Advancements in Microalgae Cultivation and Processing to Boost Market

The demand for microalgae-based products has consistently grown at a noteworthy pace over the course of the last decade, as microalgae has repeatedly exhibited immense promise to fulfil the growing requirement for sustainable food supply. Consumer trends around the world within the food & beverages sector indicate that protein-based diets have gained considerable adoption worldwide due to which, participants operating in the current microalgae-based products market are expected to capitalize onto these opportunities. In addition, microalgae-based products offer notable environmental benefits compared to existing raw materials due to which, the demand for the same is projected to rise during the forecast period.

Although microalgae-based products are gradually gaining considerable popularity as an efficient source of protein, market players are increasingly focusing on improving underdeveloped technologies and microalgae processing. Technological advancements are expected to play a key role in improving microalgae processing and cultivation techniques during the assessment period. In addition, maturity in microalgae processing and cultivation is likely to pave the way for investments in new research infrastructure and provide lucrative opportunities for market players. At the back of these factors, the global microalgae-based products market is projected to attain a market value of US$ 3.2 Bn by the end of 2030.

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Soaring Interest Levels across Food & Beverages Sector to Fuel Market Growth

Research and development activities coupled with advancements in technology have played a pivotal role in generating considerable interest for microalgae-based products across the food & beverages sector. Market participants operating in the food sector are increasingly eyeing opportunities to expand their market share by investing resources toward the development of microalgae-based products. Over the past few years, research activities have been carried out to explore the potential of microalgae-based products for innovative functional food items due to the health benefits associated with the same.

According to current estimations, the total quantity of food that is currently produced should double up by 2050 to suffice the global population. Over the past few years, the demand for protein-based products has witnessed an exponential rise and the trend is set to continue during the forecast period due to which, the prospects of the microalgae-based products market look promising. Insufficient protein intake coupled with presence of insufficient protein in conventional sources are another major factors that are expected to set the wheels rolling for the microalgae-based products market during the assessment period.

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In several regions around the world such as Europe and North America, due to the mounting environmental and health concerns, consumers are gradually turning their back toward animal-based proteins and are increasingly swaying toward plant-based proteins– a trend that is expected to provide a massive boost to the overall growth of the global microalgae-based products market. In addition, the advent of cutting-edge food technologies, rapidly evolving dietary patterns, and growing awareness pertaining to the environmental benefits of plant-based proteins among consumers are some of the other top factors that are expected to provide an impetus for market growth.

While the food & beverages sector is expected to provide an array of opportunities for the stakeholders involved in the microalgae-based products market, interest levels across nutraceutical, pharmaceutical, chemical, fuel, and other industries is on the rise.

Market Players to Forge Strategic Alliances to Gain Competitive Edge

While the competition across the food & beverages, pharmaceutical, and the nutraceutical sectors is considerably high, companies are increasingly seeking various ways to cut through this competition to gain a competitive edge. Although the microalgae-based products market is relatively at the nascent stage, the number of companies and small-scale startups that are entering the market has witnessed a consistent growth. Several companies are forging strategic alliances to expand market presence and establish a solid foothold in the microalgae-based products market landscape.

For instance, in November 2019, Nestle entered into a partnership with Corbion to develop next-generation range of microalgae-based products and deliver sustainable plant-based products. The move is expected to streamline commercialization as well as the production of microalgae-based products for Nestle.

Several companies are also focusing on raising funds to expand their product portfolio. For instance, in July 2019, Microphyt announced that the company has raised nearly ~US$ 32.1 Mn to expand their product portfolio.

Demand to Remain Lower than Usual amid COVID-19 Pandemic

The COVID-19 pandemic is expected to have a minor impact on the global microalgae-based products market. Research and development activities are expected to increase over the upcoming months as researchers and scientists continue to explore the potential of microalgae-based products to combat the novel coronavirus. At present, while the demand for conventional COVID-19 drugs and medication is expected to remain high, the adoption of microalgae-based products is expected to witness a gradual growth. In the current scenario, compounds derived from marine red algae offer considerable promise in the production of antiviral drugs to combat COVID-19 due to which, the market for microalgae-based products is expected to witness considerable development amid the ongoing health crisis.

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Analysts’ Viewpoint

The global microalgae-based products market is expected to grow at a healthy CAGR of ~5% during the forecast period. The market growth can be primarily attributed to a host of factors, including evolving dietary patterns, growing demand for plant-based proteins, mounting environmental and health concerns related to protein sources derived from animals, research and development, and advancements in microalgae cultivation and processing techniques. Market players should focus on expanding their market share by forging new partnerships and strategic alliance. In addition, market participants are also expected to explore the potential of microalgae-based products in combating the novel COVID-19 infection.

Microalgae-based Products Market: Overview

  • 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 demand for renewable energy resources to meet the increasing demand for energy and lower the environmental impact of carbon footprints in the region
  • Current progress in microalgal biotechnology is driven by the increase in demand for new sources of biomass due to discoveries and 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 in food and nutraceutical sectors despite high production costs. Therefore, microalgae is becoming a sustainable alternative for the production of various products such as carotenoids, proteins, and several dietary supplements.
  • Research and genetic modification of microalgae are 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 activities in 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 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 product market
  • Unstable climatic 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 product 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 and 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 market.
  • Rise 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 focusing on microalgae cultivation and their application as high quality biomass in various sectors
  • Introduction of new technologies for the production of biofuels (biodiesel and bioethanol) from microalgae is estimated to propel the global microalgae-based products market during the forecast period

Europe to Dominate Microalgae-based Products Market

  • Europe is projected 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 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, government regulations in Europe favor the production of bio-based fuel. This is anticipated to propel the demand for microalgae-based products in Eastern and Western Europe during the forecast period.
  • Countries in Europe aim to source 10% of transport energy from renewable resources, primarily from biofuels, by 2020. A significant share of fuels is used in transportation application in the region, owing to high demand for luxury vehicles, commercial trucks, and motorcycles. This is likely to propel the demand for microalgae-based products in countries such as Germany, Switzerland, and the Netherlands in Europe.

Asia Pacific Offers Lucrative Opportunities

  • Asia Pacific is a key region for various applications such as pharmaceuticals, dietary supplements, and food, as a large number of manufacturers operates in China and India. Adoption of microalgae-based carotenoids in various applications is anticipated to drive the demand for these products in the near future.
  • Adoption of various technologies 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 2019, due to the presence of various application-specific companies in the country
  • Several microalgae manufacturers operate in Asia Pacific, especially in Australia and China. These companies offer cost benefits for product manufacturers. Asia Pacific has a 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.

High Usage in Food & Beverages Application

  • 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 of the global 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.

Microalgae-based Products Market – Scope of the Report

The latest study collated and published by Transparency Market Research (TMR) analyzes the historical and present-day scenario of the global microalgae-based products market to accurately gauge its future development. The study presents detailed information about important growth factors, restraints, and key trends that are creating the landscape for the future growth of the microalgae-based products market to identify the opportunistic avenues of the business potential for stakeholders. The report also provides insightful information about how the microalgae-based products market will progress during the forecast period of 2020 to 2030.

The report offers intricate dynamics about different aspects of the microalgae-based products market that aids companies operating in the market in making strategic development decisions. TMR’s study also elaborates on the significant changes that are highly anticipated to configure the growth of the microalgae-based products market during the forecast period. It also includes a key indicator assessment to highlight the growth prospects of the microalgae-based products market, and estimate statistics related to the market progress in terms of value (US$ Mn) and volume (tons).

This study covers a detailed segmentation of the microalgae-based products market, along with key information and a competitive outlook. The report mentions the company profiles of key players that are currently dominating the microalgae-based products market, wherein various development, expansion, and winning strategies practiced and executed by leading players have been presented in detail.

Key Questions Answered in TMR’s Report on Microalgae-based Products Market

The report provides detailed information about the microalgae-based products market on the basis of comprehensive research on various factors that are playing a key role in accelerating the growth potential of the market. Information mentioned in the report answers path-breaking questions for companies that are currently functioning in the market and are looking for innovative ways to create a unique benchmark in the microalgae-based products industry, so as to help them make successful strategies and take target-driven decisions.

  • Which application of microalgae-based products will emerge as a major revenue generator for the market during the forecast period?
  • How are key market players successfully earning revenue out of the advantages of microalgae-based products?
  • What will be the Y-o-Y growth of the microalgae-based products market between 2020 and 2030?
  • What are the winning imperatives of market frontrunners in the microalgae-based products market?
  • Which product is expected to offer lucrative opportunities in the microalgae-based products market during the forecast period?
  • Which are the leading companies in the global microalgae-based products market?

Research Methodology – Microalgae-based Products Market

The research methodology adopted by analysts for combining the microalgae-based products market report is based on detailed primary as well as secondary research. With the help of in-depth insights of the industry-affiliated information that is obtained and legitimated by market-admissible resources, analysts have offered riveting observations and authentic forecasts for the microalgae-based products market.

During the primary research phase, analysts interviewed industry stakeholders, investors, brand managers, vice presidents, and sales and marketing managers. Based on data obtained through the interviews of genuine resources, analysts have emphasized the changing scenario of the microalgae-based products market.

For secondary research, analysts scrutinized numerous annual report publications, white papers, industry association publications, and company websites to obtain the necessary understanding of the microalgae-based products market.

Microalgae-based Products Market - Segmentation

TMR’s research study assesses the microalgae-based products market on the basis of product, application, and region. This report presents the extensive market dynamics and progressive trends associated with different segments, and how they are influencing the growth prospects of the microalgae-based products market.

Product

Spirulina

Chlorella

Astaxanthin

Beta Carotene

PUFA Fatty Acid

Lutein

Others (including Phycobiliproteins, Zeaxanthin, and Lycopene)

Application

Food & Beverages

Personal Care

Nutraceuticals & Dietary Supplements

Pharmaceuticals

Chemicals

Fuel

Animal Feed

Others (including Fertilizers)

Region

North America

Latin America

Europe

Asia Pacific

Middle East & Africa

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Microalgae Based Products Market

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