As per a study conducted on algal oil by Persistence Market Research, Europe dominates the market for with over 27.2% value share in 2021. Biofuels and nutraceuticals together account for more than 57% share in the global market, mainly due to increased acceptability of algae-based products among consumers.
Overall, the market for algal oil is worth US$ 124.9 Mn, and is projected to reach a valuation of US$ 230.5 Mn by 2031. Highest growth potential is depicted by feed grade algal oil, which is projected to register a CAGR at 6.9% over the forecast period of 2021 to 2031.
Find Out More about the Report Coverage
- Archer Daniels Midland
- Arizona Algal Products,LLC
- AlgiSys LLC
- Algalr NutraPharms Pvt. Ltd.
- Progress Biotech
- Bioriginal Food & Science Corp.
- Lyxia Corporation
- Amandean. LLC.
- Inlife Care
- Meteoric Biopharmaceuticals Pvt. Ltd.
- Mara Corp.
- Vegan Vitality
- Qponics Limited
- Others (on Request)
Key Points Covered in Algal Oil Industry Research:
- Market estimates and forecast 2016-2031
- Key drivers and restraints impacting market growth
- Segment-wise, country-wise, and region-wise analysis
- Competition mapping and benchmarking
- Brand share and market share analysis
- Key product innovations and regulatory climate
- Covid-19 impact on algal oil sales and how to navigate
- Recommendation on key winning strategies
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2016-2020 Algal Oil Market Analysis Compared to 2021-2031 Forecasts
Over 2016-2020, the global market for algal oil increased at a rate of 4.6%. Major market driver for algal oil is increased application of algae and algae-derived products in nutraceuticals.
The ever-growing population calls for innovative energy solutions that are sustainable along with lower carbon footprint. Biodiesel derived from algae is an ideal choice in such a scenario, and hence, algal oil’s application in biofuels is increasing rapidly.
Moreover, major utilization of algal oil is found in marketplaces across East Asia, Europe, and North America. The East Asia Market is valued at US$ 31.9 Mn and is anticipated to register a CAGR of 5.5% by 2031. China accounts for major utilization of algal oil in the East Asia market with a value of US$ 23 Mn in 2021.
Highest share is held by fuel grade algal oil, which is anticipates to reach US$ 132.1 Mn by 2031 at a CAGR 6.1%.
The Europe market for algal oil is valued at US$ 33.9 Mn and is set to register growth at a CAGR 5.6% over the forecast period. Use of algal oil for cosmetics & personal care applications is observed more in this geography, and also with time, market value in cosmetics & personal care is expected to increase at a CAGR of 7%.
Market Research Methodology - Perfected through Years of Diligence
A key factor for our unrivaled market research accuracy is our expert- and data-driven research methodologies. We combine an eclectic mix of experience, analytics, machine learning, and data science to develop research methodologies that result in a multi-dimensional, yet realistic analysis of a market.
Will Increasing Awareness about Algae-based Products and Pesticide-free Extracts Drive Demand for Algal Oil?
With increasing awareness about disturbed aqua-culture and the environment, consumers are shifting toward sustainable alternatives. Keeping sustainability and aqua-culture in consideration, leading companies came up with oil that has high nutritional content and is extracted from natural photosynthetic algae. It is non-GMO, vegan, and a suitable alternative to krill and fish oil.
Increasing concerns for the environment is a key reason that is contributing to the growth of algae-based products, as algae can be obtained from various locations and the process of cultivation till gaining the final product is free from harmful chemicals. Thus, the final product is natural and healthier for consumption, for both humans as well as animals. This is a cogent reason for the increasing utilization of algal oil in animal feed applications.
- Arizona Algae manufactures EPA and protein powder from natural photosynthetic algae, which is non-GMO and cruelty-free, meaning no animal is harmed during in the process of extraction.
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Is the Evolving Need for Innovative Products Augmenting Sales of Algal Oil?
With time, consumers are shifting their preference when it comes to functional dietary supplements. Considering consumer preference, companies are evolving their algal oil products for better digestion, high nutritional value, and lesser side-effects.
Many manufacturing companies are introducing algal oil that is odorless, flavorless, and has other properties, making it applicable to be used in various applications such as in manufacturing gummies, emulsions, food service industries, and others. Such innovations can greatly help manufacturers expand their market stance across various regions.
- Corbian is focusing on lactic acid & specialties and has decided to build a new lactic acid plant for manufacturing algal oil. Moreover, this will help the company become a technology leader in its segment.
- Progress Biotech and other leading companies are introducing distinctive innovative algal oil properties for its use in various applications.
Why is There Increased Application of Algal Oil across Various Industries?
Algae possess different properties and chemical structures, which has led manufacturers to extract algal oil that can be used in various industrial applications. As a result, algal oil manufacturers are keenly searching for high-quality algae strains that possess high nutritional value and meet the standards and requirements of their customers.
Algal oil is used for a variety of applications in pharmaceutical industries, supplements, food industry, and others. In addition, it is used for manufacturing gummies, chewable, and direct-intake emulsions.
The pharmaceutical industry uses algal oil as a functional product as it has high nutritional value, which helps in maintaining healthy eyesight, strong cardiovascular system, and is also used in dietary supplements, which can be consumed by people of various age groups, from young toddlers to adults.
Is Increasing Demand for Renewable Fuel Bringing in Market Growth Opportunities?
With rise in automation and industrialization, consumption of fuel has increased at a rapid rate. To cater to this requirement, companies are starting to utilize algae oil as an alternative fuel source as it possesses similar properties to that of fossil fuels.
Also, with depletion of fossil fuels such as petrol, diesel, and others, companies are working toward alternative fuels to fulfil the demand for energy, and algal oil is considered as a preferred alternative as it can be cultivated anywhere with a requirement of space, water, sunlight. Algae extracted biofuel has low CO2 emissions, thereby creating a healthy prospect for lowering carbon footprint.
Moreover, algae extracted biofuel has a higher octane number, which helps in better consumption of fuel and for generating comparative power as fossil fuels. This has led manufacturers of algal oil to evolve their algae-derived oil and work on innovative techniques to increase their production capacity, so as to meet the standards of the commercial market.
- Algenol, an industrial biotechnology company, has developed and is commercializing its patented algal oil technology for the production of ethanol and other fuels.
Will High Manufacturing Cost of Algal Oil Slow Down Market Growth?
Algal oil is among the most expensive oils as compared to any other fish oil. The whole process of extracting algal oil from algae is done with the help of cutting-edge technology, while the whole process of planting till extraction is done under the supervision of a research & development team to gain better results according to requirements.
Companies have to go global in search of high-quality and standard algae strains, as they are key ingredients for manufacturing algal oil. The whole process requires huge investments and a team of experts having a high understanding of quality algae, which increases the cost of production and acts as a retrain to the market.
Why Does the U.K. Account for the Largest Share in Europe?
The U.K. is estimated to hold a share of 30.2% in the European marketplace. This is because the country is increasingly utilizing algae and algae-based products, and had the highest imports of algae fit for human consumption in 2019, according to CBI, Ministry of Foreign Affairs.
This is further backed by the growing population of vegans in this geography, which is highest as compared with other countries in the region and globally as well. The population is showing no sign of decrease, and such rates in the long-term may also benefit market growth across various application industries.
Which Country Holds the Largest Algal Oil Industry Share in East Asia?
In the East Asia market, the largest share is accounted for by China because the consumption of algae-based products and also production of algae is comparatively more in this part of East Asia. This is due to the traditional and customary culinary importance of algae as a functional food and importance in numerous medical practices.
China dominated the East Asia market for algal oil with an approximate share of 72.2%. Japan and South Korea are among the countries that have the highest growth potential for algal oil, expected to register value growth at CAGRs of 6.1% and 5.8% over the forecast period.
What Type of Algal Oil is among the Most Utilized for Various Industrial Applications?
The global market is dominated by conventional algal oil having a value share of more than 90%. This is because the cost of production of organic algal oil is higher than that of conventional oil, and this greatly impacts the overall cost of end products such as supplements, biofuel, etc.
But with time and an increase in demand for organic supplements, organic algal oil is estimated to depict a higher value growth at a CAGR 7.2%& over the decade.
How is Rapidly Growing Animal Feed Industry Bringing in New Opportunities for Algal Oil Suppliers?
Algal oil has applications in animal feed as well and it can be used up to a certain prescribed volume to enhance the functional properties of the feed. It is being increasingly adopted for such applications by several livestock and aquaculture producers.
Algal oil for animal feed is estimated to be worth US$ 10.7 Mn in 2021, and is expected to register growth at a CAGR 7.2% over the forecast period.
What is the Impact of COVID-19 on Algal Oil Demand?
COVID-19 has had certain repercussions on the global market for algal oil. Lockdowns imposed worldwide to control the spread of this virus had some serious implications on the growth of the overall market. Algal oil is extracted from unique strains of algae sourced globally for innovation & development of the algae oil and its byproducts.
As the pandemic spread, it affected the supply chain, which directly impacted research & development activities to source new and innovative strains of algae to research upon. But as COVID-19 restrictions are being lessened, the market is set to rise more than its original pace, as people are getting more conscious about their health and eating habits and are shifting toward alternatives of fish oil and animal-based oil.
In such a scenario, algal oil has an overall benefit as it is completely plant-based and companies are introducing their algae oil certified as non-GMO, vegan, halal, Kosher, and others.
Manufacturers of algal oil are emphasizing on mergers and acquisitions. This is also helping companies in providing products according to demand in various regional markets.
Looking at the growing demand, producers are also increasing their production capacities accordingly. Moreover, research & development activities are always ongoing in the market.
- ALGISYS LLC has developed its strain of algae, which comprises approximately 40% protein after oil drying and extraction, and would be more preferred in health supplements or healthcare products.
- In 2021, Corbion, is a market leader in Europe, expanded its footprints in the U.S. by acquiring Granolife of Mexico City. Granolife is known for its functional blends for fortification industries and Mexican bakeries.
Algal Oil Industry Report Scope
Historical data available for
USD million for value
Key regions covered
Key countries covered
Key market segments covered
Key companies profiled
Customization & pricing
Available upon request
Algal Oil Industry Research by Category
- Organic Algal Oil
- Conventional Algal Oil
- Food Grade Algal Oil
- Feed Grade Algal Oil
- Fuel Grade Algal Oil
- Food & Beverage industry
- Personal Care & Cosmetics
- Animal Feed
FAQs Answered in Study
- How much is the global algal oil market valued at currently?
The global algal oil market is currently valued at around US$ 125 Mn.
- What is main factor driving demand for algal oil?
Market drivers include increasing awareness for algae products and pesticides-free extracts, high nutritional content of algal oil, consumers opting for innovative products, and depletion of fossil fuel.
- At what CAGR did demand for algal oil increase over the past 5 years?
From 2016 to 2020, demand for algal oil increased at a CAGR of 4.6%.
- What will be the demand outlook for algal oil through 2031?
Sales of algal oil are projected to increase at 6.3% CAGR and be valued at over US$ 230 Mn by 2031.
- What are the key trends being witnessed in this marketplace?
Key market trends include functional benefits of algal oil, increased plant-based ingredient utilization, customer preference for low carbon footprint and sustainable consumption, and rise in demand for innovative algae strains.
- What is the market share of the top 5 manufacturers of algal oil?
Top 5 players in the market include Archer Daniels Midland Company, Corbion, DSM, Kauffmans, and Frementalg, with a market share of 20%-30%.
- At what rate is the market registering growth in European countries?
The U.K. has the largest market share of 30.2% while BENELUX is slated to progress at the highest CAGR value of 8.1%.
- Which are the top 5 countries driving most of the demand for algal oil?
China, the U.K., France, U.S., and Indonesia are major demand centers for algal oil.
- Which countries are key producers of algal oil?
China, Korea, Japan, and the U.S. are key producers of algal oil.
- Which nations are major exporters of algal oil?
China and S. Korea are key exporting countries of algal oil.
- How is the algal oil market faring in Japan and South Korea?
Japan has a market value of US$ 4 Mn and is expected to expand at a value CAGR of 6.1%, whereas, South Korea is worth US$ 4.9 Mn and is set to experience a CAGR of 5.8% through 2031.
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