Entering the European market for chlorella and spirulina for health products

 

Source: ProFound, 2023

Importer/Distributor

Importers typically trade in a large number of different ingredients, sometimes up to 500. They focus on establishing and maintaining a relationship with their suppliers, and on ensuring a consistent and reliable supply of raw materials. In addition, they carry out quality control measures to ensure that imported ingredients meet the required standards and meet the relevant regulations. Importers may conduct laboratory testing. They handle the necessary documentation, including specifications, certifications, and compliance records, ensuring accurate and up-to-date documentation for each ingredient imported. Importers also take care of sales to processors and end-product manufacturers.

Spirulina and chlorella for health products mainly enter the European market in dried and ground form. Because spirulina and chlorella are commonly sold on the market as tablets containing powder, further processing in Europe is limited. Examples of natural ingredients importers/distributors handling spirulina and/or chlorella on the European market are Bio Import Europa (Germany), Nexira (France) and Aplantis (Germany).

Processor/Manufacturer

European processors / manufacturers sometimes work through importers, while at other times they import directly from origin. After sourcing the raw material, they typically process the powder into capsules for use as a food supplement. They then package the microalgae under their own label or under the label of their customer.

Fit Ingredients from Germany is an example of a company which imports spirulina and chlorella directly from origin. They finish the formulations with probiotic bacteria, and they offer contract service filling for food supplements. Another example is Nutriphys (Belgium), which imports chlorella and manufacturers food supplements.

Agent

An export agent is a firm or an individual that undertakes most of the exporting activities on behalf of an exporter, usually for a commission. You can search for commercial agents in special online business directories such as Europages and GlobalTrade.net. You could also contact your local chamber of commerce. They often have directories or can provide guidance on connecting with agents with experience in your target market.

What is the most interesting channel for you?

Importers and distributors will be your most important entry point into the European market. If you are a small exporter and new to the European market, entering the market is very challenging. Doing so through these conventional distribution channels can be difficult due to volume and quality requirements. As a small producer, you could consider working with an agent to represent you in the market.

Tips:

• Visit or participate in trade fairs to find out whether the market would be open to your product, get market information and find potential buyers. The most relevant trade fairs in Europe are SANA, Health Ingredients Europe, Biofach (for organic products) and Vitafoods.
• Find buyers that match your business philosophy and export capacities in terms of quality, volume and certifications. For more tips on finding the right buyer for you, see our study on finding buyers in Europe.

3. What competition do you face on the European chlorella and spirulina market for health products?

Spirulina and chlorella are found almost everywhere in the world. They thrive naturally in various regions, using sunlight and carbon dioxide to grow. Spirulina is also increasingly grown in completely closed systems in laboratories, ensuring high-quality ingredients. Europe is expanding its presence on the microalgae market. Nevertheless, Asia still stands out as the main supplying region. China, Taiwan, India and Japan have the most established spirulina and/or chlorella industries, with years of experience and expertise in cultivation and processing. In addition, Asian exporters tend to have larger-scale production capabilities, enabling them to offer competitive prices. This makes it difficult for small-scale producers in emerging market economies to enter the market.

Which countries are you competing with?

Your main competitors on the European market include China, Taiwan, Japan, India and the United States. You can also expect competition from European seaweed producers. In Africa, there are currently no major commercial spirulina export companies. However, the continent has over 65 small-scale spirulina farms across 25 countries. These farms have often received support from humanitarian and non-governmental organisations. Their primary goals are to address malnutrition among underserved populations, and they typically serve a local or regional market.

China: large volumes, competitive prices

China is the world’s largest producer of spirulina and chlorella. Spirulina and chlorella imported from China is traded at high volumes and competitive price levels. China’s extensive experience in microalgae cultivation, processing, and research has given it at strong position in the industry. Chinese producers offer a diverse range of spirulina and chlorella products, including powders, capsules, tablets, and extracts.

With respect to China’s reputation on the European market, the country is recognised as an important supplier. However, concerns about quality control and environmental practices affect some European buyers’ perceptions, who as a result may prioritise products from other regions (often within Europe) known for stricter quality standards.

Taiwan: high-quality products

Taiwan is one of the world’s largest producers of microalgae. One of Taiwan’s key strengths is its positive safety records. Many Taiwanese producers offer organic-certified chlorella and spirulina and the quality of Taiwanese microalgae is considered high. Over the years, the Taiwanese government and private sector have invested in research and technology to enhance the efficiency and quality of microalgae production.

Japan: long-standing expertise in cultivation, processing and research

Japan is known for its stringent quality control measures and safety standards in the production and processing of microalgae. Japanese spirulina and chlorella products have a long-standing presence in the global market, and the country is recognised for its expertise in the industry. The country invests in research and technology for microalgae cultivation and processing, resulting in advanced production methods.

India: a growing microalgae industry

India is another important supplier of chlorella and spirulina. The country has emerged as an important player in the spirulina and chlorella market, and the industry is developing rapidly. India’s competitive advantage lies in its favourable climate, vast cultivation area and cost-effective production, allowing it to price its spirulina and chlorella products competitively. Perceptions of the country are generally positive due to its large-scale production capacity and availability of microalgae.

USA: well-established cultivation and export industry

The USA has a well-established spirulina and chlorella industry, with numerous producers, manufacturers, and suppliers. Producers in the USA emphasise stringent quality control measures and adhere to safety standards, and their high-quality products have a good reputation. Providing high-quality products is key as the cost of production in the USA is higher than in some other countries, affecting the competitiveness of its products in price-sensitive markets.

US companies have a strong export capacity, supplying spirulina and chlorella products to various global markets. The domestic market for spirulina and chlorella products is also important, supported by health-conscious consumers seeking natural nutritional supplements.

Europe: high-quality products which meet sustainability requirements

Asian countries, particularly China, Japan, Taiwan and India, are major producers and exporters of spirulina and chlorella. These countries have established expertise, competitive pricing, and significant production capacities. However, they face strong competition from European suppliers who can cater to the demands of the European market.

European suppliers, mainly located in France, Germany, Italy and Spain, have several advantages that make them more competitive. First, European suppliers tend to produce high-quality products that meet the highest safety standards. Second, they prioritise sustainable practices, conforming to new European legislation as well as the increasing demand for environmentally friendly ingredients. Third, their proximity to the market means that European companies know the market best and enables them to distribute their products more quickly and cost-effectively.

Tips:

• Find out if your country has programmes helping exporters to improve harvest, cultivation, processing and exporting of spirulina and/or chlorella. You can do this by contacting your local chamber of commerce or the ministry of trade in your country.
• Include pictures when promoting the origin of your chlorella and/or spirulina, such as the clear blue seas, the rich biodiversity of your home country, or the vibrant colours of your seaweed.

Which companies are you competing with?

Many established companies export spirulina and/or chlorella to the European market. For new suppliers aiming to access the European market, it is important to observe and learn from the success of these companies.

Chinese companies

Zhejiang Binmei Biotechnology is the largest blue spirulina factory in China, with an annual output of more than 200 tons. The company has independent intellectual property rights for blue spirulina extraction. It holds a patented technology for phycocyanin purification. The company has organic certification and its quality control system is FSSC22000 certified. Its products are sold to the food, health, cosmetics, and pharmaceuticals industries. The company has an extensive global presence, serving markets across the United States, Germany, Japan, South Korea, and other countries.

Another Chinese company that exports spirulina is Basic Nutrition, which develops, markets and distributes ingredients and products for nutraceuticals, supplements and functional food & beverage industries from its primary manufacturing facilities in China, Japan and Korea. The company is engaged in contract manufacturing exclusive for food supplements and is GMP-certified.

Taiwanese companies

The world’s largest and first producer of chlorella is based in Taiwan: Taiwan Chlorella Manufacturing Company (TCMC). TCMC produces chlorella in the form of powder, tablets and extracts, and spirulina in the form of powder and tablets. TCMC is USDA organic certified and holds various ISO quality management system certificates, in addition to being Halal and Kosher certified.

Another example is the Far East Microalgae Ind Co. (FEMICO). This company houses 100,000 tons of microalgae in production ponds and manufacturing facilities. It boasts an annual production capacity of 1,000 tonnes for chlorella and 200 tonnes for spirulina. FEMICO offers organic spirulina, which is certified by the German Naturland. Most of the company’s products are exported to the United States, Europe, Japan, Korea, and other markets in southern Asia. Their facilities are ISO-9001:2000 and GMP-certified.

Japanese companies

Sun Chlorella is one of the prominent Japanese companies to capitalise on the potential health benefits of chlorella by developing a wide range of chlorella-based health products. Overseas affiliates are Sun Chlorella USA Corporation, Sun Chlorella (Shanghai) and Sun Chlorella Corporation London Branch.

In addition, DIC Corporation is a Japanese company engaged in microalgae. The company specialises in developing and producing a wide range of products, such as pigments, inks, coatings and adhesives, but also microalgae-based products like spirulina. It offers spirulina in the form of powder and tablets, through its subsidiary companies Earthrise (USA) and Hainan DIC Microalgae (China). The company is committed to innovation and sustainability, and caters to various markets and industries worldwide.

Indian companies

One successful microalgae company in India is Parry Nutraceuticals, which is part of the Murugappa Group conglomerate. Parry grows spirulina and chlorella in southern India and holds various ISO and GMP certifications, as well as USDA, Naturland and EU organic certification. The company offers high-value products through ongoing research and innovation processes. Parry is part of a strong distribution network in over 40 countries, giving it a strong global presence. The company’s sales revenue in 2020 was approximately $540 million.

Another example is Evergreen Agro Creations, which specialises in cultivating, manufacturing and marketing organic spirulina. The company has 30,000 square meters of growing ponds, is organic certified and holds several ISO quality management certificates.

USA companies

Cyanotech, based in Hawaii, specialises in cultivating and manufacturing high-quality microalgae products, including spirulina, for health and dietary supplements. Cyanotech offers a range of products, including spirulina in powder and tablet forms. The company has a strong distribution network, enabling them to serve global markets including Europe.

Another important supplier of spirulina in the USA is Earthrise. It was the first spirulina farm in North America, and today it is the largest in the world. Earthrise is a subsidiary of the Japanese company DIC and focuses on developing microalgae for various applications, including food, biochemicals, and pharmaceuticals.

European companies

Examples of European companies that offer spirulina and/or chlorella are: Algomed (Germany), Algalimento (Spain), Spiruline La Capitelle (France), Aliga Microalgae (Denmark) and Necton (Portugal).

Tips:

• If you can only produce spirulina and/or chlorella on a small scale, engage with local processors to sell your products. You can also work with other farmers to share the costs of investment in processing equipment or to achieve adequate scale to export the product in powder for health.
• Ensure proper harvesting, post-harvesting and processing and proper documentation in order to make the most of opportunities to add value to your product. You can use this to show (potential) buyers that you are a reliable supplier of spirulina and/or chlorella for health and can ensure a good and stable quality.
• Ensure that you have an online presence and that your website is up-to-date. This is because European buyers frequently use the internet to find and assess exporters for natural health products before doing business with them.

Which products are you competing with?

There is a wide variety of products that you are competing with, depending on what your ingredient will be used for. If your spirulina and/or chlorella will be used as:

• A plant-based protein supplement, your product competes with other plant-based protein supplements like pea protein, hemp protein, and soy protein.
• An ingredient for general health or immune system support, your product competes with a wide range of other natural ingredients that are high in vitamins, minerals and antioxidants. Commonly used plants for immune support include Echinacea (Echinacea purpurea), Ginseng (Panax quinquefolius and P. ginseng), Green tea (Camellia sinensis), Ginger (Zingiber officinale) and Eleuthero (Eleutherococcus senticosus). Other ‘superfood’ powders also pose strong competition, such as Baobab fruit powder (Adansonia digitata), Moringa (Moringa oleifera), Barley grass powder (Hordeum vulgare) or Wheat grass (Triticum aestivum).
• Direct competition from other microalgae: Tetraselmis is a recently approved EU novel food, and a rich source of protein, iron, vitamin B, fatty acids and antioxidants. It has great potential as a plant-based substitute for sea food, such as lobster. However, it is important to note that the cultivation of this microalgae is more demanding than spirulina and chlorella. Also, given that it is so new to the market, it is not yet widely known to the public.

Build a marketing story for your spirulina or chlorella that shows how it is different from competing products. This is particularly important when targeting the food supplements market. You can base this on the nutritional content, by referring to studies and the results of clinical trials or the provenance of your chlorella or spirulina. Use a literature study on the potential of microalgae in immune support and general health to support your story. For example, see the PureSea ingredients from Seaweed and Co (the United Kingdom). This company backs up the benefits of their products using independent university research.

Tips:

• Conduct market research into the potential substitute products mentioned above. For instance, find out how your spirulina or chlorella compares with other products in terms of nutritional profile, price, supply security/sustainability and ease/costs of substitution. Make sure that you have these results ready when talking to potential buyers so that you can answer their questions.
• Diversify your product portfolio to reduce risks. Products marketed as superfoods have a higher risk of being ‘replaced’ by other superfoods. Sales of these products are highly dependent on what is currently in fashion, and this can change when a new superfood comes along.

4. What are the prices for chlorella and spirulina on the European market?

Prices for chlorella and spirulina for health depend on several factors, including:

• The type of product you sell;
• The country of origin;
• Whether you produce a dried powder or process it further into extracts of specific components;
• Who you sell to (an end user or intermediary); and
• The quality of your raw material.

FOB prices will depend on the factors listed above, but as an example, organic spirulina powder from India sells at around €7-€13 for a 1-kg package and chlorella powder (25-kg packaging size) for €16-€23/kg. Organic spirulina powder (1-kg package) from China is sold for prices ranging from €7-€12/kg and organic chlorella powder (25-kg packaging) between €12-€22/kg.

Wholesale prices of spirulina and chlorella also differ depending on the variables listed above. Examples of wholesale prices on the European market are: organic spirulina powder from China sold for €316 for 20 kg (=€15.8/kg), or organic chlorella powder from China for €653 for 20 kg (=€32.7/kg).

Retailers, processors and final product manufacturers all add a margin to the powder that they use. The following table shows examples of retail prices for powder or food supplements on the European market containing spirulina or chlorella:

Species	Final product	Brand	Packaging size	Price per kg
Organic spirulina	Powder	Biotona	200 gr	€ 65
Organic chlorella	Powder	Biotona	200 gr	€ 100
Spirulina	Tablets	Holland & Barrett	500 mg, 240 tablets	€ 56
Organic chlorella	Tablets	Holland & Barrett	500 mg, 240 tablets	€ 60

Source: Holland & Barrett

Tips:

• Calculate your production costs using a detailed cost breakdown. Do not forget to include additional costs such as customs, loading/unloading, marketing, samples for chemical analysis and internal transport. Add your profit margin to the cost breakdown result to achieve the selling price.
• Monitor harvests in major production countries like China. This will help you to anticipate price developments for your microalgae. You can request such information from importers.

Gustavo Ferro and Lisanne Groothuis of ProFound – Advisers In Development carried out this study on behalf of CBI.

Please review our market information disclaimer.