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 is projected to reach $2.08 billion by 2030, at a CAGR of 8.5% during the forecast period of 2023 to 2030. 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. Additionally, the growing adoption of new production technologies (photobioreactors) is a prominent trend in the global microalgae market.
The Impact of COVID-19 on the Microalgae Market
The algae industry witnessed a major drop in microalgae sales in the first quarter of 2020 due to disrupted logistics and transportation. The market also witnessed interruptions in the entire value chain, from the supply of raw materials for culture media to the production, packaging, and distribution of microalgae products.
The effects of the COVID-19 pandemic on the microalgae market were first felt in China starting in 2020, as the country is one of the world's largest producers and consumers of microalgal species. Factory closures, microalgae processing facilities operating at reduced capacities, and restrictions on importing and exporting algae biomass in China strongly impacted the microalgae market. Moreover, the pandemic also impacted the microalgae market in many other countries, including the U.S., India, Australia, Brazil, and the EU-5 countries. Due to the countrywide lockdown in India, many commercial microalgae production and processing facilities shut down or operated at reduced capacities, leading to substantial losses in domestic microalgae production.
However, nutrition was people’s top priority for maintaining good health and strengthening the immune system. As a result, there was high demand for plant & algae-based food products & beverages on e-commerce platforms. For instance, spirulina is known for its immune-boosting and anti-viral properties, which boosted the sales of spirulina supplements.
According to various research studies, spirulina inhibits influenza virus replication and reduces virus-induced mortality. According to immunologists at the Davis School of Medicine, University of California, the addition of spirulina to cultured immune system cells significantly increased the production of infection-fighting cytokines. Researchers at UC Davis School of Medicine studying the effects of spirulina on both anemia and immune function found that spirulina, with its rich content of flavonoids and sulfolipids, modulates the production of cytokines and with its bioactive proteins stimulates the intestinal immune system to enhance the responsiveness to vaccines and improve allergic rhinitis.
Furthermore, the U.S. Food and Drug Administration (FDA) approved several microalgae, including Chlamydomonas reinhardtii, Dunaliella bardawil, and Chlorella species, as they have a rigid cell wall that acts as a natural encapsulation to protect the recombinant proteins from the aggressive environment of the stomach. This feature was used for the rapid production and edible targeted delivery of S-glycoprotein and soluble ACE2 for the treatment/inhibition of SARS-CoV-2. Therefore, the demand for microalgae-based products has increased since the pandemic.
Moreover, the chlorella market was positively impacted mainly due to the key role of Chlorella in strengthening the immune system. Chlorella is a healthy, natural, and sustainable superfood. During the pandemic, consumers demanded food ingredients that strengthened the immune and digestive systems. Hence, microalgae/algae have been one of the superfood trends in Europe.
Thus, the demand for microalgal species, such as spirulina and Chlorella, increased during the COVID-19 pandemic due to people’s increased focus on immunity and nutrition.
Growing Nutraceuticals Industry
Consistent growth in the aging population, increased consumer awareness regarding preventive healthcare, the rising number of self-directed consumers, channel proliferation, and the shift from ingredient-focused messaging to broader brand positioning 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 expected to grow from about USD 209.0 billion in 2017 to USD 373.0 billion in 2025. This growth is mainly attributed to the increasing popularity of natural nutraceuticals. Also, natural nutraceuticals are cheaper compared to prescription drugs and more easily available.
Moreover, according to the Nutrition Business Journal (NBJ), 2020 marked the highest growth in the nutritional supplements industry since 1997, with an estimated 12.1% increase for the year. Consumers have started demanding natural alternatives to nutraceuticals, driving the demand for functional foods and drinks. According to the International Trade Administration, India’s nutraceutical industry is expected to hold at least 3.5% of the global market share in 2023. Therefore, the nutraceuticals market in India is projected to reach USD 18 billion by the end of 2025. Thus, the growing nutraceuticals industry and the rising demand for natural supplements are expected to drive the microalgae market.
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.
Key Findings in the Global Microalgae Market Study:
In 2023, the Spirulina Segment is Expected to Dominate the Microalgae Market
Based on type, the microalgae market is mainly segmented into Spirulina, Chlorella, Dunaliella salina, Haematococcus pluvialis, Nannochloropsis, and other microalgae. In 2023, the Spirulina segment is expected to account for the largest share of the global microalgae market. The large market share of this segment is mainly attributed 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; growing malnutrition; increasing preference for Spirulina-sourced products, especially Omega-3 fatty acids; growing use of Spirulina in aquaculture; rising investments from leading color houses; and an increasing number of products that include Spirulina as an ingredient. However, low awareness about the benefits of Spirulina and challenges associated with Spirulina production are expected to hinder the growth of the Spirulina segment to some extent.
However, the Haematococcus pluvialis segment is projected to register the highest CAGR during the forecast period of 2023–2030. The growth of this segment is attributed to the increasing demand for natural astaxanthin for nutraceuticals, growing demand for natural food colorants, and increasing awareness about clean-label products. Moreover, the growing use of natural astaxanthin in poultry and aquaculture is further expected to support the growth of this market during the forecast period.
In 2023, the Ponds Segment is Expected to Dominate the Microalgae Market
Based on production technique, the global microalgae market is segmented into ponds, photobioreactors (PBR), and fermenters. In 2023, the ponds segment is expected to account for the largest share of the global microalgae market. The large market share of this segment is primarily attributed to the presence of a large number of key players in the pond cultivation of microalgae. Open ponds, also called raceway ponds, comparatively require lower investment, low operational and energy costs, and have the potential to produce higher biomass volumes is further expected to support the growth of this market.
However, the photobioreactors (PBR) segment is projected to register the highest CAGR during the forecast period of 2023–2030 owing to the growing demand for algal biomass from the nutraceuticals, pharmaceuticals, cosmetics, food and beverage, and biofuel industries. Moreover, the several benefits of the photobioreactors microalgae cultivation system, such as lower vulnerability to species contamination; higher productivity; lower harvesting cost; reduced water and carbon dioxide losses; and easier control of the cultivation conditions such as temperature and pH, are further expected to support the growth of this segment across the globe.
The Organic Segment is Projected to Register the Highest CAGR During the Forecast Period
Based on category, the global microalgae market is segmented into inorganic and organic. The organic segment is projected to register the highest CAGR during the forecast period of 2023–2030. The growth of this segment is attributed to 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 by microalgae manufacturers is further expected to support the growth of this segment across the globe.
In 2023, the Business Channel (B2B) Segment is Expected to Dominate the Microalgae Market
Based on distribution channel, the microalgae market is mainly segmented into consumer channel (B2C) and business channel (B2B). In 2023, the business channel (B2B) segment is expected to account for the larger share of the global 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.
In 2023, the Nutraceuticals Segment is Expected to Dominate the Microalgae Market
Based on application, the microalgae market is segmented into nutraceuticals, food and beverages, cosmetics, animal feed, and other applications. In 2023, the nutraceuticals segment is expected to account for the largest share of the global microalgae market. The large market share of this segment is mainly attributed to the booming nutraceuticals sector, growing health concerns of the aging population worldwide, the growing need for natural alternatives for traditional pharmaceutical products, and increased consumer awareness regarding the link between nutrition and health.
North America Dominates the Overall Microalgae Market, While Europe Leads in Growth
Based on geography, the global microalgae market is majorly segmented into five regions, North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2023, North America is expected to account for the largest share of the global microalgae market, followed by Asia-Pacific and Europe. The large share of this regional market is mainly attributed to the 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 witness significant growth during the forecast period, mainly 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.
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 microalgae market research report 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).
Scope of the Report:
Microalgae Market, by Type
- Spirulina
- Chlorella
- Dunaliella Salina
- Haematococcus Pluvialis
- Nannochloropsis
- Other Microalgae
Microalgae Market, by Production Technique
- Ponds
- Fermenters
- Photobioreactors (PBR)
Microalgae Market, by Category
Microalgae Market, by Distribution Channel
- Business Channel (B2B)
- Consumer Channel (B2C)
Microalgae Market, by Application
- Nutraceuticals
- Food and Beverages
- Animal Feed
- Cosmetics
- Other Applications
Microalgae Market, by Geography
- North America
- 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
- Egypt
- Saudi Arabia
- South Africa
- UAE
- Rest of Middle East & Africa
Key Questions Answered in the Report-