Closed-Photobioreactor Technology Drives Down Algae Production Costs in Aquafeed Industry
Dublin, July 06, 2026 (GLOBE NEWSWIRE) -- The "Microalgae-Based Aquafeed - Market Share Analysis, Industry Trends & Statistics, Growth Forecasts (2026-2031)" has been added to ResearchAndMarkets.com's offering.
The microalgae-based aquafeed market is set to grow from USD 295 million in 2025 and USD 320.08 million in 2026 to USD 481.29 million by 2031, showcasing a robust 8.5% CAGR from 2026 to 2031. This market segmentation includes Product Types such as Whole Microalgae, Algae Meal or Flour, Algal Oil DHA-Rich, Algae Protein Isolate, among others. Key species include Spirulina, Chlorella, Nannochloropsis, and Schizochytrium. Regions covered are North America, South America, Europe, Asia-Pacific, Middle East, and Africa, assessed in terms of value (USD).
Global Microalgae-Based Aquafeed Market Trends and Insights
Rapid Cost Decline in Closed-Photobioreactor Farming
Closed photobioreactors are optimizing costs below USD 3 per kilogram of dry biomass, enhancing algae's competitiveness with fishmeal. Algiecel's funding of DKK 50 million (USD 6.7 million) in 2024 demonstrates scalable mobile systems' potential in industrial emission sites. Spirulina production costs may drop to USD 1.30 per kilogram, approaching fishmeal pricing. Regulators favor strains grown in these systems for their traceability, easing approval processes.
Premium Pricing Opportunity for Antibiotic-Free Seafood
There's a lucrative market for antibiotic-free seafood, particularly in Europe and North America. Algal ingredients that boost fish immunity open direct economic incentives. The Veramaris Big Data Chile study (2026) revealed significant benefits of algal diet, while trials show increased omega-3 content and reduced bacterial infections. Spirulina's inclusion in shrimp feed has shown significant weight gains and mortality reduction, signaling both health and financial profits from algae-based solutions.
Regulatory Approval Lag for Novel Algae Strains
Regulatory approvals can delay commercial launches of new algae strains by 2-3 years. This is more pronounced in CRISPR-edited algae, particularly concerning regulatory scrutiny in Europe and Japan. Companies like KnipBio experience approval delays, exemplifying regulatory fragmentation costs and production line duplications, impacting market scale-up.
Segment Analysis
Algal oil held a 38.0% market share in the microalgae-based aquafeed market in 2025. Protein isolates are projected to grow at a 13.5% CAGR from 2026-2031. Cost reductions in closed photobioreactors and carbon credit monetization are narrowing the price gap with fishmeal. Whole microalgae and algal meal provide niche benefits for tilapia and ornamental fish. Multi-functional oils like Fermentalg's Omega Origins contribute to cost reduction in feed production.
Geography Analysis
In 2025, Europe commanded a 35.5% market share, with Asia-Pacific as the fastest-growing region expected to expand at a 10.7% CAGR from 2026-2031. Asia-Pacific's growth is supported by favorable policies in India and China. North America is steadily growing, stimulated by regulatory approvals, while South America benefits from Chilean data supporting algal oil usage. Regional investments indicate capacity expansions are imminent, supported by carbon-credit programs enhancing algae's competitiveness globally.Key Topics Covered:
1 Introduction
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2 Research Methodology
3 Executive Summary
4 Market Landscape
4.1 Market Overview
4.2 Market Drivers
4.2.1 Rapid cost decline in closed-photobioreactor farming
4.2.2 Premium pricing opportunity for antibiotic-free seafood
4.2.3 Corporate net-zero pledges are accelerating algae inclusion
4.2.4 Regenerative aquaculture certifications are emerging
4.2.5 Carbon-credit monetization for algae feed plants
4.2.6 Marine ingredient supply volatility post-2025 El Nino events
4.3 Market Restraints
4.3.1 Price gap versus fishmeal persists in developing nations
4.3.2 Regulatory approval lag for novel algae strains
4.3.3 Mycotoxin and heavy-metal contamination risk
4.3.4 Public perception of "genetically edited" algal feeds
4.4 Regulatory Landscape
4.5 Technological Outlook
4.6 Porter's Five Forces
4.6.1 Threat of New Entrants
4.6.2 Bargaining Power of Suppliers
4.6.3 Bargaining Power of Buyers
4.6.4 Threat of Substitutes
4.6.5 Intensity of Competitive Rivalry
5 Market Size and Growth Forecasts (Value)
5.1 By Product Type
5.1.1 Whole Microalgae
5.1.2 Algae Meal/Flour
5.1.3 Algal Oil (DHA-rich)
5.1.4 Algae Protein Isolate
5.1.5 Others
5.2 By Species
5.2.1 Spirulina
5.2.2 Chlorella
5.2.3 Nannochloropsis
5.2.4 Schizochytrium
5.2.5 Others
5.3 By Geography
5.3.1 North America
5.3.1.1 United States
5.3.1.2 Canada
5.3.1.3 Mexico
5.3.1.4 Rest of North America
5.3.2 South America
5.3.2.1 Brazil
5.3.2.2 Argentina
5.3.2.3 Rest of South America
5.3.3 Europe
5.3.3.1 Germany
5.3.3.2 United Kingdom
5.3.3.3 France
5.3.3.4 Italy
5.3.3.5 Spain
5.3.3.6 Russia
5.3.3.7 Rest of Europe
5.3.4 Asia-Pacific
5.3.4.1 China
5.3.4.2 India
5.3.4.3 Japan
5.3.4.4 South Korea
5.3.4.5 Australia and New Zealand
5.3.4.6 Rest of Asia-Pacific
5.3.5 Middle East
5.3.5.1 Saudi Arabia
5.3.5.2 United Arab Emirates
5.3.5.3 Rest of Middle East
5.3.6 Africa
5.3.6.1 South Africa
5.3.6.2 Egypt
5.3.6.3 Rest of Africa
A selection of companies mentioned in this report includes, but is not limited to:
For more information about this report visit https://www.researchandmarkets.com/r/we2zcx
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