The demand for microalgae in personal care and cosmetics market will soar with worldwide revenues up by 4.0 percent in 2021. Future Market Insights (FMI) estimates that the revenue generated from microalgae demand will grow by 1.5X of current market valuation between 2021 and 2031, reaching nearly US$ 76.50 million in 2031.
Over the course of the forecast period, the market is expected to register a compound annual growth rate (CAGR) of 4.2 percent.
Consumers are switching towards vegan cosmetic products owing to growing awareness regarding animal welfare. Microalgae extracts have emerged as a suitable vegan substitute for producing cosmetic products, which will create scope for application in cosmetics sector.
Market players are looking to capitalize on anti-inflammatory and anti-microbial properties of microalgae for treating oral disorders. Algal extracts are now used in creating toothpastes, functional chewing gums, and mouthwash as gelling and water binding properties of hydrocolloids are becoming popular in dentistry.
Research on microalgae offered evidence that oral cancer prevention capabilities are present in them and can be used in treating chronic periodontitis and other dental disorders. These factors are expected to fuel the market growth in upcoming years.
Some species of microalgae have shown promising results in treating eye disorders. Zeaxanthin exhibits higher antioxidents properties than other plant sources and acts as a protective covering thus, aiding in eye healing. This has positively influenced the demand of microalgaes in eye product segment.
COVID-19 pandemic hindered the global personal care and cosmetic sales owing as various retail outlets and stores remained shuttered during extensive period of lockdown. Coupled with this, disruptions in transportation and production caused during stringent lockdown also hampered sales to an extent.
Nonetheless, recovery is fast approaching with government easing restrictions after vaccine roll outs.
“Owing to the increasing demand for premium cosmetic items, microalgae-based products manufacturers are focusing on producing high quality products using state of the art production technology. Increasing consumer spending on premium products will boost the market growth over the assessment period,” says the FMI analyst
Key Takeaways
- The U.S. is predicted to account for around 89 percent of the North America market by 2031, driven by rising popularity of vegan and organic products and increasing consumer willingness to buy premium products.
- Growing consumer inclination towards organic and natural personal care products in the U.K. along with the focus on maintaining transparency in raw material and production methods among manufacturers will boost the demand for microalgae personal care products in the country.
- Rising demand for high quality and safe cosmetic products will drive the sales of microalgae personal care and cosmetics in Germany at a CAGR of 3.4 percent in 2021.
- Increasing use of Spirulina in the treatment of skin issues such as tanning, ageing, and pigment abnormalities along with rising use of microalgae in the production of skin whitening, anti-aging, and pigmentation reduction cosmetic products will drive the market growth.
- Fresh water microalgae segment is anticipated to reach the market valuation of US$ 55.363 million in 2031, owing to its cost effective cultivation and higher yield.
- Increasing adoption of microalgae in creating hair care products due to its anti-bacterial and hair growth boosting properties will support hair care product segment to grow at CAGR of 3.6% over the assessment period.
Competitive Landscape
Euglena, Koninkliijke DSM NV, Sun chlorella, Fuji Chemical Industries Co. Ltd., and Novagreen are the top five market players operating this market. As per the market analysis, they account for more than 35 percent share in global microalgae personal care and cosmetics market.
With rising popularity of organic products and clean label in personal care and cosmetic sector, market players are focusing on developing new products made from natural ingredients. They are also investing in research and development to keep up with market trends.
For instance:
- Microphyte announced to start project “SCALE” in July 2021, to set-up the largest micro-algae biorefinery near Montpellier, France with the investment of US$ 18 million (15 million Euros).
- Simris is planning to broaden its microalgae platform into Novel Foods and Biomimetics, to process microalgae biomass for skincare applications.
- Yemoja Ltd. launched its new micro-algae synthesized external polysaccharide sulphate (EPS) in April 2021, for anti-aging, anti-inflammatory, and rejuvenation applications in cosmetics.
These insights are based on a report on Personal Care and Cosmetics Microalgae Market by Future Market Insights.