Market Overview
Report on Global Algae Oil by DataM Intelligence estimates the market to grow at a CAGR of 4.5% during the forecast period 2024-2031. Algae Oil usage in Dietary Supplements, Personal Care, Food & Beverages, Biofuels, and Pharmaceuticals is on the rise. Demand from fuel industries in North America is booming. The competitive rivalry intensifies with ExxonMobil, TerraVia Holdings Inc, Cyanotech Corporation and others operating in the market.
Algae are tiny microscopic protists generally found in aquatic habitats such as lakes, oceans, rivers, ponds, and snow. Algae oil is a certain kind of oil extracted and refined from aquatic algae. The algae offering algal oil can be found in fresh, marine, and brackish water. These algae oils are the potential source of omega 3 fatty acids and DHA (docosahexaenoic acid). Out of algae's mentioned habitat, marine algae is extracted the most for the synthesis of algal oil followed by refinement and then directly ready to use.
The DHA present in algae oil accounts for nearly 97% of omega 3 in the human brain, cerebral cortex, and retina. The product is majorly added to food items, supplements, and beverages. Algae oil is also in great popularity due to its low saturated fat content. The oil focuses on offering various nutritional and health benefits such as reducing cholesterol and improving eyesight and memory.
However, to achieve the best results from the algae, specific parameters are required for the Protista's growth, such as specific temperature & humidity conditions coupled with ambient pH and other external parameters for product cultivation and harvesting. It turned out to be a manner of concern for the market growth of the product.
Market Scope
| Metrics | Details |
| Market CAGR | 4.5% |
| Segments Covered | By Grade, By Application and By Region |
| Report Insights Covered | Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights. |
| Fastest Growing Region | Asia Pacific |
| Largest Market Share | North America |
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Market Dynamics
The global algae oil market is driven by associated health benefits with the algal oil involving high protein, antioxidants, and phycocyanin excellent percentage of DHA and omega 3 boosted the demand of the product in food & beverages industries. The increasing shift of the population towards sustainable energy sources has uplifted algae oil's market to produce biofuel, offering a low carbon footprint at a much cheaper cost. Algae oil is gaining popularity in the animal feed sector as it provides high nutritional value compared to grain feed.
Associated health benefits with the algal oil involving high protein, antioxidants, and phycocyanin coupled with the excellent percentage of DHA and omega 3 boosted the demand for the product in the food & beverages industries
The algae oil market is majorly driven by growing demand in the food & beverage and dietary supplements industry due to its increasing use as omega 3 fatty acid, protein, antioxidants, phycocyanin, and others. The improving popularity of natural products in the dietary supplements industry has accelerated the need for health supplements sourced from plants and is expected to show the forecast period trajectorial growth.
Algae oil becomes the preferred choice in the food industry as a speciality oil due to its low saturated and trans fats content, making it a healthy option for the consumer. For instance, in June 2019, ADM came up with a new line of Onavita Algal DHA and Almega EPA blend available via collaboration with Qualitas Health, a leading algae cultivation organization. ADM is providing three different blends of EPA/DHA containing omega-3, 6, and 9. The product benefits consumers suffering from heart, immune system, eye health, and conjecture disorder.
The increasing shift of the population towards sustainable energy sources has uplifted the market of algae oil for biofuel production, offering a low carbon footprint at a much cheaper cost
Growing government concerns and stringent regulatory norms towards adopting eco-friendly and sustainable products are more likely to boost the market of algae oil in the energy sector, where it is used to produce biofuel. Currently, biofuel is estimated to be the largest application segment for algae oil and is projected to gain a significant market share on account of its growing use as a sustainable fule in the forecast period.
Biofuel is an alternative renewable fuel in blending biodiesel, jet fuel, gasoline, and others. Biofuel is used in recent times for its low carbon footprint, and hence consumption of algae oil is increasing concerning its contribution to manufacturing biofuel. Environmental-friendliness and low-sulfur emitting fuel production methods add value to biofuel's growth and demand, directly triggering the algae fuel market in the forthcoming period.
For instance, companies like Algenol, Sapphirine Energy, and Solazyme raised hundreds of millions of dollars since the last decade in private sector investment to produce tens of millions of gallons of decent matter years at a competitive price with fossil fuel.
Increasing investment by economically stable countries with the growing competition with fossil fuel coupled with high production cost and required ambient conditions is the biggest challenge hampering algae oil growth in recent times
The advantage of algae oil is growing with growing advancements in technology, and the market is expected to show the highest in coming years. However, the growth of algae oil comes with a large set of disappointments that hamper the product's global development in recent times. Despite spending large amounts by the economically stable countries in the developing conversion process and achieving its ambitious goals, as compared to fossil fuel, the output in terms of revenue is turned to show a significant downfall compared to the companies' investments.
In terms of cost, oil prices declined between 2008 to 2014; however, it didn't help the biofuel competitors due to low market value. Thus growing market of competitors has severely impacted the growth of the algae oil market in recent times. Also, specific conditions required for the development of algae are another factor challenging the market's growth. High production costs and considerable area required for its production may restrain the forecast period's algae oil market.
COVID-19 Impact Analysis
The global algae oil market has shown a slight decline due to the COVID-19 pandemic, as several manufacturing plants were shut for months. Further several countries have restricted production activities during the covid-19 pandemic. The major lockdown due to the COVID-19 outbreak leads to suddenly dropping down consumers' interest towards purchasing any goods, and halt in transportation sectors has severely hampered the business of the algae oil market due to disruption in the product's supply chain management. The majority of businesses are shut down, and operations across several end-users of algae oil market products are also compromised, thus dropping its global demand in 2020.
Market Segmentation Analysis
The global algae oil market is segmented based on grade, application, and region.
Increasing demand for several proteins and micronutrients as the primary ingredient for animal feed and associated various health-related benefits for animal
In terms of application, the global algae oil market is bifurcated into food & beverages, dietary supplements, personal care, animal feed, pharmaceutical, biofuels, others. Animal feed and dietary supplements are more likely to build the algae oil market in the forecast period due to the increasing demand for several proteins and micronutrients as the primary ingredients for animal feed in the past few years.
Supplements containing omega 3 are reported to improve the reproductive efficiency of dairy cattle by inhibiting other hormones. Besides animal feed, supplements also help improve fertility and embryo survival and add various health-related benefits for animals. It helps to grow the segment's market in the forecast period.
Escalating growth in the food industry and increasing health conciseness create immense opportunities for the algae oil in the food & beverage application, thus growing the segment's market at the fastest rate in coming years.
Market Geographical Share
Increasing investment and adoption of biofuel as the primary fuel and use of advanced cultivation and harvesting technology to provide a high quality of algae oil by the North American region
North America is expected to grow the algae oil market at the fastest rate in the timespan mentioned above due to increasing investment and biofuel's adoption as the primary fuel in the U.S., thus increasing application scope for the segment. Adopting the most recent technology and using advanced cultivation and harvesting technology to provide high-quality algae oil as per the fuel industry's requirement is accelerating algae oil's global market in recent times.
Also, various companies established in North America focusing on algae oil are carrying out awareness regarding the new sustainable technology and adoption of algae oil as a superfood. On the other side, Asia-Pacific holds the second position for the algae oil market and is expected to show significant market growth during the conjecture period. The improving government support towards investment in the production of algae oil and promotion for adopting the associated product creates immense opportunities for the market to proliferate in the coming tenure.
Market Companies and Competitive Landscape
The algae oil market is highly competitive with the presence of local as well as global companies. Some of the key players contributing to the market's growth include Bioprocess Algae LLC, TerraVia Holdings Inc, Sapphire Energy, Algenol, Cellana, Heliae Development, LLC, Seaweed Energy Solutions A/S, Cyanotech Corporation, ExxonMobil, Algix, LLC and among others.
The major players are adopting several growth strategies such as product launches, acquisitions, and collaborations, contributing to the growth of the algae oil market globally. The key players are favouring the launching of new products as the growth strategy for building revenue.
In June 2019, ADM came up with a new line of Onavita Algal DHA and Almega EPA blend available via collaboration with Qualitas Health, a leading algae cultivation organization. ADM is providing three different blends of EPA/DHA containing omega-3, 6, and 9. The product benefits consumers suffering from heart, immune system, eye health, and conjecture disorder
ExxonMobil
Overview: ExxonMobil is the world's leading publicly-traded energy provider and chemical manufacture company, which develops and applies nest-generation technology to safely and responsibly fulfil the growing need for energy and high-chemical products across the globe. The company is 35 years and currently settling in the U.S., targeting different parts of the world
Product Portfolio: The company has a product portfolio of algae oil that includes:
- Advanced Biofuel: Various scientists in ExxonMobil are working to bring an advanced solution by transforming algae and plant waste into biofuel to be used for daily transportation. These refined fuels have the potential to achieve significant greenhouse gas reduction compared to today's transportation fuels. ExxonMobil and Synthetic Genomics Ins are working together on similar projects to identify and enhance algae strains capable of high lipid production while maintaining desirable growth rates
Key Development:
- In September 2018, ExxonMobil announced the extension project details of its algae oil production capability, targeting production units of 10,000 barrels of oil by 2025
Why Purchase the Report?
- Visualize the algae oil market segmentation by grade, application and highlight key commercial assets and players.
- Identify commercial opportunities in the algae oil market by analyzing trends and co-development deals.
- Excel data sheet with thousands of data points of algae oil market-level 4/5 segmentation.
- PDF report with the most relevant analysis cogently put together after exhaustive qualitative interviews and in-depth market study.
- Product mapping in excel for the key product of all major market players
The global algae oil market report would provide access to an approx: 53 market data table, 48 figures, and 180 pages.
Target Audience 2024
- Service Providers/ Buyers
- Industry Investors/Investment Bankers
- Education & Research Institutes
- Research Professionals
- Emerging Companies
- Manufacturers
