Phycocyanin market is anticipated to grow at a considerable CAGR of 8.0% during the forecast period (2024-2031). Phycocyanin is a collective industry involved in the production, distribution, and sale of phycocyanin, a natural pigment extracted from blue-green algae, notably spirulina.

Market Dynamics

Elevated Investments: Catalyzing Growth in the Phycocyanin Industry

The increasing investment in the field of phycocyanin industry is a key factor driving the growth of the global market. For instance, in October 2023, SpirulinaNord, a company based in Latvia, disclosed secured funding of $6.0 million for the implementation of its innovative technology aimed at cultivating spirulina algae for food product formulations. The company plans to utilize indoor photobioreactors to safeguard against water, air, and insect contaminants, thereby enhancing product quality and elevating the nutritional value of spirulina.

Diverse Applications Propelling Phycocyanin's Market Reach

Phycocyanin has a remarkable versatility that extends across a spectrum of industries, fostering its burgeoning market expansion such as food and beverage industry. It emerges as a sought-after natural colourant, supplanting synthetic additives in response to heightened consumer preference for clean-label products. In cosmetics and personal care, its prized antioxidant and anti-inflammatory properties render it indispensable in skincare formulations, offering potential benefits to discerning consumers. Additionally, its health-enhancing attributes are increasingly integrated into pharmaceuticals and nutraceuticals, amplifying its utility across healthcare segments.

Market Segmentation

Our in-depth analysis of the global phycocyanin market includes the following segments by form, grade, and application:

• Based on type, the market is sub-segmented into dry and liquid.

• Based on product, the market is sub-segmented into phycocyanin e18, phycocyanin e25 and phycocyanin e3.0.

• Based on application, the market is sub-segmented into food & beverages, pharmaceuticals & nutraceuticals, cosmetics & personal care, diagnostics & biomedical and others (animal feed).

Food and Beverage is Projected to Emerge as the Largest Segment

Based on the application, the global phycocyanin market is sub-segmented into food & beverages, pharmaceuticals & nutraceuticals, cosmetics & personal care, diagnostics & biomedical and others (animal feed). Among these, the food & beverages sub-segment is expected to hold the largest share of the market. The primary factor supporting the segment's growth includes the increasing consumer demand for natural and clean-label food products. As consumers are becoming more health-conscious and environmentally aware, there is a growing preference for food and beverage products made with natural ingredients and free from synthetic additives.

Dry Sub-segment to Hold a Considerable Market Share

The dry sub-segment of the phycocyanin market holds the market share due to its advantageous characteristics that offer superior shelf stability compared to liquid counterparts. The dry phycocyanin products facilitate easier storage, transportation, and application across various industries and their versatility enables incorporation into a wide array of products, spanning food and beverage, cosmetics, pharmaceuticals, and nutraceuticals. With an extended shelf life, dry phycocyanin minimizes the risk of spoilage, ensuring product integrity and cost-effectiveness for manufacturers. 

Regional Outlook

The global phycocyanin market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America). 

Phycocyanin's Ascendancy in the Asia-Pacific Region

The Asia-Pacific region is experiencing rapid growth in phycocyanin market due to the rising awareness among consumers regarding the health benefits associated with phycocyanin consumption, such as antioxidant and anti-inflammatory properties. The region is witnessing significant investments in research and development activities and has aimed at exploring the potential applications of phycocyanin in different sectors that have resulted in the development of innovative products and formulations.

Global Phycocyanin Market Growth by Region 2024-2031

North America Holds Major Market Share

Among all the regions, North America holds a significant share in the global phycocyanin market due to a significant presence of established phycocyanin manufacturers and suppliers, contributing to a robust supply chain network. North America is home to a large consumer base that exhibits a growing preference for natural and plant-based ingredients in various industries, including food and beverages, cosmetics, and pharmaceuticals. The region's well-developed infrastructure and advanced technological capabilities further support the production and distribution of phycocyanin products. Additionally, increasing investments in research and development activities aimed at exploring the potential applications and benefits of phycocyanin have fueled market growth in North America. For instance, in December 2021, Givaudan, a renowned Swiss multinational specializing in flavour and fragrance production, revealed the successful finalization of its acquisition of DDW, The Color House, a major natural colour company headquartered in the US. This strategic acquisition solidifies Givaudan's position as one of the primary contenders in the natural colours market segment.

Market Players Outlook

*Note: Major Players Sorted in No Particular Order.

The major companies serving the global phycocyanin market include DIC Corp., Sensient Technologies Corp., Cyanotech, E.I.D. – Parry (India) Ltd., and Döhler GmbH among others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers, and acquisitions to stay competitive in the market. For instance, in July 2020, Global EcoPower (GEP), a  French renewable energy firm, disclosed its acquisition of spirulina production and marketing assets from Tam, a prominent spirulina producer based in Brittany. This strategic move aimed to augment GEP's capacity for phycocyanin and spirulina production, thereby enhancing its position in the global market.

The Report Covers

• Market value data analysis of 2023and forecast to 2031.
• Annualized market revenues ($ million) for each market segment.
• Country-wise analysis of major geographical regions.
• Key companies operating in the global Phycocyaninmarket. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.
• Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
• Analysis of market-entry and market expansion strategies.
• Competitive strategies by identifying ‘who-stands-where’ in the market.