Demand for Microalgae in Personal Care & Cosmetics Sector Snapshot
The demand for microalgae in the personal care and cosmetics sector will total US$ 50.59 Mn in 2021, according to Future Market Insights (FMI). The overall market value is expected to reach US$ 76.50 Mn by 2031, growing at a CAGR of 4.2% for 2021-31.
Rising awareness about various health benefits of microalgae, which is a rich source of antioxidants and its consequent application in skincare and haircare products will create positive demand outlook through.
FMI projects haircare applications to top US$ 17.08 Mn, rising at a CAGR of 3.6% through the end of 2031.
Key Points Covered in Demand for Microalgae in Personal Care & Cosmetics Sector Study
- Market estimates and forecast 2015-2031
- 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 Personal Care & Cosmetics Sector and How to Navigate
- Recommendation on Key Winning Strategies
2016-2020 Microalgae Demand Analysis in Personal Care and Cosmetics Sector Outlook in Comparison to 2021-2031 Growth Forecast
In the cosmetics industry, microalgae finds application as an ingredient used in skin creams that offer anti-ageing and sun protection. The benefits of microalgae-based products in cosmetic industry are wide-ranging.
The market grew at a CAGR of 2.6% between 2016 and 2020. However, with applications forecast to rise across diverse sectors the market predicted to register a CAGR of 4.2% between 2021 and 2031.
Microalgae also is injected into the skin in subcutaneous layer for treating and reducing skin tumors. There are various patents received by skin care manufacturing companies for the use of microalgae. These benefits are encouraging the use of yeast products in the cosmetic industry.
The influence of social media on the consumer decision making has been rising strongly in recent years. The demand for natural ingredients is partially driven by the rising concerns pertaining to the side effects of synthetic products. Manufacturers are utilizing the trend of social media by incorporating it into their marketing strategy. Products such as Spirulina are used to replace synthetic colors.
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How Do Marketing Claims on Microalgae Products Drive Use in the Cosmetic Industry?
The demand for vegan cosmetic products is on the rise as consumers are concerned about animal welfare. The use of microalgae in these cosmetic products will assure vegan product formulations.
Transparency of ingredient list is imperative for cosmetic brands to receive aforementioned certifications. As companies aim at brand loyalty, they will steer away from synthetic ingredients in favor of ingredients sourced from natural and organic sources.
This will present a conducive environment for increasing use of microalgae in personal care and cosmetics sectors.
Is the Rising Use of Microalgae in Oral Care Products Helping Growth?
Anti-inflammatory and antimicrobial properties of algal extracts are important in products like toothpastes, functional chewing gums, and mouthwash. The gelling and water-binding characteristics of hydrocolloids found in algae and their extracts are being exploited for impression materials in dentistry.
Studies suggest that microalgae may have a substantial impact on oral health. Microalgae may be useful for the prevention of oral cancer, as well as the treatment of chronic periodontitis and other microbial dental disorders.
Microalgae and cyanobacteria could prove to be a helpful supplement for the prevention and co-adjuvant treatment of several oral disorders, as a natural alternative to antibiotic, antiviral, and antimycotic medicines. Increased research into microalgae in oral health care is likely to drive the market in the near future.
What is the Impact of the COVID-19 Crisis on the Demand for Microalgae?
The global personal care and cosmetics sector (comprising personal care, color cosmetics, skin care, hair care, and fragrances) has been shocked by the COVID-19 crisis. Sales have been weak, and there have been widespread store closures. The industry has responded positively to the crisis, by launching a number of natural beauty products.
Production, logistics, and transport issues are key short-term concerns. As a result, the ongoing COVID-19 health crisis has result in significant shifts in personal care & cosmetics sector.
How are Organic and Vegan Cosmetic Products in the U.S. Boosting Demand?
According to FMI’s analysis, the U.S. is estimated to account for more than 89% of the North America value share in the year 2021. Despite the fact that the personal care and cosmetics industry is flourishing in the country, organic and vegan products are witnessing accelerated demand.
This is due to the increased demand for clean label items among customers, and the organic and vegan labels generate interest among consumers. The U.S. has been a pioneer in introducing vegan products. Thus, this rising demand for organic and vegan products has increased the opportunities for microalgae products in the U.S.
Is Growing Consumer Inclination Towards Natural Products Aiding Growth in the U.K.?
According to the latest report, the demand for microalgae in the personal care and cosmetics sector of the U.K. is estimated to be valued at US$ 2132.2 thousand in the year 2021.
People are leaning toward natural and organic commodities as they become concerned in terms of health. This will benefit the microalgae market in the U.K. As a result, consumers are mindful of the ingredients in product formulations. There has been a movement toward natural products, despite premium pricing.
Manufacturers also want to maintain the trust of their consumers and therefore are maintaining transparency in the ingredients and production processes. Many manufacturers also specify the source of procurement of raw materials along with the region that it is procured from.
How are Contamination Issues Influencing the Supply-Demand Paradigm in China?
According to FMI’s analysis, China is estimated to account for more than 40% of the Asia Pacific value share in the year 2021. Even though China is amongst the fastest growing markets, it is expected to face declining growth due to environmental factors.
Asia Pacific countries are facing issues of soil, water, and air pollution which directly reflects on contamination of microalgae produced in this region. High levels of arsenic and lead make microalgae harmful for use by humans. China is among the major producers of microalgae globally and is facing contamination issues due to high pollution levels.
Most Chinese producers are using lakes, ponds, or other water bodies for the production of microalgae which are already contaminated with high levels of pollutants including arsenic, lead, iron and other minerals which are harmful if consumed over the stipulated limit.
What is Driving the Demand for Microalgae in the Personal Care & Cosmetic Sector of Germany?
In the Europe, Germany accounted for 17.2% of market share in 2021 and is expected to grow at a CAGR of 3.4%. The growth is attributed to the rising trend of consumer interest in product quality and safety set across Europe, especially in Germany.
Consumers are interested in the accountability of suppliers of various raw materials used in cosmetics. The significant use of synthetic chemicals and pesticides in Germany's agriculture sector has prompted a greater focus on the source of raw materials.
Offering sustainably grown ingredients can help players in the microalgae market improve their brand image while widening their customer base.
What is the Commercial Potential of Using Spirulina in Cosmetics?
In recent years, the use of Spirulina in cosmetics has gained popularity. The ingredient holds dominance in the market and is expected to account for 38.4% of overall sales in 2021. Manufacturers have recently begun to use micro-algae in the treatment of skin issues such as tanning, ageing, and pigment abnormalities.
Furthermore, skin whitening, anti-aging and pigmentation reduction products could all benefit from this ingredient. Algae species have been employed as moisturizing and thickening agents in a variety of cosmetic compositions.
For instance, Nourish Face Mask by Kunye, is gaining popularity amongst health-conscious consumers. It is an organic vegan face mask which combines wheatgrass, neem, Spirulina, sea kelp, and Canadian bentonite clay.
Which Microalgae Source will Remain Most Preferred?
Fresh water microalgae are estimated to account for a 76.2% market share in 2021, which is expected to witness growth rate of CAGR 3.7% over the forecast period to reach a value of US$ 55,363.2 Thousand in 2031.
Higher yield and cost-effective cultivation are key factors that support the use of freshwater algae in varied end use verticals.
Will Microalgae Application in Hair Care Products Continue Increasing?
Hair care products are expected to witness a growth rate of 3.6% CAGR over the forecast period to reach a value of US$ 17,086.2 Thousand in 2031.
Microalgae act as a gentle clarifying agent in shampoo, eliminating styling product residue, excess oil, and other impurities. Microalgae aids in the prevention of hair loss by lowering the irritation generated by bacterial infections on the scalp. Microalgae encourages hair development, generating a lustrous sheen and better hair volume.
Microalgae are high in vitamins, minerals, and trace elements, all of which help to strengthen and restore hair. The ingredient is a rich source of protein, which helps to strengthen hair roots and provide nourishment to the hair.
Chlorella is thought to increase keratin production, which is the primary component of hair. It also contains sulfur, which accelerates the hair's growth phase, resulting in shinier, longer, and stronger hair.
Spirulina is a high-protein algae that is used to add volume to hair and eliminate dry flakes. Hair care product manufacturers are focusing on employing microalgae as a primary ingredient.
The personal care and cosmetics sector has gone through a major transition in the past few years with new players entering the market driving up product launches significantly with a focus on natural ingredients.
- In July 2021, Microphyte launched a project named SCALE to develop the largest microalgae biorefinery at a valuation of 15 million euros near Montpellier.
- Simris broadened its microalgae platform into Novel Foods and Biomimetics for processing microalgae biomass for skincare and pharma applications.
- In April 2021, Yemoja Ltd. introduced a new algae-derived external polysaccharide sulphate (EPS) for anti-aging, anti-inflammatory, and rejuvenation applications in cosmetics.
Scope of Report
Historical Data Available for
USD Million for Value
Key Countries Covered
US, Canada, Germany, U.K., France, Italy, Spain, Russia, China, Japan, South Korea, India, Thailand, Malaysia, Indonesia, Australia, New Zealand, GCC Countries, Turkey, Northern Africa, and South Africa
Key Segments Covered
Species Type, Source, End Use Application, and Region
Key Companies Profiled
Market Forecast, Company Share Analysis, Competition Intelligence, DROT Analysis, Market Dynamics and Challenges, and Strategic Growth Initiatives
Customization & Pricing
Available upon Request
Key Questions Answered in the Report
What does the demand for microalgae in the personal care and cosmetics sector total?
In 2021, demand for microalgae for personal care and cosmetics will account for around US$ 50 Mn.
What is the share of the top players driving demand for microalgae in the personal care and cosmetics sector?
Euglena, Koninkliijke DSM NV, Sun chlorella, Fuji Chemical Industries Co., Ltd., and Novagreen cumulatively account for 35-40% of the market.
Which are the top 5 countries driving demand for microalgae in the personal care and cosmetics sector?
The U.S., China, Germany, and the U.K. consistently reflect high demand for microalgae products.
Which countries are key producers of microalgae for the personal care and cosmetics sector?
India, China, Spain, and Germany are leading producers of microalgae for personal care and cosmetics products.
What is the global demand growth rate for microalgae in the personal care and cosmetics sector between 2020 and 2021?
The demand for microalgae in the personal care and cosmetics sector rose by 4.00% from 2020 to 2021.
At what rate will the demand for microalgae in the personal care and cosmetics sector of North America rise?
The demand for microalgae in the personal care and cosmetics sector in North America will grow at 3.6% CAGR through 2031.
What are the prospects for demand for microalgae in the Europe personal care and cosmetics sector?
The demand for microalgae in the personal care and cosmetics sector in Europe will rise at 4% CAGR through 2031.
What are the key statistics of South Korea and Japan’s demand for microalgae in the personal care and cosmetics sector?
South Korea and Japan accounted for 3.5% and 4.6% of the East Asia market in 2021.
Demand for Microalgae in Personal Care & Cosmetics Sector by Category
By Species Type:
- Marine Water
- Fresh Water
By End Use Application:
- Hair Care
- Hair Removal
- Hair Conditioning & Shampoos
- Hair Color
- Eye Care
- Skin Care
- Acne Preparations
- Skin Whitening Creams
- Oral Care
- North America
- Latin America
- Asia Pacific
- Middle East and Africa (MEA)