Food and Beverage Microalgae Market

Food and Beverage Microalgae Market Outlook (2023 to 2033)

The global food and beverage microalgae market, valued at USD 125 million in 2023, is projected to grow steadily at a rate of 7% from 2023 to 2033. By 2033, the market is expected to soar to USD 247.4 million.

Increasing application of microalgae as food additives and awareness regarding their properties that help in enhancing taste, texture, flavor, aroma, and nutritional value are projected to bolster demand for microalgae in the food and beverage sector.

Bakery, dairy, and confectionery businesses need natural food components like spirulina to enhance flavor and make their products aesthetically appealing. These ingredients are often used to attract more customers and persuade them to buy their products, thereby bolstering overall sales.

The food and beverage microalgae market demand analysis is also swayed by the emphasis laid by the manufacturers on the use of natural ingredients. To appeal to health-conscious consumers in tandem with the willingness of food manufacturers to pay premium prices for high quality, sustainable natural food components due to the growth in health-conscious customers.

Attribute	Details
Food and Beverage Microalgae Market Estimated Size (2023)	USD 125 million
Food and Beverage Microalgae Market Projected Size (2033)	USD 247.4 million
Food and Beverage Microalgae Market Value-based CAGR (2023 to 2033)	7%

2018 to 2022 Demand for Microalgae in Food and Beverage Sector Outlook in Comparison to 2023 to 2033 Growth Forecast

Consumer awareness regarding the importance of healthy lifestyles and the benefits of nutritional foods is growing, making them lean towards high-quality and natural products. Their interest in the quality of ingredients used in food items and desire for healthy, nutritious, flavorful, and innovative dietary options likely encourage microalgae application in food and beverage items.

Future Market Insights predicts the market to remain steady, exhibiting growth at 7% CAGR between 2023 and 2033 in comparison to the CAGR of 5.7% posted between 2018 and 2022.

How is the Growing Popularity of Microalgae in the Food Sector as a Superfood Going to Sway the Market?

• Increasing recognition of microalgae as a superfood is driving its popularity in the food sector.
• The nutritional richness of microalgae, including high protein content, omega-3 fatty acids, vitamins, and antioxidants, is attracting consumer interest, in turn, spurring the overall market.
• Microalgae's potential as a sustainable protein source, with minimal environmental impact compared to traditional animal-based proteins, is a significant factor in its growing popularity.
• The market growth is going to be on a rising trend as health-conscious consumers are seeking alternative and plant-based protein options, and microalgae offer a viable solution.
• The versatility of microalgae in various food applications, including supplements, beverages, snacks, and ingredients, further expands its market potential.
• Ongoing research and development efforts to enhance the taste, texture, and overall palatability of microalgae-based food products are expected to boost its acceptance among consumers, auguring well for the market's future trends.
• Growing consumer awareness regarding the environmental benefits and sustainability aspects of microalgae cultivation is likely to positively influence market growth.

How is the Competition among Manufacturers Restricting New Entrants in the Food and Beverage Microalgae Market?

• The influx of new microalgae manufacturers globally has intensified competition in the market.
• The introduction of various brands aims to achieve substantial revenues and quick return on investment.
• Developed countries exhibit high market concentration, with a few large corporations dominating a significant market share. This concentration has led to increased rivalry among businesses.
• Multinational corporations are investing in expanding their presence in countries like China and India, contributing to market consolidation in these regions.
• The high level of competition leads to aggressive marketing strategies, making it challenging for new entrants to differentiate themselves and gain market visibility.
• The competition-driven market environment often leads to price wars and narrow profit margins, making it difficult for new entrants to sustain their operations and achieve profitability.

Country-wise Insights

Did FDA Approval of Spirulina Help in Driving Microalgae Sales in the United States of America?

According to FMI, North America is the leading region in the global microalgae market, and it is also expected to witness a lucrative growth rate over the forecast period, primarily contributed by the market in the United States of America, holding 32% value share in 2022 on a global level.

In 2013, the United States FDA approved spirulina blue, a natural color made from green-blue spirulina, which opened up a whole new market for spirulina products. Spirulina Blue has been employed in a variety of food and beverage applications.

Spirulina manufacturers who identified spirulina as a significant ingredient in food applications have access to regulatory approval. The FDA's approval of spirulina for use in food and beverages has aided the acceleration of the worldwide microalgae market, particularly in the United States.

How are Government Initiatives Supporting the Production of Microalgae in India?

According to FMI, the demand for microalgae in the food and beverage sector of India is estimated to be on a rising trajectory, with a predicted CAGR of 4.5% from 2023 to 2033.

The Indian government is supportive of the local spirulina market and is creating a strong gateway for the development of this super-food that has the potential to revolutionize the direction of human nutrition.

The government has identified microalgae as an economic remedy to hunger and numerous inadequacies that arises from food security issues. India is home to nearly one out of every three malnourished children, necessitating immediate action to combat hunger.

In March 2016, the Karnataka state government launched the Balposhna scheme for eradicating malnutrition in the region. Under this scheme, the government provided 2gm of Spirulina for 180 days to 25,000 children across the state, further shaping the market trends in the country.

Why is the Market in China Likely to be at the Forefront of Asia Pacific Region?

According to FMI’s analysis, the market in China is likely to advance at a rate of 6.7% during the forecast period, contributing a substantial portion of the market in Asia Pacific. For centuries, Asia Pacific countries have reaped the benefits of algae in dietary formulations.

In comparison to the West, customers are more aware of the potential of microalgae. Labor for cultivation is often less expensive and less regulated. China is interested in the microalgal-based industry because local players want to open their operations to new markets for food, feed, nutraceuticals, and cosmetics that are sustainable.

How is the Focus on Product Safety Continue to Drive Sales in the United Kingdom?

In Europe, the United Kingdom market for food and beverage microalgae is to secure a 7.5% CAGR from 2023 to 2033. Consumer interest in product quality and safety is one of the most important developments in developed economies, particularly in the United Kingdom. Consumers are interested in how suppliers of various raw materials utilized in food items are held accountable.

The considerable use of synthetic chemicals and pesticides in the agriculture industry in the country has prompted a greater focus on the source of raw materials. Offering sustainably cultivated food components can assist microalgae market participants in boosting their brand image and growing their client base.

Category-wise Insights

Does the High Nutritional Value of Spirulina Support Demand?

The demand for spirulina is driven by its role as a superfood with a superior protein content than any naturally cultivated options. Spirulina is a protein-rich dietary source, with roughly 60 grams of protein per 100 grams of raw spirulina.

Spirulina is also high in vitamins, minerals, and other nutrients, making it an excellent diet. Vitamins A, B, C, E, and K, in addition to iron, calcium, manganese, magnesium, phosphorus, potassium, sodium, and zinc, are all found in spirulina, thereby encouraging many to opt for the same.

Spirulina sales have surged in recent years, and the sub-segment share was expected to account for over 21.40% in 2022 on a global level.

Which is the Widely Preferred Source of Microalgae?

Marine water is widely preferred and the leading sub-segment based on the source in the food and beverage microalgae market. Due to its nutrient-rich environment, diverse microalgae species, and environmental adaptability.

The abundance of essential nutrients in marine water supports the optimal growth and productivity of microalgae. The wide variety of microalgae species found in marine water allows for the selection of strains with desired characteristics for food and beverage applications.

Microalgae sourced from marine water have also developed natural defense mechanisms, making them more resilient in challenging environmental conditions. The same can be attributed to the sub-segment value share of 45% in 2022.

Which Sub-segment is Predicted to Garner a Significant Value Share Based on End Use?

The sub-segment of bakery products was forecasted to amass revenue of 21.40% in 2022 based on end use in the food and beverage microalgae market. Due to its versatility and compatibility with various bakery formulations.

Incorporating microalgae into bakery products enhances their nutritional profile, offering healthier alternatives to consumers.

The growing demand for healthy and functional foods, along with the clean label movement, drives the adoption of microalgae in bakery products. Furthermore, the use of microalgae enables innovation and product differentiation, allowing brands to stand out in the market and attract health-conscious consumers.

What is the Competitive Landscape in the Food and Beverage Microalgae Market?

Competition in the market is driven by ongoing research and development activities to discover new microalgae strains, optimize cultivation techniques, and develop innovative products. Companies that invest in research and development gain a competitive edge by introducing novel and high-quality products to the market.

The food and beverage microalgae market is witnessing a rise in companies entering the industry, leading to intensified competition among players.

Consumers are becoming cautious about the ingredients used in food and are showing a clear preference for clean-label food. This has encouraged the producers to focus on product launches.

Popular Strategies Employed by the Players

• Research and Development: Companies invest in research and development to discover and develop new microalgae strains, optimize cultivation methods, and enhance the nutritional profile and functionality of microalgae for food and beverage applications.
• Product Innovation: Constantly innovating and developing new microalgae-based food and beverage products to meet evolving consumer demands and preferences. This includes creating unique formulations, flavors, and textures that appeal to consumers seeking healthier and sustainable options.
• Strategic Partnerships: Collaborating with research institutions, universities, and other industry players to leverage expertise, share resources, and accelerate product development and commercialization. Partnerships also help in accessing new markets and distribution channels.
• Market Expansion: Expanding market presence by entering new geographic regions, targeting emerging markets, and establishing partnerships with distributors and retailers to increase product availability and consumer reach.
• Marketing and Branding: Implementing effective marketing strategies to educate consumers about the benefits of microalgae-based products, building brand awareness, and positioning microalgae as a sustainable and nutritious ingredient.
• Regulatory Compliance: Ensuring compliance with food safety and labeling regulations to build trust and confidence among consumers and regulators. This includes conducting rigorous quality control and testing processes to meet industry standards.

Key Players:

• DIC Corporation
• Koninklijke DSM NV
• Roquette Frères
• Fuji Chemical Industries Co., Ltd.
• Yunnan Green-A-Bio-engineering Co Ltd
• Cyanotech Corporation
• BASF SE
• Parry Nutraceuticals
• Beijing Gingko Group
• KDI Ingredients
• Sinoway Industrial Co., ltd.
• INNOBIO Corporation Limited
• Algaecan Biotech Ltd.
• Algatechnologies Ltd.
• Cardax, Inc.
• Igene Biotechnology, Inc.
• Fenchem Biotek Ltd.
• AstaReal Inc.
• Valensa International
• Kunming Biogenic Co., Ltd.
• Others

Developments in the Market:

• In March 2016, Naked Juice, a United States-based beverage manufacturer and a subsidiary of PepsiCo, Inc., started a juice smoothie made with Spirulina as a primary ingredient.
• In November 2018, Allma launched microalgae crispy snacks. The company launched rice cereal and chlorella blends in multiple sizes and flavors, such as carrots, lemons, and more.

Demand for Microalgae in Food and Beverage Sector by Category

By Species Type:

• Spirulina
• Chlorella
• Dunaliella
• Aphanizomenon
• Haematococcus
• Crypthecodinium
• Schizochytrium
• Euglena
• Nannochloropsis
• Nostoc
• Phaedactylum
• Others

By Source:

• Marine Water
• Fresh Water

By End-use Application:

• Bakery and Confectionery
• Meat, Poultry, Fish, and Eggs
• Sauces, Soups, and Dressings
• Seasonings
• Snacks and Cereal
• Dairy Products
• Ice creams
• Food additives (ingredients)
• Medical Nutrition/ Functional Food/ Health Food
• Sports Nutrition
• Energy Drinks
• Baby Food
• Others

By Region:

• North America
• Latin America
• Europe
• Asia Pacific
• The Middle East and Africa (MEA)

Frequently Asked Questions

How Big is the Food and Beverage Microalgae Market?

The market is valued at USD 125 million in 2023.

Who are the Leading Industry Players in the Food and Beverage Microalgae Market?

Cyanotech Corporation, BASF SE, and Parry Nutraceuticals are the leading industry players.

What is Restraining the Food and Beverage Microalgae Market?

The influx of new microalgae manufacturers restrains the market.

What is the Key Trend in the Market?

Increasing recognition of microalgae as a superfood is the key trend.

How Big will the Food and Beverage Microalgae Market by 2033?

The market is estimated to reach USD 247.4 million by 2033.