Algae Oil Market size is estimated to reach $2.2 billion by 2027, growing at a CAGR of 4.3% during the forecast period 2022-2027. Algae oil can be delineated as oil fabricated from seaweed/marine algae. Algae oil has a variety of applications in animal feeds, nutraceuticals, foods, and medical drugs. Moreover, the oil extends tons of health benefits as it is a sound source of polyunsaturated fats like omega 3 fatty acids and omega 9 fatty acids. Eicosapentaenoic acid (EPA), docosahexaenoic acid (DHA), and alpha-linoleic acid (ALA) are the primary forms of omega-3. Present in algae oil that helps in improving retinitis pigmentosa (vision problem), inflammatory ailments, lower bad cholesterol levels, stabilize blood sugars, and prevent risks of cardiac unrest. Moreover, it has been proven to be of utmost usefulness in improving brain functions such as thinking skills. Being a prodigious source of energy, algae oil ensures the appropriate functioning of vital organs such as the heart, lungs, kidney, and liver. The algae oil market outlook is fairly captivating as several life-threatening ailments are roaming around the world. Furthermore, proliferating energy demands, rising health consciousness among people, augmenting purchasing power, ascending demand for dietary supplements, refining retail chains network in low-income countries are factors set to drive the growth of the Algae Oil Market for the period 2022-2027.
Report Coverage
The report: “Algae Oil Market Forecast (2022-2027)”, by Industry ARC, covers an in-depth analysis of the following segments of the Algae Oil Market.
By Grade Type: Food, Fuel, and Feed.
By Applications: Foods, Nutraceuticals (Dietary supplements, Functional food, and medical food), Animal feed, Biofuels, and Others.
By Distribution Channel: Offline and Online.
By End User: Industries (Pharmaceutical, Food, and Others) and Households.
By Geography: North America (U.S., Canada, and Mexico), Europe (Germany, UK, France, Italy, Spain, Russia, and Rest of Europe), Asia-Pacific (China, India, Japan, South Korea, Australia & New Zealand, and Rest of Asia-Pacific), South America (Brazil, Argentina, Chile, Colombia and Rest of South America) and Rest of World (the Middle East and Africa).
Key Takeaways
- Geographically, the North American Algae Oil Market accounted for the highest revenue share in 2021. The growth is owing to high after-tax income and health attentiveness. Furthermore, Asia-Pacific is poised to dominate the market over the period 2022-2027.
- The increasing vegan population, spiking spread of acute and chronic illnesses, high malnutrition cases in Africa and Asia, and broadening demand for the nutritional diet are said to be preeminent drivers driving the growth of the Algae Oil Market. Harsh climate conditions are challenging the steady growth of algae and lack of cognizance among consumers living in pastoral areas, and COVID restrictions are the factors said to reduce the market growth.
- Detailed analysis on the Strength, Weaknesses, and Opportunities of the prominent players operating in the market will be provided in the Algae Oil Market report.
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Algae Oil Market Segment Analysis-By Application
The Algae Oil Market based on the basis of application can be further segmented into foods, nutraceuticals (dietary supplements, functional food, and medical food), animal feed, biofuels, and others. The food and nutraceutical segment held the largest share in 2021. The growth is owing to widescale usage of algae oil in the preparation of dietary supplements and functional foods. Algae oil plays a significant role in giving functional foods their nutritional value. Moreover, as people are turning more prevention-oriented, the overall demand for dietary supplements going through the roof. Owing to their nutrition-rich nature nutraceuticals help in cell proliferation, treating renal disorders and oxidative stress, and safeguarding the integrity of the body. Nevertheless, nutraceuticals along with the animal feed segment is estimated to be the fastest-growing segments with a CAGR of 5.1% over the forecast period 2022-2027. This growth is owing to augmenting spread of cardiac diseases and rising meat and dairy consumption. As animals are the primary sources of meat and milk, they are fed with foods prepared through algae oil to ensure their health and well-being.
Algae Oil Market Segment Analysis-By Distribution Channel
The Algae Oil Market based on distribution channels can be further segmented offline and online. The offline segment held the largest share in 2021. Offline medium of sales enjoys their wide-ranging presence in both developed and developing countries. Inadequate infrastructure in impoverished has been a blessing in disguise for offline distribution channels. Poor infrastructure in third-world countries isn’t a conducive environment for e-commerce companies to offer their services. Moreover, with growing modernization, the number of modern retail outlets (supermarkets and Hypermarkets) is surging sweepingly. The emergence of supermarkets has been the best thing sliced bread from the retail industry’s point of view as they help in gravitating customers' attention through their well stacked and one-stop solution nature. However, the online segment is estimated to be the fastest-growing segment with a CAGR of 5.6% over the forecast period 2022-2027. This growth is owing to sweeping digitalization and technological breakthroughs. For instance, proliferating breakthroughs in the telecom industry have made the concept of satellite internet a reality. On another hand, the spiking netizen population is providing reasonable grounds for the algae oil market in the said segment.
Algae Oil Market Segment Analysis-By Geography
The Algae Oil Market based on Geography can be further segmented into North America, Europe, Asia-Pacific, South America, and the Rest of the World. North America held the largest share with 37% of the overall market in 2021. The growth in this segment is owing to the factors such as high disposable income. Higher incomes have made it possible for citizens to buy algae oil at higher prices. On another hand, high incidences of complications like obesity, cardiac unrest, cancer, and others have made people include algae oil for cooking or nutraceutical prepared through it in their daily diets. However, Asia-Pacific is expected to be the fastest-growing segment over the forecast period 2022-2027. This growth is owing to improving standards of living, higher population, refining infrastructure, and mounting health attentiveness among people. The gigantic population of Asia is one of its biggest advantages as compared to other continents. On another hand, owing to the low carbon emission of biofuel, it can become a fascinating substitute for fossil diesel in countries like India and China. Both India and China are facing heat from the western nations for their massive carbon emission; therefore, biofuel can help them in achieving their net-zero carbon goals.
Algae Oil Market Drivers
Augmenting consumption of meat and dairy products is anticipated to boost market demand
Algae oil plays a significant role in animal feeds and ensures better animal health. Therefore, the growing danger of diabetes, heart attacks, vision disorder, oxidative stress, that have spiked the demand for meat and dairy is anticipated to drive the growth aforementioned market. Heart kills millions of people every year in both developed and developing worlds. For instance, each year nearly 659,000 Americans lose their lives because of cardiac unrest. Also, cancer claims millions of lives every year which is driving people to increase nutrition intake. As a result, the overall demand for meat and dairy has increased sharply. According to a report global per capita consumption of meat is anticipated to reach over 43 kg. On another hand, owing to augmenting dairy demand milk production of the European Union reached 145.7 million metric tons in 2021.
Rising GDP per capita and a growing retail network is expected to boost market demand.
Rising GDP per capita incomes have a vital role to play in the growth of the respective market. The spiraling economic prosperity of developing nations like India and China owes to rapid industrialization, widescale manufacturing, ease of doing business, a growing number of free trade agreements, and staggering foreign direct investments. China’s nominal GDP per capita in 2021 was whirling around $12,551 (Source-Global Times) and China is likely to become a high-income country within a few years. On another hand, India had a GDP per capita (PPP terms) of $7319 in 2021. The numbers are likely to spike steadily in the upcoming future as the economies of both nations are flourishing.
Algae Oil Market Challenges
Harsh climate, COVID-19 restrictions, and lack of awareness among people living in the countryside are anticipated to hamper market growth
The rising infection rates of the COVID-19 are posing a severe threat to the growth of the aforementioned market. Growing mutations are challenging the effectiveness of the vaccines. 7123 single mutations have been detected in the 12,754 U.S. SARS-CoV-2 strains in the past few months with respect to the first SARS-CoV-2 genome collected on 24 December 2019. Therefore, governments around the globe have restarted restrictions that are strangling the production activities because of mismatched demand and supply, reduced employee capacity, and widescale resignation. On another hand, lack of awareness among consumers living in remote areas can be a factor that might cripple the growth. Increasing extreme weather anomalies and changing the duration of seasons can pose threats after affecting the growth of algae.
Algae Oil Market Industry Outlook:
Product launches, mergers and acquisitions, joint ventures, and geographical expansions are key strategies adopted by players in the aforementioned Market. Algae Oil market top 10 companies include:
- DIC Corporation
- Cargill Corporation
- Bioprocess Algae
- Alltech Company
- Koninklijke DSM N.V.
- Cellana, Inc.
- TerraVia Holdings
- Ranke Biological Company
- Rishom International group
- Lonza Group
Recent Developments
- On December 22, 2021, a Minnesota, United States-based conglomerate company announced that it has successfully acquired the bio-industrial business from Snaith, United Kingdom-based Croda International (a company that deals in specialty chemicals) to enhance its bio industry. The total value of this transaction stands around at $1.03 billion.
- On November 2, 2021, Basel, Switzerland-based famous pharmaceutical and biotech company announced that it has acquired a service unit from a biotech firm named Exosomics. The financials of the transaction were not publicized. Also, as Exosomics is recognized for its extracellular vesicles services the transaction is anticipated to strengthen the exosome bioprocessing portfolio of Lonza.
- On June 30, 2021, Tokyo, Japan-based well-known chemical company “DIC Corporation” announced the successful acquisition of pigment business of Ludwigshafen, Germany-based leading chemical producer “BASF.” A payment of 1.15 billion euros was made by DIC in order to bring the acquisition to a close. Also, the transaction has strengthened the pigment portfolio of DIC.
