Global Algae Oil Market By Type ( Food Grade, Feed Grade ), By Application( Biofuels, Animal Feeds, Food and Beverage, Others ), By Region and Key Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2023-2033

The Global algae oil Market is estimated to be worth USD 3.1 Bn by 2023. It is expected that it will grow at a compound annual rate (CAGR), of approximately 5.7% between 2023-2033. Algae oil can be used as a food additive because it is considered a superfood. It is a great source of Omega-3 fatty acids (MUFA) as well as monounsaturated fatty acids (MUFA). Alga oil can also be used in fish farming.

Algae Oil Market Scope:

By Type, the market is segmented into Food Grade, and Feed Grade. By Application, the market is divided into Biofuels, Animal Feeds, Food and beverages, and Others.

Based on geography market is analyzed across North America, Europe, Asia-Pacific, Latin America, the Middle East, and Africa. Major players profiled in the report include Algae Floating Systems, Cellana, Henry Lamotte OILS, TerraVia Holdings, Algaecytes, Archer Daniels Midland Company, Goerlich Pharma, Polaris, and Renewable Algal Energy (RAE)

Growing Demand:

The demand for organic food ingredients has also increased due to a growing preference for organic foods. Natural products’ adaptability and health benefits are two of the main factors driving the growth of natural oils and the market for them.

In response to this growing demand, manufacturers are looking for natural components. This is boosting the sales of algae oil. The vegan population is expected to increase sales. Alga oil will continue to be a popular dietary supplement due to its increasing importance in maintaining health and immunity.

Key Market Segments

Type

Food Grade

Feed Grade

Application

Biofuels

Animal Feeds

Food and Beverage

Others

Key Market Players included in the report:

Algae Floating Systems

Cellana

Henry Lamotte OILS

TerraVia Holdings

Algaecytes

Archer Daniels Midland Company

Goerlich Pharma

Polaris

Renewable Algal Energy (RAE)

The Algae Oil Market: Key drivers and restraints

Algal oil is seeing a rise in demand for EPA/DHA-based alga omega-3 infant formulations. DHA and EPA are vital for infant brain development as well as immunity strength. DHA is allowed in infant formulas under different regulations. Major factors driving the market are the rising demand for dietary supplements and the increased awareness of weight management among professionals. The market is constrained by the high cost of algal oil and the requirements for growth such as temperature and humidity.

Algae Oil Market Trends:

The market is experiencing significant growth due to rising awareness about omega-3 fatty acid benefits, including lowering the risk of developing cardiovascular disease (CVD) and encouraging low triglyceride levels. Market growth is also being driven by the growing preference for vegetarianism since omega-3 fatty acids are usually derived from animals. Many food producers are now offering juices and milk, as well as cooking oils, nutritional bars, salad dressings, marinades, and other products infused with aloe oil.

The market is being positively affected by this, along with the increasing demand for these products due to the rising health consciousness of individuals. Alga oil is also used in the pharmaceutical industry to make DHA-based capsules. These capsules are needed to reduce intraocular pressure due to the increasing prevalence of macular disease, an age-related vision loss condition. Many countries’ governing bodies are also implementing strict policies to reduce greenhouse gas emissions and promote energy conservation. This will likely increase the use of algae oil in transport.

Recent Developments:

Lonza Group announced in November 2021 that it had purchased Exosomics’ service division. Exosomes are a biotech company. The acquisition will also boost Lonza’s exosome bioprocessing portfolio, as Exosomics is well-known for its extracellular vessel services.

HuvePharma launched Huve Nutraceuticals in November 2021. This cooperative venture aims to produce vegan Omega 3 oils for pet food and as an ingredient.