In the latter half of 2024, the sodium alginate industry experienced notable price fluctuations, primarily due to ongoing challenges in seaweed cultivation, the key raw material used in its production. Adverse weather conditions, including heavy storms and excessive rainfall in certain regions, disrupted seaweed collection, leading to irregular supply levels. As a result, producers struggled to meet demand, creating volatility in the market.
The American seaweed farming industry also faced difficulties, with major companies such as Running Tide and AKUA shutting down due to economic pressures and a lack of institutional support. These closures dealt a significant blow to the sector, especially since U.S. seaweed farming remains in its early stages and has not yet reached the scale of established producers such as Japan and South Korea. Without strong investment and well-defined government regulations, many U.S. seaweed farms were unable to expand or sustain their operations.
Globally, the sodium alginate market remained relatively stable, but the U.S. struggled to establish itself as a viable player in the seaweed sector. The lack of consistent support and regulatory frameworks made it difficult for domestic companies to maintain their foothold, further complicating the creation of a reliable sodium alginate supply chain.