Microalgae Market Size, Share & Industry Analysis, By Species (Spirulina, Chlorella, Nannochloropsis, Haematococcus, Isochrysis, Chlamydomonas, and Others), By Application (Food and Feed), and Regional Forecast, 2024-2032

The global microalgae market size was valued at USD 728.54 million in 2023. The market is projected to grow from USD 782.59 million in 2024 to USD 1,376.42 million by 2032, exhibiting a CAGR of 7.31% during the forecast period. North America dominated the microalgae market with a market share of 37.45% in 2023.

The global market share is spread across various species of microalgae such as spirulina, chlorella, nannochloropsis, haematococcus, isochrysis, chlamydomonas, and others. These microalgae species have a diverse range of applications in various industries, including the food and feed industry. The global market has recorded significant growth in recent years, driven by the increasing research and development and applications in different industries, especially in the food and feed industry. It is rich with nutritional elements such as protein and vitamins, is one of the prominent factors contributing to the growing interest of food and feed manufacturers toward microphytes as an ingredient.

Globally, the rapidly growing population has fueled the demand for food and changing consumer trends have further contributed to the rising demand for protein in food and feed. The rapidly growing cattle and poultry industry is further contributing to the growth of the global market.

The COVID-19 pandemic disrupted the global supply chain owing to the trade and social distancing restrictions and regulations implemented by the governments of several countries. In addition, the shortage of labor further had a significant impact on production. Thus, the negative impact on global production and supply had a significant impact on the microalgae market. Furthermore, the changing consumer landscape along with the rising demand for health and wellness products fueled the demand for the food industry across various regions. This created a bottleneck, increasing strain on the supply chain.

Microalgae Market Trends

Rising Demand for Plant-Based Proteins to Fuel Global Market Growth

The global plant-based food industry has recorded significant growth in recent years, especially during the post-pandemic period. This rapid growth in the demand for plant-based food such as plant-based milk, meat, and others is due to the changing consumer landscape and the rising awareness toward sustainable food consumption. The increasing awareness of animal health and farming and animal husbandry being one of the significant contributors to climate change has fueled the growth of the plant-based food industry. As per the Plant Based Food Association, the sales grew by 6.8% of plant-based foods in the U.S.

In addition, the demand for plant-based protein has shown significant growth in recent years. Microphytes, such as Spirulina and Chlorella, are rich in protein and contain all essential amino acids, which makes them attractive options for plant-based protein supplementation in food and feed products. Thus, the rapidly growing demand for plant-based food is a significant factor contributing to the increase in the global demand for microscopic algae ingredients.

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Microalgae Market Growth Factors

Growing use of Microalgae as a Protein Alternative in Animal Feed is Driving Global Market Growth

The growing population has been fueling the global demand for food, including meat, milk, eggs, and other livestock products. Thus, animal feed has become an increasingly critical component of the integrated food chain. For instance, as per the Food and Agriculture Organization (FAO), around 30% of the global agriculture value is accounted for by livestock products and 19% by food production. Further, around 35% of protein and 16% of energy in the total human diet are provided by livestock products.

However, the fulfillment of the increasing demand for livestock products is significantly dependent on the availability of safe, nutritious, appropriate, and cost-effective animal feed. Therefore, livestock and poultry farmers are looking for a suitable, high-quality, safe, and sustainable supply of feed and feed ingredients. Microscopic algae are an enriched source of a wide metabolite range suitable for animal feed, especially proteins, carbohydrates, and lipids. The use of microscopic algae as natural ingredients or supplements in animal diets has been considered an ideal choice to meet the demand for novel feedstuffs. In addition, microphytes are an alternative to synthetic additives in the feed.

Increasing Applications of Microalgae in Food Industry to Fuel Product Demand among Individuals

As per the World Health Organization, it is expected that by 2050, the global human population will reach around 9.5 billion. Thus, the global food demand is further expected to record extensive growth and feeding this rising population does present a significant challenge such as technological limitations, following sustainability goals while expanding food production, and tackling the rising food security concern.

Algae has high biomass productivity and is considered superior in terms of nutrition for food production. Additionally, microscopic algae production requires limited resources such as water and land, and hence, it is considered sustainable for food production. In addition, with the increasing research and development and new products launched by global food ingredients companies, the market has recorded significant growth. The application of various microphytes species biomass and ingredients derived from microscopic algae has been rapidly growing. They are now used for a diverse range of food products, primarily in bakeries, sauces, seasonings, and others.

For instance, in April 2020, Yemoja, an Israel-based startup, developed a microalgae growing platform that is said to be super intensive. As per the CEO, the new growing platform is designed to expand its application in the baby food and sports nutrition category.

RESTRAINING FACTORS

Complex Production Process and Stringent Food Regulation to Restrain Global Market Growth

The two prominent cultivation methods of microscopic algae are open or closed containers. Different algae strains and their respective products require specific cultivation strategies, which further raises complexity in the overall expansion of commercial production. In addition, climate, water source, mode of operation, nutrient regimen, and various other factors are required to be analyzed for productivity and economic purposes. For instance, as per the Office of Scientific and Technical Information (OSTI), freshwater is required for spirulina and chlorella cultivation, whereas the microphytes species Tetraselmis can only grow in saltwater.

Two of the primary factors that affect the novel photobioreactor microalgae cultivation are light and temperature. Thus, it is significantly vital to choose an ideal geographic location to establish a microscopic algae cultivation farm, as the ideal location can determine temperature and insolation, which change daily.

The legal framework of microscopic algae products is a significant factor in creating a bottleneck in the global market. Owing to its high nutrition and having a significant ability to provide metabolic benefits, microscopic algae products have been mostly consumed as food supplements. These products face various uncertainties, especially in Europe owing to the stringent food security regulations related to the food sourced from non-European countries.

Microalgae Market Segmentation Analysis

By Species Analysis

Higher Demand for Spirulina in Feed Industry to Fuel Market Growth

By species, the global microalgae market has been segmented into spirulina, chlorella, nannochloropsis, haematococcus, isochrysis, chlamydomonas, and others.

The spirulina segment holds a dominating share of the global market owing to its higher availability and extensive production. Furthermore, spirulina is a concentrated source of fatty acids, amino acids, and vitamins, which makes it ideal for multiple fish species and also shrimps, which have the highest share in aquaculture production.

Nannochloropsis, unicellular algae spherical or oblong, measuring 2-5 microns in diameter, is induced with photosynthetic pigments, protein, and polyunsaturated fatty acids (including omega-3 fatty acids). It grows at a rapid scale under typical culture conditions, which makes this microscopic algae popular for use in aquaculture feed and dietary supplements. The segment is expected to show a significant growth rate over the forecast period.

The limited production of chlorella, isochrysis, haematococcus pluvialis microalgae, and other green microscopic algae results in their limited availability.

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By Application Analysis

Higher Availability of Products in Offline Segment to Fuel the Market Growth

Based on application, the global market is segmented into food and feed.

The food segment holds a prominent part in the microalgae market share and is expected to show the highest CAGR over the forecast period. The segment records significant development with an increasing number of publications and research across the globe. The product has gained prominent traction across the food sector owing to higher nutritional value and the diverse range of applications of spirulina and chlorella. Chlorella is one of the most consumed microalgae species across dietary supplements, functional food ingredients, and natural food colorants. In addition, there are diverse applications across the food industry in various products such as bakery, noodles, plant-based food, and others. This contributes toward the food industry's higher share in the global market.

In aquaculture, microscopic algae are utilized as feed for the larval stages of fish and shellfish, providing essential nutrients and promoting healthy growth. Moreover, microphytes-derived omega-3 fatty acids are incorporated into fish feed formulations, reducing the reliance on fishmeal and contributing to sustainable aquaculture practices. The rapid growth of the aquaculture industry is a key factor influencing the significant growth of the segment over the forecast period.

REGIONAL INSIGHTS

Based on region, the market is studied across North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

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The North American region exhibits a higher emphasis on plant-based food, technological innovation, and sustainability, which makes it one of the most prominent regions in the global market. In addition, the countries in North America, including the U.S., Canada, and Mexico, hold a significant demand for functional food and have recorded a significant development in poultry and cattle farming. This contributes toward the region’s highest share in the global market. For instance, in April 2024, the U.S. government, through the U.S. Department of Energy (DOE), announced a new funding opportunity of USD 18.8 million for the research and development focused on microalgae applications.

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The European region has shown rapid growth in research and development with the increasing number of publications, trade collaborations, and sustainable development. According to data published by Scopus, 33% of the total publications with the keyword microalgae as a food have European authors. These factors are driving the Europe microalgae market growth.

The Asia Pacific region, which includes countries such as India, China, and Japan, holds significant growth opportunities owing to the prominent livestock industry in these countries and the rising demand for innovative product ranges in the feed industry. Furthermore, the rising demand for microphytes supplements in this region further contributes to market growth. According to the Government of India, the country holds around 20% of the global livestock population.

South America region exhibits significant growth potential over the forecast period. This is driven by favorable environmental conditions, government support, and the rapidly growing biotechnology industry in the region.

The Middle East & Africa region presents diverse opportunities for market expansion. This is driven by government support and growing awareness of the benefits of microscopic algae-based products such as oil, powder, and others. The region stands out as untapped potential for growth and collaboration in microalgae research, production, and commercialization.

KEY INDUSTRY PLAYERS

Key Players Focus on Product Development in New Geographies to Stay Competitive

The global market is highly competitive, with companies looking for expansion with the help of various growth strategies such as technology advancement, new product development, partnerships, mergers, and acquisitions. ADM, Phycom, and Valensa are a few prominent players in the global market, dedicated to research & development, improving cultivation, establishing partnerships, and new product launches to expand their global market presence. For instance, in July 2019, the company announced the launch of its all-new algae based product line suitable for supplements.

List of Top Microalgae Companies:

• BASF SE (Germany)


• Cyanotech Corporation (U.S.)


• Corbion N.V. (Netherlands)


• Koninklijke DSM N.V. (Netherlands)


• Solabia Group (France)


• The Archer-Daniels-Midland (U.S.)


• Fuji Chemical Industries Co., Ltd. (AstaReal Co., Ltd.) (Japan)


• Phycom (Netherlands)


• Kuehnle AgroSystems Inc. (U.S.)


• Valensa International (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• April 2024: Edoniaa, a well-known startup based in France that manufactures plant-based protein ingredients, announced that the company had secured USD 2.18 million in funding to expand their microalgae-based food products range.


• April 2024: Spirulina Mater, one of the distinguished producers of nutrient-packed superfoods, announced that the company was ready for its upcoming launch in the U.S. through the Amazon platform. The geographical expansion was done with an aim to cater to the growing demand for nutrition-reach products in the U.S. market by providing premium, antioxidant-rich spirulina products.


• March 2024: Corbion, one of the prominent players in the microalgae industry, announced that the company invested in its algae fermentation facility​​ in Orindiuva, Brazil. The move would help ensure process optimization, further fueling the company's production with higher quality products to meet the rising demand.


• September 2023: Phycom, one of the most significant players in the global market and biotechnology industry, announced that the company secured an investment of around USD 9 million to expand its cultivation. The company is focused on further expanding its operations in the global market with sustainable, efficient, and high-quality production with the help of this new investment.


• August 2021: Michael Kors, one of the renowned designers of luxury accessories and apparel, announced its partnership with Spirulina to establish its Spirulina Health Bar in its store. Spirulina is an all-new foodservice concept known as Spirulina Health Bar. The Spirulina Health Bar newly established concept of a health bar and café is known for its spirulina-induced food products. The partnership includes its all-new food service concept within the Michael Kors stores.

REPORT COVERAGE

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The market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies in the competitive landscape of the market by species and application. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the market over recent years.

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