Microalgae Market

Microalgae Market Size, Share, Growth (2023-2028)

microalgae market is expected to grow at a CAGR of 7.2%, from US$ 8.2 billion in 2022 to US$ 20.6 billion by 2028.

Microalgae Market Overview

Microalgae tend to grow in aquatic culture, which uses light and carbon dioxide to produce biomass. Microalgae was used in nutraceuticals and as a component in personal & haircare products. It can be used as biofuel and biofertilizer. Microalgae can be grown in both fresh water and marine water. It was rich in lipids, fatty acids, metabolites, and energy sources. The protein content and non-toxic components found in microalgae were used as recombinant proteins in the vaccine preparations, such as swine fever virus and oral vaccines. Microalgae are highly valuable due to their ability to produce bioactive compounds, which can be used to produce antibiotics, monoclonal antibodies, subunit vaccines, hormones, and other products. Due to microalgae's lipid and protein content, it was widely used in Food products such as dairy, cereal-based, and meat-based products.

Microalgae Market Drivers

People are becoming more conscious about health and choosing products with health benefits. Microalgae was rich in nutritional value and beneficial in developing the human immune system, which was driving the microalgae market growth. People prioritizing nutrition, the demand for algae-based food products was increasing. Spirulina was known as an immunity booster and anti-viral properties product. According to various research, spirulina could inhibit influenza virus replication. The research and development sector is highly working to introduce new strains in algae-based products in various fields with human benefits, boosting the microalgae market size. Microalgae, rich in lipids and fatty acids with essential metabolites, are used as natural coloring agents in the Food Industry, and an increase in vegetarianism was driving the microalgae market value in the Food industry. Microalgal extracts such as Dunaliella and Chlorella repair skin aging and prevent wrinkle formation. Microalgae in the preparation of vaccines, such as D2-CTB fusion protein used in oral vaccines, was also driving the microalgae market demand in the Pharmaceutical Industry.

Demand for bioactive compounds

The greater significance of microalgae was its ability to produce bioactive compounds. Microalgae are used in biomass production, and it has photosynthetic efficiency, which helps produce biofuels such as bioethanol, biodiesel, crude oil, and bio jet fuel. Microalgae can be used as biofertilizers, which induces the production of plant growth hormones, polysaccharides, and antibacterial chemicals. It enriches the soil fertility and quality and develops resistance towards biotic and abiotic stress on plants. These factors are driving the microalgae market.

Microalgae Market Restraints

The main restraining factor for the microalgae market was low awareness regarding the benefits of microalgae. Many people need to gain more knowledge of the health benefits of microalgae. The manufacturers are trying to educate the people regarding the benefits of microalgae to increase their market sales. The high cost of extracting essential components from microalgae biomass impacted the market growth. The fluctuations in climatic conditions influence microalgae cultivation, restraining the market growth. The complexities that occur during the production of algae-based products were constraining the market demand.

Recent developments in the microalgae market

• In November 2022, Euglena Co. Ltd announced consistent consumption of Euglena could eliminate the severity of various symptoms and prevent the onset of cold-like symptoms.

• In January 2022, Bharathidasan University in Tamil Nadu signed with ZIGMA Global Environ Solutions to initiate a project called "microalgae-based bioremediation of municipal solid waste leachate," which includes the usage of microalgae to recover municipal solid waste leachate to prevent spoilage of groundwater and soil.

• In January 2022, Yemoja Ltd, a startup company, developed advanced microalgae ingredients and announced its plan to create red microalgae for plant-based steaks and burgers.

COVID-19 Impact on Microalgae Market

In the first half of the pandemic during 2020, microalgae sales had a significant drop due to a disrupted supply chain and transportation. The market also experienced an interruption in raw material supply, packaging, production, and distribution of products. China was one of the largest producers and consumers of microalgal products. During COVID factory closures, microalgae processing facilities, importing, and exporting algae biomass in China impacted the microalgae market demand strongly. The market was affected in many countries, such as the U.S, India, Australia, and Brazil. Due to the country lockdown, domestic microalgae production had gone in losses. The supply of raw materials for culture had become difficult, leading to a low quantity of production and a decrease in sales.

Microalgae Market Segmentation

By Type

• Spirulina

• Chlorella

• Dunaliella

• Euglena

• Haematococcus 

• Schizochytrium

• Nannochloropsis

• Crypthecodinium

The Spirulina segment had the dominant share in the microalgae market in 2022. The increasing demand for natural food colors and rising trends in the health and wellness and nutraceuticals industry drove the market in this segment. Spirulina was effective against the influenza virus, which increased the demand—an increasing number of algal products having spirulina as the main component due to its vast benefits. The Haematococcus segment was expected to have a high CAGR during the forecast period of 2023 to 2028. The increasing demand for natural astaxanthin for nutraceuticals and the rising use of natural astaxanthin in poultry and aquaculture was expected to boost the market demand. Chlorella and Dunaliella are used in the cosmetic industry for repairing skin aging and wrinkles.

By Production Technique

• Ponds

• Fermenters

• Photobioreactors

The ponds segment was accounted to have the most significant market share in 2022 due to the large number of key players in the pond cultivation of microalgae. Open ponds require low investment and energy costs and produce higher biomass than fermenters and bioreactors. 

The photobioreactors segment is projected to increase during the forecast period. Low contamination, lower harvesting cost, low vulnerability, and easier control of temperature and pH were expected to drive future market growth.

By Distribution Channel

• Business to Business

• Business to Consumer

• Supermarkets/Hypermarkets

• Specialty stores

• Online retail

The business-to-business segment was holding the dominant share in the market value in 2022 due to direct bulk purchases by manufacturers of various fields such as the cosmetic industry, Food industry, Animal feed, Nutraceuticals, and Pharmaceuticals. 

The business-to-consumer segment was also gaining traction due to the online retailing. People can select suitable microalgae products and purchase them through e-commerce, prompting market demand.

By Application

• Nutraceuticals

• Food & Beverages Industry

• Cosmetic & Personal Care

• Animal Feed sector

The Nutraceuticals segment held the most significant market value in microalgae in 2022. People being aware of the health wellness and malnutrition conditions in many people due to busy lifestyles drove the market in this segment. People are taking dietary supplements essential for health as microalgae is rich in lipids, and omega-3 fatty acids work as health essentials. Increasing demand for natural alternatives to pharmaceuticals was boosting the market demand.

By Region

• North America

• Europe

• Asia-Pacific

• Latin America

• Middle East and Africa

In 2022, the North American region held the immense market demand in the global microalgae market. High demand in consumption of health supplements, strict regulations towards synthetic colors, an increase in cosmetic industries, and biofertilizers were boosting the microalgae market demand in this region. The presence of many biomass production key players, especially in the U.S, was driving the market growth.

Asia-Pacific region was placed in second position in the market demand for microalgae. China was the most prominent global microalgae producer, and consumption of microalgae-based products was high, making this region dominate the market. Japan was a massive producer of Euglena microalgae species, influencing the market. Increasing preference for natural protein sources was fueling the market demand.

Europe region was expected to dominate the market in the forecast period due to increased usage of microalgae products. Spirulina and Chlorella were widely used to manufacture nutritional and pharmaceutical products.

Key Players in the Microalgae Market

1. Algatec

2. Bioprocess Algae LLC

3. Algatechnologies Ltd

4. Parry Nutraceuticals

5. Sun Chlorella

6. INNOBIO Corporation Limited

7. Fuji Chemical Industries Co.,

8. Yunnan Green-A-Bio-engineering Co Ltd

9. Algaecytes

10. Cellana LLC