of seaweed increased in production by 84% and 47% respectively between 2010 and 2014 (Cefas, 2016). Green seaweed is produced in lesser quantities and has decreased in production by 30% between 2010 and 2014. The vast majority of European production is of brown seaweed.

Source: Adapted from FAO (2019)

C.2.4 At the global level, approximately 85% of seaweed production comprises products for human consumption (FAO, 2018). The remaining 20% is used to extract hydrocolloids, and for animal feed, fertilisers, water remediation and probiotics in aquaculture (West et al., 2016). Seaweed derived extracts (carrageenan, agar and alginates) make up 40% of the world's hydrocolloid market in terms of foods, with the rest derived from certain animals, microbes and land plants (FAO, 2018).

C.3 Comparable country seaweed industry baselines

C.3.1 The overview of the scale, scope 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 based on a desk-based review, supplemented by consultation with relevant industry experts^[46] from Scotland and other countries, where possible.

C.3.2 The countries (case studies) considered in this study were Chile, Norway, France, Ireland and Iceland. The general development of the seaweed-based sector in these countries, including the main seaweed species and tonnages produced (by wild harvest and cultivation where applicable), products and markets have been summarised below (where information was available) to assist in identifying potential future product and market opportunities for the Scottish industry as it seeks to expand and develop (see Section 6 in main report). As data relating to the scale (size and value) of the sector for these countries was relatively scarce (an issue raised in other recent reports e.g. BIM, 2020), aggregated information for Europe has also been included where available and considered to be relevant.

Chile – Trends in seaweed production

C.3.3 Chile is the biggest producer of algal commodities in South America, and the biggest outside of Asia, exploiting 16 species of seaweed (FAO, 2018). Including both wild harvest and cultivated seaweeds, Chile accounted for 1.3% of global production in 2017 producing 432,262 tonnes (FAO, 2019).

C.3.4 The majority of seaweed landings in Chile are wild harvested from natural beds (rather than cultivation) with Chile being the biggest producer of wild harvested seaweeds in the world (Cefas, 2016). These high seaweed production (harvest) rates have been driven by the development of the carrageenan industry, the increased production of agar, and the increasing interest for brown algae (Buschmann et al., 2008). Reported annual tonnages wild harvested between 2009 to 2017 are shown in Table C1. Historic fluctuations in seaweed production are the result of over harvesting and changing market demand (Buschmann et al., 2008), as well as natural factors (for example earthquakes resulting in large-scale mortality of subtidal and intertidal organisms; Mac Monagail, 2017).

Table C1. Trends in wild harvested seaweed (tonnes) in Chile (2009-2017)

2009	2010	2011	2012	2013	2014	2015	2016	2017
368,032	368,580	403,496	436,035	517,929	417,331	345,704	329,707	415,463

Source: FAO (2019)

C.3.5 Cultivated seaweed production is relatively small-scale in Chile. Reported annual tonnages cultivated between 2009 to 2017 are shown in Table C2 and demonstrate notable inter-annual variation. Red seaweed Gracilaria, which is planted and harvested by fishermen, makes up the majority of cultivated seaweeds in Chile and is the only species to have reached commercial scale, although still only contributing to less than 5% of total seaweed production (from harvesting and cultivation combined) (FAO, 2018). Other seaweeds are farmed but only on an experimental basis in response to Government-led priorities to increase production levels to meet demand for algal commodities.

Table C2 Trends in cultivated seaweed (tonnes) in Chile (2009-2017)

2009	2010	2011	2012	2013	2014	2015	2016	2017
88,193	12,179	14,694	4,126	12,512	12,836	11,952	14,863	16,799

Source: FAO (2019)

Chile – Seaweed-based products

C.3.6 A variety of seaweed species in Chile are used as food products, animal feeds, or to produce carrageenan, agar and alginates. Species and uses are described by FAO (2018) and summarised in Table C3.

Table C3 Main seaweed species and products produced in Chile

Product Group	Product	Species	Further information
Human food	Various food products	Bull kelp Durvillaea antarctica	8,000 tonnes harvested in 2014; 400% increase 2004-2014; Found in coastal markets, sold by fishers, and in grocery supermarket chain in inland cities and towns
	Various food products	Purple laver Porphyra spp.	132 tonnes harvested in 2014; 1000% increase 2004-2014; Found in coastal markets, sold by fishers, and in grocery supermarket chain in inland cities and towns
	Various food products	Red algae of Gigartinales family	Primarily consumed abroad as seasoning in Asian dishes
	Various food products	Chondracanthus chamissoi	2,715 tonnes harvested in 2014 Second most produced seaweed in Chile for human consumption though trend declining
	Various food products	Callophyllis variegata	Less than one tonne harvested per annum Declining trend in production
Animal feed	Abalone feed	Lessonia trabeculata	Blades used for haliotid (abalone) foraging
	Abalone feed	Macrocystis pyrifera	Used for abalone feeding
Hydrocolloids	Carrageenan	Gigartina skottsbergii	Symptoms of an over-exploited species Biomass regulated by an area rotation system (harvesting restricted in May-Sep) 15,000 tonnes harvested in Region XII, 55% national production
	Carrageenan	Sarcothalia crispata	34,600 tonnes harvested, mostly from Region X
	Carrageenan	Mazzaella laminarioides	Production does not exceed 5,000 tonnes per annum
	Agar	Gracilaria chilensis	45,000 tonnes cultivated in 2014; Comprises almost 100% of cultivated biomass; Planted and harvested by local fishers
	Agar	Gelidium spp.	Variable production, collected by fishers; 135 tonnes to 700 tonnes harvested in last decade
	Alginates	Lessonia nigrescens	430,000 tonnes harvested; Most produced seaweed
	Alginates	Lessonia trabeculata	60,000 tonnes harvested; Stipes used for alginate production
	Alginates	Macrocystis pyrifera	25,000 tonnes harvested

Source: Adapted from FAO (2018)

Chile – Markets and value of seaweed-based products

C.3.7 Information on the main markets for seaweed products from Chile and indicative market values of seaweed-based products in Chile is provided by FAO (2018) and is summarised in Table C4. The information illustrates how seaweed products that have undergone some processing and are of export quality sell at higher prices per tonne, in part due to water loss during the processing.

Table C4 Markets and value of seaweed species and products produced in Chile

Product type	Indicative value (2014 prices)
Fresh or air-dried harvested seaweed for human consumption (food products)	Sold to local and domestic markets by fishermen from the beach. The price is highly variable depending on availability and buying power of middle men, although some species (Porphyra spp. and D. antartica) that can be processed immediately and sold directly to local markets are higher value (typically US Dollar (USD) 1927 per tonne and USD 1718 per tonne respectively)
Seaweed for hydrocolloid extraction	Typically between USD 81 to 646 per tonne, except Gelidium which around USD 1540 per tonne due being more difficult to harvest and its particular agar composition
Dehydrated seaweed commodities (for food products)	For export markets. Relatively high value (due to water loss during processing), ranging from USD 1,305-4,472 per tonne
Food products	For export markets. Relatively high value due to the food regulations and processes that must be upheld. Typical prices in 2014 between USD 3,000-5,000 per tonne, although C. chamissoi for human consumption reached USD 28,000 per tonne in 2014.
Hydrocolloids (carrageenan and agars)	The main goods of value exported to over 50 countries. Approximate values: Agar USD 27,000 per tonne (total export value USD 49 million; 53% total sold to Japan) Carrageenan USD 15,000 per tonne (total export value USD 72 million; 60% sold to Denmark and the USA)
Dried seaweed for hydrocolloid extraction	For export markets. Highest value species Lessonia with average annual FOB* export value of over USD 83 million between 2013-2016. 80% exported to China. Other important markets included Canada, Denmark, France, Japan and Norway.

Source: FAO (2018)

Norway – Trends in seaweed production

C.3.8 Norway is the largest producer of seaweeds in Europe, contributing 0.5% of total world production in 2017 (FAO, 2019). Wild seaweed harvesting is the primary means of producing seaweed in Norway, accounting for 14.8% of global production from wild harvest sources in 2017 (FAO, 2019). This placed Norway as the third largest producer of wild harvested seaweed globally (behind Chile and China).

C.3.9 Reported annual tonnages wild harvested between 2009 to 2017 remained relatively stable and are shown in Table C5.

Table C5 Trends in wild harvested seaweed (tonnes) in Norway (2009-2017)

2009	2010	2011	2012	2013	2014	2015	2016	2017
154,215	160,361	158,516	152,382	140,998	154,150	154,230	147,391	169,407

Source: FAO (2019)

C.3.10 More recently, BIM (2020) reported that around 150,000 wet tonnes of Laminaria hyperborea (average price €23/wet tonne) is wild harvested each year, to produce around 5,000 tonnes of alginate. Around 10-20,000 wet tonnes of A. nodosum are also wild harvested per annum (average price around €50/wet tonne) predominately for use in seaweed meal (feed), agriculture, nutraceutical and cosmeceutical products. A small amount of the green seaweed Ulva lactuca is harvested for the restaurant trade (c. €50/kg).

C.3.11 L. hyperborea, is harvested with a rake-type dredge that is pulled by a boat which removes the kelp plants from the rock (Burrows et al., 2018). Ascophyllum nodosum and Laminaria digitata are also mechanically harvested in Norway's waters (EUMOFA, 2019).

C.3.12 Until relatively recently, cultivation of seaweed was not generally being undertaken in Norway. The country was early to develop a knowledge-based, integrated coastal zone management system, and it was recognised that the growing demand of the seaweed industry could not be satisfied solely from the wild (Stévant et al., 2017). Pilot farms were set up to investigate upscaling biomass production (Cefas, 2016). This moved quickly to obtain commercial permits for cultivation of mainly Saccharina latissima in coastal water (Stévant et al., 2017). As summarised by Stévant et al. (2017), the first commercial cultivation permit at sea in Norway was issued in 2014. This follows the creation of a specific-interim-licensing system.

C.3.13 Since 2015 the number of licences granted for the cultivation of seaweeds, companies involved and tonnages harvested from farm sites have all gradually increased in Norway (BIM, 2020). By the end of 2018 there were 406 licences for seaweed cultivation (78 for S. latissima, 70 for L. digitata, 75 for Alaria esculenta and 60 for Palmaria palmata, with the other 133 licences for other seaweed species or 'mixed' licences). Of the 406 licences, 155 were active (operational), with 20 companies cultivating seaweed across 83 sites (BIM, 2020).

C.3.14 In 2016, the total surface area licensed for seaweed cultivation at sea reached 277 ha, which is thought to equate to 16,000 tonnes of production, though that level is not reached as most companies are in the start-up phase of production (Stévant et al, 2017). In 2018, BIM (2020) reported that 169 wet tonnes of cultivated seaweed were harvested (total value c. €120,000) comprising 165 wet tonnes S. latissima (€450/wet tonne) and 2 wet tonnes each of A. esculenta (€3,100 and €3,800 / wet tonne in 2016 and 2017 respectively) and 'other seaweeds'.

C.3.15 There are plans in Norway to develop large scale cultivation and establish a sustainable seaweed value chain from the cultivated biomass (BIM, 2020). Current efforts regarding industrial scale of cultivated production, mainly of sugar kelp S. latissima, are focussed on developing efficiencies that reduce the need for maintenance and improving technologies such as mechanising seedling deployment and harvest and crop handling (Stévant et al., 2017).

C.3.16 Industry groups (e.g. Norwegian Seaweed Farms) and an industry-led project (SEABEST) have been set-up, the latter to develop a commercial seaweed supply chain primarily to supply high quality food products to European markets, but also to explore opportunities for new products and markets in bioenergy, pharmaceutical and animal nutrition (BIM, 2020). The Norwegian Seaweed Biorefinery Platform^[47], a five-year research programme funded by the Research Council of Norway, is a national consortium generated to coordinate the efforts of research institutions toward an increased and sustainable Norwegian seaweed‐based industry. The focus of the research is on characterisation of the seaweed biomass (e.g. chemical composition) and the development of technology for biorefinery processes and establishment of high‐value and bulk product pipelines.

Norway – Seaweed-based products

C.3.17 The main seaweed product in Norway is alginates, which is primarily produced from the wild harvested kelp L. hyperborea.

C.3.18 Processing industries often locate close to seaweed harvesting areas, to limit the cost of transporting wet material and remain competitive with the importation of dried material (EUMOFA, 2019). The largest European alginate extraction facility is located in Norway, operated by DuPont, and accounts for around two thirds of the total European alginates production (European production of alginates amounted to around 10,000 tonnes in 2017 and this production covers most of the European demand for alginates CBI, 2018). The European extraction facilities mostly produce food-grade alginates with a high gelling strength (i.e. sodium alginate).

C.3.19 Cultivated A. esculenta is often sold in dried or fresh form as a high value food ingredient (sea vegetable), whereas S. latissima has a broader range of market outputs, such as being dried for human consumption or used as meal in animal feed (Stévant et al., 2017).

Norway – Markets and value of seaweed based products

C.3.20 The market value of the alginate industry in Norway was not readily available in the literature reviewed.

C.3.21 As noted above, reported values of cultivated S. latissima in 2018 and A. esculenta in 2016/17 were €450 and €3,100 – €3,800 per wet tonne respectively (BIM, 2020). When comparing the retail value of these species in an earlier report (USD 399 per tonne for S. latissima and USD 1,099 per tonne for A. esculenta in 2015), Stévant et al., (2017) stated the higher value of A. esculenta may be attributed to the fact it is often sold in dried or fresh form as a high value food ingredient, whereas S. latissima is usually dried for human consumption or used as meal in animal feed (although, no information was available regarding the retail markets of the produced biomass). It was suggested that the lower biomass available on the market may also explain the higher value of A. esculenta (Stévant et al., 2017).

France – seaweed production trends

C.3.22 France is the second largest producer of seaweeds in Europe (BIM, 2020). Almost all of the production in France comes from wild harvested rather than cultivated seaweed.

C.3.23 France is a country that has seen the biggest growth in wild harvested production over recent years, with a large increase in production between 2009 and 2013, although tonnages have fluctuated since (Table C6). Mesnildrey et al. (2012) state that landing volumes for L. digitata (the most harvested species in France) are dictated by the processing industry in relation to their capacity to process fresh algae (with treatment plant capacities ranging from 40,000 to 47,000 tons), although it is not clear whether this fully accounts for the fluctuations in harvested wild seaweed tonnages shown in Table C6.

Table C6 Trends in wild harvested seaweed (tonnes) in France (2009-2017)

2009	2010	2011	2012	2013	2014	2015	2016	2017
18,907	22,597	47,307	41,229	69,126	58,512	19,110	55,041	39,072

Source: FAO (2019)

C.3.24 The species L. digitata and L. hyperborea are harvested in the highest quantities (Mesnildrey et al., 2012). These authors reported approximately 40,000 to 60,000 tonnes of L. digitata had been harvested annually between 2008 to 2011, with around 10,000 to 20,000 tonnes of L. hyperborea harvested (it is noted that these volumes do not appear to correspond with the volumes shown in Table C6). These species are harvested mechanically by fishing vessel (using a rake type dredge known as a "scoubidou") (EUMOFA, 2019). Another species that is harvested is Gelidium sesquipedale which is primarily gathered as beach cast material (Mesnildrey et al., 2012).

C.3.25 Cultivated seaweed production in France has been on a relatively small scale (< 100 tonnes per annum) until 2009, after which production of 'miscellaneous aquatic plants'^[48] increased up to around 380 tonnes in 2011 (Cefas, 2016). BIM (2020) reported that there were ten companies with cultivation capability in France, mainly farming Undaria pinnatifida and S. latissima, and that up to 50 tonnes (wet weight) of seaweed was cultivated per year. However, the authors highlighted the discrepancy between the cultivated tonnage they reported and the FAO statistics which reported 500 tonnes per year. BIM (2020) also reported that France was making substantial investment in research to develop cultivation of key seaweed species.

France – Seaweed based products

C.3.26 The chemical and food-processing industries (i.e. hydrocolloids) are the main markets for seaweed in France, with 75% of the harvested seaweed (domestic production and imports) used for this sector (Mesnildrey et al., 2012). The rest is used for agricultural purposes, water treatment and health care products (cosmetics and pharmaceuticals), and a small proportion is produced for direct human consumption (Mesnildrey et al., 2012). Further information on specific species and products are presented in Table C7. Limited information was available regarding the tonnage of species harvested or cultivated to contribute to each product group.

C.3.27 In 2012, Mesnildrey et al (2012) reported that approximately 90 companies process or sell products made using seaweed in France. Of these companies, nearly half (40) used seaweed within the 'health and wellbeing' sectors (i.e. within the cosmetic and pharmaceutical industries; classified within the bioactive product group in this study), approximately 25% within the agricultural supply and water treatment sectors, approximately 25% provided seaweed as vegetables for human consumption and approximately 8% (7 companies) produced hydrocolloids. Consultation undertaken for this study referred to two companies in France currently producing alginates from seaweeds (almost entirely from L. digitata): Algaia and Rettenmaier (JRS) (stakeholder pers. comm.).

C.3.28 Similar to Norway, the processing industries in France have located close to seaweed harvesting areas with the two main companies in north-west Brittany (EUMOFA, 2019). However, as noted in Table C7, local seaweed production in France is not always sufficient to meet the demands of local processing industries (especially for alginate production), so raw material is also imported when local supplies are out of season or insufficient (EUMOFA, 2019). The import of algae unfit for human consumption experienced a strong increasing trend from 2012 to 2016 from approximately 1,123 tonnes to nearly 18,000 tonnes (FAO, 2018). This increase may be attributed to the need to supply the processing industry as well as a decrease in wild harvesting production in France in 2015 and 2016 (EUMOFA, 2019; FAO, 2018). At the same time, the average import price dropped 38%, falling from € 205 per tonne to € 128 per tonne (EUMOFA, 2019).

Table C7 Main seaweed species and products produced in France

Product Group	Product	Species	Further information
Food	Sea vegetable	Palmaria palmata (dulse)	France is a major producer of dulse
Food	Various food products	A. nodosum (egg wrack) Fucus vesiculosus (bladder wrack) Himanthalia elongate (thong weed) Undaria pinnatifida (wakame) Laminaria digitata (oarweed) Laminaria saccharina (Sugar kelp) Laminaria japonica (kombu) C. crispus (Irish moss) Porphyra spp. (7 species) Gracilaria verrucose Ulva lactuca (sea lettuce) Enteromorpha (gut weed)	Up to 20 species are considered as edible as raw material or an intermediary product for the food processing industry Edible seaweed species are often cultivated or gathered on shore, mainly by occasional (rather than professional) gatherers
Bioactives	Various cosmetic and pharmaceutical products	A. nodosum (egg wrack) Fucus vesiculosus (bladder wrack) Himanthalia elongata (thong weed) C. crispus (Irish moss) Pelvetia sp. L. digitata (oarweed) Palmaria palmata (dulse)	No information was found regarding the source of the seaweed material (wild harvested or cultivated) or the volumes used
Animal feed	Various products	A. nodosum (egg wrack) (main species) Fucus spp. (wracks)	Up to 6,000 tonnes A. nodosum harvested annually, mainly for use in feed and fertiliser although this species can also be used in alginate production
Fertiliser	Various products (including powders and liquid extracts)	A. nodosum (egg wrack) (main species) Fucus spp. (wracks)	As above
Hydrocolloids	Alginates	L. digitata (oarweed) (main species) L. hyperborea (cuvie) A. nodosum (egg wrack)	Between 40,000 and 60,000 tonnes L. digitata harvested annually (reported in 2012) Import dried seaweeds when local supplies are out of season or not enough to meet demand Used in textile and food-processing industries as well as numerous other products
	Agar-agar	Gelidium sesquipedale., Gracilaria spp. Porphyra sp	Used for microbiological work and food processing
	Specialty carrageenan	Chondrus crispus Mastocarpus stellatus	Used particularly in manufacturing of dairy products Carrageenans extracted from imported red algae from Asia (Kappaphycus and Eucheuma) are used in pet food

Sources: Misnildrey et al (2012); Cefas (2016), EUMOFA (2019)

France – Markets and value of seaweed-based products

C.3.29 Mesnildrey et al., (2012) reported that between 40,000 and 60,000 tonnes of L. digitata was wild harvested annually in France with an associated turnover of around € 1.7 to 2.7 million (note, the years to which these statistics apply was not stated).

C.3.30 A growing market in Europe is seaweeds for human consumption. This is in response to increasing demand for edible seaweed from European customers (EUMOFA, 2019). France supplies 90% of the European market for Palmaria palmata (dulse) (Cefas, 2016). Approximately 300 occasional gatherers harvest seaweed for a turnover of € 300,000 (Mesnildrey et al., 2012; year(s) not stated).

Ireland – Trends in seaweed production

C.3.31 The data presented by FAO (2018; 2019) and Cefas (2016) for seaweed production in Ireland appears to be estimated rather than actual reported production volumes. According to these reports wild harvested seaweed production totalled 29,500 tonnes in 2017 having remained constant from 2009. Almost all harvesting of seaweeds in Ireland is by hand, with around 6,500 private rights to harvest seaweed from the intertidal (ABPmer, Land Use Consultants & Plymouth Marine Laboratory, in prep), although mechanical harvesting is beginning to emerge (Mac Monagail and Morrison, 2020).

C.3.32 Irish production (wild harvest) of mainly brown seaweeds amounted to 32% of EU production in 2014 (EUMOFA, 2019), and 11% of the overall European seaweed market in 2016 behind Norway and France (Mac Monagail and Morrison, 2020). The majority of wild harvesting production is of brown seaweeds, with red seaweeds having accounted for < 0.5% of the total national landings by volume (approximately 100 tonnes) in Ireland in 2016 (Mac Monagail and Morrison, 2020).

C.3.33 A. nodosum is harvested manually in Ireland, sourced from the west coast (EUMOFA, 2019). This is the primary species harvested in Ireland accounting for 95% of seaweed landings in 2016 (Mac Monagail and Morrison, 2020). Approximately 16,000 tonnes of this wrack per year are currently cut by hand in Connemara (County Galway) and in County Donegal (Guiry, 2020). Approximately 1,400 tonnes of L. hyperborea was harvested from wild stocks in 2016 (Mac Monagail and Morrison, 2020).

C.3.34 Relatively little seaweed production comes from cultivated sources in Ireland. Total cultivated tonnage was reported to increase from 3 tonnes in 2011 to 8.5 tonnes in 2012 and to 41.5 tonnes in 2013, comprising red and brown seaweeds (Cefas, 2016). The BIM seaweed development programme (operating since 2004) has focussed on perfecting cultivation methods for A. esculenta, L.digitata, S. latissima and recently the "sought after" red seaweeds P. palmata and Porphyra umbilicalis.

C.3.35 BIM (2020) reported that in 2018, 40 tonnes of cultivated seaweed was produced in Ireland that was worth €40,000 at farm gate (first sale), suggesting a value of €1,000 per tonne^[49]. The species composition of this total tonnage and value was not specified (although the report later states that A. esculenta is farmed at licensed marine sites) however, it was noted that the seaweed was destined for high niche markets (not described) and hence further value added. It was estimated that there is 150 ha of licensed seaweed cultivation capacity in Ireland, which when fully operational (anticipated within 5 years) could produce 900 tonnes of farmed seaweed (BIM, 2020).

C.3.36 To satisfy the demand of the processing industry, dried seaweed is imported to Ireland when local supplies are out of season or insufficient. In Ireland, the import volume of seaweeds increased between 2012 and 2015 from 3,000 tonnes to 46,000 tonnes, mainly to supply the processing of animal feed and fertiliser (EUMOFA, 2019).

C.3.37 Both mechanical harvesting of wild seaweeds (using rakes from boats for Ascophyllum and the use of mechanical harvesting for kelps) to augment traditional hand harvesting and cultivation of seaweeds is expected to increase in Ireland. This is to take advantage of markets in cosmetics, nutraceuticals, pharmaceuticals, and food (Mac Monagail and Morrison, 2020).

Ireland – Seaweed-based products

C.3.38 It is estimated that there are 43 seaweed-based companies in Ireland, ranging from seaweed farm operators to businesses producing 'sea vegetables' (approximately 15 companies) and high end value added products such as plant biostimulants, soil amendments, animal health and nutrition products and cosmetics (BIM, 2020).

C.3.39 Alginates are produced from A. nodosum^[50], and from L. hyperborea, mostly in export markets as Ireland does not produce alginate in great quantities (Guiry, 2020).

C.3.40 Seaweeds are also used to produce soil conditioners and for the production of liquid seaweed extracts, particularly from A. nodosum, for example fertiliser manufactured by Sea Chem (Shropshire Seaweed)^[51].

C.3.41 Seaweed for human consumption (from wild harvest) has also increased recently, with a small number of companies operating in Ireland (EUMOFA, 2019). The main species used in Ireland include P. palmata and carrageenan moss (C. crispus and M. stellatus), with S. latissima, thongweed Himanthalia elongata and A. esculenta becoming more popular (Guiry, 2020). P. palmata is considered a delicacy in Ireland and 15 to 30 tonnes is consumed per year (Walsh and Watson, 2011).

C.3.42 There are also some examples of specialised local companies using seaweeds (e.g. Fucus serratus and A. nodosum) in beauty products and treatments but in small quantities (Guiry, 2020).

Ireland – Markets and value of seaweed-based products

C.3.43 In 2012, it was estimated that the value of wild harvested seaweed (29,500 tonnes comprising 28,000 tonnes A. nodosum, 1,400 tonnes L. hyperborea and 100 tonnes of red seaweed) was €3.9 million (Norton et al., 2014 and references therein). As noted above, recently introduced mechanised harvesting techniques and an expansion of seaweed cultivation in Ireland are anticipated to enable opportunities in the cosmetics, nutraceuticals, pharmaceuticals, and food markets to be accessed (Mac Monagail and Morrison, 2020).

Iceland – Seaweed production trends

C.3.44 All seaweed production from Iceland comes from wild harvested sources (Cefas, 2016). In 2017, Iceland harvested 21,313 tonnes of seaweed (1.92% of global wild harvested seaweed; 10^th largest producer in the world) (FAO, 2019).

C.3.45 Overall, seaweed production (wild harvest) has remained relatively stable between 2009 and 2017 (Table C8).

Table C8 Trends in wild harvested seaweed (tonnes) in Iceland (2009-2017)

2009	2010	2011	2012	2013	2014	2015	2016	2017
22,563	21,014	15,737	18,079	17,168	18,427	16,830	17,985	21,313

Source: FAO (2019)

C.3.46 Harvesting of A. nodosum makes up the majority of seaweed production in Iceland. Kelps, primarily L. digitata as well as L. hyperborea are also harvested. Maack (2019) summarises more recent trends the harvested volumes of these species. The only large-scale harvester in Iceland is a company called Thorverk. Thorverk harvested approximately 19,800 tonnes of A. nodosum in 2018, demarcating an overall increasing trend in harvesting since the company began in 1975. This is reportedly attributable to increased market interest and the expansion of recommended harvesting volumes set by the Marine & Freshwater Research Institute (MFRI) (from 20,000 tonnes to 40,000 tonnes). A. nodosum is cut with specialised equipment without destroying plants' holdfasts or substrates.

C.3.47 Kelp harvesting by Thorverk has decreased from 3,700 tonnes in 2004 to 1,700 tonnes in 2018 (Maack, 2019). It is suggested that this is due to less market interest due to natural heavy metal content. It is also expensive to dry and needs a high-paying market (Eamer, 2016). Kelps are harvested using a vessel equipped with a rake-type dredge (Lee, 2018).

C.3.48 One other harvesting company in Iceland is operational (Íslensk Bláskel), but this is of a comparatively small scale, harvesting by hand (Maack, 2019).

Iceland – Seaweed based products and markets

C.3.49 Seaweeds from Iceland are generally sold as a raw material to other countries to be used in animal feed production, fertilisers and as alginates (Maack, 2019). The harvested kelp is mostly used for alginate production and animal feed, as well as in bath products and cosmetics (bio-actives, cosmetics) (Lee, 2018). Alginates derived from the seaweed are also used in beverages, cosmetics, medicines and in biotechnology (Maack, 2019).

C.3.50 As summarised by Maack (2019), Thorverk exclusively harvests seaweed by mechanical harvesting techniques. The seaweed is brought to shore where it is weighed and dried with geothermally sourced heat. Dried seaweed is then ground into seaweed meal or finer particles before exporting as organic fertilisers and animal feed (Lee, 2018). The feed product is exported to North America and Europe and some amount for the production of alginate in Norway (Lee, 2018).

C.3.51 Íslensk Bláskel harvests seaweed by hand, followed by drying process to be sold to food and skincare industries (Maack, 2019).

C.3.52 No information was sourced regarding the economic value of these markets.

C.4 Scale and structure of the seaweed-based industry in Europe and Nordic countries

C.4.1 Further information on the scale and structure of the seaweed-based industry in Europe, and Nordic countries (Norway, Iceland) is provided by the European Commission's Knowledge Centre for Bioeconomy (KCB), which undertook an initial exercise to map macroalgae production units in Europe (KCB, 2019)^[52]. Eighty one companies were identified that produced (harvested and/or cultivated) macroalgae. The highest number of companies were based in Ireland (17), France (14), Norway (11) and Spain (10) (8 companies were identified in the UK at that time) (see Figure 13; KCB, 2019).

C.4.2 The seaweed-based industry in countries in the North Sea basin (France, Belgium, Netherlands, Germany, Denmark, Norway and the UK) and the Atlantic sea basin (Iceland, Ireland, France, Spain) are reported to comprised a small number of relatively large companies (small to medium enterprises (SMEs))^[53]. In general, the companies utilise wild harvested brown seaweeds (in EU waters) and red seaweeds (cultivated in Asia) and process them for the mature (established) hydrocolloid markets mainly for food and cosmetics. In the Atlantic basin countries, there were stated to be several global leaders on seaweed-based fertilisers also. In this area, it was noted that there were two plants to process brown seaweeds and three plants to process red seaweeds (the specific country or countries were not stated), and, in this data source, France was considered to be the main 'collector' and processor of seaweed. It was estimated that there were a small number of licences for sea-based cultivation of seaweed (approximately two in Ireland, four in France and a 'few' in Iceland, although it was noted there may be others), whilst in France there was one main established company (Alga+) undertaking land-based cultivation with several other land-based cultivation initiatives underway in France and Ireland. Although the sector in the Atlantic basin comprised mature companies at different levels of the seaweed chain, it was noted that the sector was still not well co-ordinated. It was anticipated that the future product/market focus of the sector in this region would be on bioactives, by-product valorization^[54], biorefinery processes and the development of biomaterials.

C.5 Summary

C.5.1 In terms of wild harvested seaweed, kelps dominate production (harvest) in Chile, Norway and France where they are mainly used to produce alginates. The physical properties of alginate, which influences its application within the food and chemical industries, vary depending on its uronic acid composition (the ratio of mannuronic acid to guluronic acid; the M/G ratio). On a global scale, approximately 40,000 tonnes of alginate is produced annually, the vast majority of which is high M alginate (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).

C.5.2 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 as (cosmetics, nutraceuticals, and pharmaceuticals) is also expected to grow.

C.5.3 In contrast to Chile, which farms relatively large volumes of red seaweed (Gracilaria) for agar production, seaweed cultivation in Europe is still only just emerging and is small-scale. Production of cultivated seaweeds has remained steady in Chile, and has fluctuated in France. In Norway and Ireland, cultivation seems to be slowly increasing. Species cultivated in European countries mainly include S. latissima, A. esculenta and U. pinnatifida for use in human food and animal feed.

C.5.4 A brief summary of the key points from this review is provided in Tables 2 and 3 in Section 3 of the main report. The implications of the scope and scale of the seaweed-based industry in these countries is considered further in Section 6 of the main report.

C.6 References

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