Algae Oil Market - Forecasts from 2023 to 2028

The global algae oil market is expected to grow at a CAGR of 5.11% from US$1.960 billion in 2021 to US$2.778 billion in 2028.

Algae oil is a protein-rich oil extracted from specific marine algae. Algae oil, a cruelty-free source of omega-3 fatty acids like EPA and DHA, offers several health benefits. It helps reduce cholesterol, inflammation, and the risk of stroke and supports vision, especially for those with retinitis pigmentosa. Rich in minerals and vitamins, it is used to fortify baby formulas. Additionally, it serves as a stabilizer in the production of ice cream, pet food, and other dietary supplements.

Growing use of algae oil in various sectors

Global algae oil marketis experiencing growth due to the versatility and wide-ranging use of algae oil in various sectors, including animal food, dietary products, biofuels, and beverages, which contribute significantly to its market value. Notably, In September 2021, AAK unveiled a strategic partnership with Progress Biotech to provide their top-tier, algae-based DHA for infant formula. DHA, a vital omega-3 fatty acid often sourced from fish oils, is known for its numerous clinically established advantages and is a mandatory component in infant formula throughout the European Union. Algae oil is recognized for providing essential nutrients, especially DHA, crucial for children's brain development, and this awareness drives its demand for health and dietary supplements. For example, GC Rieber VivoMega's VivoMega Algae Oils, sourced from microalgae, offer a vegan omega-3 oil solution, aligning with the growing health consciousness and dietary needs.

Widespread use of algae oil extracted from marine

Global algae oil industrydemand is further bolstered by the widespread utilization of algae oil mainly extracted from certain marine. The production factors, such as the requirement for an increased workforce and substantial water resources for marine algae cultivation, also present limiting factors for the value of the global algae oil market. As an example, DSM, a company specializing in health, nutrition, and bioscience, introduced Veramaris® algal oil, offering an alternative to fish oil as a source of omega-3. In June 2023, Veramaris partnered with the World Ocean Council to demonstrate how its innovative algal oil contributes to the growth of aquaculture by reducing reliance on fragile fish oil supplies as the primary source of Omega-3 in aquafeed. Veramaris algal oil enables aquaculture to expand, increasing the availability of farm-raised seafood, ensuring a reliable source of fish enriched with high levels of health-benefiting Omega-3 essential fatty acids for consumers.

Rising need for dietary supplements

The global algae oil industryhas experienced significant growth due to the rising demand for health and dietary supplements, which has been amplified by the increased need for such products following the COVID-19 pandemic. the global algae oil market is further boosted by the demand for DHA and Omega-3 fatty acids, essential for infant brain development, making algae oil a valuable nutrient supplement for baby products. Increasing health consciousness and the growing demand for dietary supplements are major driving factors in the global algae oil industry. According to the Functional Food Market in Taiwan, 2021 Domestic Health and Nutritional Food Output Value and Industry Overview Analysis Report In 2021, the functional food market in Taiwan showed that domestic production of plant-derived health and nutritional foods, particularly in the "Other" category, accounted for a substantial output value of 21.30 billion New Taiwan dollars. Plant-sourced health and nutritional food, including items like Chinese herbal drinks, health tea drinks, and tomato juice, ranked second with a production value of around 15.5 billion New Taiwan dollars the relatively low output value of algae products, standing at 1.1 billion New Taiwan dollars in 2021, suggests that the algae category is in its early stages of development. However, this presents a notable growth opportunity. As consumer awareness of the health benefits of algae-derived products continues to rise, it's likely to contribute significantly to the global algae oil market growth and expansion.

It is projected that the algae oil market in the USA will grow steadily.

Increasing demand for biofuels in the country coupled with the presence of many local players in the country. Additionally, many companies are trying to promote awareness among people that algae oil is a superfood, and with the increasing population of health-conscious people in the USA, this can also be one of the reasons for market growth in the USA.

Algae oil is not only beneficial for humans but can do wonders for animals as well. For instance, the National Aeronautics and Space Administration algae-based dietary ingredients will help in nourishing the animals. The concentration of long-chained fatty acids is high in micro-algae and the presence of docosahexaenoic acid (DHA) makes it ideal for animal consumption. Taking advantage of this situation companies are launching new and innovative products in the market to increase their global algae oil market share. For instance, in September 2023, Corbion, a global market leader in algae-based feed ingredients, launched AlgaPrime DHA P3, which addresses the demand for sustainable active nutrition in the pet food industry.

Increasing biofuel production

According to the United States Energy Information Administration (EIA), the production of biofuel in the USA in thousand barrels per day for ethanol, biodiesel, renewable diesel, and other biofuel was 1,002, 106, 98, 13 thousand barrels per day in 2022 respectively. Still, the country imported 69 million gallons of ethanol, 250 million gallons of biodiesel, 263 million gallons of renewable diesel, and 5 million gallons of another biofuel. The USA is expected to have a large demand for biofuel in the projected period and the use of algae as an alternative for production of biofuel is expected to increase in the coming years.

Market Key Developments

• In April 2023,MiAlgae successfully launched NaturAlgae, an Omega-3 product, following the expansion of its commercial production site in Scotland. NaturAlgae is a dry powder with a high DHA concentration, making it a convenient addition to pet food and aquafeeds, offering the well-documented health benefits of Omega-3. The necessity for DHA and Omega-3 fatty acids for infant brain development further augments the global algae oil market as a nutrient supplement and infant product.

Segmentation:

By Grade

• Food Grade
• Feed Grade
• Fuel Grade

By Application

• Animal Feed
• Biofuel
• Health Supplements
• Food and Beverages
• Medicines

By Sales Channel

• Supermarkets and Hypermarkets
• Convenience Stores
• Specialty Stores
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• Spain
• UK
• France
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Taiwan
• Thailand
• Indonesia
• Others