Algae Oil Market - By Source (Red Algae, Green Algae, Brown Algae, Others), By Application (Dietary supplements, Food & Beverages, Animal Feed, Biofuel, Others) & Forecast, 2023 – 2032

Algae Oil Market Size

Algae Oil Market was valued at around USD 4.9 billion in 2022 and is estimated to register a CAGR of over 5.8% between 2023 and 2032. Increasing concerns about environmental sustainability and the depletion of traditional fossil fuels have led to a growing interest in alternative and renewable sources of energy and products. Algae oil is considered a sustainable and renewable resource, which drives its demand. Algae oil is rich in omega-3 fatty acids and other nutrients, making it valuable for use in dietary supplements, functional foods, and nutraceuticals. Growing health-conscious consumer preferences have driven demand in this sector.
 

Algae oil is used as a feedstock for the production of biofuels, particularly biodiesel and biojet fuel. As governments and industries seek to reduce greenhouse gas emissions and dependence on fossil fuels, the demand for algae-based biofuels has increased.

One of the major challenges in algae oil production is the relatively high cost compared to traditional vegetable oils or fossil fuels. Identifying and developing algae strains with high oil content and desirable traits is essential. Managing a complex supply chain from algae cultivation to end-product manufacturing can be challenging. Thus, the risks associated with algae oil may drive down the acceptance rate, further hampering the business growth.
 

COVID-19 Impact

The pandemic led to disruptions in supply chains, affecting the availability of raw materials, nutrients, and equipment required for algae cultivation and processing. These disruptions affected the production of algae oil. Thus, the reduced number of COVID-19 cases and implementation of subsequent strategies by government and non-government organizations is anticipated to drive the industry growth in the upcoming years.
 

Algae Oil Market Trends

There is a growing consumer and industry demand for sustainable and eco-friendly ingredients. Algae oil is considered a sustainable source of oils and fats, making it increasingly attractive to industries such as food, cosmetics, and biofuels. Algae oil, rich in omega-3 fatty acids and other nutrients, is being used in an increasing number of food and nutraceutical products. It's incorporated into dietary supplements, functional foods, and beverages due to its potential health benefits. Algae oil continues to be a significant feedstock for the production of biofuels, including biodiesel and bio jet fuel.
 

Algae Oil Market Analysis

Based on source, the market is segmented as red algae, green algae, brown algae, others. Green algae held a majority market value of USD 1.4 billion in 2022. Some green algae species, such as chlorella and butyraceous baruni, have relatively high oil content, making them attractive sources for oil extraction. The potential to produce biofuels, including biodiesel and bio jet fuels, from green algae is a significant demand driver. Green algae are considered promising feedstock for renewable energy due to their high lipid content and fast growth rates.
 

Based on application, the algae oil market is segmented as dietary supplements, food & beverages {bakery & confectionery, protein drinks, breakfast cereals, snacks, others}, animal feed {poultry [broiler, layer, turkey, others], swine [starter, grower, sow], cattle [dairy, calf], aquaculture [salmon, trout, shrimp, carp], petfood [dogs, cats, birds, fish]}, biofuel, others. Dietary supplements held a dominant market share of around 40% in 2022 and is expected to grow at a lucrative pace till 2032. Consumers are increasingly focused on health and wellness, seeking natural and nutrient-rich sources for dietary supplements and functional foods.
 

U.S. dominated the North American region with majority market share and a revenue of USD 1.1 billion in 2022 and is anticipated to expand at a significant pace from 2023-2032. North America places a strong emphasis on reducing greenhouse gas emissions and promoting renewable energy sources. As a result, there is growing demand for algae-based biofuels, including biodiesel and biojet fuels, which are considered more sustainable alternatives to fossil fuels.
 

Algae Oil Market Share 

Some of the major market players operating in the Algae oil industry are:

• Algaetech International Sdn Bhd
• Corbion
• Cellana
• DIC Corporation
• Sapphire Energy
• TerraVia Holdings (formerly Solazyme)
• Algix
• Heliae Development LLC
• Pond Technologies Inc.
• Algenuity
• Qualitas Health
• Alltech
• Algama
• Enerkem
• Triton Algae Innovations

These players focus on strategic partnerships, new product launch & commercialization for market expansion. Furthermore, these players are heavily investing in research that allows them to introduce innovative products and garner maximum revenue in the market.
 

Algae Oil Industry News:

• In May 2021, In July 2019, Veramaris opened its algal oil facility in Nebraska with an investment of US$ 200 million, allowing it for commercial scale production of algal oil for use in aquaculture feed.
   
• In October 2018, the U.S. Department of Energy funded the University of Michigan to develop algae as an efficient biofuel source for diesel engines.
   

Algae oil market research report includes an in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million & Kilo Tons from 2018 to 2032, for the following segments:

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By Source

• Red Algae
• Green Algae
• Brown Algae
• Others

By Application

• Dietary supplements
• Food & Beverages
  • Bakery & Confectionery
  • Protein Drinks
  • Breakfast cereals
  • Snacks
  • Others
• Animal Feed
  • Poultry
    • Broiler
    • Layer
    • Turkey
    • Others
  • Swine
    • Starter
    • Grower
    • Sow
  • Cattle
    • Dairy
    • Calf
  • Aquaculture
    • Salmon
    • Trout
    • Shrimp
    • Carp
  • Petfood
    • Dogs
    • Cats
    • Birds
    • Fish
• Biofuel
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • UK
  • France
  • Spain
  • Italy
• Asia Pacific
  • China
  • Japan
  • India
  • Australia
  • South Korea
  • Indonesia
  • Malaysia 
• Latin America
  • Brazil
  • Mexico
  • Argentina
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Egypt