Dunaliella Salina Market by End User (Extraction Companies, Food & Beverage Companies, Feed Companies, Nutraceutical & Health Supplement Companies, Pharmaceutical Companies, Cosmetics Companies) and Geography - Global Forecast to 2028

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 Dunaliella Salina Market is expected to reach $122.9 million by 2028, at a CAGR of 4% during the forecast period 2021 to 2028. Also, in terms of volume, the Dunaliella salina market is expected to record a CAGR of 3.7% from 2021 to 2028 to reach 1,691.62 tons by 2028. The increasing demand for naturally sourced beta carotene, the rising need for natural colorants, and the growing use of Dunaliella salina in the cosmetics industry are the key factors driving the growth of the Dunaliella salina market. Moreover, the increasing demand for clean-label products further supports the growth of this market. However, the complexities involved in the production of Dunaliella salina are expected to hinder the growth of this market.

The Impact of COVID-19 on the D. Salina Market

The COVID-19 pandemic has adversely hit many economies around the world. Government measures to combat the COVID-19 pandemic, such as nationwide lockdowns and quarantines, negatively impacted many industries. Most manufacturers of food products in the F&B sector continue to feel the impact of COVID-19. Social distancing, self-isolation, and city-wide lockdowns have forced the closures of many establishments in countries across Asia, the U.S., Europe, and the rest of the world. In the U.K., the U.S., and Australia, supermarket chains have enforced new rules to curb panic buying, while additional health and safety measures have been implemented across factories and supply chains to keep consumers safe. The manufacturers of consumer food & beverage products face challenges such as significantly reduced consumption and disrupted supply chains. The food & beverage sector has witnessed a minor decline due to the lockdowns imposed across various countries. This scenario has also negatively impacted the confectionery industry since people are buying only the most essential products. In addition, government bodies have passed various rules and regulations on the purchase of essential goods. Most consumers are buying only essential products, which has significantly lowered the consumption of confectionery items. According to trade organizations in the nutritional products industry, there has been a significant impact on many points in the global supply chain for functional foods and dietary supplements, which has, in turn, lowered the consumption of Dunaliella salina biomass among end users, impacting the growth of the Dunaliella salina market.

In the algae industry, a major slowdown in the sales of Dunaliella salina was witnessed in the first quarter of 2020 due to disruptions in logistics and transportation. The market also witnessed interruptions in the entire value chain from raw materials supply for culture media to production, packaging, and distribution of the final Dunaliella salina biomass.

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The effects of the COVID-19 pandemic on this market were felt in China starting 2020, as the country is one of the world's largest producers and one of the leading consumers of Dunaliella salina globally. In China, factory closures, Dunaliella salina production facilities operating at reduced capacities, and restrictions on the import and export of natural beta carotene and other carotenoids mainly extracted from the Dunaliella salina microalgae and raw materials, particularly culture medium for Dunaliella salina cultivation affected supply chains, strongly impacting the production, sales, and operations in the algae industry. Moreover, the pandemic is also expected to adversely affect the Dunaliella salina market in many countries globally, including the U.S., India, Australia, Brazil, and the EU-5 countries. Due to the countrywide lockdown in India, many commercial Dunaliella salina production facilities have shut down or are operating at reduced capacities, leading to substantial losses in domestic Dunaliella salina production.

The algae industry in Southeast Asia is facing challenges because of the growing severity of the coronavirus pandemic, impacting the distribution of Dunaliella salina and its raw material (beta carotene) within and across markets in the Asia-Pacific region. Though Malaysia is under lockdown, algae production facilities have been given clearance to continue operations as algae are considered essential in the production of food & beverage, pharmaceuticals, nutraceuticals, and cosmetic & personal care products. However, the lockdown has posed logistical challenges for the suppliers of Dunaliella salina both within the country and across the border in Thailand.

In Vietnam, algae production facilities are operating at normal levels without disruptions in the algae products’ distribution chain. However, operating in the market is becoming increasingly challenging, as distributors are unwilling to do business amidst the coronavirus outbreak. In Thailand, the production and supply chain distribution of Dunaliella salina products remains unaffected despite various virus containment measures. However, increasingly tight port restrictions may negatively impact the Dunaliella salina market in the Philippines.

Therefore, disruptions in transportation & logistics and reduced production in some countries are projected to adversely affect the Dunaliella salina market in terms of sales volumes and market revenue in 2020 and 2021.

Increasing Demand for Naturally Sourced Beta Carotene Fuels the Growth of the Dunaliella Salina Market

Beta carotene is a part of the carotenoids family and is an antioxidant derived from natural and synthetic sources. It is the main safe dietary source of vitamin A, essential for normal growth and development, proper immune system function, healthy skin, epithelia, and vision.

Naturally sourced beta carotene has several advantages over synthetic beta carotene. Some of the disadvantages of synthetic beta carotene include its lack of nutritional value, side effects, and higher incidences of lung cancer and mortality. To overcome all these disadvantages, key beta carotene extraction companies are now developing carotene products from natural sources, including algae, fruits, and vegetables. Dunaliella salina is one of the richest sources of natural beta carotene. It contains a high quantity of carotenoids (12.6% of the dry weight), comprising more than 60.4% of beta carotene. Thus, owing to Dunaliella salina being the richest source of natural beta carotene and the growing demand for natural-source beta carotene, the demand for Dunaliella salina is increasing worldwide.

Key Findings in the Dunaliella Salina Market Study:

Extraction Companies to Remain the Largest End User

Based on end user, the Dunaliella salina market is mainly segmented into extraction companies, food & beverage companies, feed companies, nutraceutical & health supplements companies, pharmaceutical companies, and cosmetics companies. Extraction companies are expected to remain the largest end user through 2028 in the Dunaliella salina market. Moreover, this segment is expected to record the highest CAGR during the forecast period due to the growing demand for carotenoids, including beta carotene, alpha-carotene, zeaxanthin, lutein, and cryptoxanthin in the manufacture of food & beverage, cosmetics, animal feed, dietary supplements, and other products.

Asia-Pacific to Dominate the Market and Europe to Register the Fastest Growth

Asia-Pacific is expected to command the largest share of the Dunaliella salina market in 2021, followed by North America and Europe. The large share of Asia-Pacific is mainly attributed to factors such as the presence of several local and regional players, rising government initiatives to promote the use of algae and algal ingredients in several industries, growing consumption of natural food ingredients, and rising demand for processed food products in emerging and developing countries such as India, China, Indonesia, and Thailand. However, the market in Europe is expected to register the highest CAGR during the forecast period mainly due to the huge food & beverage industry, rising health and wellness trends, stringent government regulations against the use of synthetic colorants, growing demand for natural colorants from various end-use industries, and rising government focus on the algae industry in the region.

Key Players

The key players profiled in the Dunaliella salina market research report are Algalimento SL (Spain), Seagrass Tech Private Limited (India), Plankton Australia Pty Ltd (Australia), Hangzhou OuQi Food co., Ltd. (China), Shaanxi Rebecca Bio-Tech Co., LTD (China), Nutragreenlife Biotechnology Co., Ltd. (China), IBR Ltd. (Israel), Xi’an Fengzu Biological Technology Co., Ltd. (China), Monzón Biotech S.L. (Spain), A4F - Algae for Future (Portugal), and Fuqing King Dnarmsa Spirulina Co., Ltd. (China), among others.

Scope of the Report

D. Salina Market, by End User

• Extraction Companies
• Food & Beverage Companies
• Feed Companies
• Nutraceutical & Health Supplement Companies
• Pharmaceutical Companies
• Cosmetics Companies

D. Salina Market, by Geography

• Asia-Pacific
  • China
  • Australia
  • Japan
  • India
  • RoAPAC (Rest of Asia-Pacific)
• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • France
  • U.K.
  • Italy
  • Spain
  • RoE (Rest of Europe)
• Latin America
  • Brazil
  • Mexico
  • Argentina
  • RoLATAM (Rest of Latin America)
• Middle East & Africa
  • Israel
  • RoMEA (Rest of the Middle East & Africa)

Key Questions Answered in the Report: