Phycocyanin Market Trends

Growth Drivers

• Growth of plant-based and vegan products: The surge in veganism and the emergence of plant-based diets are readily driving demand for natural ingredients such as phycocyanin, which offers both nutritional and aesthetic benefits. Also, the global shift toward sustainable and plant-based pharmaceuticals is propelling upliftment since it is not only a nutraceutical ingredient but also a potential natural API. As per the Research Nester report, the plant-based API market is projected to grow at a 5.8% CAGR from 2026 to 2035, thereby providing an encouraging opportunity for investors in this field.
• Expanding applications: The effectiveness of the market products has been evidenced by numerous prominent organizations, due to which this element is being incorporated beyond food, in cosmetics, biomedical imaging, pharmaceuticals, and textiles. Testifying to this, the article published by NIH in April 2023 confirmed that phycocyanin is used as a natural colorant and nutritional supplement in the food sector, wherein the cosmetics industry incorporates phycocyanin for its antioxidant and anti-inflammatory properties. Furthermore, pharmaceutical applications include anti-cancer, neuroprotective, and antimicrobial uses.
• Advancements in algae cultivation & extraction: The innovations in terms of photobioreactor systems, membrane filtration, and CO2 extraction have improved the yield and purity of this element, thereby allowing a scalable production in this field. As evidence, MIT in April 2023 reported that its engineers developed a low-cost technology that applies a small electrostatic voltage to the walls of photobioreactor tanks where algae grow. Besides, the algae cells carry a natural negative charge, wherein this voltage creates repulsion between the algae and the tank walls, preventing algae buildup on the transparent surfaces.

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Source: WITS

Challenges

• High production costs: The exacerbated production costs, along with the yield limitations, are one of the most considerable restraints for the market. This is significantly influenced by the low extraction yields, complex downstream processing, and the necessity for controlled cultivation environments, which makes it extremely challenging for small-scale manufacturers. Also, the primary source Spirulina requires optimized light, temperature, and PH levels, adding burgeoning operational costs.
• Stability and shelf-life concerns: Phycocyanin is sensitive to both light and temperature, which compromises its stability in storage and processing. Therefore, this instability limits its widespread applications in fields such as baking or pasteurization, limiting its use in certain food and beverage categories. Furthermore, manufacturers in this field are challenged to develop formulations that preserve pigment stability without compromising natural integrity.