Phycocyanin Market - Global Industry Size, Share, Trends, Opportunity, and Forecast, Segmented By Nature (Organic, Conventional), By Form (Powder, Liquid), By Application (Food & Beverages, Nutraceuticals, Animal Feed, Cosmetics & Personal Care, Others), By Region and Competition, 2021-2031F

Forecast Period	2027-2031
Market Size (2025)	USD 196.07 MIllion
CAGR (2026-2031)	6.98%
Fastest Growing Segment	Organic
Largest Market	North America
Market Size (2031)	USD 293.92 MIllion

Market Overview

The Global Phycocyanin Market will grow from USD 196.07 MIllion in 2025 to USD 293.92 MIllion by 2031 at a 6.98% CAGR. Phycocyanin is a water-soluble pigment-protein complex derived primarily from the microalgae Arthrospira platensis, widely known as Spirulina, and is utilized as a natural blue colorant and functional ingredient. The market is fundamentally driven by stringent regulatory measures discouraging synthetic additives and a structural shift in consumer preference toward clean-label, plant-based formulations. These drivers are distinct from temporary fads, as they represent a long-term transition in manufacturing standards where food safety agencies increasingly mandate the replacement of artificial dyes with natural alternatives in beverages, confectionery, and cosmetics.

However, the expansion of the sector is challenged by the pigment's sensitivity to heat and light, which complicates its integration into thermally processed products and increases supply chain costs. This demand for natural ingredients is substantiated by strong market fundamentals in the sectors that utilize them. According to the Plant Based Foods Association, in 2024, the U.S. retail market for plant-based foods was valued at $8.1 billion, indicating a substantial commercial landscape for natural colorants like phycocyanin that are essential for these products.

Key Market Drivers

Rising consumer preference for natural food colorants is driving a structural shift from synthetic dyes to clean-label alternatives, positioning phycocyanin as the premier natural blue pigment for the food and beverage industry. This transition is critical for manufacturers seeking to formulate stable green and purple shades in beverages and confectionery without relying on artificial additives like Brilliant Blue FCF. The financial impact of this trend is evident in the performance of major ingredient suppliers; according to Sensient Technologies Corporation, February 2025, in the 'Fourth Quarter 2024 Financial Results', the Color Group reported revenue of $158.1 million, a growth attributed primarily to higher volumes in natural color product lines. Additionally, according to GNT Group, in 2025, global sales for its plant-based Exberry colors have increased by more than 50% since 2020, reflecting the rapid industrial scalability and adoption of natural pigments.

Surging demand in nutraceutical and dietary supplements acts as a second significant driver, fueled by phycocyanin’s potent antioxidant and anti-inflammatory properties. Beyond its visual utility, the ingredient is increasingly utilized in functional health products and protein-rich formulations designed for immune support and cellular health. This sector's expansion is substantiated by specific consumption data; according to the European Algae Biomass Association, March 2025, in the 'Europe Algae Protein Market Size, Share & Trends' report, spirulina, the primary source of phycocyanin, dominated the regional algae protein sector by accounting for 45.8% of the European market share in 2024. These dynamics underscore phycocyanin’s dual value proposition as both a vital aesthetic ingredient in clean-label foods and a functional therapeutic agent in health supplements.

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Key Market Challenges

The primary impediment to the growth of the Global Phycocyanin Market is the pigment's inherent sensitivity to heat and light, which severely restricts its commercial applications. Phycocyanin proteins degrade rapidly when exposed to elevated temperatures or intense illumination, leading to color fading and precipitation. This instability creates a major barrier for manufacturers attempting to integrate the natural blue colorant into thermally processed goods such as baked items, pasteurized beverages, and extruded snacks. Consequently, the ingredient is largely confined to premium, cold-processed applications, limiting its ability to replace synthetic blue dyes in high-volume mass-market segments.

This technical constraint directly hampers the industry's ability to capitalize on the surging demand for clean-label ingredients. The inability to withstand standard industrial processing forces manufacturers to incur higher costs for specialized handling or microencapsulation, effectively narrowing the addressable market. This bottleneck is significant given the broader industry trends. According to the Natural Food Colours Association (NATCOL), in a white paper published in 2024, the global market for food colors was estimated to be worth between €2.5 and €3 billion, with natural varieties comprising more than 70% of the total share. Phycocyanin’s stability issues prevent it from fully accessing this substantial market share, as it cannot easily compete with more robust natural alternatives in the lucrative heat-processed food categories.

Key Market Trends

The commercialization of thermally stable liquid formulations is fundamentally reshaping the market by overcoming the pigment's historical instability in acidic and heat-processed applications. Manufacturers are increasingly utilizing novel algal strains, such as Galdieria sulphuraria, to produce phycocyanin variants that retain vibrancy under harsh industrial conditions, thereby unlocking access to high-volume segments like carbonated beverages and hard candies. This technological advancement is translating into tangible financial traction for specialized ingredient developers. According to Actusnews, October 2025, in the 'FERMENTALG - Revenue at the end of September 2025' report, Fermentalg recorded cumulative revenue of €9.6 million, a performance largely supported by the US FDA approval and commercial rollout of its stable Galdieria Blue pigment.

The implementation of circular biorefinery and zero-waste production models is emerging as a critical trend, driven by the need to maximize resource efficiency and minimize the environmental footprint of large-scale cultivation. This approach prioritizes the integration of closed-loop water systems and renewable energy sources, allowing producers to align with stringent sustainability mandates while effectively managing operational overheads. Exemplifying this industrial pivot, according to DIC Corporation, April 2025, in the 'DIC Subsidiary in the United States Opens New Facility' announcement, the company invested approximately ¥1.2 billion to construct a state-of-the-art cultivation site in California equipped with zero-discharge wastewater technologies and smart farming capabilities.

Segmental Insights

The Organic segment is currently the fastest-growing category in the Global Phycocyanin Market, driven by increasing consumer demand for certified clean-label and pesticide-free ingredients. This upward trend is supported by rigorous safety standards from regulatory bodies like the European Food Safety Authority, which advocate for the reduction of synthetic additives. Consequently, manufacturers in the food and beverage industries are actively incorporating organic phycocyanin to align with these health-focused regulations and satisfy market preferences for purity. This strategic shift reflects a broader commitment to sustainable cultivation and transparent sourcing within the natural colorant industry.

Regional Insights

North America currently maintains a dominant position in the Global Phycocyanin Market due to the rising consumer preference for natural food colorants over synthetic alternatives. This leadership is significantly supported by favorable regulatory frameworks, specifically the approval from the United States Food and Drug Administration regarding the safe use of spirulina extract in various food and beverage applications. Furthermore, the region experiences strong demand for clean-label products across the confectionery and nutraceutical sectors. These factors collectively encourage manufacturers to integrate phycocyanin into their product formulations, thereby cementing North America's status as the leading regional market.

Recent Developments

• In May 2025, Fermentalg received approval from the U.S. Food and Drug Administration for its novel natural blue color additive derived from Galdieria sulphuraria. Marketed under the brand Everzure Galdieria in partnership with Givaudan, this phycocyanin-rich extract was authorized for use in various food categories, including beverages, confectionery, and ice cream. The regulatory clearance marked a critical milestone for the company, as the ingredient offers enhanced stability in acidic and heat-treated products compared to conventional spirulina extracts. This development positioned Fermentalg to expand its commercial footprint in North America by providing a robust bio-based alternative to petroleum-derived synthetic food dyes.
• In March 2025, Sensient Technologies launched Marine Blue Capri, a spirulina-based natural blue colorant specifically engineered for the beverage industry. This innovative product was developed to provide a stable, clean-label alternative to the synthetic dye Blue 1, overcoming historical challenges regarding phycocyanin stability in low-pH and high-water environments. The formulation enabled manufacturers to achieve vibrant blue shades, as well as green and purple blends, in acidic applications like sports drinks and carbonated beverages without precipitation or fading. The launch represented a significant technological advancement in the global phycocyanin market, closing a key gap in natural color performance.
• In January 2025, Oterra entered into a strategic partnership with Vaxa Technologies to introduce Arctic Blue, a natural blue food colorant produced from spirulina. The collaboration leveraged Vaxa’s high-tech, carbon-neutral cultivation facility in Iceland, which utilizes geothermal energy to grow algae with a minimal environmental footprint. This new product was designed to offer superior color intensity and solubility while significantly reducing carbon emissions compared to traditional open-pond spirulina production. The initiative highlighted the companies' joint effort to meet the rising global demand for sustainable and stable phycocyanin-based ingredients in the food and beverage sector.
• In March 2024, ScotBio announced the readiness to launch SupaBlu, a new heat-stable natural blue colorant derived from spirulina. This product was developed to address the significant stability challenges that phycocyanin pigments typically face during high-temperature processing in applications such as baked goods and confectionery. Utilizing a patented mass-production system, the company aimed to provide a consistent and scalable supply of this clean-label ingredient to the food and beverage industry. The development marked a strategic expansion of ScotBio’s portfolio, focusing on delivering functional natural alternatives to synthetic blue dyes that can withstand demanding industrial manufacturing conditions.

Key Market Players

• Wellisen Nutraceuticals
• Earthrise Nutritionals LLC
• Pond Technologies
• Zhejiang Binmei Biotechnology
• Bluetec Naturals Co. Ltd
• Phyco-Biotech Laboratories
• DIC CORPORATION
• Japan Algae Co. Ltd.
• Parry Nutraceuticals
• Qingdao ZolanBio Co. Ltd

By Nature	By Form	By Application	By Region
Organic Conventional	Powder Liquid	Food & Beverages Nutraceuticals Animal Feed Cosmetics & Personal Care Others	North America Europe Asia Pacific South America Middle East & Africa

Report Scope:

In this report, the Global Phycocyanin Market has been segmented into the following categories, in addition to the industry trends which have also been detailed below:

• Phycocyanin Market , By Nature:

• Organic
• Conventional

• Phycocyanin Market , By Form:

• Powder
• Liquid

• Phycocyanin Market , By Application:

• Food & Beverages
• Nutraceuticals
• Animal Feed
• Cosmetics & Personal Care
• Others

• Phycocyanin Market , By Region:

• North America
• United States
• Canada
• Mexico
• Europe
• France
• United Kingdom
• Italy
• Germany
• Spain
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• South America
• Brazil
• Argentina
• Colombia
• Middle East & Africa
• South Africa
• Saudi Arabia
• UAE