Microalgae Market Size, Share, Forecast, & Trends Analysis by Type (Spirulina, Chlorella, Dunaliella Salina, Nannochloropsis), Production Technique (Ponds, Fermenters, PBR), Distribution Channel (B2B), Application (Nutraceuticals) - Global Forecast to 2031

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 Microalgae Market was valued at $1.17 billion in 2023. This market is expected to reach $2.26 billion by 2031 from an estimated $1.27 billion in 2024, at a CAGR of 8.6% during the forecast period from 2024 to 2031

Microalgae Market Size & Forecast

The growth of this market is driven by consumer inclination toward health & wellness trends, the growing dietary supplements industry, the rising demand for natural food colors, increasing vegetarianism, the growing nutraceuticals industry, and the increasing preference for microalgae-sourced products. However, low awareness regarding the benefits of microalgae and the complexities in the production of algae products are expected to restrain the growth of this market.

The rising demand for phycocyanin and the growing demand for microalgae among biorefineries are expected to create market growth opportunities. However, contamination risks are a major challenge for the players operating in this market. Moreover, the growing adoption of new production technologies (photobioreactors) is a prominent trend in the microalgae market.

Microalgae Market Growth Drivers

Growing Nutraceuticals Industry

Consistent growth in the aging population, increased consumer awareness regarding preventative healthcare, the rising number of self-directed consumers (preferring self-diagnosis over health practitioner diagnosis), channel proliferation (variety of marketing techniques and eCommerce platforms), and the 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 supplements industry. The sales of vitamins, minerals, and nutritional & herbal supplements (VMHS) are growing globally.

According to the Association for Packaging and Processing Technologies, the global nutraceuticals market is projected to expand from approximately USD 209.0 billion in 2017 to USD 373.0 billion by 2025. This growth is primarily driven by the rising demand for natural nutraceuticals, which are more cost-effective than prescription drugs and more readily accessible.

Additionally, the Nutrition Business Journal (NBJ) reports that 2020 saw the highest growth in the nutritional supplements industry since 1997, with an estimated increase of 12.1% for the year. This surge in growth reflects consumers' increasing preference for natural alternatives, which is boosting demand for functional foods and beverages. The International Trade Administration forecasts that India’s nutraceutical industry will capture at least 3.5% of the global market share in 2023. Consequently, the Indian nutraceuticals market is anticipated to expand from approximately USD 4 billion in 2017 to USD 18 billion by the end of 2025. This burgeoning market and the rising preference for natural supplements are expected to drive growth in the microalgae sector.

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Furthermore, chlorella is one of the most scientifically researched algae, with many publications from medical & research institutions and universities. It is the best-selling health food supplement in Japan, with over 30% of the population consuming it as a principal health supplement. Chlorella has also been found to boost the immune system, reduce the intensity 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, the growing nutraceuticals industry is expected to boost the demand for microalgae, driving the growth of this market.             

Consumer Inclination Toward Health & Wellness Trends and the Growing Dietary Supplements Industry

The demand for food products that enhance immune function and combat pathogens has surged significantly. Consumers are increasingly seeking fruits and vegetables, beverages, nuts, seeds, dairy products, supplements, and other nutritional foods and drinks in various forms and packaging. There is also a growing preference for organic products that are free from additives and preservatives. The global emphasis on well-being has intensified as individuals aim to maintain healthy lifestyles for extended periods, driven by longer life expectancies. Over the past decade, industrialization, urbanization, economic development, and globalization have rapidly transformed diets and lifestyles, profoundly affecting health and nutritional status, especially in developing countries.

The trends toward all-natural and clean-label products in the functional foods market have significantly increased the demand for natural ingredients, including plant-based proteins. As consumer preferences for healthy food options continue to grow, there is a notable opportunity for microalgae to be incorporated into GMO-free, organic, and additive-free food products.

Microalgae, rich in protein and essential nutrients such as antioxidants, chlorophyll, vitamins, minerals, and fiber, are well-positioned to benefit from shifting consumer preferences and heightened health consciousness. Spirulina, in particular, has gained popularity due to its health benefits and is widely used across age groups as a supplement. It offers a range of nutrients and is commonly utilized for increased energy, nutritional support, weight management, and detoxification. Similarly, the natural algae astaxanthin is predominantly used in human food and dietary supplements.

In addition to its role in addressing nutritional deficiencies, spirulina is garnering attention from medical researchers as a potential nutraceutical. Notably, NASA has employed spirulina as a dietary supplement for astronauts on space missions due to its immune-boosting and anti-inflammatory properties.

The use of dietary supplements, including vitamins, minerals, and nutritional and herbal supplements (VMHS), has been steadily rising, especially following the COVID-19 pandemic. According to the Multidisciplinary Digital Publishing Institute (2021), global sales of dietary supplements surged from USD 101.38 billion in 2018 to USD 220.3 billion in 2020. This growth is driven by several factors, such as an aging population, increased consumer awareness of preventive healthcare, a rise in self-directed health management, diverse marketing channels and eCommerce platforms, and a shift from ingredient-focused messaging to broader brand positioning that emphasizes comprehensive health benefits.

Thus, consumer inclination toward health & wellness trends and the growing dietary supplements industry drive the growth of the microalgae market.

Microalgae Market Opportunity

Growing Demand for Microalgae Among Biorefineries

Microalgae biorefinery systems have been extensively studied regarding resources, energy expenditure, biofuel production potential, and high-value products. Among these, the genus Spirulina stands out for its commercial importance, representing over 30% of the global microalgae biomass production due to its high protein content and significant levels of carotenoids and phycocyanin. Additionally, Spirulina cultivation contributes to environmental benefits, such as reducing greenhouse gases and assisting in effluent treatment.

Biorefining is a process that sustainably converts biomass into value-added products and energy. The effectiveness of a biorefinery depends significantly on the choice of raw materials and the technologies used to produce these value-added products. Microalgae are considered a cost-effective raw material for this process due to their unique properties. Unlike terrestrial plants, microalgae do not have highly resistant cell walls, stems, or roots, which facilitates easier degradation.

The interest in using microalgae as a biofuel feedstock has increased in response to the energy crisis, climate change, and the depletion of natural resources. To enhance the economic viability of microalgae biofuels, it is crucial to maximize algal biomass production while reducing operational and maintenance costs. Achieving economically viable algal fuels will require at least another decade of research and development.

ExxonMobil partnered with Synthetic Genomics, Inc., with the goal of producing 10,000 barrels of algae-based fuels per day by 2025. While algal biofuels are not yet commercially feasible, several companies in the U.S., Europe, and other regions are already producing algal fuels on a commercial scale. In addition, Earthrise is engaged in research collaborations with major algae biofuel and bioproduct companies worldwide. The development of microalgal biofuels from microalgae is not economically feasible, given the overwhelming capital investments and operational costs. Hence, high-value co-products are produced by extracting a fraction of algae to improve the economics of a microalgae biorefinery.

Microalgae are considered living-cell factories with simple growth requirements due to their efficient sunlight utilization. Their potential for the production of energy and value-added products is widely recognized. The versatility and high potential of microalgae can support microalgae biorefineries and microalgae-based bio economies, creating opportunities for the players operating in this market.

Microalgae Market Analysis: Key Findings

The Spirulina Segment to Dominate the Microalgae Market in 2024

Based on type, the microalgae market is segmented into Spirulina, Chlorella, Dunaliella salina, Haematococcus pluvialis, Nannochloropsis, and other microalgae. In 2024, the spirulina segment is expected to account for the largest share of 50.4% of the microalgae market. The substantial market share of this segment is primarily driven by the escalating health and wellness trends, the expanding dietary supplements sector, and the rising demand for natural food colors. Additionally, the increasing prevalence of vegetarianism, stringent regulations on synthetic colors and flavors, and the growing concern over malnutrition contribute to this segment's growth. The heightened preference for Spirulina-based products, especially those rich in Omega-3 fatty acids, coupled with its growing application in aquaculture and substantial investments from major color companies, further bolster its market position. However, limited awareness of Spirulina's benefits and production challenges may somewhat impede the segment's growth.

However, the Haematococcus pluvialis segment is expected to register the highest CAGR of 13.3% during the forecast period. This segment's growth is attributed to the increasing demand for natural astaxanthin in nutraceuticals, natural food colorants, and awareness about clean-label products. Furthermore, the growing use of natural astaxanthin in poultry and aquaculture is further expected to support the growth of this market.

The Ponds Segment to Dominate the Microalgae Market in 2024

Based on production technique, the microalgae market is segmented into ponds, photobioreactors (PBR), and fermenters. In 2024, the ponds segment is expected to account for the largest share of the microalgae market. This segment’s large market share is primarily due to the large number of key players involved in the pond cultivation of microalgae. Open ponds, also known as raceway ponds, offer lower investment and operational costs, reduced energy expenses, and the potential for higher biomass production. These advantages are anticipated to further drive market growth.

However, the photobioreactors (PBR) segment is anticipated to register the highest CAGR during the forecast period due to the increasing demand for algal biomass across various sectors—such as nutraceuticals, pharmaceuticals, cosmetics, food and beverage, and biofuels—contributes to this market segment's growth. Additionally, the benefits of photobioreactor microalgae cultivation, including reduced susceptibility to species contamination, enhanced productivity, lower harvesting costs, decreased water and carbon dioxide losses, and improved control over cultivation conditions like temperature and pH, are expected to further support the growth of this segment.

The Inorganic Microalgae Segment to Witness High Demand During the Forecast Period

Based on category, the microalgae market is segmented into inorganic and organic. In 2024, the inorganic microalgae segment is expected to account for a larger share of the microalgae market. This segment’s large market share is primarily attributed to the cost-effective production and high availability of microalgae grown through traditional methods.

However, the organic microalgae segment is expected to record a higher CAGR during the forecast period. This segment's high growth is driven by the increasing demand for certified organic products in the food industry and the growing demand for natural food colorants. Furthermore, the increasing demand for organic growth media among microalgae manufacturers is expected to support its growth.

The Business Channel (B2B) Segment to Dominate the Microalgae Market in 2024

Based on distribution channel, the microalgae market is segmented into consumer channel (B2C) and business channel (B2B). In 2024, the business channel (B2B) segment is expected to account for a larger share of the microalgae market. The large market share of this segment is mainly attributed to the direct bulk purchasing of microalgae by manufacturers from various industries, such as nutraceuticals, food & beverage, and animal feed, for further product development.

The Nutraceuticals Segment to Dominate the Microalgae Market in 2024

Based on application, the microalgae market is segmented into nutraceuticals, food and beverages, cosmetics, animal feed, and other applications. In 2024, the nutraceuticals segment is expected to account for the largest share of 53.6% of the microalgae market. The large market share of this segment is primarily attributed to the booming nutraceuticals sector, growing health concerns of the aging population worldwide, the rising need for natural alternatives for traditional pharmaceutical products, and increasing consumer awareness regarding the link between nutrition and health.

Geographical Analysis

North America Dominates the Microalgae Market

Based on geography, the microalgae market is majorly segmented into five regions: North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, North America is expected to account for the largest share of 42.9% of the microalgae market, followed by Asia-Pacific and Europe. The North American microalgae market is estimated to be worth USD 545.4 million in 2024. North America's significant market share can be attributed to several key factors, such as huge consumption of health supplements, stringent 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.

However, Europe is expected to record the highest CAGR during the forecast period due to the increased adoption of microalgae, especially Spirulina and Chlorella, in the manufacturing of therapeutic & nutritional products, growing reluctance towards the usage of synthetic colors, rising demand for natural blue colorants, and investments from leading color stakeholders in the phycocyanin space.

Microalgae Market: Key Companies

The report offers a competitive analysis based on an extensive assessment of the leading players’ product portfolios, geographic presence, and key growth strategies adopted in the last three to four years. Some of the key players operating in the microalgae market are Fuqing King Dnarmsa Spirulina Co., Ltd. (China), Earthrise Nutritionals, LLC, (U.S.), E.I.D. - PARRY (INDIA) LIMITED (a subsidiary of M/s. Ambadi Investments Limited) (India), Cyanotech Corporation (U.S.), C.B.N. Bio-engineering Co., Ltd (China), YUNNAN GREEN A BIOLOGICAL PROJECT CO., LTD. (Yunnan Spirin Biotechnology Co. Ltd) (China), Jiangshan COMP SPIRULINA CO., LTD. (China), 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), Roquette Klötze GmbH & Co. KG (Germany), Gong Bih Enterprise Co., Ltd. (Taiwan), Yaeyama Shokusan Co., Ltd. (Euglena Co Ltd) (Japan), Vedan Biotechnology Corporation (Taiwan), AlgoSource (France), Tianjin Norland Biotech CO., LTD (China), Phycom BV (Netherlands), Allmicroalgae Natural Products S.A. (Portugal), Aliga Microalgae (Denmark), Taiwan Wilson Enterprise Inc. (Taiwan), Daesang Corporation (Korea), Algalimento SL (Spain), Seagrass Tech Private Limited (India), Plankton Australia Pty Limited (Australia), Hangzhou Ouqi Food Co., Ltd. (China), and Shaanxi Rebecca Bio-Tech Co., Ltd (China).

Microalgae Industry Overview: Latest Developments from Key Industry Players

• In November 2022, BGG launched its Organic Astaxanthin in oleoresin form with organic certification.
• In August 2022, Aliga acquired Duplaco B.V. (Netherlands), a microalgae production facility, including its product portfolio and material rights. This acquisition helped Aliga increase its production capacity of algae-based products for dietary supplements, food ingredients, and feed markets.
• In June 2021, ALLMICROALGAE partnered with Portugal Foods to strengthen and promote its international, commercial, and industrial network.

Microalgae Market Research Summary

Key questions answered in the microalgae market report: