U.S. Microalgae Market – Industry Trends and Forecast to 2030

U.S. Microalgae Market Analysis and Size

The U.S. microalgae market is being driven by increasing awareness among consumers about the health benefits of microalgae products, an important driver of the market. Moreover, the advancement in technological and scientific innovations and developments is expected to boost market growth.   

Data Bridge Market Research analyses that the U.S. microalgae market is expected to reach the value of USD 593.16 million by 2030, at a CAGR of 6.7% during the forecast period.   

U.S. Microalgae Market Definition

Microalgae are microscopic algae which are also called single-celled algae. They can either live 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 ranging from micrometers to hundred micrometers. The main function of microalgae is to convert sunlight, carbon dioxide, and water into algal biomass. Microalgae are used in the food, nutraceuticals, feed, and 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. 

U.S. 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

• Increasing Awareness among Consumers about Health Benefits of Microalgae Products

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

The increasing trend of plant-based food and rising health-related issues has increased the chances of microalgae-based products to dominate the market with its nutrition-rich products serving the demand of consumers in various domains of life ranging from human food to animal feed and nutrition to biofuel. Thus, the increasing awareness among consumers about the health benefits of algae products is expected to drive market growth.

• Technological and Scientific Innovations and Developments

Microalgae growth and its content extraction are crucial processes in dilute state cultivation, microalgae cultivation poses several challenges because of its small size, it becomes quite problematic to grow it for economic purposes and to process it into biofuels. The major problems associated with microalgae production are strain selection, strain improvement, inefficient quantity of sunlight present while microalgae culturing in ponds, and enhanced need for removal of large water volume to obtain concentrates. These obstacles demand the appropriate technological advancements and scientific innovation for the production of microalgae and its conversion to required products. The market players are using technologically advanced cultural methods and innovative technologies for the production formation of microalgae, which is expected to drive market growth.

Opportunities

• Rising Investments in Microalgae Production

Microalgae-based technologies and its derived products are changing almost everything around us. The various transformations in action due to microalgae include the way of eating, the introduction of biofuels for the aviation and automobile industry, the production of microalgae-derived skincare products along with recycling of greenhouse gases. The reason for increased investment in microalgae products is due to their miraculous properties and ability to provide satisfactory products for every major industry. The out-sized impact on the consumer’s market along with providing sustainable solutions to combat challenges increased the investments in advanced microalgae technologies aiding in its production by both the private and public sectors, which is expected to create opportunities for market growth.

• Strategic Initiatives by Market Players

Various strategic initiatives are adopted by market players in the market which involve expansion, collaboration, and acquisition among others. These initiatives allow them to increase the company’s product portfolio leading to market expansion and hence enhancing the product demand among customers which ultimately allows the market players to earn maximum revenue. As the demand for effective and novel products derived from microalgae is increasing worldwide, these strategic initiatives are taken by top market players aimed at enhancing business operations and earning more profitability, which is expected to create opportunities for market growth.

Restraint/Challenge

• Side-Effects Related to Microalgae Products

Microalgae products are nowadays used due to their high nutritional value and showed promising biological results due to which the demand has increased in the market. However, these products show some adverse effects or side effects on the body. These side-effects were reported by the consumers who have used the microalgae products as their supplements for boosting immunity and are expected to restrain market growth.

Recent Developments 

• In July 2022, AlgaEnergy announced that it has joined the Technology Platform Food for Life-Spain (PTF4LS) as an associate, led by the Spanish Food and Drink Industry Federation (FIAB). This is considered the largest technological platform in the Spanish agri-food sector. This collaboration will help the organization develop more product portfolios.
• In September 2021, DSM, a science-based organization, declared the fulfillment of its procurement of best option elements for a venture worth USD 453 million. The securing of best option fixings, the main provider of dairy-based exquisite flavouring.

Market Scope  

The U.S. microalgae market is categorized into six notable segments which are based on the type, category, form, grade, application and distribution channel. The growth amongst these segments will help you analyze major growth segments in the industries and provide the users with a valuable market overview and market insights to help them make strategic decisions for identifying core market applications.

Type

• Spirulina
• Chlorella
• Haematococcus Pluvialis
• Dunaliella Salina
• Isochrysis
• Phaeodactylum Tricornutum
• Chlamydomonas Reinhardtii
• Porphyridium Cruentum
• Nannochloropsis
• Others 

On the basis of type, the market is segmented into chlamydomonas, reinhardtii, dunaliella salina, haematococcus pluvialis, isochrysis, nannochloropsis, phaeodactylum tricornutum, porphyridium cruentum, chlorella, spirulina and others. 

Category

• Organic
• Inorganic

On the basis of category, the market is segmented into organic and inorganic.

Form

• Powder/Dry
• Liquid

On the basis of form, the market is segmented into powder/dry and liquid.

Grade

• Food Grade
• Cosmetic Grade
• Feed Grade
• Fuel Grade
• Others

On the basis of grade, the market is segmented into food grade, feed grade, fuel grade, cosmetic grade, and others.

Application

• Dietary Supplements
• Cosmetics & Personal
• Food & Beverages
• Pharmaceuticals
• Animal Feed
• Bio-Fuel
• Inks
• Others

On the basis of application, the market is segmented into food & beverage, dietary supplements, pharmaceuticals, cosmetics & personal, bio-fuel, inks, animal feed, and others.    

Distribution Channel

• Direct
• Indirect

On the basis of distribution channel, the market is segmented into direct and indirect.

Competitive Landscape and Market Share Analysis

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

Some of the major players operating in the U.S. microalgae market are Cellana Inc., DSM, Cyanotech Corporation, Algatech LTD, Corbion, Heliae Development, LLC, AlgaEnergy, AstaReal Co., Ltd, Parry Nutraceuticals, Earthrise Nutritionals, LLC, Inner Mongolia Rejuve Biotech, Far East Bio-Tec Co., Ltd., and DIC CORPORATION and among others. 

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