Demand for Microalgae in the Health and Medical Sector

Key Points Covered in Demand for Microalgae in the Health and Medical Sector Study

• Market estimates and forecast 2016-2031
• Key drivers and restraints impacting market growth
• Segment-wise, Country-wise, and Region-wise Analysis
• Competition Mapping and Benchmarking
• Brand share and Market Share Analysis
• Key Product Innovations and Regulatory Climate
• COVID-19 Impact on Demand for Microalgae in the Health and Medical Sector and How to Navigate
• Recommendation on Key Winning Strategies

2016-2020 Demand for Microalgae in the Health and Medical Sector Outlook in Comparison to 2021-2031 Growth Forecast

Strong growth is on card for global pharmaceutical industry, especially with investment in drug development amplifying consistently. This also points towards favorable demand outlook for microalgae in health and medical sector.

Driven by growing emphasis on natural ingredients in healthcare sector, microalgae application will surge because they are a rich source of nutrients such as β-carotene, astaxanthin, docosahexaenoic acid, EPA, phycobilin pigments and other carotenoids.

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Astaxanthin has been studied to show an effective response against atherosclerosis. Consumers are seeking out for clean-label products. Consequently, microalgae consumption in the pharmaceutical industry is set to increase in the foreseeable future. Between 2016 and 2020, the microalgae demand in health and medical sector rose by 4.1%. However, forecast data indicates higher uptake, with demand expected to rise at a CAGR of 5.8% between 2021 and 2031.

Microalgae sales have gained momentum European countries and throughout the U.S. This provides lucrative opportunity for manufacturers to advertise products with trending health claims.

Consumers, particularly millennials, prefer transparency and clean label formulations. Producers of microalgae for health and medical sector application are likely to capitalize on changing consumer preference to carve a niche amid increasing competition.

How is the Prevalence of Lifestyle Diseases Driving Market Growth?

Due to changing lifestyle patterns and hectic schedules, there has been a significant rise in the reported cases of lifestyle-based ailments in recent years. Consumers are taking preventative measures to mitigate the effects of such conditions.

As a result, consumption of joint and bone health supplements is increasing. These supplements also contain additives that control blood pressure, including vitamins and amino acids. The intake of dietary supplements is rapidly rising, which benefits the microalgae market because it is an important ingredient in dietary supplements.

How are Rising Healthcare Costs Triggering the Use of Microalgae in the Medical Sector?

Healthcare costs have more than doubled in recent years, owing to increased spending on research and development activities by key players in the healthcare and medical industry. Increasing healthcare costs are influencing consumers to choose health supplements, which provide health benefits including pain relief, minimizing cartilage breakdown, and improving overall health.

According to Research America, medical and health research expenditure in the U.S. increased from US$ 114,386 Mn to US$ 121,825 Mn in 2019 compared to the previous year. As healthcare costs continue to rise, consumers prefer dietary supplements to maintain a healthy lifestyle. The growing popularity of health supplements benefits the microalgae market as it is widely used in health supplements.

Are Vegan Health Ingredients Becoming Mainstream?

As awareness of animal welfare rises, the number of people who are vegan or vegetarian is growing by the day. Several organizations such as NGOs are attempting to minimize animal slaughter. Generation Z and millennials are actively involved in these non-governmental organizations. Furthermore, these non-governmental organizations (NGOs) organize a variety of programs to promote veganism.

Microalgae is high in nutrient content including carotene, astaxanthin, docosahexaenoic acid, EPA, phycobilin pigments, and other carotenoids. Its use in health supplements is increasing because it is vegan and highly nutritious. The growing vegan population is boosting the growth of microalgae in the health and medical sector.

How is Regulatory Approval for Microalgae Products Fueling Growth?

Microalgae products have been approved for use in the pharmaceutical and nutraceutical industries. Microalgae is a highly nutritious and rich source of various vitamins, which is why, after regulatory approval, the demand for microalgae is increasing from the pharmaceutical and nutraceutical sectors.

What is the Impact of the COVID-19 Crisis on the Demand for Microalgae in the Health Sector?

The nutraceuticals and dietary supplement industries are expected to grow by up to 20% in 2021. The pandemic has encouraged people to consume multivitamins to boost their immunity.

So far, the market has seen significant increases in vitamin C, vitamin E3, vitamin D, and probiotic sales. Thus, the covid-19 crisis will have a moderate impact on demand for microalgae in the health and medical sector.

Country-wise Insights

How Large is the Opportunity for Microalgae Producers in the U.S. Health and Medical Sector?

According to FMI, North America dominates global demand for microalgae in the health and medical sector, and it is anticipated to expand at a high rate during the forecast period. According to recent research, the U.S. is expected to account for nearly 90.0% of the North America market in 2021.

Healthcare consumes well over 10% of the GDP in most developed countries. By the end of 2019, these statistics in the U.S. will be close to 18%. This is not surprising given that the healthcare industry is the largest employer in the country. The U.S. spends far more on healthcare than the rest of the world. Thus, increased spending on healthcare here is creating better opportunities for microalgae in the health and medical sector.

What are the Factors Fuelling Demand for Microalgae in Germany Health and Medical Sector?

Rising demand for microalgae-based health and medical products in Germany will be a significant growth driver. According to the most recent report, the demand in Germany is expected to be worth US$ 29.3 Mn in 2021.

Manufacturers need an extensive network of suppliers and distributors of their products to accomplish this. These manufacturers are also expanding their distribution networks. However, this is primarily done by the industry's leading manufacturers.

How is the Demand for Microalgae in the Health and Medical Sector Set to Fare in Brazil?

Brazil is one of the prominent developing countries in the world. By 2031, it is expected to account for more than 44% of the demand for microalgae in the health and medical sector within Latin America.

Brazil's economy is widely regarded as one of the fastest-growing economies in Latin America. The country has seen positive growth in many aspects of its economy, including consumer spending, investment, and government spending. The healthcare market is the most successful in the country, accounting for approximately 9.7% of the total GDP, creating a conducive environment for growth.

Why is China Dominating the Demand for Microalgae in the Health and Medical Sector?

According to FMI’s analysis, China is estimated to hold nearly 39% of the Asia Pacific value share in the year 2021. Carotenoids are becoming more popular in China owing to the large animal feed industry and an increase in demand for health supplements.

Furthermore, the highly established pharmaceuticals industry, which uses carotenoids and related product types to meet market demand, is another factor contributing to the growth of microalgae in the health and medical sector.

Older adults make up a large proportion of the population in China, and they are the most frequent users of predictive and preventive medicine. These health issues including vision loss, are frequently associated with vitamin deficiency. So, according to FMI, as the demand for carotenoids rises globally, it will have a positive impact on the growth of the microalgae market in China.

Why is the Demand for Microalgae in the Health and Medical Sector Rising in Japan?

Japan is a dominant country in the Asia Pacific. Japan accounted for more than 32% of the market share in 2021. In Japan, most consumers do not get enough antioxidants from their diet because they do not eat enough vegetables, fish and fruits.

Microalgae is a powerful antioxidant that works to supplement dietary formulations. It allows manufacturers to differentiate their products and give their antioxidant products a competitive advantage. The popularity of dietary supplements with antioxidant claims is growing in Japan.

Category-wise Insights

Which Species of Microalgae Accounted for Maximum Share in the Global Market?

Spirulina contains anti-inflammatory, antioxidant, and immune-stimulating compounds such as phycocyanin, polysaccharides and phenolic. Furthermore, spirulina processing products are used in nutraceuticals and dietary supplements, pharmaceutics, and medicine.

Thus, spirulina is estimated to account for a value of US$ 251.8 Mn in 2021 and also projected to witness a lucrative growth rate of a CAGR 4.1% during the forecast period.

Which Source Accounted for Maximum Share in Demand for Microalgae in the Health and Medical Sector?

Freshwater sources of microalgae are estimated to account for nearly 80% of the market share in 2021, which is expected to witness a growth rate of CAGR 5.3% over the forecast period to reach a value of US$ 860.1 Mn in 2031.

Easy availability of raw materials, extensive man-made cultivation operations and cost benefits are key factors aiding growth.

Which Application Accounts for the Maximum Microalgae Demand in Health and Medical Sector?

The nutraceuticals and dietary supplements segment accounted for a maximum share of nearly 84% in 2021, which is also expected to witness significant growth rate of CAGR 5.3% over the forecast period.

Microalgae are gaining interest as a source of nutraceuticals and dietary supplements because they can produce a variety of biological molecules and compounds, which are beneficial to the animal and human health development.

Competitive Landscape

Manufacturers of microalgae-based products can benefit from increasing the frequency of product launches to better reach consumers and meet the growing demand for microalgae products in the health and medical sector. New market participants can formulate diversified microalgae formats and incorporate them into products such as nutraceuticals to attract a larger consumer base.

• In September 2019, one of the astaxanthin-based product manufacturers, Atacama Bio Natural Products, headquartered in Chile, launched NatAxtinTM, which is derived from microalgae.
• In April 2021, Sophie’s Bionutrients announced the launch of new plant-based food range made from microalgae to provide an alternative to meat products.
• Euglena Co. announced a collaboration with Next Meats Co. Ltd., for the cultivation of Euglena and Chlorella microalgae species for healthcare and biofuel applications.

Scope of Report

Key Questions Answered in the Report

• At what rate is the demand for microalgae in the health and medical sector set to grow?

  The demand for microalgae in the health and medical sector is set to grow at a 5.8% CAGR between 2021 and 2031.

• What will be the value of demand for microalgae in the health and medical sector in 2021?

  The demand for microalgae in the health and medical sector is estimated at US$ 647.2 Mn in 2021.

• What is the volume of demand for microalgae in the health and medical sector?

  The demand for microalgae in the health and medical sector hit 46,125 DW tons in 2021.

• At what rate did the demand for microalgae in the health and medical sector rise in the last 5 years?

  The demand for microalgae in the health and medical sector rose at 4.1% CAGR from 2016 to 2020.

• What is the share of the top players driving the demand for microalgae in the health and medical sector in 2021?

  Koninkliijke DSM NV, DIC Corporation, Cyanotech Corporation, Parry Nutraceuticals, Roquette Freres, and BGG (Beijing Gingko Group) are the leading players accounting for 50 to 55% value share.

• What is the North America Outlook for demand for microalgae in the health and medical sector?

  The demand for microalgae in the health and medical sector in North America is set to grow at a 4.9% CAGR.

• At what rate will the demand for microalgae in the health and medical sector in Europe rise?

  The demand for microalgae in the health and medical sector in Europe will grow at a 5.5% CAGR.

• What is the share of China and Japan in overall demand for microalgae in the health and medical sector in 2021?

  The demand for microalgae in the health and medical sector in China and Japan accounts for 36.8% and 32% value share respectively.

• At what rate did the demand for microalgae in the health and medical sector grow in 2021?

  The demand for microalgae in the health and medical sector reflected an 8% y-o-y growth from 2020 to 2021.

• What are the key trends influencing demand for microalgae in the health and medical sector?

  Investments into product Innovation, clean label trends, rising health awareness associated with microalgae and growing demand of carotenoids are key trends influencing demand for microalgae in the health and medical sector.

Demand for Microalgae in the Health and Medical 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:

• Nutraceuticals and Dietary Supplements
• Pharmaceuticals

By Region:

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