The increasing production of animal feed, surging initiatives to raise awareness about the environmental and health benefits of alternative protein sources, and rising support from private and public organizations to boost the intake of protein are projected to drive the protein extracts from single-cell protein sources market at a CAGR of 8.6% during the foreseeable period (2018–2023). According to P&S Intelligence, the market size will reach $8.7 billion by 2023 from $5.3 billion in 2017. Moreover, industry players are involved in product launches to enhance their market position.
The source segment of the protein extracts from single-cell protein sources market is classified into yeast, algae, fungi, and bacteria. Out of these, the algae category accounted for the largest share in 2017 in the market, and it is also expected to witness the fastest growth during the forecast period. This is ascribed to the increasing demand for commercialized algae-based chlorella and spirulina from various sectors, such as pharmaceutical & biotechnology, food & beverages, animal feed, cosmetics, and agriculture.
Globally, North America accounted for the largest share in 2017 in the protein extracts from single-cell protein sources market. This is attributed to the developed biotechnology industry, presence of major market players, and establishment of several non-profit scientific institutions in the region. Whereas, the Asia-Pacific (APAC) market is projected to record the highest CAGR during the forecast period owing to the rising need for protein and other nutrients for the surging population of livestock. Additionally, spirulina is being increasingly given to suspected AIDS patients in the region as it is an immunity booster.
Thus, the rising production of animal feed, primarily owing to the booming demand for meat and milk, is expected to propel the market growth during the forecast period.
