Report Overview
The Global Microalgae Market is expected to grow at a Significant CAGR during the forecast period 2024-2031.
Microalgae, also known as macrophytes, are microscopic planktons that can be found in the sediment of both freshwater and marine systems. These are unicellular creatures that can live alone, in groups, or in chains. Depending on the species, their size can range from microns (m) to a hundred microns (m). The rising use of microalgae proteins and ingredients in nutraceutical, pharmaceutical, and aquaculture products and growing initiatives towards standardization of microalgae cultivation will become a key growth driver over the forecast period. Technological advancement aimed at faster and early detection of contaminants and the development of new strains that can handle high salinity and improve energy efficiency will create opportunities for market growth.
Market Summary
| Metrics | Details |
| Market CAGR | High |
| Segments Covered | By Type, By Application, and By Region |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights. |
| Fastest Growing Region | Asia Pacific |
| Largest Market Share | North America |
For more insights - Download the Sample
Market Dynamics
The global microalgae market is fueled by the growing nutraceuticals industry
Nutraceuticals are nutrition products that provide additional health advantages in addition to the fundamental nutritional content present in foods. Nutraceuticals containing microalgae have seen a tremendous increase in popularity in recent years. Microalgae is a valuable source of nutraceuticals because it can produce lutein, astaxanthin, beta carotene, phycobiliprotein, and chlorophyll, among other biomolecules with bioactive properties. Consumers have become increasingly interested in nutraceuticals as a result of their potential nutritional, safety, and therapeutic effects. Nutraceuticals can be used to improve health, delay aging, prevent chronic diseases, or just support the body's functioning and integrity.
The overall global market for nutraceuticals is predicted to expand from around USD 209 billion in 2017 to USD 373 billion in 2025, according to the Association for Packaging and Processing Technologies. This increase is primarily due to the growing popularity of natural nutraceuticals, which has resulted in a significant increase in botanical dietary supplements such as chlorella. Furthermore, the nutraceuticals market in the United States reached USD 75.9 billion in 2018. Consumers have begun to demand alternatives to consuming nutraceuticals in their natural form, boosting the market share of functional foods and beverages. Furthermore, India's nutraceutical industry is predicted to account for at least 3.5 percent of worldwide market share by 2023, according to the International Trade Administration. As a result, India's nutraceuticals industry is predicted to expand from USD 4 billion in 2017 to USD 18 billion by the year 2025. Hence, the market for microalgae is boosted by the increasing nutraceutical industry and consumer demand for natural supplements.
COVID-19 Impact on Market
Negative impact on the microalgae market
According to trade organizations in the nutritional products industry, there has been a major influence on the worldwide supply chain for functional foods and dietary supplements, which has impacted end-user consumption of microalgal biomass, limiting the market growth. In the algal sector, problems in logistics and transportation caused a significant delay in microalgae sales in the first quarter of 2020. The entire value chain was interrupted, from the supply of raw materials for culture media to manufacture, packing, and biomass delivery. Beginning in 2020, the consequences of the COVID-19 pandemic on this market were felt in China, which is one of the world's top producers and consumers of microalgal species. Factory closures, reduced capacity microalgae processing facilities, and restrictions on importing and exporting algae biomass all have a significant impact on the microalgae industry in China.
However, good nutrition is the most important factor in maintaining a healthy immune system, which explains the high demand for plant and algae protein food products and beverages on e-commerce platforms. Furthermore, several algal protein products are thought to help the human immune system. Spirulina, for example, has antiviral and immune-boosting properties. Spirulina reduces influenza virus proliferation and decreases viral-induced mortality, according to numerous studies. The addition of spirulina to cultured immune system cells greatly enhanced the synthesis of infection-fighting cytokines, according to immunologists at the University of California Davis School of Medicine. Furthermore, researchers at the University of California, Davis, who studied the effects of spirulina on anemia and immune function discovered that spirulina modulates the production of cytokines and stimulates the intestinal immune system with its bioactive proteins to improve vaccine responsiveness and allergic rhinitis. As a result of the increasing focus on nutrition content during the COVID-19 pandemic, demand for microalgal species such as spirulina and chlorella soared. Despite the surge in demand, the supply chain was hampered by government-imposed restrictions in several nations.
Market Segmentation Analysis
Spirulina segment held largest market revenue share in the year 2020
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 increase in the use of Spirulina in aquaculture are all factors contributing to the market's growth. However, a low understanding of Spirulina's benefits and challenges associated with Spirulina manufacturing is projected to limit the segment's growth to some extent.
On the other hand, chlorella is a very well-researched alga, with several publications from medical facilities, research organizations, and universities. It is the most popular health food supplement in Japan, with more than 30% of the population using it as a primary health supplement. Chlorella has also been shown to enhance the immune system, lessen the severity of many chronic health issues, and reduce drug side effects. It's cleansing, nourishing, and rejuvenating characteristics help the body's natural protection and repair systems work more effectively, thus driving the market value for this segment
Market Geographical Share
North America is expected to dominate the global microalgae market in the year 2020
Several companies throughout the world are working on developing microalgae cultivation and conversion technologies for algae feedstocks into energy and bioproducts. The majority of these companies are based in the United States of America. Some of the companies are concentrating on demonstration projects for bioenergy production from microalgae, while the majority of them are only focused on the food, feed, and nutraceuticals markets. Astaxanthin has been approved by the US Food and Drug Administration (USFDA) as a food colorant in animal and fish feed, as well as a cosmetic ingredient. With each passing year, the personal care industry in the United States attaining new heights. Women in the country use an average of 12 personal care products every day, while men use six. Consumer expenditure has switched mostly to skincare, with more independent brands with quicker supply chains and a stronger appeal to younger consumers. In a 2019 survey of Clique's community in the United States, 63 percent of women regard skin care as an investment in their overall wellbeing. According to the Alzheimer's Association, 5.8 million Americans aged 65 and older will have Alzheimer's dementia in 2020, with approximately 80% of those aged 75 and older. Furthermore, the total direct and indirect expenses of Parkinson's disease in the United States are projected to be USD 25 billion per year, including treatment, disability, and other costs, as well as lost income due to inability to work.
Asia Pacific is expected to grow with the highest CAGR during the forecast period. Chin, India, and Japan are some of the key countries contributing to the market growth in this region. Japan is expected to offer lucrative growth opportunities in the microalgae market owing to high government and private investment towards the production of the biomass-based energy system to tackle its vulnerable energy supply situation along with the growing need to open new markets in food, feed, and chemical industry. Companies like ISUZU Motors Corporation, DENSO Corporation, and All Nippon Airways along with renowned research centers such as the University of Tsukuba are focusing on production of microalgal-based products. For instance, Euglena has introduced healthy foods, feeds and cosmetic products synthesized from microalgae.
Companies and Competitive Landscape
The global microalgae market is fragmented. Some of the key market players in the global microalgae market include Cyanotech Corporation, DIC Corporation, Parry Nutraceuticals, TerraVia Holdings, and Cellana LLC, among others. Companies in the microalgae market are striving to extend their product range in several areas, particularly the pet food arena, for which they are spending a substantial amount of money on research and development. For example, in May 2016, Now Health Group Inc. released "NOW Pets," a new natural pet supplement aimed at dogs and cats that includes spirulina as a key ingredient. Also, as consumers gravitate toward natural and organic products and become more health conscious, manufacturers are working on producing microalgae additives. For example, AlgaTechnologies Ltd. introduced AstaPureEyeQ, a microencapsulated, soluble in water, 2% astaxanthin concentrate product in April 2019. Various manufacturers are focused on providing microalgae products at best possible pricing, due to their high demand among customers. Several businesses have executed integrated manufacturing lines to deliver cost-effective merchandise. For instance, Pondicherry Spirulina Farms, an India-based spirulina producer is selling powder spirulina at a price as low as US$ 3.7-4.5 per Kg which is the lowest price for powder spirulina in the world.
Why Purchase the Report?
- Understand the current market scenario and viability of global microalgae over the forecast period
- Visualize the composition of the global microalgae market in terms of type and application to identify major players, growth potential, and market strategies
- Identify the key regulations prevailing in the market and understand their impact on the market over the forecast period
- Understand the key business factors such as market competition, product pricing, new product developments, and patent filings pertaining in the market
