Microalgae Based Products Market

Global Microalgae-based Products Market: Description

• Microalgae-based products are used in various applications in different industry verticals, such as food & beverages, personal care, nutraceuticals & dietary supplements, pharmaceuticals, chemicals, fuel, and animal feed.
• The microalgae-based products market in Asia Pacific is anticipated to expand at a significant pace in the near future, owing to the rise in the demand for renewable energy resources to meet the increasing demand for energy and to lower the environmental impact of carbon footprints in the region.
• Current progress in microalgal biotechnology is driven by the increase in the demand for new sources of biomass due to new discoveries, and the availability of new technologies. This, coupled with the rise in global awareness about the various benefits of microalgae, is driving the global microalgae-based products market.

Key Growth Drivers of Microalgae-based Products Market

• Microalgae-based products possess specific advantages vis-à-vis their synthetic and traditional alternatives. These products are commercially viable for the food and nutraceutical sectors, despite their higher production costs. Therefore, microalgae is becoming a sustainable alternative for the production of various products such as carotenoids, proteins, and several dietary supplements.
• The research and genetic modification of microalgae is increasing rapidly due to high expectations with respect to the production of biofuel, bio-chemicals, and other bio-products derived from microalgae.
• Large investments by governments and companies are boosting research on microalgae and microalgae-based products.
• Microalgae is a valuable resource in a bio-based economy. It is primarily used in food and dietary supplements for human nutritional products. It is also used as a raw material for the extraction of hydrocolloids.

Major Challenges for Microalgae-based Products Market

• Insufficient demand for these products, and difficulties in attaining commercial authorization of algae-derived products in regional markets due to the presence of stringent regulations, are expected to hamper the global microalgae-based products market.
• Unstable climate conditions in different countries, such as less sunlight hours, high rainfall, and low temperatures, is also a key factor that is anticipated to restrain the global microalgae-based products market during the forecast period.

Lucrative Opportunities for Microalgae-based Products Market

• Key players operating in the global market are taking initiatives in conducting research & development activities on microalgae and genetic modification of algae due to high expectancy with respect to the production of bio-chemicals, biofuels, and other bio-products by microalgae. This is a major factor estimated to offer lucrative opportunities to players operating in the global microalgae-based products market.
• Increase in initiatives and technological advancements by key players and governments in Europe for the development of microalgae-based products offer significant opportunities to players operating across the globe, to expand their presence and broaden their product portfolios.
• The European Biomass Industry Association is working on new projects focusing on microalgae cultivation and their application as high quality biomass in different market sectors.
• The introduction of new technologies for the production of biofuels (biodiesel and bioethanol) from microalgae is expected to propel the microalgae-based products market during the forecast period.

Europe Leading the Global Microalgae-based Products Market

• Europe is expected to be a highly attractive region of the global microalgae-based products market during the forecast period. It plays an important role in the field of microalgae applications. Its strong position in science and technology, owing to the high priority given to R&D policies, makes it a significant region for microalgae-based products.
• Europe possesses specific structural, economic, and logistical assets that boost its position in micro-algae research and applications. Furthermore, innovation in production techniques for microalgae-based products and government regulations in Europe favor the production of bio-based fuel. This is anticipated to boost the demand for microalgae-based products in Eastern and Western Europe during the forecast period.
• Countries in Europe aim to source 10% of their transport energy from renewable resources, primarily from biofuels, by 2020. A significant share of fuel is used in transportation applications in the region, owing to the high demand for luxury vehicles, commercial trucks, and motorcycles. This is expected to propel the demand for microalgae-based products in countries such as Germany, Switzerland, and the Netherlands, in Europe.

Asia Pacific Also Offers Growth Opportunities for Microalgae-based Products Market

• Asia Pacific is a major region for various applications such as pharmaceuticals, dietary supplements, and food, as a large numbers of manufacturers operate in China and India. The adoption of microalgae-based carotenoids in various applications is anticipated to drive the demand for these products in the near future.
• The adoption of various technological advancements and shifting consumer preference for natural and organic food are estimated to boost the demand for microalgae-based products in Asia Pacific.
• Japan accounted for a significant share of the microalgae-based products market in Asia Pacific in 2018, due to the presence of various application-specific companies in the country.
• A large number of microalgae manufacturers operate in Asia Pacific, especially in Australia and China. These companies offer cost benefits for product manufacturers. Asia Pacific has the presence of domestic as well as Europe- and North America-based microalgae-based product manufacturing companies. It is a major hub of a large number of international players across the world.

Food & Beverages Application to Account for Prominent Share

• In terms of revenue, food & beverages is a major application segment of the global microalgae-based products market. It is projected to be a highly lucrative segment in the microalgae-based products market during the forecast period.
• Microalgae are a rich source of carbohydrates, proteins, enzymes, and fiber. Various vitamins and minerals such as vitamin A, C, B1, B2, B6, niacin, iodine, potassium, iron, magnesium, and calcium are found extensively in microalgae. Therefore, microalgae are used in various foods and beverages.
• Active ingredients found in microalgae-based products are increasingly used in personal care products, as they prevent blemishes, repair damaged skin, and inhibit the inflammation process.
• Chlorella, spirulina, and dunaliella species are the three major types of microalgae used successfully to produce high concentrations of valuable compounds such as lipids, proteins, and pigments.

Leading Players Actively Engage in Capacity Expansions and R&D Activities

• Key players operating in the global microalgae-based products market include
  • Euglena Co., Ltd.
  • Cyanotech Corporation
  • AstaReal AB
  • BlueBioTech
  • Cargill
  • Incorporated
  • Necton
  • Ocean Nutrition
  • E.I.D. - Parry (India) Limited
  • Proalgen Biotech Ltd.
• The microalgae-based products market is fragmented, with a large number of players operating at the international as well as domestic level. Major players are strengthening their distribution channels to expand their market share. They are also strengthening their global presence by installing production facilities in developing regions to capture untapped markets.
• Major companies from Europe are acquiring microalgae-based product manufacturers from Asia Pacific, Australia, and the U.S.