Microalgae Global Market Opportunities and Strategies to 2034

This report describes and explains the microalgae market and covers 2019-2024, termed the historic period and 2024-2029, 2034F termed the forecast period. The report evaluates the market across each region and for the major economies within each region.

The global microalgae market reached a value of nearly $1.1 billion in 2024, having grown at a compound annual growth rate (CAGR) of 5.41% since 2019. The market is expected to grow from $1.1 billion in 2024 to $1.54 billion in 2029 at a rate of 6.85%. The market is then expected to grow at a CAGR of 6.42% from 2029 and reach $2.1 billion in 2034.

Growth in the historic period resulted from shift towards plant-based products, rising health and wellness concerns, growing prevalence in functional foods and growing potential in biofuel production. Factors that negatively affected growth in the historic period were high production costs and competition from substitutes.

Going forward, growth in the pharmaceutical industry, expansion of the cosmetic and personal care industry, growing demand for dietary supplements and growth in aquaculture and animal feed will drive growth. Factors that could hinder the growth of the microalgae market in the future include stringent regulations, taste, odor and texture challenges and impact of trade war and tariff.

North America was the largest region in the microalgae market, accounting for 34.83% or $385.69 million of the total in 2024. It was followed by Asia Pacific, Western Europe and then the other regions. Going forward, the fastest-growing regions in the microalgae market will be Asia Pacific and Middle East where growth will be at CAGRs of 9.00% and 8.22% respectively. These will be followed by Africa and South America where the markets are expected to grow at CAGRs of 8.01% and 6.58% respectively.

The global microalgae market is fairly fragmented, with a large number of small players operating in the market. The top ten competitors in the market made up to 23.59% of the total market in 2024. DSM-Firmenich AG was the largest competitor with a 10.82% share of the market, followed by Euglena Co., Ltd with 2.84%, Cyanotech Corporation with 1.88%, Algenol Biotech with 1.66%, Corbion N.V with 1.42%, AlgiSys LLC with 1.33%, Algatech Ltd. (subsidiary of Solabia Group) with 1.05%, Roquette Frères with 0.99%, DIC Corporation with 0.95% and BASF SE with 0.66%.

The microalgae market is segmented by type into spirulina, chlorella, dunaliella salina, haematococcus pluvialis and other microalgae. The spirulina market was the largest segment of the microalgae market segmented by type, accounting for 47.81% or $529.4 million of the total in 2024. Going forward, the haematococcus pluvialis segment is expected to be the fastest growing segment in the microalgae market segmented by type, at a CAGR of 10.09% during 2024-2029.

The microalgae market is segmented by distribution channel into business channel and consumer channel. The business channel market was the largest segment of the microalgae market segmented by distribution channel, accounting for 66.52% or $736.51 million of the total in 2024. Going forward, the consumer channel segment is expected to be the fastest growing segment in the microalgae market segmented by distribution channel, at a CAGR of 7.59% during 2024-2029.

The microalgae market is segmented by application into food and beverage, dietary supplements, pharmaceuticals, cosmetics and personal care, bio-fuel, inks, animal feed and other applications. The food and beverage market was the largest segment of the microalgae market segmented by application, accounting for 25.94% or $287.24 million of the total in 2024. Going forward, the pharmaceuticals segment is expected to be the fastest growing segment in the microalgae market segmented by application, at a CAGR of 8.34% during 2024-2029.

The top opportunities in the microalgae market segmented by type will arise in the spirulina segment, which will gain $191.15 million of global annual sales by 2029. The top opportunities in the microalgae market segmented by distribution channel will arise in the business channel segment, which will gain $271.4 million of global annual sales by 2029. The top opportunities in the microalgae market segmented by application will arise in the food and beverages segment, which will gain $116.48 million of global annual sales by 2029. The microalgae market size will gain the most in the USA at $113.64 million.

Market-trend-based strategies for the microalgae market include focus on premiumization of spirulina in alternative seafood and plant-based protein products, focus on sustainable protein source developed from chlorella family of microalgae, focus on expansion of astaxanthin production and R&D at BGG to strengthen supply and quality, focus on sustainable omega-3 for aqua feed and pet food and focus on introduction of OT-algae resin-bag photobioreactor for scalable microalgae cultivation.

Player-adopted strategies in the microalgae market include focus on expanding operational capabilities through new launches and focuses on new investments to expand business expertise.

To take advantage of the opportunities, the analyst recommends the microalgae market companies to focus on developing spirulina-based alternative protein products, focus on scaling chlorella-based protein production, focus on integrating production and r&d for operational efficiency, focus on developing algae-derived omega-3 for sustainable feed, focus on adopting flexible and sustainable cultivation systems, focus on haematococcus pluvialis for growth, expand in emerging markets, focus on expanding strategic distribution channels, focus on optimizing pricing strategies for market competitiveness, focus on strengthening brand awareness and market education, focus on expanding strategic partnerships for market reach, focus on consumer channel for market expansion, focus on pharmaceuticals for high-value growth.