Algae Oil Market Share, Size, Trends, Industry Analysis Report, By End-Use (Pharmaceuticals, Nutraceuticals, Functional foods, Aquaculture, Infant & Clinical Nutrition); By Application; By Sales Channel; By Grade Type; By Region; Segment Forecast, 2022 - 2030
- Published Date:Jul-2022
- Pages: 101
- Format: PDF
- Report ID: PM1190
- Base Year: 2021
- Historical Data: 2018-2020
Report Summary
The global algae oil market was valued at USD 2.02 billion in 2021 and is expected to grow at a CAGR of 4.6% during the forecast period. Algae are defined as microscopic plants that are created from extracted and polished marine algae. They are abundant in docosahexaenoic acid and omega-3 fatty acids and can be found in various kinds of aquatic habitats, including marine, freshwater, and brackish water.
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The demand for the market has increased as a result of a surge in the consumption of healthy food and beverage items. It is a cooking oil that is used in food products. It is used as a specialty oil because of its low saturated fat level. It benefits both humans and animals because of its great nutritional value.
They are utilized in animal feed to offer nourishment. Additionally, it has significant levels of omega-3 and DHA, which are often found in fish oil. This has emerged as a more advantageous option for obtaining the necessary nourishment as a result of a vast population turning vegan.
Growing environmental concerns and the consequent rise in demand for renewable and environmentally friendly fuel sources are anticipated to have robust growth over the forecast period. Due to its low carbon footprint, it is being used more frequently in the manufacturing of biofuels.
An effective and low-sulfur replacement for fossil fuels is biofuel. It is also a crucial component in the creation and development of numerous end products, including medicines, antiviral formulations, and antifungals, in the pharmaceutical industry.
Its high omega-3 fatty acid content and several health benefits, which support its market demand among a sizable consumer base, have not been affected by the COVID-19 pandemic. Additionally, it is frequently employed in the dietary supplement, infant formula, biofuel, and food and beverage industries. Nevertheless, production has been stopped, which has impacted the supply of the product. Additionally, it is projected that the current trade interruption will have a detrimental effect on the market expansion.
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Industry Dynamics
Growth Drivers
DHA, as well as omega-3 and eicosapentaenoic fatty acids, are abundant in algae oils. Since these acids are so useful and aid in preserving good eyesight, there is a significant demand for oil containing DHA. It is a popular ingredient in nutritional supplements and is a vegan substitute for fish oil that offers similar health advantages and cognitive benefits, such as a robust cardiovascular system.
It is processed as a spreadable fat and used as a nutrient in a variety of foods, such as salad dressings, baked goods, morning cereals, dairy products, cereal bars, and beverages. The market for products in the food and beverage sector is expanding as a result of the rising demand for healthy food items.
One of the most recent trends to take hold in the algae oil market over the forecast period will be the rising desire for naturally sourced health supplements. The demand for health supplements made from plants is significantly impacted by the growing demand for naturally sourced supplements. The market's future growth will be boosted as a result of manufacturers choosing algae oil over other raw materials to make medicines.
Report Segmentation
The market is primarily segmented based on sales channel, grade type, application, end-use, and region.
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By Sales Channel |
By Grade Type |
By Application |
By End-Use |
By Region |
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Feed grade type segment is expected to witness the fastest growth
It has a higher nutritional value than grain feed, and the market for animal feed has seen a surge in consumption. Since the oil's principal constituents include proteins and micronutrients, it is used to feed animals. The global market has significant potential in the animal feed sector. Significant investments are being made in the market by important companies boosting the segmental growth.
Fermenting invested approximately US$76.5 million in 2020 for the development of its technological and industrial platforms, with an increased focus on the proteins and lipids sector. Therefore, an increase in investments is projected to strengthen the consumption share of the algae oil market in the feed sector.
The product has a lower carbon footprint, emits fewer greenhouse gases, and consumes carbon dioxide, among other environmental benefits. As a result, throughout the projection period, various grades of the product are anticipated to experience a significant increase.
Biofuel accounted for the second-largest market share in 2021
Due to its expanding use as a sustainable fuel, biofuel was forecast to be the second-largest application segment and is expected to capture a sizeable share. Additionally, biofuel is being blended more frequently with other fuels, such as jet fuel, biodiesel, and gasoline, as an alternative renewable fuel. Since it is an environmentally beneficial and low-sulfur fuel generation process, it is a very alluring buyer, typically for countries that do not produce oil.
Furthermore, Animal immunity and excellent health have been dramatically demonstrated by food supplements made from algae oil. A cow was in good health and produced more milk due to the cattle feed made from algae oil. Animals' immune systems are improved and strengthened by the abundance of Omega 3 fatty acids, DHA, and necessary proteins, which can have a favorable effect on agriculture and domestic animal products around the world.
The algae oil market as a biofuel is rising in response to the need for sustainable energy sources. They can be used to extract and synthesize biodiesel, which can be utilized as a significant fossil fuel substitute. The continued study and development of algae as a biofuel could have an impact on the world in a positive way.
Foods & Beverages is expected to hold the significant revenue share
The widespread use of the product in the production of functional meals and dietary supplements is responsible for growth. Functional foods' nutritional content is greatly influenced by algae oil. Additionally, the demand for dietary supplements is rising as people become more prevention-oriented. Due to their high nutritional content, nutraceuticals aid in cell proliferation, the treatment of oxidative stress and kidney problems, and the preservation of the body's integrity is increased. They will be widely used in the food and beverage industry in the upcoming years. The Algae oil market is currently popular due to its extensive nutritional profile and the popularity of omega-3 components. Due to restrictions on fish oil production, algae oil will continue to be a viable substitute.
The demand in North America is expected to witness significant growth
North America held the highest market share in 2021. Due to variables like increased discretionary income, this market is expanding. Citizens may now purchase algae oil at greater prices owing to increasing income levels. On the other hand, many now use it for cooking or nutraceuticals prepared by it in their daily diets due to the increased rates of issues like obesity, cardiac unrest, cancer, and others.
Asia Pacific is anticipated to experience the quickest growth. The algae oil market expansion is caused by rising living standards, an increase in the population, improved infrastructure, and a rise in public health awareness. One of Asia's greatest advantages over other continents is its enormous population.
On the other side, because biofuel emits less carbon, it has the potential to replace fossil diesel in nations like China and India. Biofuel can assist India and China in meeting their net-zero carbon objectives since they are both under pressure from the western countries due to their significant carbon emission. These factors are bolstering the market growth during the forecast period.
Competitive Insight
Some of the major players operating in the global market include Algae Floating Systems Inc., Algae Production Systems Inc., Alltech Corp., Cargill Incorporated, Cellana Incorporation., Corbion N.V, Cyanotech Corporation, Goerlich Pharma GmbH, Koninklijke DSM N.V., Lonza Group AG, Pond Technologies Incorporation, Progress Biotech B.V.., and Renewable Algae Energy LLC (RAE).
Recent Developments
In November 2021, Lonza Group revealed that it has purchased a service division from Exosomics, a biotech company. Additionally, the acquisition is projected to boost Lonza's exosome bioprocessing portfolio because Exosomics is known for its extracellular vesicle services.
In November 2021, HuvePharma has launched a significant cooperative venture called Huve Nutraceuticals, to create vegan Omega 3 algal oils in pet food and as an ingredient.
Algae Oil Market Report Scope
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Report Attributes |
Details |
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Market size value in 2021 |
USD 2.02 billion |
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Revenue forecast in 2030 |
USD 2.98 billion |
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CAGR |
4.6% from 2022 - 2030 |
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Base year |
2021 |
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Historical data |
2018 - 2020 |
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Forecast period |
2022 - 2030 |
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Quantitative units |
Revenue in USD million/billion and CAGR from 2022 to 2030 |
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Segments covered |
By Sales Channel, By Grade Type, By Application, By End-Use, By Region |
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Regional scope |
North America, Europe, Asia Pacific, Latin America; Middle East & Africa |
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Key companies |
Algae Floating Systems Inc., Algae Production Systems Inc., Alltech Corp., Cargill Incorporated, Cellana Incorporation., Corbion N.V, Cyanotech Corporation, Goerlich Pharma GmbH, Koninklijke DSM N.V., Lonza Group AG, Pond Technologies Incorporation, Progress Biotech B.V.., and Renewable Algae Energy LLC (RAE) |
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