Algae Market by Type (Macroalgae/Seaweed {Red, Brown}, Microalgae {Spirulina, Chlorella, D. Salina}), Distribution Channel (B2B, B2C), Form (Dry, Liquid), Application (Nutraceuticals, Food & Beverages, Animal Feed, Cosmetics) - Global Forecast to 2032

This report is executed in collaboration with the European Algae Biomass Association (EABA). Combining Meticulous Research®’ market intelligence services with EABA’s broad expertise in the development of research, technology and industrial capacities in the field of algae, the two organizations have leveraged their research capabilities to come up with the most reliable and accurate market assessments in this field.

The Algae Market is expected to reach $29.8 billion by 2032, at a CAGR of 9.3% during the forecast period of 2025 to 2032. The growth of this market is mainly attributed to the inclination towards health & wellness trends and the growing dietary supplements industry, growing demand for natural food colors, rising vegetarianism, growing nutraceutical industry, increasing preference for algae-sourced products, and growing government initiatives to boost seaweed cultivation. However, low awareness about the benefits of algae and the complex production process of algae products is expected to hinder the growth of the global algae market to some extent.

The Impact of COVID-19 on the Algae Market

The COVID-19 pandemic has adversely hit many economies around the world. Government measures to combat the COVID-19 pandemic, such as nationwide lockdowns and quarantines, have negatively impacted many industries. Most manufacturers of food products in the F&B sector have felt the brunt of the pandemic. Social distancing, self-isolation, and city-wide lockdowns have forced the closures of many establishments in countries across the world.

The pandemic strained consumer F&B product manufacturers due to reduced consumption and disrupted supply chains. The F&B sector witnessed a minor decline due to the lockdowns imposed across various countries. This scenario negatively impacted the confectionery industry since people only purchased essential products. In addition, government bodies passed various rules and regulations on purchasing essential goods. According to trade organizations in the nutritional products industry, there has been a significant impact on the global supply chain for functional foods and dietary supplements, which has, in turn, lowered the consumption of microalgal biomass among end-users impacting the growth of this market.

In the algae industry, a major slowdown in algae sales was witnessed in the first quarter of 2020 due to disruptions in logistics and transportation. The market also witnessed interruptions in the entire value chain from raw materials supply for culture media to production, packaging, and biomass distribution.

The effects of the COVID-19 pandemic on this market were felt in China starting in 2020, as the country is one of the world's largest producers and one of the leading consumers of algal species. In China, factory closures, algae processing facilities operating at reduced capacities, and restrictions on importing and exporting algae biomass strongly impacted the algae market. Moreover, the pandemic also adversely impacted the algae market in many countries, including the U.S., India, Australia, Brazil, and the EU-5 countries. Due to the countrywide lockdown in India, many commercial algae production and processing facilities shut down or were operating at reduced capacities, leading to substantial losses in domestic algal production.

However, good nutrition intake is the top priority to maintain an optimal immune system, supporting the strong demand for plant and algae protein food products & beverages through e-commerce platforms. In addition, some of the algal protein products are considered to support the human immune system. For instance, spirulina has immune-boosting and anti-viral properties.

Thus, demand for microalgal species, such as spirulina and chlorella, increased during the COVID-19 pandemic as the focus on the nutritional content increased. Despite the increase in demand, there were hindrances in the supply chain due to the lockdown imposed by governments in many countries. This supply chain got back on track post-lockdown.

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Growing Nutraceuticals Industry Fuels the Growth of the Global Algae Market

The aging population with increased consumer awareness for preventative healthcare, the rise of the self-directed consumer (self-diagnosis over health practitioner diagnosis), channel proliferation (variety of marketing techniques and E-Commerce), and shift from ingredient-focused messaging to broader brand positioning (grouping of supplements together to form a healthy benefits package) are the key factors driving the growth of the nutraceutical supplements industry.

According to the Association for Packaging and Processing Technologies, the total global market for nutraceuticals is expected to grow from about USD 209.0 billion in 2017 to USD 373.0 billion in 2025, and this growth is mainly due to the increasing popularity of natural nutraceuticals, causing considerable growth of botanical dietary supplements, such as chlorella. Also, it has a low cost compared to prescription drugs, and easy availability is a factor expected to augment their demand over the next eight years.

Consumers have begun demanding alternatives to nutraceuticals in natural form, driving up the market share for functional foods and drinks. In the U.S. before the Covid-19 pandemic, dietary supplement sales increased by 5% (USD 345.0 million) in 2019 compared to 2018. Also, in the U.K., vitamin sales increased by 63 %; in France, sales grew by approximately 40–60% in March 2020 compared to 2019 (Source: National Library of Medicine).  Besides, according to the International Trade Administration, India’s nutraceutical industry is expected to hold at least 3.5% of the global market share by 2025. Therefore, the nutraceuticals market in India is expected to grow from an estimated USD 4.0 billion in 2017 to USD 18.0 billion by the end of 2025. Hence, the growing nutraceutical industry and consumer demand for natural supplements boost the demand for algae products in the market.

Further, chlorella is one of the scientifically researched algae with many publications from medical institutions, research institutions, and universities. It is Japan's best-selling health food supplement, with over 30% of the population taking it as their principal health supplement. Chlorella has also been found to boost the immune system, reduce the intensities of many chronic health problems, and reduce the side effects of medications. Its detoxifying, nourishing, and revitalizing properties enable the body’s natural defenses and repair systems to function more efficiently. Thus, increasing the nutritional supplements and nutraceutical properties of chlorella are compelling the global algae market.

Key Findings in the Global Algae Market Study:

In 2025, Macroalgae/Seaweed Segment to Dominate Algae Market

Based on type, the algae market is mainly segmented into macroalgae and microalgae. In 2025, the macroalgae/seaweed segment is expected to account for the larger share of the global algae market. The large share of this segment is mainly attributed to the rising consumer preference for plant-based products, increasing consumption of seaweed-based products, source of high nutrients & minerals, and growing government initiatives to boost seaweed cultivation. In addition, the growing demand for seaweed biomass for biofuel production is further expected to provide opportunities for manufacturers operating in the macroalgae market.

However, the microalgae segment is expected to grow at the fastest CAGR during the forecast period owing to the rising health & wellness trends and dietary supplements industry; growing demand for natural food colors; increasing vegetarianism; stringent regulations regarding the inclusion of synthetic colors and flavors; increasing preference for Spirulina-sourced products, especially Omega-3 fatty acids; growing use of microalgae in aquaculture; rising investments from leading color houses in microalgae; and an increasing number of products that include Spirulina as an ingredient.

In 2025, Business Channel (B2B) Segment to Dominate Overall Algae Market

Based on distribution channel, the algae market is mainly segmented into business-to-business (B2B) and business-to-consumer (B2C). In 2025, the B2B distribution channel segment is expected to account for the larger share of the global algae market. The large share of this segment is mainly attributed to the direct bulk purchasing of algae by manufacturers from various industries, such as nutraceuticals, food & beverage, and animal feed, for further product development.

In 2025, the Dry Form Segment to Dominate the Algae Market

Based on form, the algae market is segmented into dry and liquid forms. The dry form segment is expected to account for the larger share of the algae market in 2025. The segment is also expected to record the highest CAGR during the forecast period, owing to the growing demand for algae powder from the food and cosmetics industries. Moreover, its several benefits, such as comparatively high shelf-life and ease of transport and storage, are further expected to support the growth of this market.

In 2025, the Food and Beverage Segment to Dominate Algae Market

Based on application, the algae market is mainly divided into food and beverages, nutraceuticals, cosmetics, animal feed, and others. In 2025, the food and beverage segment is expected to account for the largest share of the global algae market. The large share of this segment is mainly attributed to the growing demand for organic foods products, the increase in consumption of plant proteins and vegan products, and the increase in the utilization of algae for human consumption. Moreover, rapid population growth, increasing awareness of algae's health benefits, changes in lifestyle patterns and taste preferences among consumers, healthy eating habits, and rising disposable income are further expected to support the growth of this market.

Asia-Pacific Dominates the Overall Algae Market, While North America Leads in Growth

Based on geography, the global algae market is divided into North America, Europe, Asia Pacific, Latin America, and the Middle East and Africa. In 2025, Asia-Pacific is expected to account for the largest share of the global algae market, followed by Europe and North America. The large share of this regional market is mainly attributed to the presence of several local and regional players, various government initiatives to promote the cultivation and usage of algae in several industries, growing demand for organic food products, and increasing applications of commercial sea vegetables, especially in food. Moreover, large-scale production and huge consumption of seaweed, huge availability of raw materials, favorable climatic conditions for the production of algae, and cheap labor availability are further expected to support the growth of the algae market in the region.

However, North America is expected to witness significant growth during the forecast period 2025–2032, mainly due to the rising consumption of health supplements, strict regulations against the use of synthetic colors, growth of subsidiary industries like cosmetics and biofertilizers, increasing preference for natural protein sources, and presence of key algae biomass manufacturers with huge production capacities, especially in the U.S. In addition, growing adoption of algae, especially spirulina and chlorella in the manufacturing of therapeutic & nutritional products, rising demand for natural blue colorants, and investments from leading color stakeholders in the phycocyanin space further support the growth of this market during the forecast period.

Key Players

The report includes a competitive landscape based on an extensive assessment of the key strategic developments adopted by leading market participants in the industry over the past 3-4 years. The key players profiled in the global algae market research report are Fuqing King Dnarmsa Spirulina Co.Ltd. (China), Earthrise Nutritionals, LLC (U.S.), E.I.D. - Parry (India) Limited (India), Cyanotech Corporation (U.S.), Seaweed & Co. (U.K.), Green Rise Agro Industries (India), Ocean Rainforest Sp/F (Denmark), Inner Mongolia Rejuve Biotech Co., Ltd. (China), Zhejiang Binmei Biotechnology Co., Ltd. (China), Bluetec Naturals Co., Ltd. (China), Taiwan Chlorella Manufacturing Company(TCMC) (Taiwan), Sun Chlorella Corporation (Japan), Far East Algae Industries, Co., Ltd. (Taiwan), Roquette Klötze GmbH & Co. KG (Germany), Gong Bih Enterprise Co., Ltd. (Taiwan), Yaeyama Shokusan Co., Ltd. (Japan), Vedan Biotechnology Corporation (Taiwan), AlgoSource (France), Tianjin Norland Biotech Co., Ltd (China), Phycom BV (the Netherlands), AllAlgae Natural Products S.A. (Portugal), Duplaco B.V. (the Netherlands), Taiwan Wilson Enterprise Inc. (Taiwan), Daesang Corporation (Korea), and Algalimento S.L (Spain), among others.

Scope of the Report:

Algae Market, by Type

• Macroalgae/Seaweed
  • Red Algae
  • Brown Algae
  • Green Algae
• Microalgae
  • Spirulina
  • Chlorella
  • Dunaliella Salina
  • Haematococcus Pluvialis
  • Other Microalgae

Algae Market, by Distribution Channel

• Business-to-Business (B2B)
• Business-to-Consumer (B2C)

Algae Market, by Form

• Dry Form
  • Algae Powder
  • Algae Flakes
  • Other Dried Forms
• Liquid Form

Algae Market, by Application

• Nutraceuticals
• Food and Beverages
• Animal Feed
• Cosmetics
• Other Applications

 Algae Market, by Geography

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Italy
  • Spain
  • Rest of Europe (RoE)
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific (RoAPAC)
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America (RoLATAM)
• Middle East and Africa

Key Questions Answered in the Report