Microalgae Market Analysis

Global Microalgae Market Overview

Microalgae Market Size was valued at USD 4,735.28 million in 2022. The microalgae market industry is projected to grow from USD 8008.21 million by 2030, exhibiting a compound annual growth rate (CAGR) of 6.93% during the forecast period (2023 - 2030). Increasing consumption of plant-based products and adoption of commercial seaweed as hydrocolloids are driving the market growth.

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Microalgae Market Trends

• Increasing Consumption of Plant-Based Products And Adoption Of Commercial Seaweed As Hydrocolloids

The demand for seaweed is increasing across the world from the food and beverage industry owing to the ability of seaweed in adding nutritional value in the food products. For instance, seaweed was majorly consumed in Asia countries previously; however, owing to the spread of the Asian population in various countries such as the US, Canada, and France. Macroalgae are added freshly in food products or used as a food ingredient in the preparation of nutritional food products. Additionally, several seaweed-produced hydrocolloids are used to increase the thickness and stability of food products. It also has several other applications such as gel forming and using it as a water-soluble film. Alginate, carrageenan, and agar are the most commonly used macro algae extracts. They are used as stabilizing, gelling, thickening, and emulsifying agents in numerous food products, such as bakery products, ice-creams, fruit juices, jams, and many others. Seaweeds being a rich source of biochemicals, such as amino acids, proteins, lipids, vitamins, polysaccharides, peptides, and minerals, aid in increasing the functionality of food products. Owing to these factors market growth is expected to surge in the coming years.

Microalgae Market Segment Insights

Microalgae Type Insights

The Microalgae Market segmentation, based on type, includes Dunaliella, Salina, Chlorella, Spirulina, Haematococcus ,Nannochloropsis ,Others. Spirulina is also known as blue-green algae. It is a cyanobacterium. Spirulina is very rich in nutrients, owing to which it is termed as a super-food. The spirulina is a rich source of beta carotene, protein, vitamins, copper, fatty acids, and iron. There are majorly two types of Spirulina namely Arthrospira platensis and Arthrospira maxima. The increasing demand for natural food ingredients among consumers has boosted the growth of the global spirulina market. Moreover, the surging demand for cosmeceuticals consisting natural extracts has increased the expansion of spirulina across the global market. The spirulina segment accounted for the major market share with a growing CAGR of 6.32%.

Oct 2022: Cyanotech has launched of BioAstin Hawaiian Astaxanthin in a water dispersible powder form, available in both 1% and 2% concentrations. Cyanotech produces the dispersible powder all in one location, arguing this ensures the highest possible quality. Astaxanthin is a suitable nutrient for formulations and condition specific products as it has been clinically studied to help support cardiovascular, eye, immune, skin, and joint health, as well as recovery from exercise.

March 2022: ProFuture developed light microalgae for plant-based protein without fishiness. Researchers have developed high-protein microalgae strains boasting improved taste

October 2020: A joint venture that offers a wide range of finished plant-based food products across North and South America, backed by unmatched technology, scale and experience.

Figure 1: Microalgae Market, by Type, 2022 & 2030 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Microalgae Source Insights

The Microalgae Market segmentation, based on source, includes marine water and fresh water. Marine microalgae are an excellent source of bioactive compounds, including pigments, fatty acids, polysaccharides, and proteins. These bioactive compounds have applications in the food and nutraceutical industry as functional food ingredients, dietary supplements, and natural colorants. Marine microalgae are also being used for aquaculture as a source of feed for fish and shellfish. Additionally, they have potential use in wastewater treatment and carbon capture technologies.

Moreover, freshwater microalgae are rich in functional compounds such as pigments, sterols, fatty acids, and polyphenols, which can have potential health benefits. For example, some of these compounds have antioxidant and anti-inflammatory properties, and are being researched for their potential use in functional foods and dietary supplements.

Figure 2: Microalgae Market, By Source, 2022 & 2030 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Microalgae Form Insights

The Microalgae Market segmentation, based on form, includes dry/powder and liquid. Liquid microalgae refer to microalgae cultures that are suspended in a liquid medium, typically water. They are often used for industrial applications such as biofuels, cosmetics, and pharmaceuticals. Liquid microalgae can be cultivated using various methods, including open ponds, photobioreactors, and closed systems. Open ponds are the simplest and most cost-effective method, but they are vulnerable to contamination and may not yield high-quality microalgae. Photobioreactors and closed systems are more expensive but offer greater control over cultivation conditions and can produce higher quality microalgae. Liquid microalgae can be processed into various products depending on their composition and properties. For example, some species of liquid microalgae are rich in pigments such as chlorophyll and carotenoids, which can be extracted and used as natural colorants in food and cosmetics. Others are rich in lipids and can be used to produce biofuels or high-value chemicals. However, the cultivation and processing of liquid microalgae can be challenging and require significant investment in research and development. Factors such as contamination, nutrient availability, and light intensity can all affect the growth and quality of microalgae cultures.

Figure 2: Microalgae Market, By Form, 2022 & 2030 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Microalgae Application Insights

The Microalgae Market segmentation based on application, includes food & beverages, pharmaceuticals, cosmetics & beauty care products, animal feed, biofuel, and others. Consumer awareness regarding the importance of healthy lifestyles and benefits nutritional foods is growing, making them lean towards high-quality and natural products. Bakery, dairy, and confectionery businesses need natural food components like spirulina to enhance flavor and make their products aesthetically appealing. These ingredients are often used to attract more customers and persuade them to buy their products. Manufacturers are emphasizing the use of natural ingredients in order to appeal to health-conscious consumers. The use of microalgae is increasing among bakery, confectionery, and snacks manufacturers as it enhances the nutritional value of food products. Food manufacturers are willing to pay premium prices for high quality, sustainable natural food components due to the growing number of health-conscious customers. Microalgae is therefore used extensively in bakery and confectionery products, as it improves their texture, color, flavor, and scent, in addition to improving their nutritional value. The food & beverages segment is accounted for the largest market wherein, it holds around 25% of market share in the Microalgae Market.

Industrial applications such as biofuels, cosmetics, and pharmaceuticals. Liquid microalgae can be cultivated using various methods, including open ponds, photobioreactors, and closed systems. Open ponds are the simplest and most cost-effective method, but they are vulnerable to contamination and may not yield high-quality microalgae. Photobioreactors and closed systems are more expensive but offer greater control over cultivation conditions and can produce higher quality microalgae. Liquid microalgae can be processed into various products depending on their composition and properties. For example, some species of liquid microalgae are rich in pigments such as chlorophyll and carotenoids, which can be extracted and used as natural colorants in food and cosmetics.

Figure 3: Microalgae Market, by Application, 2022 & 2030 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Microalgae Distribution Channel Insights

The Microalgae Market segmentation, based on distribution channel, includes B2B and B2C. The distribution channels for B2B microalgae market vary depending on the specific product and market segment. However, some common channels used in the microalgae industry include:

Direct Sales: This involves selling the microalgae directly to the end customer without any intermediaries. This distribution channel is suitable for small-scale microalgae producers who have a limited customer base.

Distributors: Microalgae producers can also use distributors to sell their products to a wider customer base. Distributors purchase the microalgae in bulk and then sell them to retailers or end customers.

Online Sales: The use of e-commerce platforms is becoming increasingly popular in the microalgae industry. Microalgae producers can sell their products online to customers around the world.

Biotechnology Companies: Microalgae are often used in the biotechnology industry, and some biotech companies buy microalgae from producers for use in their products.

Research Institutions: Microalgae are used extensively in research, and research institutions often buy microalgae from producers for their studies.

Figure 3: Microalgae Market, by Distribution Channel, 2022 & 2030 (USD Million)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Microalgae Regional Insights

By Region, the study segments the market into North America, Europe, Asia-Pacific, South America, and Middle East & Africa.

The North America microalgae market is a growing industry, driven by the increasing demand for sustainable and eco-friendly products in various sectors. Microalgae are microscopic plants that are rich in nutrients and can be used for a variety of applications, including food, animal feed, biofuels, cosmetics, and pharmaceuticals. The market for microalgae in North America is expected to grow significantly in the coming years, driven by the increasing demand for natural products and the growing focus on sustainable and environmentally friendly practices. The United States is the largest market for microalgae in North America, with Canada also showing significant growth potential throughout the forecast period.

Increasing healthcare spending, growing geriatric population, food innovations, changing Lifestyles, and medical discoveries have benefitted demand for superfoods. Increasing awareness regarding superfoods as natural, nutrient-rich foods containing vitamins and minerals are some of the key aspects shaping the popularity of microalgae products in the country. The microalgae products market in Europe is gaining polarity attributed to increased consumption of health benefitting products. The demand for naturally sourced and chemical-free ingredients is increasing, with increasing health consciousness among consumers across the world. Moreover, the increasing demand for vegan and organic goods is expected further boost the growth of the microalgae products market in Europe.

This Asia-Pacific microalgae market is witnessing significant market growth due to the abundant production of spirulina in countries like Korea, Indonesia, and China. The extensive incorporation of spirulina in nutraceutical industry for the production of protein-rich dietary supplements has supported the expansion of market. The increasing demand from the cosmeceutical industries is also driving the spirulina market in the region. China is the largest producer and consumer of microalgae products in the region, with a well-established market for microalgae-based food and feed products. Japan is also a major player in the industry, with a focus on developing new technologies for the production of high-value microalgae products. India and Australia are emerging markets for microalgae products, with a growing focus on the development of sustainable agriculture and renewable energy. In India, microalgae are being used as a potential source of biofuel, while in Australia, there is a growing interest in the use of microalgae as a food and feed supplement for livestock.

The rest of the world microalgae market is expected to experience significant growth in the coming years. Microalgae have been identified as a promising source of biofuels, food, feed, and nutraceuticals due to their high lipid and protein content and other valuable compounds. The market is largely driven by increased Research & Development and innovations in the algae protein market. Consumer preference for natural ingredients and the varied applications of algae protein in the food and beverage industry are some of the reasons for the uptick in demand.

Figure 4: MICROALGAE MARKET SHARE BY REGION 2022 (%)

Source: Secondary Research, Primary Research, MRFR Database and Analyst Review

Microalgae Key Market Players & Competitive Insights

The microalgae market is expected to expand thanks to the heavy investment in research and development by market major players. Recent market statistics show that new product releases, contractual agreements, mergers and acquisitions, increased investments, and collaboration with other organizations are just some of the strategic steps market participants are doing to expand their global footprint, broaden their market outlook and focus on market growth.

There are numerous worldwide, regional, and local players in the market for microalgae. There is a lot of competition in the market, and everyone is trying to expand their part of it. While tier-1 and tier-2 corporation control over ~64% of the worldwide market share between them, tier-3 companies make up the rest of the pie. A number of factors, including market and economic growth, government laws, and technological progress, affect how quickly and how large market players can expand. As a result, businesses in the sector need to concentrate on increasing output to keep up with demand and bettering their offerings to grow in line with the expected market forecast.

Latest market report from Market Research Future portrays the leading players in the microalgae industry, which include Algenol Biotech, Cellana Inc, Cyanotech Corporation, DIC Corporation, E.I.D Parry ltd, Fuqing Spirulina Co. Ltd, Kent BioEnergy Corporation, Taau Australia, Astareal AB. Most of these firms are investing R&D resources into creating quality fitness equipment. Despite the dominance of global corporations, a number of regional and local players with relatively minor market shares are present as well. In key markets like North America, Europe, Asia-Pacific, the Middle East & Africa, and South America, the global players who have established production facilities or sales offices have expanded their operations.

Key Companies in the Microalgae market includes

• Algenol Biotech,


• Cellana Inc,


• Cyanotech Corporation,


• DIC Corporation,


• I.D Parry ltd,


• Fuqing Spirulina Co. Ltd,


• Kent BioEnergy Corporation,


• Taau Australia,


• Astareal AB

Microalgae Industry Developments

Sep 2022: DIC Corporation has announced it is to invest US$9 million at Earthrise, a U.S subsidiary, and Hainan DIC, a Chinese subsidiary, producing an edible blue-green algae, Spirulina, and the natural blue food colourant, LINABLUE. DIC Corporation is one of the world’s leading fine chemicals companies and the core of the DIC Group, a multinational organisation comprising over 190 companies around the globe, including Sun Chemical Corporation.

Aug 2021: DIC Corporation announced that wholly owned subsidiary DIC Lifetec Co., Ltd., which manufactures and sells health foods, notably edible blue-green algae Spirulina, signed a sales agency contract with Fermentalg S.A., a leader in the development of microalgae-derived food ingredients based in Libourne, France, and in July 2021 began marketing Fermentalg’s DHA ORIGINS™-510 series of Schizochytrium sp.-derived highly concentrated docosahexaenoic acid (DHA) oils for use in dietary supplements.

In November 2019: Nestle entered into a partnership with Corbion to develop a next-generation range of microalgae-based products and deliver sustainable plant-based products. The move is expected to streamline the commercialization as well as production of microalgae-based products for Nestle.

In 2019:  Phycom completed the expansion of its new production site in Veenendaal. This expansion enabled the company to offer different types of algae under the GMP+ certification, which helps increase its consumer base with quality and safety products.

Microalgae Market Segmentation

Microalgae Type Outlook

• Dunalliela Salina


• Chlorella


• Spirulina


• Haematococcus


• Nanochloropsis


• Others

Microalgae Source Outlook

• Marine Water


• Fresh Water

Microalgae Distribution Channel Outlook

• B2B


• B2C

Microalgae Form Outlook

• Dry/Powder


• Liquid

Microalgae Application Outlook

• Food & Beverages


• Pharmaceuticals


• Cosmetics & Beauty Care Products


• Animal Feed


• Bio-Fuel

Microalgae Regional Outlook

• 
  North America
  
  
  
  • US
  
  
  • Canada
  
  
  
  


• 
  Europe
  
  
  
  • Germany
  
  
  • France
  
  
  • UK
  
  
  • Italy
  
  
  • Spain
  
  
  • Rest of Europe
  
  
  
  


• 
  Asia-Pacific
  
  
  
  • China
  
  
  • Japan
  
  
  • India
  
  
  • Australia & New Zealand
  
  
  • Rest of Asia-Pacific
  
  
  
  


• 
  Rest of the World
  
  
  
  • South America
  
  
  • Middle East
  
  
  • Africa