Algae Oil Market size is projected to experience a healthy growth during 2023 to 2032, given the increasing number of health-conscious consumers and the high preference for plant-based diets. Likewise, the emergence of cardiovascular disease as a major health burden will boost the consumption of algae oil supplements.
According to data from the CDC, every year, nearly 795,000 people have a stroke in the U.S., thereby bolstering the usage of omega-3 algae oil to decrease triglycerides, a fat that increases CVD risks. Algae oil refers to a popular fish oil alternative and omega-3 supplement extracted from microalgae that positively impacts the heart and other body parts.
The introduction of stringent carbon emission norms for the transportation sector is a prominent factor fostering the global algae oil market trends. For example, the European Commission announced carbon dioxide emission standards, calling for a 90% reduction in emissions from heavy-duty vehicles by 2040. This initiative will accelerate the algae oil extraction process since algae biofuel is a carbon-neutral alternative to fossil fuel. Furthermore, the rising emphasis on seafood production for the growing population will drive its use as an alternative to fish ingredients.
Feed will be a lucrative grade segment for the algae oil market through 2032, as a result of the escalating livestock production. Based on data from Eurostat, by 2021 end, there were 76 million bovine animals, 142 million pigs, and 71 million goats and sheep in the EU. Commercial algae species production can help replace a large demand for conventional crop-based animal feed protein since algae oil provides more nutritional value than grain feed and contains protein. The rise in livestock production will therefore augment the need for effective animal feed protein and consequently promote the industry expansion.
In terms of application, the algae oil market size from the food and beverage segment will amass considerable profits in the upcoming years, considering the strong focus on plant-based oil development. For instance, in March 2022, a team of scientists led by NTU (Nanyang Technological University), Singapore designed a method to effectively extract and produce plant-based oils from microalgae. This oil will become a greener and healthier alternative to edible palm oil, effective in lowering cholesterol levels and the risk of heart disease and stroke. Furthermore, the high popularity of omega-3 ingredients will fuel algae oil usage in foods and beverages.
Regionally, North America will become a key destination for algae oil developers by 2032, on account of the emphasis on the commercialization of biofuels. For instance, in January 2023, the U.S. DOE announced USD 118 million in funding to stimulate sustainable biofuel production to fulfill the transportation and manufacturing needs in America. Moreover, the introduction of new targets to curb carbon emission rates will present growth opportunities for algae oil manufacturers in the region.
The competitive landscape of the algae oil market is inclusive of DIC Corporation, Diversified Energy, Alltech, Algix, Cyanotech, Royal DSM, TerraVia Holdings, Seaweed Energy Solutions, Lonza Group, and Cargill. These companies are focusing on product range expansions and other initiatives to reinforce their presence in the global market.
For instance, in April 2022, Royal DSM broadened its range of algae-derived ingredients to offer customers plant-based omega-3 solutions with zero marine impact. This development of fish oil-derived alternatives will enable the company to increase its product portfolio and gain a competitive edge over rivals in the global market.
The Russia-Ukraine war led to distress in the environmental condition of Ukraine. As per the Turkish Marine Research Foundation, the war has resulted in the destruction of endangered red algae. It also has put climate measures on hold as Ukraine pledged as part of global climate actions.