Algae Oil Gaining Recognition in Terms of Organic & Sustainable Nutrition
The increase in algae oil utilisation in the food and beverage industry is a major driver influencing the global algae oil market. Algae oil has a number of health advantages, including being strong in proteins, phycocyanin and antioxidants in addition to DHA and Omega 3, this is another element boosting demand in the algae oil market. Algae oil is frequently used as a specialty oil because of its low quantity of saturated fat. It provides a number of nutritional and physiological advantages, such as decreasing cholesterol and enhancing memory and vision. Growing inclination for healthy vegetable sources is another element promoting expansion in the algae oil market.
The need for natural food ingredients has expanded as consumer preference for organic food items has grown. One of the main factors promoting the rise of natural products and consequently, the market for algae oil, is their adaptability and the associated health benefits. Therefore, in order to meet the growing demand for natural goods with greater efficacy, producers are increasingly exploring for natural components, algae oil sales are rising as a result of this. The vegan population is also expected to improve sales opportunities. As a result, over the next decade, there will be a huge increase in demand for algae oil in dietary supplements due to the growing necessity of preserving vitals and boosting immunity.
The need for natural food ingredients has expanded as consumer preference for organic food items has grown. One of the main factors promoting the rise of natural products and consequently, the market for algae oil, is their adaptability and the associated health benefits. Therefore, in order to meet the growing demand for natural goods with greater efficacy, producers are increasingly exploring for natural components, algae oil sales are rising as a result of this. The vegan population is also expected to improve sales opportunities. As a result, over the next decade, there will be a huge increase in demand for algae oil in dietary supplements due to the growing necessity of preserving vitals and boosting immunity.
Use of Algae Oil in Pharmaceutical & Energy Sector to Drive Market Growth
In terms of application, the pharmaceutical sector is expected to drive the algae oil market. Over the forecast period, the segment is expected to grow significantly. Algae oil is utilised in the pharmaceutical sector to produce DHA-based capsules. The market for algae oil is being positively impacted by the rising incidence of macular degeneration, a condition that causes age-related vision loss. This condition is driving up demand for these capsules to lower intraocular pressure. Algae oil is also utilised in the energy sector to create biofuel. As a result of biofuel's widespread use for its low carbon footprint, consumption of algae oil is rising significantly, which is driving the global algae oil market. There are less concerns about the taste of algae oil because it is plant-based, more sustainably sourced and made. As algae oil has a higher nutritional value than grain feed, the animal feed industry has increased its usage. Animals are fed on the oil as it serves as a source of micronutrients and proteins.
Recent Trends in the Algae Oil Industry:
- Emergence of algae oil as a vegan alternative to fish oil.
- Increasing demand for sustainable omega-3 supplements.
- Expansion of algae oil applications in food and beverages.
- Rising popularity of algae-derived cosmetics and skincare products.
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High Pricing & Side Effects of Algae Oil is Likely to be a Challenge
Higher algae oil prices are a restriction to the expansion of the algae oil market. Algae oil supplements include unsaturated lipids that may oxidise and get rancid over time hence, restricting the market. High doses of algae oil containing more than 3 g of DHA and EPA per day may be dangerous. High doses might make it more likely to bleed and slow down blood coagulation. The FDA advises consuming no more than 3 g of DHA and EPA daily, with no more than 2 g from nutritional supplements. Mild side effects including fishy burps and stomach aches are possible.
Novel Innovations and Investments Leading to Algae Oil Market Expansion
The algae oil market is expected to be competitive because there are numerous regional and local producers present all over the world. Leading market players increase their revenue through a variety of strategies, including product range expansion and mergers and acquisitions. With a US$ 200 million investment, VERAMARIS opened its algae oil factory in Nebraska in Jul 2019, enabling the use of algae oil in aquaculture feed. The University of Michigan received funding from the U.S. Department of Energy in Oct 2018 for research and to develop algae as a reliable biofuel source for diesel engines. In Sep 2018, Exxon Mobil Corporation announced an expansion of its capacity to produce algae oil, the company aims to produce 10,000 barrels of oil by 2025. The Lubrizol Corporation introduced AlgaPūr HSHO algae oil in 2020. A bio-based oil made from microalgae that was first grown from sap of chestnut trees. It offers numerous advantages for hair and scalp care and has a high sustainability profile.
DSM-Firmenich announced the North American release of Life's OMEGA O3020, a single-source algal omega-3, in 2023. The product has an EPA to DHA ratio as commonly found in standard fish oil. Notably, Life's OMEGA O3020 delivers twice the concentration compared to traditional fish oil. GC Rieber VivoMega, a Norway-based supplier of omega-3 ingredients, introduced a product line called VivoMega Algae Oils in February 2023. The range featured high-concentration vegan omega-3 oils derived from microalgae through the implementation of proprietary processing methods. To guarantee a steady supply of algae oil and increase their consumer base, market participants are also working with end users.
DSM-Firmenich announced the North American release of Life's OMEGA O3020, a single-source algal omega-3, in 2023. The product has an EPA to DHA ratio as commonly found in standard fish oil. Notably, Life's OMEGA O3020 delivers twice the concentration compared to traditional fish oil. GC Rieber VivoMega, a Norway-based supplier of omega-3 ingredients, introduced a product line called VivoMega Algae Oils in February 2023. The range featured high-concentration vegan omega-3 oils derived from microalgae through the implementation of proprietary processing methods. To guarantee a steady supply of algae oil and increase their consumer base, market participants are also working with end users.
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The Increasing Need for Natural Food Ingredients Leads to Market Expansion
In 2018, the European Union extended the use of microalgae oil as a novel food. The demand for algae oil is anticipated to increase throughout the forecast period as a result of increased growth in the food and beverage industry and expansion in the medicinal sector. China plans to develop, manufacture and encourage the use of biofuels for both domestic and international markets. Algae oil is a major source of biofuels in the country because of technical improvements. The growth of China's food and beverage industry is another factor driving up demand in the market. Algae oil is increasingly being used in nutritional supplements and other food products as consumer demand for natural food products rises; this is encouraging the algae oil market in China to expand.
Due to the rising incidence of chronic diseases and allergies to synthetic compounds, natural ingredients have an impact on consumer preferences in the U.S. This has helped algae oil products gain popularity as a natural ingredient that enhances health and wellness in a range of food products across the country. The demand in the U.S. algae oil market is anticipated to grow rapidly. During the forecast period, the U.S. is expected to dominate the North American algae oil market. The demand for functional food products with high nutritional content is expected to surge in Russia. As a result, companies that sell algae oil are probably going to gain from the expanding geriatric population and food innovation areas.
Due to the rising incidence of chronic diseases and allergies to synthetic compounds, natural ingredients have an impact on consumer preferences in the U.S. This has helped algae oil products gain popularity as a natural ingredient that enhances health and wellness in a range of food products across the country. The demand in the U.S. algae oil market is anticipated to grow rapidly. During the forecast period, the U.S. is expected to dominate the North American algae oil market. The demand for functional food products with high nutritional content is expected to surge in Russia. As a result, companies that sell algae oil are probably going to gain from the expanding geriatric population and food innovation areas.
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The report provides a detailed overview of the algae oil market insights in regions including North America, Latin America, Europe, Asia-Pacific, Oceania, and the Middle East and Africa. The country-specific assessment for algae oil market has been offered for all regional market share, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the algae oil market. These Y-o-Y projections on regional and country-level markets brighten the political, economic and business environment outlook, which are anticipated to have a substantial impact on the growth of the algae oil market. Some key country and region included in the algae oil market report as follows:
| Regions | Countries |
|---|---|
| North America | United States, Canada |
| Latin America | Brazil, Mexico, Argentina, Colombia, Chile, Central America Countries, Caribbean Countries, Rest of Latin America |
| Europe | Germany, United Kingdom, France, Italy, Spain, Russia, Poland, Netherlands, Switzerland, Belgium, Sweden, Austria, Norway, Denmark, Czech Republic, Rest of Europe |
| Asia Pacific | China, India, Japan, South Korea, Australia & New Zealand, Indonesia, Singapore, Malaysia, Philippines, Vietnam, Thailand, Bangladesh, Rest of Asia Pacific |
| Middle East and Africa | GCC Countries, South Africa, Nigeria, Egypt, Turkey, Morocco, Ethiopia, Algeria, Israel, Iran, Iraq, Kenya, Rest of MEA |
Algae Oil Market Research Report Covers In-depth Analysis on:
- Algae oil market detailed segments and segment-wise market breakdown
- Algae oil market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in algae oil industry)
- Current, historical and forthcoming 10 years market valuation in terms of algae oil market size (US$ Mn), volume (Tons), share (%), Y-o-Y growth rate, CAGR (%) analysis
- Algae oil market demand analysis
- Algae oil market pricing analysis over forecast period (by key segment and by region)
- Algae oil market regional insights with region-wise market breakdown
- Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
- Latest developments and innovations in algae oil market
- Regulatory landscape by key regions and key countries
- Supply chain and value chain analysis in algae oil market
- Algae oil market sales and distribution strategies
- A comprehensive overview of parent market
- A detailed viewpoint on algae oil market forecast by countries
- Mergers and acquisitions in algae oil market
- Essential information to enhance market position
- Robust research methodology
- Frequently Asked Questions -
What are the primary drivers of the algae oil market?
Rising demand for plant-based oils and biofuels, coupled with sustainability trends, drive growth in the algae oil market.
Which industries are key consumers of algae oil?
Algae oil is widely used in food & beverages, nutraceuticals, cosmetics, and biofuels industries.
What challenges affect the algae oil market growth?
High production costs and limited commercial-scale cultivation hinder the market's expansion.
