Algae Oil Market Share, Size, Trends, Industry Analysis Report, By Grade (Feed Grade, Food Grade, Fuel Grade); By Application; By Sales Channel; By Region; Segment Forecast, 2024 - 2032
- Published Date:Jan-2024
- Pages: 114
- Format: PDF
- Report ID: PM1190
- Base Year: 2023
- Historical Data: 2019-2022
The global algae oil market was valued at USD 2.42 billion in 2023 and is expected to grow at a CAGR of 4.4% during the forecast period. Proliferating the technological advancement in the algae oil market is helping the market to expand at a rapid pace. As the demand for algae oil grows, technological advances have made it easier to scale up production. While some companies are developing large-scale algae cultivation facilities that use advanced automation and monitoring systems to optimize productivity and reduce costs.
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For instance, in April 2023, MiAlgae, a biotech startup, formally introduced NaturAlgae, an omega-3 product aimed at the pet food and fish feed industries. Aqua feed and pet food recipes can benefit from adding NaturAlgae, a dry powder with a high concentration of DHA and other oils. Likewise, many other businesses are innovating various products for different applications. As a result, this factor is fruitfully bolstering the growth of the global Algae Oil Market.
Algae oil is a rich source of omega-3 fatty acids, which are important for heart and brain health. Algae oil provides a vegan and sustainable source of omega-3s, making it an attractive alternative to fish oil. Algae is a highly sustainable and renewable source of oil that can be grown using sunlight, CO2, and nutrients. This makes it an attractive alternative to traditional sources of oil, which can be finite and environmentally damaging. It can also be used as a feedstock for producing biofuels, such as biodiesel and bio-jet fuel.
The COVID-19 pandemic has led to reduced demand for some products that use algae oil, such as cosmetics and personal care products, as consumers have cut back on discretionary spending. Additionally, disruption to supply chains has also hampered the development of the global market. Increased research and development activities in the algae oil industry, as labs and research facilities, have had to close or operate at reduced capacity. This has led to some delays in developing new products and applications.
Despite this, the pandemic has also led to increased demand for some algae oil products, such as plant-based meat substitutes, which have seen a surge in popularity as consumers look for meat alternatives. Additionally, some governments have provided support for the algae oil industry in response to the pandemic, including funding for research and development, and financial support for companies impacted by the pandemic.
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Highly increasing algae production is one of the major factors broadening the growth of market worldwide. Sustainability, efficiency, adaptability, versatility, and potential for developing new and sustainable products are attributed to the high production of algae. For example, from 34.6 million tonnes in 2019 to 500,000 tonnes in 2020, seaweed cultivation—a type of marine macroalgae—grew by 1.4 percent globally. While some major producing nations, like China and Japan, saw growth in 2020, Southeast Asia and the Republic of Korea had a decline in seaweed harvests. With the vast applications, algae are widely produced across the various countries. This has improved the demand for algae oil which is further helping the market to grow with a considerable growth rate.
Emergence of cardiovascular disease is another key driver of the growth of the global market. Cardiovascular disease is a leading cause of death worldwide, and is caused by a range of factors including high blood pressure, high cholesterol, and inflammation.
For example, in the United States, cardiovascular disease (CVD) continues to be the number one killer, accounting for 928,741 fatalities in 2020. As population grows, the cases of cardiovascular diseases grow which further improving the demand for algae oil. Omega 3 fatty acids, which are found in algae oil, helps in reduction of risk of cardiac ailments by controlling blood pressure, & improving cholesterol levels. As a result, this factor is dramatically heightening the global market’s expansion.
The market is primarily segmented based grade, application, sales channel, and region.
By Sales Channel
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Feed grade accounted for fastest growing segment in the global market
Feed grade is anticipated to grow at fastest CAGR rate during the forecast period. There has been growing concern over the environmental impact of traditional animal feed sources such as soybean and fishmeal. Due to sustainable and renewable source of omega-3s, algae oil is an attractive alternative for use in animal feed.
The omega-3s found in algae oil have been shown to provide a range of health benefits for livestock, including improved growth rates, reproductive performance, and immune function which helps to increase demand for algae oil as a feed supplement. Moreover, the favourable regulatory environment and increased investment in research and development have also contributed to the rapid growth of this segment of the algae oil market.
Pharmaceuticals segment is dominating the global market in 2022
The pharmaceutical segment held the largest global share in terms of volume and value. The pharmaceutical segment of the algae oil market is growing as a result of increasing demand for sustainable and vegan sources of omega-3s, the health benefits of omega-3s, increasing investment in research and development, and favourable regulatory environment. There has been significant investment in research and development of algae oil for use in pharmaceuticals. This has led to the development of new products and formulations, which has helped to drive growth in this segment of the market.
In addition to this, governments and regulatory agencies have provided support for the use of omega-3s in pharmaceutical products, creating a favourable regulatory environment for the growth of the algae oil industry.
Supermarkets/Hypermarkets are the leading segment in the global market
Supermarkets and hypermarkets segment is dominating the segment with largest shares of the market in the fiscal year 2022 as these are the most common retail outlets for consumers to purchase food and supplement products. Algae oil-based products are widely available and accessible in these outlets, making it easier for consumers to purchase and try these products. As more consumers are looking for plant-based alternatives, supermarkets and hypermarkets are expanding their selection of plant-based products. Convenience and accessibility are also gaining a huge traction in this segment.
North America is accounting the largest share in the global market
North America is expected to lead the global market over the forecast period. The United States has a supportive regulatory environment for the use of algae oil in food, supplements, and other products. This has encouraged companies to invest in the development and commercialization of algae oil-based products. Not only private firms but also the government bodies are supporting the algae industry. For instance, in August 2021, in order to enhance and create biofuels, biopower, and bioproducts, the U.S. Department of Energy (DOE) today announced financing of roughly USD 34 million for 11 projects. Hence, this factor is gaining a huge momentum in the region.
Europe is second dominating region in the global market with significant revenue in the year of 2022. This is due to increasing focus among market players in the region. Advances in technology have made it easier and more cost-effective to produce algae oil at scale. This has opened up new opportunities for companies to develop innovative products that incorporate algae oil. For example, the producer and distributor of feed additives for cattle, Anpario, have introduced a novel omega-3 fatty acid supplement generated from microalgae. This factor is influencing the market’s development in the region.
The global players include Royal DSM, TerraVia Holdings, DIC Corporation, Cyanotech, Seaweed Energy, Lonza, Cargill, Diversified Energy, Alltech, and Algix.
- In February 2023, GC Rieber, a line of vegan omega-3 oils with a high concentration of ocean origin that are generated from microalgae has been introduced by VivoMega. SuperLight, a patented processing method created specifically for algae oils, is used to create VivoMega Algae Oil.
Algae Oil Market Report Scope
Market size value in 2024
USD 2.52 billion
Revenue forecast in 2032
USD 3.55 billion
4.4% from 2024 – 2032
Revenue in USD billion and CAGR from 2024 to 2032
By Grade, By Application, By Sales Channel, By Region
North America, Europe, Asia Pacific, Latin America; Middle East & Africa
DIC Corporation, Diversified Energy, Alltech, Algix, Cyanotech, Royal DSM, TerraVia Holdings, Seaweed Energy Solutions, Lonza Group, Cargill, and others
The global algae oil market size is expected to reach USD 3.55 billion by 2032, according to a new study by Polaris Market Research.
key players in the Algae Oil Market are Royal DSM, TerraVia Holdings, DIC Corporation, Cyanotech, Seaweed Energy, Lonza.
North America contribute notably towards the global Algae Oil Market.
The global algae oil market expected to grow at a CAGR of 4.4% during the forecast period.
The Algae Oil Market report covering key segments are grade, application, sales channel, and region.