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Algal Oil Market

Market Study on Algal Oil: Market Expanding with Growing Vegan Population Preferring Plant-based Products

Algal Oil Market Segmented By Food Grade, Feed Grade, Fuel Grade in Natural and Organic Nature

Algal Oil Market Outlook (2022-2032)

Between 2022 and 2032, the global algal oil market is expected to progress at a CAGR of 6.2% and increase from a market size of US$ 133.4 in 2022 to US$ 243.8 Mn by the end of 2032.

The top 6 manufacturers of algal oil in the world are Corbion, ALGISYS LLC, Archer Daniels Midland Company, Algalr NutraPharms Pvt. Ltd., Algarithm, and DSM; these companies currently enjoy a market share of 25%-35%.

Algal Oil Market Size (2022E)

US$ 133.4 Mn

Projected Sales of Algal Oil (2032F)

US$ 243.8 Mn

Value CAGR (2022-2032)

6.2%

Value Share of Top 5 Countries (2022A)

~35.5%

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Algal Oil Consumption Analysis (2017-2021) Vs. Market Projections (2022-2032)

Historically, from 2017-2021, the global market for algal oil registered a compounded annual growth rate (CAGR) of 5.1%.

Algal oil is made from some types of marine algae. Similar to fish oil, it is used as a source of omega-3 fatty acids. Two of the most important omega-3 fatty acids contained in algal oil are docosahexaenoic acid (DHA) and eicosapentaenoic acid (EPA).

Strong demand from the pharmaceutical sector will boost the prospects for algal oil suppliers. Consumption of algal oil will increase as the vegan population grows and biofuel production increases. As consumers recognize the necessity to preserve vitals and promote immunity, the product will see significant penetration across the dietary supplements market over the coming years.

Algal oil is used in enhancing vision in people with certain eye conditions as well as lowering cholesterol in the body. Also, algal oil has gained prominence in dietary supplements as it is primarily used as a specialty oil owing to its low saturated fat content.

Key other indirect factors that have fueled the market in recent years have been increasing health awareness, rising preference for nourishing vegetable sources, improvements in the standard of living, growing urban lifestyle, and rising disposable income.

Worldwide consumption of algal oil is expected to rise rapidly at a CAGR of 6.2% over the forecast period of 2022-2032.

algal-oil-market

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Why are Sales of Algal Oil Rising at a Fast Pace?

“Increasing Global Demand for Plant-based Ingredients”

Consumers are switching to plant-based diets as a result of the growing awareness about the negative effects of eating animal-based food, which include obesity, increase in bad cholesterol, and other health problems. Algal oil is one of the best substitutes for animal-based ingredients because it has an equivalent level of nutritional value.

Algal oil is preferred over other types of food owing to its ability to lower the risk of conditions such as diabetes, cardiovascular disease, cancer, and other illnesses. Consumers' increased awareness about what they consume is driving the expansion of the market for algae oil.

Algal oil is a good substitute for fish oil and other animal-based goods since it provides nearly the same nutritional value without endangering the environment or the animal lifecycle.

“Organic DHA Algal Oil Satisfying Consumer Demand for Dietary Supplements”

DHA is an omega-3 fatty acid that is necessary for brain development during pregnancy and early childhood. It has been related to enhanced heart health, eyesight, and lower inflammatory responses. This long-chain fatty acid is abundant in cell membranes throughout the body and aids in the transmission of signals between nerves.

DHA algal oil is utilized in a wide range of applications in different markets, including dietary supplements, pet nutrition, and functional foods. It is even added to consumers’ favorite meals to support weight management and sports nutrition. Moreover, this oil is incorporated in several beverages, foods, and supplements.

Consumers today are more health-conscious than they were a decade ago, and they strongly prefer products made of healthy and sustainable ingredients. These consumers authenticate the substances used in the offered food product alternatives. Growing demand for organic food, rising environmental & health consciousness, and increased industry investments in the marketing and production of organic food are all boding well for the expansion of the algal oil market.

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What’s Hurting Market Expansion to Some Extent?

“High Manufacturing Costs and Algal Oil Prices Slowing Market Growth”

Algal oil is one of the most expensive oils when compared to other types of fish oil. Algal oil is extracted from algae using state-of-the-art equipment, and the entire process–from growing the algae to harvesting the oil–is managed by a research and development team to produce better outcomes.

As an essential component in the manufacturing of algal oil, businesses must explore the entire world for high-quality and standardized algae strains. The whole process necessitates a significant financial commitment and a group of specialists with in-depth knowledge of high-quality algae for the production of algal oil, raising the cost of production and acting as a market restraint.

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Country-wise Insights

What Region Accounts for High Demand for Algal Oil?

The algal oil market in South Asia & Pacific countries is expected to grow at a CAGR of 7.9% during the forecast period (2022-2032).

Increasing demand for algal oil in the food & beverage sector in the region is being witnessed to provide support to the immune system and maintain general health. While customers in this region are not well aware of natural ingredient supplement characteristics, the region is seeing a growth in the popularity of algal oil products.

In the East Asian market, Japan is showing promising growth for the forecast period and is expected to register a high CAGR of 6%. The share of Japan in the East Asian algal oil market is around 12.6% and is currently valued at US$ 4.2 Mn.

Category-wise Insights

Why is Demand for Fuel Grade Algal Oil High?

Based on grade, fuel grade algal oil holds the largest market share; however, food grade algal oil is expected to see higher demand growth because of the high demand for clean-labeled algal oil products.

The market value share of the fuel-grade segment is 58.3% in 2022, which is projected to be valued at US$ 42.7 Mn by the end of the forecast period in the global market.

Which Applications of Algal Oil are Bringing in Higher Revenue Generating Opportunities?

Based on application, the global algal oil market is segmented into food and beverages, personal care and cosmetics, pharmaceuticals, animal feed, nutraceuticals, and biofuels.

The nutraceuticals segment holds a major value share in the global market at 31.7% in 2022. The current market value of the segment is US$ 42.2 Mn.

Competitive Dashboard

Companies engaged in the production and supply of algal oil are adopting product development and facility expansions as key strategies to create more space for themselves in the market. They are offering products with various certifications for consumers to choose from according to their preferences.

  • In May 2022, Progress Biotech unveiled its new product - EU Organic Certified high DHA algal oil - at the Vitafoods Expo-2022 in Geneva. The company is engaged in producing a full range of DHA algal oil products, striving for stability and sensory attributes that compete with other omega-3 supplements.
  • In November 2021, Huvepharma, a human and animal nutrition company based in Europe, entered into a large-scale joint venture with Huve Nutraceuticals and launched fermented algal oils / vegan omega-3 algal oils for animal nutrition, pet food, and human food applications.

Algal Oil Industry Report Scope

Attribute

Details

Forecast period

2022-2032

Historical data available for

2017-2021

Market analysis

USD Million for Value

Key regions covered

  • North America
  • Latin America
  • Europe
  • South Asia & Pacific
  • East Asia
  • The Middle East & Africa

Key countries covered

  • U.S.
  • Canada
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
  • Russia
  • China
  • Japan
  • South Korea
  • India
  • ASEAN
  • Australia
  • GCC Countries
  • South Africa

Key market segments covered

  • Grade
  • Nature
  • Application
  • Region

Key companies profiled

  • Archer Daniels Midland
  • Arizona Algal Products, LLC
  • AlgiSys LLC
  • Algalr NutraPharms Pvt. Ltd.
  • Corbion
  • Algarithm
  • Progress Biotech
  • DSM
  • Bioriginal Food & Science Corp.
  • Lyxia Corporation
  • Amandean. LLC.
  • Polaris
  • Inlife Care
  • Kauffman's
  • Meteoric Biopharmaceuticals Pvt. Ltd.
  • Mara Corp.
  • Fermentalg
  • Vegan Vitality
  • Solutex
  • Qponics Limited
  • Other Companies

Report coverage

  • Market Forecast
  • Company Share Analysis
  • Competition Intelligence
  • DROT Analysis
  • Market Dynamics and Challenges
  • Strategic Growth Initiatives

Customization & pricing

Available upon request

Algal Oil Industry Research Categorization

Algal Oil Market by Grade:

  • Food Grade Algal Oil
  • Feed Grade Algal Oil
  • Fuel Grade Algal Oil

Algal Oil Market by Nature:

  • Organic Algal Oil
  • Conventional Algal Oil

Algal Oil Market by Application:

  • Food and Beverages
  • Personal Care and Cosmetics
  • Pharmaceuticals
  • Animal Feed
  • Nutraceuticals
  • Biofuels

Algal Oil Market by Region:

  • North America Algal Oil Market
  • Latin America Algal Oil Market
  • Europe Algal Oil Market
  • South Asia & Pacific Algal Oil Market
  • East Asia Algal Oil Market
  • Middle East And Africa Algal Oil Market

- Companies Covered in This Report -

  • Archer Daniels Midland Company (ADM)
  • Royal DSM
  • Arizona Algal Products, LLC
  • AlgiSys LLC
  • Algalr NutraPharms Pvt. Ltd.
  • Corbion
  • Algarithm
  • Progress Biotech
  • Bioriginal Food & Science Corp.
  • Lyxia Corporation
  • Amandean. LLC.
  • Polaris
  • Inlife Care
  • Kauffman's
  • Meteoric Biopharmaceuticals Pvt. Ltd.
  • Mara Corp.
  • Fermentalg
  • Vegan Vitality
  • Solutex
  • Qponics Limited
  • Other Companies (on Additional Request)

- Frequently Asked Questions -

The global algal oil market is currently valued at US$ 133.4 Mn.

Over the 2017 to 2021 period, global demand for algal oil increased at 5.1% CAGR.

Worldwide sales of algal oil are projected to increase at 6.2% CAGR and reach US$ 243.8 Mn by 2032.

Key market trends include increasing utilization of plant-based ingredients, growing vegan population, and increase in demand for novel algae strains.

Corbion, ALGISYS LLC, Archer Daniels Midland Company, Algalr NutraPharms Pvt. Ltd., Algarithm, and DSM account for a market share of 25%-35%.

The U.K. accounts for the largest market share of nearly 30% in the European market.

The U.K., France, Indonesia, U.S., and China are major consumers of algal oil.

China accounts for a market value of US$ 24.3 Mn while South Korea is valued at US$ 4.2 Mn in 2022. 

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