Microalgae is microscopic algae found in marine and fresh water. This natural product is rich in vitamins A, B2, C, E and nutrients such as protein, iron and magnesium. In the food and beverage segment, it is being increasingly adopted particularly as an alternative protein source.

As more people are going the vegan route and companies are investing in fortified food and dietary supplements for health, the microalgae market is poised for growth. Additionally, disposable income allocated to health and wellness is on the rise, as an effect of the COVID-19 pandemic. It is estimated that the market will be valued at $1.48 billion by 2028, with a CAGGR of 5.4% from 2021 to 2028, according to Allied Market Research.

Spirulina accounted for 2/5 of the market in 2020, out of the other variants namely: chlorella, dunaliella salina, aphanizomenon flos-aquae. The Asia-Pacific region will see the highest growth, with CAGR of 6.7%.

Researchers also noted how climate change is affecting spirulina production, which presents as a huge factor in limiting the market growth. Additionally, the boom in other alternative protein sources, relatively low product awareness, restrictions on mobility and increased prices of raw materials can all hinder growth.