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Single Cell Oil Market Size By Grade (Fuel grade, Feed grade, Food grade), By Micro-Organisms (Bacteria, Yeast, Microalgae, Fungal) By Raw Material (Sugarcane Mill, Agro-Industrial Waste), By Application (Bio-Fuel Feedstock, Fish Oil Substitute, Functional Oils, Animal Feed, Infant Formulae, Pharmaceutical Products, Aquaculture), Covid-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2023 – 2032
- Report ID: GMI5435
- Published Date: Feb 2023
- Report Format: PDF
Industry Drivers
Single Cell Oil Market size valued at USD 60 million in 2022 and is poised to grow at over 17.5% CAGR from 2023 to 2032. The rising demand for biofuels across the globe will drive the industry growth.
Supported by the global decarbonization efforts, the use of biofuels has increases rapidly across the transportation sector. According to the IRA, biofuels represented approximately 3.6% of the global transport energy demand, primarily for road transport in 2021. Under the Net Zero Scenario, contribution of biofuels to transport is likely to quadruple to 15% by 2030, amounting to almost one-fifth of the total fuel demand for road transport alone.
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However, experts opine that biofuel production needs to increase significantly for the world to stay on track with the 2050 Net Zero Emissions Scenario. As such, many world governments are rolling out supportive policies that favor higher production and better blends. Back in August 2021, the USDA invested over USD 26 million to expand the country’s biofuel infrastructure and strengthen the availability of higher-blend renewable fuels in over 23 states.
| Report Coverage | Details |
|---|---|
| Base Year: | 2022 |
| Market Size in 2022: | USD 60 Million |
| Forecast Period: | 2023 to 2032 |
| Forecast Period 2023 to 2032 CAGR: | 17.5% |
| 2032 Value Projection: | USD 670 Million |
| Historical Data for: | 2018 to 2021 |
| No. of Pages: | 390 |
| Tables, Charts & Figures: | 645 |
| Segments covered: | Grade, Micro-organisms, Raw materials, Application and Region |
| Growth Drivers: |
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| Pitfalls & Challenges: |
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High manufacturing costs may hamper the single cell oil market outlook
The high costs linked to the fermentative process of single cell oil adds to the production expenses, making product use a high-investment venture for entities transitioning to clean energy systems. The production of single cell oils (SCOs) is not economically competitive owing to the low productivity of several oleaginous microorganisms, making the process more expansive. In addition, solid-state fermentation process for single cell oil production also poses challenges such as difficulties in scaling up, controlling process parameters, and high costs for product recovery, which further limit growth prospects.
Higher inhibitory by-product tolerance to drive food grade segment share
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Based on grade, the single cell oil market valuation from the food segment is anticipated to surpass USD 380 million by 2032, owing to their higher tolerance to inhibitory by-products. The demand for food grade single cell oil is also increasing due to their growing use as a source of protein/amino acid, polyunsaturated fatty acid, omega-3 and omega-6, and bioactive molecules in dietary supplements as an enriched nutrient source for humans. The composition of food grade oil is similar to animal fats and vegetable oils and is preferred over plant and animal-derived oils as their production can easily be scaled.
Increasing adoption of SCOs as feed in aquaculture feed to spur application segment growth
| Bio-fuel Feedstock | 14% |
|---|---|
| Fish oil Substitute | 14.8% |
| Functional oils | 5% |
| Animal feed | 5.2% |
| Infant formulae | 17% |
| Pharmaceutical Products | 25.2% |
| Aquaculture | 18.9% |
| Total | 100% |
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In terms of application, the single cell oil market share from aquaculture segment is expected to witness 17% CAGR through 2032, impelled by the growing use of SCOs as feed in aquaculture due to their high nutritional content. SCOs are a potent source of protein/amino acid, omega-3, and bioactive molecules and are widely used in the diets of several farm-raised fish species, including rainbow trout and Atlantic salmon. The product’s use as fish feed helps the aquaculture sector augment its commercialization and profitability by boosting the fish growth.
High productivity of sugarcane mills to foster the raw material segment expansion
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The single cell oil market from sugarcane mill segment accounted for USD 50 million revenue in 2022. Sugarcanes, being low-cost carbon sources that contain high lipid concentrations, are predominantly used as raw material for single cell oil production. Sugarcane bagasse is also a potential source of biomass in terms of fermentable sugars.
Sugarcane molasses, when used as raw material for SCO production, deliver the flexibility needed to control growth as well as lipid accumulation by altering the feed flow rate of the carbon sources and also restricting nutrients inside the fermentation process. The material is also primarily used in bioprocessing to attain higher cell density and productivity of biomolecules at the time of growth.
Growth of key end-use sectors to strengthen the Europe market
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The Europe single cell oil market size will cross USD 300 million by 2032, on account of the growing pharma, automobile, and animal feed industries in the region. Excessive demand for livestock, solutions to rare and deadly diseases, and carbon-free transportation is promoting the use of SCO-based biodiesel, medicines, and animal feed. Subsequently, many governments are also making policy decisions that are beneficial to the market. Back in March 2022, the UK government announced its plans to increase investment in the country’s pharmaceutical sector, with a specific focus on R&D, to £20 billion (USD 24 billion) every year by 2024/25.
Product innovations to define the competitive landscape for the market
Some of the leading companies involved in the single cell oil market include DIC Corporation, Cargill Incorporated, Alltech, Goerlich Pharma GmbH, Cellana Inc., and Xiamen Huison Biotech Co., Ltd. Many of these companies are emphasizing product innovations to gain a competitive edge over other enterprises in the field.
Back in August 2021, DIC Lifetec Co., Ltd, a wholly-owned subsidiary of Japanese chemical firm, DIC Corporation, launched DHA ORIGINS-510. This strategic move helped the company expand its presence in the algae oil market while multiplying its revenue through product sales.
Impact of COVID-19 on single cell oil market trends
The COVID-19 pandemic asserted a negative impact on single cell oil industry on account of supply chain disruptions in pharmaceutical, aquaculture, and animal feed industries. However, the resumption of business operations and significant government support is likely to present opportunities for the sector to recover. In January 2023, the U.S. Department of Energy announced an investment of over USD 118 million in 17 projects aimed at accelerating the production of sustainable biofuels for America’s manufacturing and transportation requirements.
This single cell oil market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue in USD Million from 2018 to 2032 for the following segments:
Market, By Grade
- Fuel
- Feed
- Food
Market, By Micro-organisms
- Bacteria
- Yeast
- Microalgae
- Fungal
Market, By Raw Materials
- Sugarcane mill
- Agro-industrial waste
Market, By Application
- Bio-fuel Feedstock
- Fish oil Substitute
- Functional oils
- Animal feed
- Infant formulae
- Pharmaceutical Products
- Aquaculture
The above information has been provided for the following regions and countries:
- North America
- U.S.
- Canada
- Mexico
- Europe
- Germany
- UK
- France
- Italy
- Spain
- Russia
- Poland
- Netherlands
- Asia Pacific
- China
- India
- Japan
- South Korea
- Thailand
- Australia
- Malaysia
- Latin America
- Brazil
- Middle East & Africa
- Saudi Arabia
- UAE
- South Africa