Phycocyanin Market - Forecasts from 2022 to 2027

The phycocyanin market is expected to grow at a compound annual growth rate of 12.28% over the forecast period to reach a market size of US$273.486 million in 2027, from US$121.555 million in 2020. The factors that would best substantiate the aforesaid are firstly the increasing global population, followed by rural-urban migration. These two factors are expected to augment the growth of the phycocyanin market due to the increasing rate of application of phycocyanin in a variety of end-use markets that include animal feed, food, and beverage, nutraceuticals, personal care, and pharmaceuticals. Given the above, the effectuation of swift adoption of new lifestyle trends that are expected to drive the demand for healthy consumption is expected to occur during the next few years.

This would partly stem from the increasing availability of disposable income, which would ensure the facilitation of transition from the traditional way of living to lifestyles that are common among urban dwellers. The effects of rapid urbanization also invariably lead to the obtaining of better and higher education by a relatively larger population, which automatically would result in the capacity of high-income generation as well as a conscientious investment in the integration of nutritious food into everyday diets. Viz. consuming food and beverage products that are fortified, leading to a surge in new product development in the food and beverage industry, among others. Further, the growing inclination towards plant-based products and the expanding base of the vegan consumer are resulting in several product and ingredient developments along these lines, enabling the businesses to stay market-relevant and increase their respective market shares by tapping into new opportunities.

A recent example is the development of a patent-protected method of enhancing the amount of phycocyanin, the blue pigment, produced in spirulina by Scottish biotech company ScotBio in August 2019 as a response to the global consumer sentiment that is moving away from artificial ingredients and embracing natural alternatives. Besides, it should be noted that 1.7 billion people, i.e., around 23% of the world population, lived in cities in 2016 and another 45% resided in rural areas, which is expected to fall by 40% by 2030 in the United Nations (UN). Moreover, the increasing female population who are engaged in earning a livelihood has reportedly led to increased purchases of products about nutraceuticals, over-the-counter pharmaceuticals, and a variety of ready-to-eat food products through both offline and online channels around the world. This development has contributed to the increase in overall product sales over eCommerce channels that were already in the order of 25 trillion USD in 2018 which was reportedly equivalent to 30% of the global GDP (gross domestic product) in 2018 as per UNCTAD.

The value of B2B eCommerce was registered in the order of $21 trillion which reportedly translates to 83% of all eCommerce and that of B2C eCommerce was $4.4 trillion. China, the United States, and the United Kingdom were the top three countries that registered the highest B2C sales. Moreover, cross-border B2C e-commerce sales have been estimated in the order of $404 billion in 2018. On the other hand, it is pertinent to note that newly industrialized countries are witnessing an increased presence of online retailers that are facilitating the growth of the retail food segment apart from factors like the growing middle-income group and the rising population of working women. In the case of China, as opposed to their predecessors, today’s consumers are seeking out the swiftest and most convenient methods to meet their demands, facilitated by the means to purchase via mobile payment apps like WeChat Pay and AliPay.

Conversely, organizations across the world are capitalizing on the data about individual consumer preferences which are derived from their data-centric operation model. As a result, they are better equipped to understand the various segments of consumers and appropriately target the concerned segment through better product placement, ultimately influencing marketing strategies to foster higher revenue returns and ensure repeat business. As a result of the high level of competition, data-driven innovations in retail are increasingly inclined to integrate their brick and mortar stores and online portals with social media marketing platforms. [Source: USDA].

• In July 2020, it was reported that French renewable energy rm Global EcoPower (GEP) has reportedly acquired the spirulina production and marketing assets of Tam, which was the leading producer of spirulina under the CYANE trademark in France, as part of its strategy to diversify operations and develop France’s first “algo-solar” complex that combines green energy and spirulina production, allowing the site to be fully self-sufficient, while also producing surplus power.
• In June 2020, it was reported that Algenist had announced the launch of BLUE ALGAE VITAMIN CTM Dark Spot Correcting Peel, which has been reportedly proven to refine skin, reveal a smoother texture, and more even tone sans downtime. This product has Phycocyanin as one of its key ingredients. In December 2021, a FUL Sparkling Spirulina Drink launched a series of non-alcoholic drinks in the UK and was available in White Peach, Lime & Mint, and Lemon & Ginger flavors. This drink is rich in Spirulina, a bacterium-based nutrient supplement, which is densely packed with supplements like magnesium, phycocyanin, plant-based proteins, and iron.

Covid Impact

Covid-19 had a negative impact on the global phycocyanin market. Amid the pandemic, the health consciousness among citizens drastically improved, keeping preventing healthcare in mind. Subsequently, the demand for antioxidant-rich food increased as well. Henceforth, the demand for Phycocyanin surged as well. However, the growing infected cases, lockdown, and travel restrictions resulted in the supply and demand chain gap, slowing down the market size.

Market Segmentation:

By Nature

• Conventional
• Organic

By Form

• Dry
• Liquid

By Application

• Animal Feed
• Food and Beverage
• Nutraceuticals
• Personal Care
• Pharmaceuticals

By geography

• Americas
• United States
• Canada
• Europe Middle East and Africa
• Germany
• France
• Italy
• United Kingdom
• Asia Pacific
• Japan
• China
• India