Microalgae Market Size, Share, Forecast, & Trends Analysis by Type (Spirulina, Chlorella, Dunaliella Salina, Nannochloropsis), Production Technique (Ponds, Fermenters, PBR), Distribution Channel (B2B), Application (Nutraceuticals) - Global Forecast to 2031

Microalgae Market Size & Forecast 

The Microalgae Market was valued at $1.17 billion in 2023. This market is expected to reach $2.26 billion by 2031 from an estimated $1.27 billion in 2024, at a CAGR of 8.6% during the forecast period from 2024 to 2031. 

The growth of the microalgae market is driven by heightened consumer preference for health & wellness products, the growing dietary supplements industry, the rising demand for natural food colors from manufacturers and food processing companies, the increasing preference for microalgae-based products, and the surge in vegetarianism. However, low awareness of the health benefits of microalgae and complexities in manufacturing algal products are expected to restrain this growth. 

The growing popularity of microalgae-derived phycocyanin as a natural colorant in nutraceutical, pharmaceutical, and food applications, and biorefineries' preference for microalgae as a feedstock due to its economic viability and high potential for energy production are expected to generate opportunities for market growth. 

However, the risk of contamination during the microalgae cultivation process is a significant challenge for market growth. Moreover, the growing adoption of photobioreactors and other new production technologies is a prominent trend in the microalgae market. 

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Microalgae Market Growth Drivers  

Growing Nutraceuticals Industry  

Consistent growth in the aging population, increased consumer awareness regarding preventative healthcare resulting in a shift toward healthier food choices, the rising number of self-directed consumers, and increased product penetration in various end-use categories through branding and e-commerce are the key factors driving the growth of the supplements industry. The sales of vitamins, minerals, and nutritional & herbal supplements (VMHS) are growing globally. The shift from ingredient-specific consumption to grouping supplements for holistic health is boosting the market for products containing various compounds derived from microalgae. 

According to the Association for Packaging and Processing Technologies, the global nutraceuticals market is projected to reach $373.0 billion by 2025, up from $209.0 billion in 2017. This growth is primarily driven by the rising demand for natural nutraceuticals, which are more cost-effective than prescription drugs and are easily accessible. 

Additionally, the Nutrition Business Journal (NBJ) reports that the nutritional supplements industry witnessed the highest growth in 2020 since 1997, with an estimated increase of 12.1% for the year. This surge reflects consumers' increasing preference for natural alternatives, which is boosting the demand for functional foods and beverages. The International Trade Administration forecasts that India’s nutraceutical industry will capture at least 3.5% of the global market share in 2023. Consequently, the Indian nutraceuticals market is anticipated to reach $18 billion in 2025 from $4 billion in 2017. This burgeoning market and the rising preference for natural supplements are expected to drive growth in the microalgae industry. 

Chlorella is one of the most scientifically studied algae for its perceived health benefits. It is the highest-selling health supplement in Japan, with over 30% of the population consuming it as a primary health supplement. Chlorella boosts the immune system, reduces inflammation in the body, promotes weight loss, and helps the body fight against various cancers. Hence, the growing nutraceuticals industry is expected to boost the demand for microalgae, driving the growth of this market. 

Consumer Inclination Toward Health & Wellness and the Growing Dietary Supplements Industry  

The demand for food products that enhance immune function and combat pathogens has surged significantly. Consumers are opting for fruits & vegetables, beverages, nuts, seeds, dairy products, supplements, and other nutritional foods and drinks in different forms. Moreover, there is a growing preference for organic products worldwide. The global emphasis on well-being has intensified as people aim to maintain healthy lifestyles for extended periods, driven by higher life expectancy. Over the past decade, industrialization, urbanization, economic development, and globalization have rapidly transformed diets and lifestyles, profoundly affecting the health and nutritional status of people, especially in developing countries. 

The trends toward all-natural and clean-label products in the functional foods market have significantly increased the demand for natural ingredients, including plant-based proteins. As consumer preferences for healthy food options continue to grow, microalgae are being increasingly preferred for use in GMO-free, organic, and additive-free food products. 

Microalgae are rich in protein and essential nutrients such as antioxidants, chlorophyll, vitamins, minerals, and fiber. Spirulina, in particular, has gained popularity due to its health benefits and is widely consumed by people of all age groups. It offers a range of nutrients and is commonly consumed for energy, nutritional support, weight management, and detoxification. Similarly, astaxanthin is predominantly used in food products and dietary supplements. 

In addition to its role in addressing nutritional deficiencies, spirulina is garnering attention from medical researchers as a potential nutraceutical. Notably, NASA has listed spirulina as a dietary supplement for astronauts on space missions for its immune-boosting and anti-inflammatory properties. 

Thus, consumer inclination toward health & wellness and the growing dietary supplements industry drive the growth of the microalgae market. 

Microalgae Market Opportunity 

Growing Demand for Microalgae Among Biorefineries 

Microalgae biorefinery systems have been extensively studied regarding resources, energy expenditure, biofuel production potential, and high-value products. Among these, the genus spirulina has gained commercial prominence, representing over 30% of the global microalgae biomass production due to its high protein content and significant levels of carotenoids and phycocyanin. Additionally, Spirulina cultivation contributes to environmental benefits, such as reducing greenhouse gases and assisting in effluent treatment. 

Biorefining is a process of sustainably converting biomass into value-added products and energy. The effectiveness of a biorefinery depends significantly on the choice of raw materials and the technologies used to produce these value-added products. Microalgae are considered a cost-effective raw material due to their unique properties. Unlike terrestrial plants, microalgae do not have highly resistant cell walls, stems, or roots, which facilitates easier degradation. 

Interest in microalgae as a biofuel feedstock has increased in response to the energy crisis, climate change, and the depletion of natural resources. However, developing biofuels from microalgae is not economically feasible due to high capital investment requirements and operational costs. Hence, microalgae biorefineries manufacture high-value co-products by extracting a fraction of algae to keep production costs low. 

To enhance the economic viability of microalgae biofuels, it is crucial to maximize algal biomass production while reducing operational and maintenance costs. Achieving economically feasible algal fuels will require at least another decade of R&D. 

ExxonMobil partnered with Synthetic Genomics, Inc., with the goal of producing 10,000 barrels of algae-based fuels per day by 2025. While algal biofuels are not yet commercially feasible, several companies in the U.S., Europe, and other regions are already producing algal fuels on a commercial scale. Earthrise is engaged in research collaborations with major algae biofuel and bioproduct companies worldwide.  

Microalgae are considered living-cell factories with simple growth requirements due to their efficient synthesis of sunlight utilization. The versatility and high potential of microalgae for energy production and value-added products support the growth of microalgae biorefineries and microalgae-based products market, creating opportunities for the players operating in this market. 

Microalgae Market Analysis: Key Findings

The Spirulina Segment to Dominate the Microalgae Market in 2024 

Based on type, the microalgae market is segmented into Spirulina, Chlorella, Dunaliella salina, Haematococcus pluvialis, Nannochloropsis, and other microalgae. In 2024, the spirulina segment is expected to account for the largest share of 50.4% of the microalgae market. The substantial market share of this segment is primarily driven by rising health and wellness trends, stringent regulations on synthetic colors and flavors leading to a high preference for natural food colors, and the growing concerns of nutritional deficiency. The high preference for Spirulina-based products, especially phycocyanin, coupled with its growing application in aquafeed and poultry feed and investments by major food color manufacturers, further boost the market for Spirulina. 

However, the Haematococcus pluvialis segment is expected to register the highest CAGR of 13.3% during the forecast period. This segment's rapid growth is attributed to the increasing demand for naturally sourced astaxanthin and the adoption of clean-label products.  

The Ponds Segment to Dominate the Microalgae Market in 2024 

Based on production technique, the microalgae market is segmented into ponds, photobioreactors (PBR), and fermenters. In 2024, the ponds segment is expected to account for the largest share of the microalgae market. This segment’s large market share is primarily due to the large number of key players involved in the cultivation of microalgae in ponds. These ponds require lower investment and operational costs, reduced energy expenses, and offer higher biomass production. 

However, the photobioreactors (PBR) segment is anticipated to register the highest CAGR during the forecast period. This segment's rapid growth is due to the increasing demand for algal biomass across various sectors, such as nutraceuticals, pharmaceuticals, cosmetics, food and beverage, and biofuels. 

The Inorganic Microalgae Segment to Account for the Dominant Market Share in 2024 

Based on category, the microalgae market is segmented into inorganic and organic. In 2024, the inorganic microalgae segment is expected to account for the dominant share of the microalgae market. This segment’s large market share is primarily attributed to the cost-effective production and high availability of microalgae grown through traditional methods. 

However, the organic microalgae segment is expected to record a high CAGR during the forecast period. This segment's high growth is driven by the growing demand for natural food colorants in the food processing industry.  

The Business-to-business Channel (B2B) Segment to Dominate the Microalgae Market in 2024 

Based on distribution channel, the microalgae market is segmented into business-to-consumer (B2C) and business-to-business (B2B). In 2024, the business-to-business (B2B) segment is expected to dominate the microalgae market. This segment's large market share is mainly attributed to manufacturers sourcing microalgae from bulk producers for further manufacturing of consumables. 

The Nutraceuticals Segment to Dominate the Microalgae Market in 2024 

Based on application, the microalgae market is segmented into nutraceuticals, food and beverages, cosmetics, animal feed, and other applications. In 2024, the nutraceuticals segment is expected to account for the largest share of 53.6% of the microalgae market. The large market share of this segment is primarily attributed to the booming nutraceuticals sector and increasing consumer awareness of the link between nutrition and health. 

Geographical Analysis 

North America Dominates the Microalgae Market 

Based on geography, the microalgae market is majorly segmented into five regions: North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. In 2024, North America is expected to account for the largest share of 42.9% of the microalgae market. This market is estimated to be worth $545.4 million in 2024. North America's significant market share can be attributed to several key factors, such as stringent regulations regarding the use of synthetic colors and increasing preference for natural protein sources 

However, Europe is expected to record the highest CAGR during the forecast period. The rapid growth of this segment is attributed to the increased adoption of microalgae, especially Spirulina and Chlorella, in the manufacturing of therapeutic & nutritional products, growing reluctance toward the usage of synthetic colors, rising demand for naturally derived blue colors, and investments from leading color stakeholders in the phycocyanin space. 

Microalgae Industry Overview: Latest Developments from Key Industry Players  

• In November 2022, BGG launched its Organic Astaxanthin in oleoresin form with organic certification. 

• In August 2022, Aliga acquired Duplaco B.V. (Netherlands), a microalgae production facility, including its product portfolio and material rights. This acquisition helped Aliga increase its production capacity of algae-based products for dietary supplements, food ingredients, and feed markets. 

• In June 2021, ALLMICROALGAE partnered with Portugal Foods to strengthen and promote its international, commercial, and industrial network. 

Microalgae Market Research Summary 

Key questions answered in the microalgae market report: