Middle East and Africa Microalgae Market – Industry Trends and Forecast to 2030

Middle East and Africa Microalgae Market Analysis and Insights 

Microalgae are simple cell structure that needs some requirement for their growth such as light, water, carbon dioxide, nutrients such as nitrogen and phosphorus. The growth of the microalgae under these requirements with optimum climatic conditions can be 5-10 times more than the conventional crops. Microalgae can be used as alternative biodiesel feedstock because of high lipid content (15-30%). Constituents present in microalgae are chlorophylls, phycobiliproteins, and carotenoids.

The Middle East and Africa microalgae market facing high maintenance and operating cost along with technical challenges of large scale microalgae harvesting are the major challenges for the growth of the market in the forecast years.

The rise in ageing population and growing consumer understanding of preventative healthcare, along with rising number of research and development activities for vegan protein is further fuelling the market growth in the forecast period.

The Middle East and Africa microalgae market is expected to gain market growth in the forecast period of 2023 to 2030. Data Bridge Market Research analyses that the market is growing with a CAGR of 4.6% in the forecast period of 2023 to 2030 and is expected reach USD 36.80 million by 2030, from USD 25.87 million in 2022.

Market Definition

Microalgae are microscopic algae which are also called single celled algae. They can either live in independently or in the form of colonies. These are photosynthetic microorganisms that reside in freshwater or salty water. According to their species they can vary in size and shape whose size ranges from micrometers to hundred micrometers. The main function of microalgae is that it converts the sunlight, carbon dioxide, and water into algal biomass. Microalgae are used in the food, nutraceuticals, feed, cosmetic industries as well as it is also used to make paper ink. Microalgae have been considered as most promising in the field of biodiesel feedstock and have been known as third generation feedstock. Microalgae are members of the larger group of phytoplankton.

Microalgae Market Dynamics

This section deals with understanding the market drivers, advantages, opportunities, restraints, and challenges. All of this is discussed in detail below:

Drivers

• Rise in the awareness among consumers among about wide health benefits of microalgae products

Microalgae cultivation is done on large-scale for production of high quality dietary products. Microalgae are exploited for its high protein content which has fulfilled the unmet diet demand of growing population. Along with dietary components, microalgae also comprises of several other bio- active components having anti-oxidative, anti-carcinogenic and anti-hypertensive properties. Microalgae are utilized from thousands of years due to its high dietary content. As new microalgae containing products are keep on launching, several market players are adopting initiatives in order to create awareness among consumers towards their innovative brands. Increasing awareness is boosting up the product sales, which in turn positively affecting the microalgae market growth.

• Wide coverage of microalgae in different fields such as cosmetics and nutrition

Microalgae are primary producers providing a remarkable source of various nutrients. The high protein content of different microalgae species is one of the key reasons to make it a unique ingredient of food; however, the richness of microalgae oils in certain polyunsaturated fatty acids (PUFA) further enhances its nutritious capabilities. The polyunsaturated fat rich microalgae oil is proven highly beneficial for pregnant women, infants, vegetarians, and patients with fish allergy. Although the high protein content of different species is one of the key reasons to find them as an unusual protein source, oils from microalgae rich in some PUFAs tend to be especially suitable for pregnant women, infants, vegetarians and patients with fish allergy. Since microalgae are also an essential source of antioxidants, minerals, vitamins and natural dyes, the inclusion of the whole biomass in food and feed may be used to provide colour, enhance texture, increase nutritional value, and enhance oxidation resistance. Due to enormous qualities found in algae, the algae-based products find applications in multiple industries such as food & beverages, nutraceuticals & dietary supplements, personal care, feed, specialty chemicals and pharmaceuticals.

Opportunity

• Rise in the interest of biodiesel feedstock’s

Microalgae feedstock has been reported to be the most preferable and competent source for the production of biodiesel as it does not need fresh water for its cultivation nor it requires a cultivable land. Moreover, the absence of lignocellulosic materials in microalgae overcome the need to perform pre-treatment process and hence reduces the overall cost of biodiesel production. As production of biodiesel from crop food and plants can be achieved by the expense of large amount of water and large size field, this all makes the whole process unsustainable and enhances the overall cost of biodiesel. This is the reason why researchers and entrepreneurs are highly focused on the microalgae for biodiesel production.

Restraints/Challenges

• High production cost

Microalgae are referred as a better source for the production of biofuel due to high amount of oil content and rapid biomass growth. The microalgae expand rapidly as compared to terrestrial crops. The production of microalgae can be done on non-arable land with non-portable saline water and wastewater. The academics, entrepreneurs and general public are increasing their demand for microalgae-based biofuel as compared to biodiesel. The major problem related to natural source of fuel is the high cost related with production and maintenance of microalgae culture which can give biofuel. However, capital and operational cost associated with the growth of heterotopic algae culture is hard to justify the biodiesel production from such culture.

• Productivity depend upon climate

The growth of microalgae totally depends on the climate, if there are normal climatic conditions such as optimum temperature, freshwater or salt water and others but the growth can also be affected if there is any kind of changes in the climate. The right combination of conditions helps in proliferation of algae which are useful in many applications ranging from food, feed, cosmetics, nutraceuticals and pharmaceuticals.

Post-COVID-19 impact on the Microalgae Market

The COVID-19 pandemic had a great impact on the pharmaceutical and nutraceutical industries. Trade groups in the nutritional products sector claim that the Middle East and Africa supply chain for functional foods and dietary supplements has been significantly damaged, impacting end-user consumption of microalgae market growth. Sales of microalgae in the first quarter of 2020 were significantly delayed in the algal industry due to logistical and transportation issues. The supply of raw materials for culture medium and manufacturing, packaging, and biomass delivery were all disrupted along the whole value chain. However, with increase in consumption of dietary supplement and functional food by the consumers to stay healthy, demand for microalgae is also increasing.

Recent Developments

• In October 2020, Corbion expanded the adoption of AlgaPrime DHA in collaboration with the Thai Union. AlgaPrime DHA is an omega-3-rich algal feed ingredient derived from microalgae. As per the partnership, the company will provide AlgaPrime DHA to the Thai Union to feed of large-scale fish population. This collaboration helped the company to earn lucrative growth in the market
• In October 2020, Cyanotech Corporation launched BioAstin derived for microalgae. The product launched efficiently treats cardiovascular, immune, skin, eye, and joint health and offers recovery from exercise. The purity of the product eliminates the need for synthetic encapsulation material. This initiative boosted the company's product portfolio and helped it penetrate its roots in the microalgae market

Middle East and Africa Microalgae Market Scope

Middle East and Africa microalgae market is segmented into type, category, form, grade, application, and distribution channel. The growth amongst these segments will help you analyze meager growth segments in the industries and provide the users with a valuable market overview and market insights to make strategic decisions to identify core market applications.

Type

• Chlamydomonas reinhardtii
• Dunaliella salina
• Haematococcus pluvialis
• Isochrysis
• Nannochloropsis
• Phaeodactylum tricornutum
• Porphyridium cruentum
• Chlorella
• Spirulina
• Others

Based on type, the microalgae market is segmented into chlamydomonas reinhardtii, dunaliella salina, haematococcus pluvialis, isochrysis, nannochloropsis, phaeodactylum tricornutum, porphyridium cruentum, chlorella, spirulina, and other.

Category

• Organic
• Inorganic

Based on category, the microalgae market is segmented into organic and inorganic.

Form

• Powder/dry
• Liquid

Based on form, the microalgae market is segmented into powder/dry and liquid.

Grade

• Food grade
• Cosmetic grade
• Feed grade
• Fuel grade
• Others

Based on grade, the microalgae market is segmented into food grade, cosmetic grade, feed grade, fuel grade, and others.

Application

• Dietary supplements
• Cosmetics & personal
• Food & beverages

• Pharmaceuticals
• Animal feed
• Bio-fuel
• Inks
• Others

Based on application, the microalgae market is segmented into dietary supplements, cosmetics & personal, food & beverages, pharmaceuticals, animal feed, bio-fuel, inks, and others.

Distribution channel

• Direct
• Indirect

Based on distribution channel, the microalgae market is segmented into direct and indirect.

Microalgae Market Regional Analysis/Insights            

The microalgae market is analyzed and market size insights and trends are provided by country, type, category, form, grade, application, and distribution channel.

Microalgae market comprises of the countries Saudi Arabia, South Africa, U.A.E, Kuwait, and Rest of Middle East and Africa.

South Africa is expected to dominate the Middle East and Africa microalgae market due to increasing awareness among consumers about health benefits of microalgae and increase in demand for microalgae products.

The country section of the report also provides individual market-impacting factors and changes in market regulation that impact the current and future trends of the market. Data point downstream and upstream value chain analysis, technical trends porter's five forces analysis, and case studies are some of the pointers used to forecast the market scenario for individual countries. Also, the presence and availability of North America brands and their challenges faced due to large or scarce competition from local and domestic brands, the impact of domestic tariffs, and trade routes are considered while providing forecast analysis of the country data.   

Competitive Landscape and Middle East and Africa Microalgae Market Share Analysis

The microalgae market competitive landscape provides details by the competitors. Details included are company overview, company financials, revenue generated, market potential, investment in research and development, new market initiatives, Middle East and Africa presence, production sites and facilities, production capacities, company strengths and weaknesses, product launch, product width and breadth, and application dominance. The above data points are only related to the companies focus on the Middle East and Africa microalgae market.

The major companies in the microalgae market are Cellana Inc., DSM, Cyanotech Corporation, Corbion ALGATECH LTD, AlgaEnergy, AlgaHealth, BarAlgae, Desert Microalgae Technologies, Yemoja, Henry Lamotte Oils GmbH, Algarithm, and ALGAIA among others.

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