Single Cell Oil Market Size, Share, Trends, Growth, and Forecasts for 2025 - 2032

Single Cell Oil Market Size and Trends Analysis

The global single cell oil market size is likely to be valued at US$ 68.5 Mn in 2025 and is estimated to reach US$ 101.0 Mn in 2032, growing at a CAGR of 5.7% during the forecast period 2025-2032. The single cell oil market growth is driven by expanding applications in biofuels, aquafeed, and functional foods, the rising demand for sustainable omega-3 sources, and advances in fermentation technology. Single Cell Oil (SCO) is emerging as an asset in the global lipid market, offering a sustainable alternative to conventional plant and marine oils.

Derived from oleaginous microorganisms such as algae, yeasts, fungi, and increasingly engineered bacteria, it delivers high-value fatty acid profiles to diverse sectors, including aquaculture, nutraceuticals, and biofuels. Key players are moving toward microbially derived lipids to future-proof their ingredient sourcing as regulatory pressures mount on deforestation-linked oils. With recent developments in precision fermentation and feedstock optimization, SCO is gaining commercial momentum.

Key Industry Highlights

• Functional food and beverage markets are adopting SCO for omega-enrichment and clean-label innovation.
• Integration of SCO in circular economy models, especially using agro-industrial waste, is gaining traction.
• Expanding vegan and allergen-free product segments are boosting demand for microbially derived oils.
• Filamentous fungi and yeasts are expected to lead as their tolerance to industrial stress conditions makes them ideal for large-scale fermentation.
• Food supplements are projected to hold nearly 32.7% share in 2025 due to increasing demand for plant-based infant nutrition and prenatal supplements worldwide.
• Europe is poised to witness rapid growth owing to strict sustainability policies that are compelling industries to adopt alternatives to fish and palm oils.

Global Market Attribute	Key Insights
Single Cell Oil Market Size (2025E)	US$ 68.5 Mn
Market Value Forecast (2032F)	US$ 101.0 Mn
Projected Growth (CAGR 2025 to 2032)	5.7%
Historical Market Growth (CAGR 2019 to 2024)	4.8%

Market Dynamics

Driver - Rising Biodiesel Demand Spurs Growth

Increasing demand for biodiesel is pushing the single cell oil market growth by highlighting the urgent requirement for sustainable, non-edible oil feedstocks that do not compete with food crops. Conventional biodiesel relies heavily on vegetable oils such as soybean, palm, and rapeseed, all of which are constrained by land availability, seasonal fluctuations, and environmental concerns. SCO derived from oleaginous microorganisms offers a renewable alternative, mainly when cultivated using industrial or agricultural waste streams.

Recent research from the Indian Institute of Technology (IIT) Guwahati in 2023 demonstrated a cost-effective SCO production method using waste glycerol from biodiesel plants as a carbon source. This creates a closed-loop system that addresses both feedstock cost and waste management. Similarly, in Thailand, National Science and Technology Development Agency (NSTDA) launched a pilot project using SCO derived from food waste to produce biodiesel fuel. It exhibited yield efficiencies of up to 70% lipid content per cell mass, which is comparable to palm oil.

Restraint - Substrate Variability and Microbial Origins Hamper Acceptance

Consumer acceptance and substrate dependence are two significant barriers hampering the widespread adoption of SCO, specifically in food and nutraceutical markets. From a consumer standpoint, skepticism arises due to the microbial origin of SCOs, mainly when derived from genetically modified microorganisms or industrial waste substrates. Substrate dependence adds another layer of complexity, especially in terms of economic viability.

SCO production is highly dependent on the type and cost of feedstock used for microbial fermentation. Lignocellulosic biomass, agricultural residues, or waste glycerol are theoretically considered attractive due to their low cost. In practice, they often contain inhibitory compounds such as furfural or phenolics, which reduce microbial lipid yields and require costly pre-treatment. In addition, the variability in waste-derived substrates leads to batch inconsistencies in oil composition, which is a key drawback for applications requiring precision lipid profiles.

Opportunity - Mixed Microbial Cultures Boost Innovation

Co-cultivation strategies involving multiple microorganisms are creating new opportunities for SCO by addressing key challenges such as low lipid yield, high production cost, and inefficient nutrient utilization. By combining organisms with complementary metabolic capabilities, researchers are achieving synergistic effects in lipid biosynthesis and biomass accumulation. These co-cultivation approaches also bolster downstream harvesting.

Filamentous fungi, when co-cultured with unicellular yeasts, can form biofilms or mycelial networks that aggregate dispersed microbial cells. It further facilitates easy biomass separation and reduces the requirement for energy-intensive centrifugation. Another advantage of co-cultivation is substrate flexibility as mixed cultures can utilize complex and heterogeneous feedstocks more efficiently.

Category-wise Analysis

Microorganism Insights

Based on microorganism, the market is trifurcated into filamentous fungi and yeasts, bacteria, and microalgae. Among these, filamentous fungi and yeasts are anticipated to hold nearly 56.2% share in 2025 owing to their naturally high lipid-accumulating capacities and adaptability to a wide range of industrial fermentation conditions. These organisms, including Yarrowia lipolytica, Rhodosporidium toruloides, and Mortierella alpina, are capable of converting low-cost substrates into lipids that are rich in desirable fatty acids. Their ability to tolerate stress conditions such as low pH and high substrate concentrations also gives them an edge over bacteria or microalgae.

Bacteria is gaining impetus in the field of SCO production due to their rapid growth rates, genetic malleability, and ability to thrive in extreme or nutrient-limited environments. These make them suitable for continuous, low-cost industrial processes. Recent innovations in metabolic engineering have allowed researchers to rewire bacterial pathways to enhance lipid biosynthesis. Another key driver is the bacteria's ability to utilize unconventional and inexpensive substrates, including industrial off-gases and agricultural waste.

Application Insights

Based on application, the market is segregated into food supplements, functional food, cosmetics, biodiesel, aquaculture, and others. Out of these, food supplements are predicted to account for around 32.7% of share in 2025, backed by the high concentration of long-chain Polyunsaturated Fatty Acids (PUFAs) that SCOs can deliver in a highly purified, vegan, and allergen-free form. It caters to the rising global demand for omega-3 supplements, especially as fish-derived sources face supply volatility, sustainability issues, and taste or odor concerns. The food supplement segment also provides high profit margins and low volume requirements compared to applications such as biodiesel or bulk food oils.

Cosmetics have become a significant application of SCOs owing to the rising demand for bio-based, non-comedogenic, and stable lipid ingredients that are free from allergens, animal derivatives, and palm oil. SCOs derived from oleaginous microalgae and fungi offer rich sources of Gamma-Linolenic Acid (GLA), oleic acid, and Docosahexaenoic Acid (DHA). These are known for their skin-repairing, anti-inflammatory, and anti-aging properties. These oils also have a lightweight texture and high oxidative stability, making them ideal for serums, moisturizers, and anti-aging formulations.

Regional Insights

Europe Single Cell Oil Market Trends

In 2025, Europe will likely account for approximately 45.3% of the single cell oil market share due to the region’s strict sustainability mandates and its push for marine biodiversity protection. The European Commission’s Farm to Fork Strategy and Blue Bioeconomy policy have positioned microbial oils as a viable alternative to fish oil and palm oil. France, the Netherlands, and Germany are at the forefront of commercial SCO adoption, specifically in food supplements, aquaculture feed, and specialty industrial applications.

France-based biotech firm Fermentalg is one of the most prominent players in the region. Of late, it secured new contracts with local aquafeed suppliers for its microalgae-derived DHA oils, targeting large-scale fish farms shifting away from conventional fish oil. The company also partnered with Suez Group to develop algae-based CO2-capturing systems, which co-produce high-value oils. In the U.K., start-ups such as Algoil Ltd. have emerged, focusing on SCO applications in vegan dairy and confectionery fats.

North America Single Cell Oil Market Trends

In North America, SCO is gaining commercial traction, primarily in the context of sustainable omega-3 production and plant-based nutrition. Companies such as Mara Renewables Corporation, headquartered in Canada, have scaled production significantly, with their algae-derived DHA being used in key infant formula brands and dietary supplements across the U.S. Another notable development is the increasing interest from animal feed manufacturers.

Cargill, for instance, has been investing in SCO as an alternative to fish oil for aquafeed. In collaboration with Calysta, Cargill has developed FeedKind, a single-cell protein and oil platform. It is being positioned as a sustainable feed input for aquaculture in the U.S. and Canada. The U.S. single cell oil market is witnessing the entry of various biotech start-ups with niche applications. Checkerspot, for example, extended its algae fermentation facility in Salt Lake City to produce high-performance oils for cosmetic and industrial uses.

Asia Pacific Single Cell Oil Market Trends

Asia Pacific is being propelled by rising demand for sustainable aquafeed, nutritional supplements, and infant formula ingredients. China, India, and Japan are key growth hubs, with increasing industrial investments in microbial oil fermentation technologies. In China, SCO production is being scaled up primarily for aquaculture, spurred by the country’s booming fish farming industry. Tianjin Norland Biotech and Wuhan Healthdream Biological Technology are among the domestic firms developing DHA-rich SCOs to reduce reliance on volatile fish oil imports.

India presents a slightly different scenario, where SCO is emerging as part of the nutraceuticals and functional foods boom. Domestic players, including Avesthagen and String Bio, have started developing SCO platforms using waste-to-value fermentation processes. India’s large vegetarian population and regulatory push for clean-label, plant-based nutrition are further creating demand for algae-derived oils in vegan health supplements and baby food formulations. In Japan and South Korea, the emphasis is more on high-purity SCOs for cosmetics, pharmaceuticals, and specialized nutrition.

Competitive Landscape

The global single cell oil market is characterized by a limited number of specialized biotechnology firms, with competition boosted by technological capabilities and intellectual property. Key players have invested in microbial strain development, fermentation optimization, and downstream processing. They are focusing on SCOs derived from algae, fungi, and yeast for applications in infant nutrition, dietary supplements, animal feed, and biofuels. A significant differentiator is the microorganism strain portfolio and proprietary cultivation methods used. In addition, barriers to entry remain high due to the capital-intensive nature of fermentation infrastructure and strict regulatory pathways for food and nutraceutical applications.

Key Industry Developments

• In May 2025, researchers at Nanjing Medical University and Sir Run Run Shaw Hospital in China introduced a one-step droplet-in-oil digestion method for single-cell proteomics. By encapsulating individual cells in a water-in-oil droplet using solvents such as cyclohexane or n?heptane, the process drastically reduces sample loss and evaporation.
• In March 2025, researchers at the RMIT University, RMIT Vietnam, and Nguyen Tat Thanh University examined oleaginous yeasts as efficient producers of SCO. They found that the engineering of yeast strains substantially improved SCO production, strengthening its commercial viability.

Companies Covered in Single Cell Oil Market

• DSM-Firmenich
• Cellana, Inc.
• ALGATECH Center
• Corbion N.V.
• DIC Corporation
• ALGENOL
• Algaecytes Limited
• Henry Lamotte Oils
• Chevron Corporation
• Bioriginal Food & Science Corp.
• Others