The North America Microalgae Market is slated to register a CAGR of 8.2% from 2024 to 2030 to reach $871.2 Million by 2030. In terms of volume, the North America Microalgae Market is expected to reach 51,855.3 tons by 2030, at a CAGR of 8.3% during the forecast period 2024–2030. The growth of the North America microalgae market is driven by the rising demand for natural food colors, the growth of the nutraceuticals and dietary supplements industries, the rising preference for microalgae-based products, and consumers’ inclination toward health and wellness trends. Furthermore, the growing demand for microalgae among biorefineries and the increasing use of natural astaxanthin in poultry and aquaculture feed is expected to create market growth opportunities for the stakeholders in this market. However, the complexities involved in the production of algae products are expected to hinder the growth of this market.
Key Players
The report includes a competitive landscape based on an extensive assessment of the key growth strategies adopted by leading market players in the past three to four years. Some of the key players operating in the North America microalgae market are Fuqing King Dnarmsa Spirulina Co., Ltd. (China), Earthrise Nutritionals, LLC, (U.S.), E.I.D. - PARRY (INDIA) LIMITED (a subsidiary of M/s. Ambadi Investments Limited) (India), Cyanotech Corporation (U.S.), C.B.N. Bio-engineering Co., Ltd (China), Jiangshan COMP SPIRULINA CO., LTD. (China), Inner Mongolia Rejuve Biotech Co., Ltd. (China), Zhejiang Binmei Biotechnology Co., Ltd. (China), Bluetec Naturals CO., LTD. (China), Taiwan Chlorella Manufacturing Company(TCMC) (Taiwan), Sun Chlorella Corporation (Japan), Yaeyama Shokusan Co., Ltd. (Euglena Co Ltd) (Japan), Vedan Biotechnology Corporation (Taiwan), AlgoSource (France), Allmicroalgae Natural Products S.A. (Portugal), Daesang Corporation (Korea), Algalimento SL (Spain), Seagrass Tech Private Limited (India), and Hangzhou Ouqi Food Co., Ltd. (China).
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Rising Demand for Natural Food Colors to Spur the Microalgae Market In North America
Today, consumers are becoming more health and environmentally conscious, leading to a growing preference for naturally sourced food colorants and dyes over synthetic alternatives. Microalgae are microscopic unicellular organisms that are major photosynthesizers that efficiently convert available solar energy into chemical energy. Due to their distinct advantages over terrestrial plants, such as faster growth rates, ability to grow on nonarable land, and diversity in the production of various natural bioactive compounds (e.g., lipids, proteins, carbohydrates, and pigments), microalgae are gradually being recognized as a sustainable source to produce natural food-grade colorants.
Moreover, the increasing health consciousness and preference for environmentally friendly products drive the demand for naturally sourced food products across North America. Food manufacturers widely utilize natural food colors to enhance the appeal of processed food and beverage products. Furthermore, the FDA (Food and Drug Administration) in the U.S. has prohibited the use of artificial color additives linked to cancer in both animal and human applications. These factors contribute to the growing adoption of natural food colors in the North American market.
Spirulina's blue-green color provides bright and vivid blue and green shades, making it suitable for various confectionery and chewing gum products. The approval of phycocyanin as a natural colorant by the U.S. FDA in September 2013 has further increased its demand, particularly in North America. Phycocyanin is now widely used in various food applications, including beverages, dairy, confectionery, frosting, ice cream, dry beverage mixes, yogurt, and gelatin.
Moreover, there are concerns about the safety of using synthetic astaxanthin for direct human consumption due to its different stereochemistry and the potential carryover of synthesis intermediates. These concerns make natural astaxanthin derived from the haematococcus pluvialis microalgae a preferred choice for high-end markets. Haematococcus pluvialis has already been approved as a color additive in salmon feeds and a dietary supplement ingredient for human consumption in the U.S., Japan, and several European countries.
The FDA has granted astaxanthin derived from haematococcus pluvialis the GRAS (Generally Recognized as Safe) status, making it a high-value product in the carotenoid marketplace. It is widely used as a pigmentation source for applications in salmon, shrimp, trout, and poultry products. The increasing demand for natural food colors in North America is driving the growth of the microalgae market.
Key Findings in the North America Microalgae Market Study
In 2024, the Spirulina Segment to Dominate the North America Microalgae Market
Based on type, the North America 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 the North America microalgae market. The large market share of this segment is attributed to the presence of key Spirulina producers, increasing demand for Spirulina-based products, rising demand for nutraceuticals, growing use of Spirulina in the aquaculture industry, rising investments from leading color houses, and growing demand for natural food colors.
However, the Haematococcus pluvialis segment is projected to register the highest CAGR during the forecast period of 2024–2030 due to the growing use of natural astaxanthin in poultry and aquaculture, increasing demand for natural astaxanthin for nutraceuticals, increasing awareness about clean-label products, and growing demand for natural food colorants.
In 2024, the Inorganic Microalgae Segment to Dominate the North America Microalgae Market
Based on category, the North America microalgae market is segmented into inorganic microalgae and organic microalgae. In 2024, the inorganic microalgae segment is expected to account for the larger share of the North America microalgae market. The large market share of this segment is mainly attributed to the cost-effective production and high availability of microalgae grown through traditional methods.
However, the organic microalgae segment is projected to register a higher CAGR during the forecast period of 2024–2030 due to the increasing demand for certified organic products in the food industry and the growing demand for natural food colorants. Furthermore, the increasing demand for organic growth media among microalgae manufacturers is further expected to support the growth of this segment.
In 2024, the Ponds Segment to Dominate the North America Microalgae Market
Based on production technique, the North America 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 North America microalgae market. The large market share of this segment is attributed to the presence of a huge number of key players following the pond cultivation of microalgae due to its cost-effectiveness and straightforward and uncomplicated production techniques compared to other production techniques. Moreover, the open ponds (raceways) require comparatively lower investment, low operational and energy costs, and have the potential to produce higher biomass volumes, which is further expected to support the growth of this market.
However, the photobioreactors (PBR) segment is projected to register the fastest CAGR during the forecast period 2024–2030 due to the growing demand for algal biomass from the nutraceuticals, pharmaceuticals, cosmetics, food and beverage, and biofuel industries. Moreover, the several benefits of the photobioreactors microalgae cultivation system, such as lower vulnerability to species contamination; higher productivity; lower harvesting cost; reduced water and carbon dioxide losses; and easier control of the cultivation conditions such as temperature and pH, are further expected to support the growth of this market in the region.
In 2024, the Business Channel Segment to Dominate the North America Microalgae Market
Based on distribution channel, the North America microalgae market is segmented into consumer channel (B2C) and business channel (B2B). In 2024, the business channel (B2B) segment is expected to account for the larger share of the North America microalgae market. The large market share of this segment can be attributed to producers from diverse industries, including animal feed, food and beverage, and nutraceuticals, directly purchasing bulk quantities of microalgae for product development and as a key ingredient in creating new products.
In 2024, the Nutraceuticals Segment to Dominate the North America Microalgae Market
Based on application, the North America microalgae market is segmented into nutraceuticals, food & beverage, cosmetics, animal feed, and other applications. In 2024, the nutraceuticals segment is expected to account for the largest share of the North America microalgae market. The large market share of this segment is mainly attributed to the growth in the nutraceuticals sector, the increasing health concerns among the aging population, the growing demand for natural alternatives to conventional pharmaceutical products, and heightened consumer awareness regarding the link between nutrition and health.
However, the food & beverages segment is projected to register the highest CAGR during the forecast period of 2024–2030 due to increasing demand for clean-label products. Moreover, the growth in the food & beverages industry and the increasing demand for microalgae-based food and beverages are expected to support the growth of this market across the region.
U.S. Dominates the North America Microalgae Market
The North America Microalgae market is segmented into the U.S. and Canada. In 2024, the U.S. is expected to account for the larger share of the North America microalgae market. Moreover, the market in the U.S. is slated to register the highest CAGR during the forecast period of 2024–2030. This market's significant market share and rapid growth are attributed to the growing demand for natural food colorants due to the country's restrictions and stringent regulations on synthetic food colorants. Additionally, the rising number of vegetarian or vegan restaurants, the increasing demand for plant-based foods, and the growing utilization of microalgae in personal care and cosmetic products contribute to the market's growth. Moreover, the increasing preference for natural protein sources and the presence of key algae biomass manufacturers with large production capacities further bolster the microalgae market in the country.
Scope of the Report:
North America Microalgae Market Assessment, by Type
- Spirulina
- Chlorella
- Dunaliella Salina
- Haematococcus Pluvialis
- Nannochloropsis
- Other Microalgae
North America Microalgae Market Assessment, by Category
- Inorganic Microalgae
- Organic Microalgae
North America Microalgae Market Assessment, by Production Technique
- Ponds
- Fermenters
- Photobioreactors (PBR)
North America Microalgae Market Assessment, by Distribution Channel
- Business Channel (B2B)
- Consumer Channel (B2C)
North America Microalgae Market Assessment, by Application
- Nutraceuticals
- Food and Beverage
- Animal Feed
- Cosmetics
- Other Applications
North America Microalgae Market Assessment, by Country
Key Questions Answered in the Report:
