Versatile Applications in F&B Contribute to Surge in Microalgae-based Products Market Growth

Microalgae has gained popularity in recent decades due to its versatility  - from being used as a dietary supplements to an alternative for the production of biofuel - the applications of microalgae seem almost endless.  Microalgae-based products have been elevated to the super food status, as they are high in nutrients and are considered extremely beneficial to humans. Microalgae have found application in the F&B industry as an additive, gaining traction, as much for its bright blue colour as for its nutritional value. This rapidly growing adoption of microalgae is expected to have a positive impact on the growth of the global microalgae-based products market.

Spirulina, the most popularly used microalgae in the F&B sector, accounted for the largest share of over one-third of the global microalgae-based products market by volume in 2018. It is expected to retain its place at the top of the table, and double, volume-wise, by the end of the forecast period, expanding at a volume CAGR of ~5%.

microalgae based products market infographic

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Microalgae-based Products - Popular Source of Biofuel

Apart from the commercial relevance of microalgae for the consumption by humans and animals, it also finds application in the industrial production of biomass energy. With concerns over the negative impact of fossil fuels forcing players in the larger energy sector to look into environmentally-friendly sources of energy and reducing the emission of greenhouse gases, biomass and algae emerges as the cleanest form of energy, with minimal emission of carbon dioxide. As an end-use industry of the microalgae-based products market, fuel accounted for over one-tenth of the global market share by revenue, and is anticipated to expand the fastest at a CAGR of ~6%, by value, during the forecast period.

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Other applications of microalgae include its use in pharmaceuticals, chemicals, and personal care and animal feed, which is likely to create a plethora of opportunities for players in the microalgae-based products market during the forecast period. Microalgae that is cultivated specifically for the purpose of biofuels, is considered a sustainable source of energy, requiring only solar energy for the production process, which is also contributing to the growth of the market

Large-scale Production Activities to Boost Growth of APAC Market

In 2018, Europe accounted for nearly one-third of the global microalgae-based products market, making it the most significant regional market. The region is expected to retain its place at the head of the table over the forecast period, with an almost 2X increase in the value by the end of the forecast period. This can be attributed to the high volume of technology development activities along with R&D for the use of microalgae for biofuel in the region. Also contributing to this popularity is the stronger inclination of both, consumers and manufacturers in the region to switch to sustainable sources of energy.

However, the market in APAC held one-fourth of the total market share by volume at the end of 2018. It is expected to expand the fastest, at a volume CAGR of ~6% during the forecast period. This rapid growth comes on the back of the increased production of microalgae-based products in the region, along with the presence of less established players to cater to the demands of the market. Europe and APAC are likely to remain lucrative regions for stakeholders in the microalgae-based products market.

The microalgae-based products market is considered moderately fragmented, with major players  - EID Parry Ltd., Euglena Co, Ltd, Cyanotech Corporation, Asta Real AB, and Blue Tech International GmbH - accounting for ~40% of the total market share. Players are increasingly using strategic manoeuvres such as collaborations to make headway in R&D activities in microalgae-based products. For instance, in September 2018, Cynotech Corporation, an established player in the global microalgae-based products market, announced that it had joined Algae Biomass Organization, for the development of viable commercial markets for renewable and sustainable commodities derived from algae.

microalgae based products market segmentation

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Analysts’ Overview of Microalgae-based Products Market

According to analysts at Transparency Market Research, the microalgae-based products market is set to expand at a moderate CAGR of ~5% over the foreseeable future. This can be attributed to the growing popularity of microalgae-based products as a super food, and its increased usage across several sectors, including F&B, animal feed, and personal care, among others. Manufacturers in the global microalgae-based products market, focusing on the genetic modification of algae to increase its efficiency in the use of biofuels, are likely to maximize their gains over the forecast period.

The markets in Europe, Asia Pacific, and North America are set to expand rapidly, as consumers are shifting towards renewable and sustainable sources of biofuel. Manufacturers looking to make inroads into these regions are likely to benefit from the lucrative opportunities offered by these markets.

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.

Microalgae-based Products Market - Scope of the Report

A 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 the 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 business potential for stakeholders. The report also provides insightful information about how the microalgae-based products market will progress during the forecast period of 2019 to 2027.

The report offers intricate dynamics about the 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 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 the 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 form of microalgae-based products will emerge as a 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 2019 and 2027?
  • What are the winning imperatives of market frontrunners in the microalgae-based products market?
  • 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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