Microalgae Market By Species Type (Spirulina, Chlorella, Nannochloropsis, Haematococcus, Isochrysis, Chlamydomonas, Others), By Form (Powder, Oil, Liquid, Tablets & capsules, Others), By Source (Freshwater Microalgae, Marine Microalgae), By End-User (Food Industry, Pharmaceutical Industry, Cosmetics Industry, Biofuels Industry, Agricultural Industry, Others), Global Market Size, Segmental analysis, Regional Overview, Company share analysis, Leading Company Profiles And Market Forecast, 2025 – 2035

Industry Outlook

The Microalgae market accounted for USD 11.6 Billion in 2024 and is expected to reach USD 28.6 Billion by 2035, growing at a CAGR of around 8.55% between 2025 and 2035. Microalgae market is the industry responsible for the production and commercialization of microalgae, small plants living in water and capable of photosynthesis. The organisms are richer in proteins, lipids, carbohydrates, and other bioactive compounds, therefore economically important for food, animal feed, biofuels, cosmetics, and pharmaceuticals among many others.

The market is growing due to the upsurge in demand for sustainable and renewable products. Moreover, it particularly rising in the nutrition, energy, and environmental sustainability fields. Most of the key drivers are represented by progressions in biotechnology, growing health consciousness, and the need for eco-friendly alternatives to traditional resources.

Report Scope:

Market Dynamics

• Rising Consumer Demand for Health-Promoting Microalgae-Based Products

The health benefits of microalgae have been able to gain attention mainly because consumers increasingly require more natural and plant-based ingredients that promise general well-being. To improve health, two tools are used such as functional foods and dietary supplements. Hence, the U.S. National Institutes of Health focuses on the application of antioxidants, anti-inflammatory agents, and immunomodulatory compounds to avert chronic diseases.

Some microalgae are also perceived to be health-generating and thereby boost consumer confidence. This has led the world market to embrace products based on microalgae in enormous demand since consumers demand alternative and sustainable solutions for improved health.

• Driving Sustainability with Microalgae as the Future of Nutritious Animal Feed

The popularity of microalgae is on the rise because of a safer and nutritionally rich feed source that continued in increasing the market of animal feed majorly in aquaculture, livestock, and pet foods. As per the Food and Agriculture Organization (FAO), the production of aquaculture was marked at 88 million tonnes in the year 2020, thereby originating 49% of the overall output of aquatic animals worldwide. This growth in aquaculture goes hand in hand with a higher likelihood that other feed ingredients, such as microalgae, might lead to more sustainable practices.

The USDA and the European Commission have introduced microalgae in animal nutrition for improved food security and lower environmental impact than from traditional feed sources. The microalgae are nutrient-rich in proteins, omega-3 fatty acids, and essential vitamins that promote the health and growth of livestock and aquatic species.

For instance, feeds based on microalgae are a key means to limit fishmeal - fishmeal is a finite source, and research even recommends up to a maximum of 30% replacement of fishmeal in aquaculture feeds without compromising growth rates. 

• Challenges in Scaling Microalgae Cultivation High Costs and Environmental Control Barriers

Environmental conditions for large-scale microalgae culture are quite stringent, they need to be controlled at a high level for temperature, light, and CO2 for optimum growth. These lead to high costs as well as managing difficulties in large-scale production. Open pond systems are more economical but susceptible to contamination and environmental changes, while photobioreactors give better control but are expensive.

The European Commission has stressed the need for new technological innovation with governmental incentives aimed at cost reduction and upscaling. In its US report, DOE points out that the production cost is still too high although significant progress is made on the pathway of microalgae culture that would constitute a major limiting barrier for industrial-scale commercialization, such as for animal feed industries until it can be overcome the challenge of this cost-effective hurdle. 

• Microalgae offer a promising opportunity for sustainable biofuels with high oil yields and minimal land-use impact.

Microalgae have been considered to be a growth opportunity in the biofuel industry since this organism can produce biodiesel and bioethanol without bringing about the land-use challenges traditional crops do with corn or soy.

The Bioenergy Technologies Office states, algae could provide up to 5,000 gallons of oil per acre per year mind-boggling amount greater than traditional crops. The U.S. Department of Energy has identified microalgae as a promising source of renewable energy, it produces oil yields per acre many times greater than those for terrestrial crops. Microalgae can be further cultivated on nonarable land, and it consume CO2 emissions as resources, hence contributing to carbon sequestration.

Algae-based biofuels have been supported by the European Commission with funding initiatives aimed directly at propelling algae research forward. Regulatory and governmental support, high oil content, and low environmental impact position it as a prime candidate for leading the transition to sustainable energy.

• Microalgae in Pharmaceuticals and Nutraceuticals Government Support and Market Growth

The NIH in the US and the European Commission have been funding research on its potential in health Forms, in which the microalgae can generate bioactive compounds such as carotenoids, omega-3 fatty acids, and vitamins. It positions microalgae in the middle of the new player strategic positions for pharmaceuticals and nutraceuticals, providing products that may bring health benefits with anti-inflammatory, anti-cancer, and anti-aging properties.

The supportive policies of governments around the globe toward the development of products based on microalgae and the increased identification of the U.S. FDA and the European Food Safety Authority (EFSA) of algae-derived compounds in supplements as safe and effective are compelling forces behind the acceleration of innovation. The fertile ground will be realized for market expansion in the pharmaceutical and nutraceutical sectors in the coming years.

Industry Experts Opinion

"Biotechnology and materials development are unlocking skincare solutions in unprecedented ways, we have just begun to explore what is possible"

• Charles Dimmler, CEO and co-founder.

Segment Analysis

Based on the species type, the microalgae market is classified into Spirulina, Chlorella, Nannochloropsis, Haematococcus, Isochrysis, Chlamydomonas, and others. Spirulina leads the market due to its high protein content, antioxidants, and versatility in Forms like dietary supplements and plant-based foods.

The microalgae market is segmented by form into powder, oil, liquid, tablets and capsules, and others. Powder is currently the leading form due to its versatility and widespread use in dietary supplements, functional foods, and cosmetics, offering easy incorporation into various products.

The microalgae market is divided into freshwater and marine sources. Freshwater microalgae are cost-effective, while marine microalgae are prized for their rich nutritional content. Marine microalgae lead the market due to their higher concentration of bioactive compounds, making them preferred for premium Forms.

Regional Analysis

North America is the largest market for microalgae, driven by increasing demand for plant-based proteins, supplements, and functional foods. This region has some key players and has a long-term market for products based on microalgae, particularly in the U.S. Its focus on sustainability, the general pursuit of health-conscious trends, and biotechnology development all lead to an increasingly popular use of microalgae as a central ingredient in food, pharmaceuticals, and cosmetics. Further, the increased investment in research and development would continue to support market growth in North America. Besides that, the region also benefits from strong distribution networks and a high pace of innovation within the microalgae sector.

The fastest growth market is currently being witnessed in the Asia-Pacific region mainly due to rapid industrialization, enhanced health awareness, and a growing demand for sustainable products in the form of biofuels, food, and animal feed. China, India, and Japan have been investing heavily in algae-based technologies, with equal emphasis on research as well as commercial manufacturing. Growth is further driven by people's demand for more functional foods, health supplements, and green solutions because of the positive attitudes of governments towards such initiatives.

Competitive Landscape

The competitive landscape of microalgae comprises established market players and emerging companies with a focus on new algae-based products for nutrition, biofuels, cosmetics, and agricultural Forms. These major players include DSM Nutritional Products, Cyanotech Corporation, Corbion, BASF SE, Lonza Group, and AlgaEnergy, who have developed this ingredient for health supplements and sustainable solutions. DSM recently expanded its range of algal oil-based products for omega-3 fatty acids. Meanwhile, Cyanotech launched its new products in the context of formulations of astaxanthin from microalgae as a powerful antioxidant.

Heliae Development has also been studied on new algae species for biofuel Forms while Corbion continues developing its algae-based food ingredients at an industrial scale. It has increasingly focused on having really deep R&D collaborations with consumers who demand plant-based and sustainable products, and therefore is heavily investing in the same to achieve significant growth in the market.

Microalgae Market, Company Shares Analysis, 2024

To explore in-depth analysis in this report - Request Free Sample Report

Recent Developments:

• In November 2024, Brevel, Ltd. announced the completion of its first industrial-scale microalgae protein plant using its FOAK strategy. The company secured two commercial agreements with major food and beverage companies.
• In April 2024, Edonia, a French startup focused on using microalgae for plant-based food proteins, secured €2 million in pre-seed funding from Asterion Ventures and Bpifrance.
• In April 2024, Spirulina Mater, a leading producer of nutrient-dense superfoods, announced its upcoming U.S. launch via Amazon. The expansion aims to meet the growing demand for premium, antioxidant-rich products in the U.S. market.

Report Coverage:

By Species Type

• Spirulina
• Chlorella
• Nannochloropsis
• Haematococcus
• Isochrysis
• Chlamydomonas
• Others

By Form

• Powder
• Oil
• Liquid
• Tablets & capsules
• Others

By Source

• Freshwater Microalgae
• Marine Microalgae

End-User

• Food Industry
• Pharmaceutical Industry
• Cosmetics Industry
• Biofuels Industry
• Agricultural Industry
• Others

By Region

North America

• U.S.
• Canada

Europe

• U.K.
• France
• Germany
• Italy
• Spain
• Rest of Europe

Asia Pacific

• China
• Japan
• India
• Australia
• South Korea
• Singapore
• Rest of Asia Pacific

Latin America

• Brazil
• Argentina
• Mexico
• Rest of Latin America

Middle East & Africa

• GCC Countries
• South Africa
• Rest of Middle East & Africa

List of Companies:

• DSM Nutritional
• Cyanotech Corporation
• Corbion
• Lonza Group
• AlgaEnergy
• BASF SE
• FMC Corporation
• Eastman Chemical
• Solazyme
• Allmicroalgae
• Qualitas Health
• AlgaeCal Inc.
• Phytoplant Research
• BlueBioTech International GmbH
• Heliae Development, LLC

Frequently Asked Questions (FAQs)