Algae Omega 3 Market Size, Share, Industry, Forecast and outlook (2024-2031)

Algae Omega 3 Market Size

The Global Algae Omega 3 Market reached US$ 1.2 billion in 2022 and is expected to reach US$ 1.7 billion by 2030 and is expected to grow with a CAGR of 4.5% during the forecast period 2024-2031. The algae omega-3 market is witnessing a surge in demand due to the rising popularity of plant-based and sustainable sources of omega-3 fatty acids. Algaecytes is a company that produces algae omega-3 products from a type of algae called Schizochytrium, which is grown in closed-loop systems.

The algal omega-3 market is quickly expanding, driven by rising demand for sustainable and plant-based omega-3 fatty acid sources. Because algae are naturally rich in omega-3s, it has acquired a popularity for their dual usage as an alternative and sustainable source of biofuels and for the production of omega-3 supplements and food additives for human consumption. Furthermore, the addition of algae-derived omega-3s to animal and fish feed helps to market growth.

Nowadays consumers are shifting towards sustainable and eco-friendly ingredients in food and supplements. Algae oil, on the other hand, can be generated in a more environmentally friendly manner. Growing algae in controlled areas decreases the risk of overfishing and habitat degradation. Furthermore, algae oil can be generated closer to processing plants, lowering transportation emissions.

Market Summary

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Market Dynamics

Algae-Derived Omega-3s are Driving Market Growth as a Potent Shield Against Chronic Diseases and a Path to Preventive Health

Chronic diseases and conditions are the most common and costly health problems worldwide. Chronic diseases affect approximately 50% of adults in the U.S. and account for 60% of deaths worldwide. Many of these diseases are preventable by healthy lifestyle choices including good nutrition. For instance, increased consumption of algae-derived omega-3s improves rheumatoid arthritis, vision, neurodegenerative diseases, cardiovascular function, recovery from traumatic brain injury, and fetal growth and development. 

Algae-derived omega-3 fatty acids confer health benefits by serving as critical components for proper membrane fluidity and by acting as anti-inflammatory mediators. The recognition of omega-3’s health benefits is simplified by the recent FDA allowance of the food claim: "Consuming omega-3s may reduce the risk of heart disease. The need to increase human omega-3 fatty acid consumption through regular intake of fish and seafood is recognized and recommended by many national and international organizations and agencies.

Growing Demand for Sustainable Plant-Based Nutrition Drives Industry Growth and Innovation in the Algae Omega-3 Market

The algae omega-3 market trend is driven by the increasing demand for sustainable and plant-based sources of omega-3 fatty acids. Algae, being naturally rich in omega-3s, has gained prominence due to its dual applications – as an alternative and renewable source for biofuels and for producing omega-3 supplements and food additives for human consumption.

Moreover, the extension of algae-derived omega-3s to animal and fish feed enhances their nutritional value, serving as an additional means of human dietary supplementation. In addition to the sustainable appeal of algae-derived omega-3s, the algae industry's scalability, and potential for large-scale cultivation have also contributed to its growth. This has attracted investments and research in optimizing algae production methods for greater yield and cost-effectiveness.

Potential Impacts of Algal-Derived Omega-3 Oil on Blood Clotting and Blood Pressure Pose Challenges to Market Growth

Experts advise caution when ingesting algal-derived omega-3 oil, which is identical to fish oil, recommending a daily dosage limit of no more than 3 grams. Excess use of this oil may interfere with blood coagulation, increasing the risk of bleeding. Furthermore, an excess of omega-3 oil obtained from algae may damage the immune system. Because of these factors, the algae omega-3 market share is affected.

Individuals using blood pressure medication should be aware that the DHA in algal oil can lower blood pressure levels. When algal oil is combined with blood pressure medicine, it might cause dangerously low blood pressure, demanding careful monitoring. As with any dietary supplement, consulting a healthcare professional is essential before beginning or adjusting algal oil use to ensure its safe and optimal use.

Market Segment Analysis

The global algae omega-3 market is segmented based on type, form, application, and region.

Algae Omega-3 Market Dominated by DHA and its Essential Brain Health Benefits Drive Market Growth

The global algae omega-3 market has been segmented by type into ALA, EPA, and DHA.

DHA is another long-chain omega-3 fatty acid that is essential for brain health, cognitive function, and fetal development during pregnancy. It is a crucial component of the brain and retina and is associated with various neurological benefits. It is holding approximately 50-55% of the algae omega-3 market.

ALA is a short-chain omega-3 fatty acid primarily found in plant-based sources like flaxseed, chia seeds, and algae. According to the algae omega-3 market analysis, it is holding approximately 5-10% of the algae omega-3 market. While ALA is essential for health, the human body needs to convert it into EPA and DHA to realize their full health benefits. However, this conversion process is limited, making EPA and DHA more desirable for direct consumption.

EPA is a long-chain omega-3 fatty acid known for its anti-inflammatory properties and its role in supporting cardiovascular health. It plays a vital role in reducing inflammation and maintaining healthy heart function. It is holding approximately 40-45% of the algae omega-3 market.

Market Geographical Share

The North America Region Held the Largest Share of Algae Omega 3 Market

The North America Algae omega-3 market holds the largest share of the global algae omega 3 market. The North American algae omega-3 market has witnessed significant growth in recent years, driven by rising consumer awareness of the health benefits associated with Omega-3 Fatty Acids. Algal oil and algal biomass have emerged as sustainable sources of omega-3, contributing to the market's expansion. With a focus on sustainable practices, algal cultivation has gained traction in the region. 

The North American algae omega-3 producers are also developing new products to meet the growing demand for omega-3s in a variety of formats. For instance, some companies are now offering algae omega-3 powders that can be added to food and beverages, as well as algae omega-3 capsules that are designed to be more sustainable than fish oil capsules. The increasing popularity of algae-derived omega-3 products leads to the expansion of the algae omega-3 market size.

Market Major Players

The major global players in the market include DSM Nutritional Products, BASF SE, Nordic Naturals, Lonza Group Ltd., Polaris, Source Omega, Algisys LLC, Algatech, Qualitas Health, and Nature's Way.

COVID-19 Impact On Market

Covid-19 Impact

The COVID-19 pandemic had both positive and negative impacts on the algae omega-3 market. On one hand, there was increased consumer awareness of the importance of immune health and overall well-being, leading to a rise in demand for nutritional supplements, including algae omega-3 products. However, disruptions in supply chains and production processes due to lockdowns and restrictions affected the availability of raw materials and product distribution. 

Economic uncertainties also influenced consumer spending habits, resulting in fluctuations in sales. As the pandemic subsided, the market showed signs of recovery, with companies adapting to new market trends and consumer preferences. Overall, the algae omega-3 market faced challenges but also opportunities during the COVID-19 crisis.

By Type

• ALA
• EPA
• DHA

By Form

• Powder
• Capsule
• Liquid

By Application

• Food and Beverages
• Dietary Supplements
• Pharmaceuticals
• Animal Nutrition
• Others

By Region

• North America
  • The U.S.
  • Canada
  • Mexico
• Europe
  • Germany
  • The U.K.
  • France
  • Italy
  • Spain
  • Rest of Europe
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific
• Middle East and Africa

Key Developments

• On May 08, 2023, Corbion, a supplier of algae-based feed ingredients, announced to launches of Algal Omega-3 and Omega-9 Products for Dietary Supplements. The ingredients, rich in omega-3 and omega-9 fatty acids, are produced through algal fermentation with an aim to reduce pressure on marine resources as well as the carbon footprint associated with the production of dietary supplements.
• On April 17, 2023, MiAlgae, A biotechnology company, has officially launched its omega-3 product NaturAlgae, which is targeted at the fish feed and pet food sectors.
• On January 20, 2022, Wellness Innovations, a Dutch producer of algae oil goods, raised € 1.2m in investment for a fish-free future in which omega-3 is sourced in an environmentally friendly way.

Why Purchase the Report?

• To visualize the global algae omega 3 market segmentation based on type, form, application, and region, as well as understand key commercial assets and players.
• Identify commercial opportunities in the market by analyzing trends and co-development.
• Excel data sheet with numerous data points of algae omega 3 market-level with all segments.
• The PDF report consists of a cogently put-together market analysis after exhaustive qualitative interviews and an in-depth market study.
• Product mapping is available as Excel consists of key products of all the major market players.

The global algae omega 3 market report would provide approximately 61 tables, 58 figures, and 190 Pages.

Target Audience 2024

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies