Algae Oil Market By Grade (Food Grade, Feed Grade & Fuel Grade), By Application (Food, Nutraceutical, Feedstock, Biofuel & Others), By Geography - Global Opportunity Analysis & Industry Forecast, 2023-2028

Report Code: FBR 0541 Report Format: PDF + Excel

Algae Oil Market Overview

The Algae Oil Market size is estimated to reach $2.8 billion by 2028, growing at a CAGR of 4.9% during the forecast period 2023-2028. Algal oil is prepared from certain marine algae. The two most important omega-3 fatty acids found in algal oils are Docosahexaenoic acid (DHA) and eicosapentaenoic acid (EPA). According to National Center for Biotechnology Information, intake of between 1 to 2 grams of algae oil per day would considerably boost blood levels of EPA and DHA. Furthermore, on average, 500 to 800 mg of DHA is required daily for the healthy growth of babies between the ages of 0-3 years. This dose may assist in decreasing blood triglycerides, increasing HDL, regulating inflammation and decreasing blood pressure and heart rate. Algal oil is used in both food and medicine due to the high quantity of monounsaturated fatty acids, phycocyanin, antioxidants and proteins. Algae oil is considered a special omega-3 supplement targeted toward vegetarians and vegans, making it a specialty oil. The surging application of algae oil in the food and beverage industry owing to health advantages linked with omega-3 fatty acids like docosahexaenoic acid and eicosapentaenoic acid are set to drive the Algae Oil Industry during the forecast period 2023-2028. This represents the Algae Oil Industry Outlook.

Algae Oil Market Report Coverage

The “Algae Oil Market Report - Forecast (2023-2028)" by IndustryARC, covers an in-depth analysis of the following segments in the Algae Oil Market.

By Grade: Food Grade, Feed Grade and Fuel Grade.
By Application: Food, Nutraceutical, Feedstock, Biofuel and Others.
By Geography: North America (the U.S., Canada and Mexico), Europe (Germany, France, the UK, Italy, Spain, Russia and the Rest of Europe), Asia-Pacific (China, Japan, South Korea, India, Australia & New Zealand and the Rest of Asia-Pacific), South America (Brazil, Argentina, Chile, Colombia and the Rest of South America) and the Rest of the World (the Middle East and Africa).

Key Takeaways

  • Geographically, North America (Algae Oil market share) accounted for the highest revenue share in 2022 and it is poised to dominate the market over the period 2023-2028 due to the rising use of biofuels in the North American region.
  • The growth of the Algae Oil Market is being driven by the increasing use of algal oil including monounsaturated fatty acids in the pharmaceuticals and food industry. However, the parameters needed for the development of algae like humidity and temperature are some of the major factors hampering the growth of the Algae Oil Market.
  • The Algae Oil Market Detailed Analysis of the Strengths, Weaknesses and Opportunities of the prominent players operating in the market would be provided in the Algae Oil Market report.

Algae Oil Market: Market Share (%) by Region, 2022
Algae Oil Market
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Algae Oil Market Segment Analysis - by Grade

The Algae Oil Market based on grade can be further segmented into Food Grade, Feed Grade and Fuel Grade. The Feed Grade Segment held the largest share of the Algae Oil market in 2022. This growth is driven by the higher nutritional value of algal feed in comparison with grain feed, resulting in an increase in demand for the animal feed industry. This oil includes proteins and micronutrients as key constituents, which are utilized in animal feed. This is further propelling the growth of the Feed Grade segment. Furthermore, the Fuel Grade segment is estimated to grow at the fastest CAGR of 5.5% during the forecast period 2023-2028. The growth is fueled by the environmental benefits of algal oil like lowering greenhouse gases and reducing carbon footprint by using algal oil-based fuels instead of petrochemicals with algal oil being utilized as biofuel.

Algae Oil Market Segment Analysis - by Application

The Algae Oil Market based on the application can be further segmented into Food, Nutraceutical, Feedstock, Biofuel and Others. The Food segment held the largest share of the Algae Oil market in 2022. This growth is fueled by the high content of omega-3 fatty acids which are beneficial for heart health, resulting in increased application of algal oil in the food industry. The proliferating branding of products by manufacturers and consumers being aware of the advantages of algal oil is further propelling the growth of this segment. Furthermore, the Biofuel segment is estimated to grow with the fastest CAGR of 6.9% during the forecast period 2023-2028. This is due to the high capacity of certain species of algae to produce algal oil, which is processed and used as biofuel. Also, the increasing prices of fossil fuels are a major driver for the growth of the biofuel segment in the market.

Algae Oil Market Segment Analysis - by Geography

North America dominated the Algae Oil Market with a 35% share of the overall market in 2022. The growth of this region is fueled by the growing demand for alternatives to fossil fuels in the North American region. Algae oil has great potential to reduce carbon emissions, which is further propelling the growth of the Algae Oil Market in the North American region. Furthermore, the Asia-Pacific region is estimated to be the fastest-growing region over the forecast period 2023-2028. This growth would be driven by factors like surging demand for algae oil including monounsaturated fatty acids in food in the Asia-Pacific region. Algae oil is rich in omega-3 fatty acids like docosahexaenoic acid and eicosapentaenoic acid. The emerging focus of key market players on innovative product launches prepared from algae oil is further propelling the growth of the Algae Oil Industry in the Asia-Pacific region.

Algae Oil Market Drivers

Surging Commercialization of Biofuels from Algae Technology:

The increasing awareness of manufacturers regarding the health benefits of algal oil including omega-3 fatty acids like docosahexaenoic acid and eicosapentaenoic acid supports the growth of the Algae Oil Market. In November 2021, ExxonMobil has inked a joint development agreement with Viridos. ExxonMobil and Viridos, have been working together for over a decade, since ExxonMobil unlocked a greenhouse facility in La Jolla, California, to test algae as a biofuel’s feedstock. Viridos has aimed for the algae biofuels to be primarily utilized in heavy transport as well as in aviation, commercial trucking and maritime shipping, The surging commercialization of biofuels from algae technology is therefore supporting the growth of the Algae Oil Market during the forecast period 2023-2028.

Soaring Global Temperature and Climate Change:

The entire cost of climate change is anticipated to reach at least 5% of global per capita consumption over the next two centuries. To minimize such impact, algae oil plays an important role in reducing carbon footprint. It can be effortlessly utilized in an assortment of commercial products, from tennis shoes to steel substitutes to veggie burgers. Algae, when utilized in conjunction with AI-powered bioreactors, is up to 400 times more effective than a tree at eliminating carbon dioxide (CO2) from the atmosphere. The soaring global temperature and climate change are therefore propelling the growth of the Algae Oil Industry, thereby contributing to the Algae Oil Industry Outlook, during the forecast period 2023-2028.

Algae Oil Market Challenges

High Price and Lack of Awareness:

Certain features related to algal development suggest a high manufacturing cost, which results in a higher product price. As per the research paper published in Science Direct, the cost for the production of algal oil for biofuel ranges from $10.87 per gallon to $13.32 per gallon. In the U.S., there are existing technologies to produce algal biofuels. However, the cost of production is high, about US$6 per liter. Furthermore, there is a lack of awareness about algal oil in developing nations. These issues are restraining the growth of the Algae Oil Market.

Algae Oil Industry Outlook

Product launches, mergers and acquisitions, joint ventures and geographical expansions are key strategies adopted by players in the Algae Oil Market. The top 10 companies in the Algae Oil market are: 

  1. Alltech Inc.
  2. Seaweed Energy Solutions A/S
  3. TerraVia Holdings Inc.
  4. Royal DSM NV
  5. TerraVia Holdings Inc.
  6. Cellana LLC
  7. DIC Corporation
  8. Diversified Energy Corporation
  9. Cargill Inc.
  10. Bioprocess Algae LLC

Recent Developments

  • In December 2021, Diversified Energy Corporation acquired Oklahoma-based Tapstone Energy Holdings, LLC. The transaction included some upstream assets, field infrastructure, equipment and facilities. The net purchase price of the acquisition was US$181 million.
  • In September 2021, Royal DSM NV declared a strategic decision to fully focus on its resources and capabilities. This was performed to attend to urgent societal and environmental challenges. These challenges were connected to the way the world generates and consumes food.
  • In June 2021, DIC declared that it has updated the Group’s long-term target for the decrease of CO2 emissions. DIC Group presently targets to accomplish carbon neutrality and net zero CO2 emissions by the fiscal year 2050. 

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1. Algae Oil Market Overview
    1.1 Definitions and Scope
2. Algae Oil Market - Executive Summary
3. Algae Oil Market – Market Landscape
    3.1 Company Benchmarking - Key Companies
    3.2 Key Company Financial Analysis
    3.3 Market Share Analysis
    3.4 Patent Analysis
    3.5 Pricing Analysis (Comparison of General Price Offerings in the Market)
4. Algae Oil Market – Startup Company Scenario (Premium)
    4.1 Investment
    4.2 Revenue
    4.3 Venture Capital and Funding Scenario
5. Algae Oil Market – Market Entry Scenario Premium (Premium)
    5.1 Regulatory Scenario
    5.2 New Business and Ease of Doing business index
    5.3 Case Studies of Successful Ventures
6. Algae Oil Market - Market Forces
    6.1 Market Drivers
    6.2 Market Constraints
    6.3 Porter's five force model
        6.3.1 Bargaining power of suppliers
        6.3.2 Bargaining powers of customers
        6.3.3 Threat of new entrants
        6.3.4 Rivalry among existing players
        6.3.5 Threat of substitutes
7. Algae Oil Market – Strategic Analysis
    7.1 Value Chain Analysis 
    7.2 Opportunities Analysis
    7.3 Market Life Cycle Analysis
8. Algae Oil Market – by Grade (Market Size – $Million/$Billion) 
    8.1 Food Grade
    8.2 Feed Grade
    8.3 Fuel Grade
9. Algae Oil Market – by Application (Market Size – $Million/$Billion) 
    9.1 Food
    9.2 Nutraceutical
    9.3 Feedstock
    9.4 Biofuel
    9.5 Others
10. Algae Oil Market - by Geography (Market Size - $Million/Billion)
    10.1 North America
        10.1.1 The US
        10.1.2 Canada
        10.1.3 Mexico
    10.2 Europe
        10.2.1 Germany
        10.2.2 France
        10.2.3 The UK
        10.2.4 Italy
        10.2.5 Spain
        10.2.6 Russia
        10.2.7 The Rest of Europe
    10.3 Asia-Pacific
        10.3.1 China
        10.3.2 Japan
        10.3.3 South Korea
        10.3.4 India
        10.3.5 Australia & New Zealand
        10.3.6 The Rest of Asia-Pacific
    10.4 South America
        10.4.1 Brazil
        10.4.2 Argentina
        10.4.3 Chile
        10.4.4 Colombia
        10.4.5 The Rest of South America
    10.5 The Rest of the World
        10.5.1 The Middle East
        10.5.2 Africa
11. Algae Oil Market - Market Entropy
    11.1 New product launches
    11.2 M&As, collaborations, JVs and partnerships
12. Algae Oil Market – Industry Competition Landscape (Premium)
    12.1 Market Share Analysis
        12.1.1 Market Share by Region – Key Companies
        12.1.2 Market Share by Countries – Key Companies
    12.2 Competition Matrix
    12.3 Best Practices for Companies
13. Algae Oil Market – Key Company List by Country Premium (Premium)
14. Algae Oil Market - Company Analysis
    14.1 Company 1
    14.2 Company 2
    14.3 Company 3
    14.4 Company 4
    14.5 Company 5
    14.6 Company 6
    14.7 Company 7
    14.8 Company 8
    14.9 Company 9
    14.10 Company 10
* "Financials would be provided to private companies on best-efforts basis." 
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LIST OF TABLES

1.Global Algae Oil:Grade Estimate Trend Analysis Market 2019-2024 ($M)
1.1 Fuel Grade Market 2019-2024 ($M) - Global Industry Research
1.2 Food Grade Market 2019-2024 ($M) - Global Industry Research
1.3 Feed Grade Market 2019-2024 ($M) - Global Industry Research
2.Global Algae Oil:Application Estimate Trend Analysis Market 2019-2024 ($M)
2.1 Biofuel Market 2019-2024 ($M) - Global Industry Research
2.2 Dietary Supplement Market 2019-2024 ($M) - Global Industry Research
2.3 Food Beverage Market 2019-2024 ($M) - Global Industry Research
2.4 Animal Feed Market 2019-2024 ($M) - Global Industry Research
3.Global Algae Oil:Grade Estimate Trend Analysis Market 2019-2024 (Volume/Units)
3.1 Fuel Grade Market 2019-2024 (Volume/Units) - Global Industry Research
3.2 Food Grade Market 2019-2024 (Volume/Units) - Global Industry Research
3.3 Feed Grade Market 2019-2024 (Volume/Units) - Global Industry Research
4.Global Algae Oil:Application Estimate Trend Analysis Market 2019-2024 (Volume/Units)
4.1 Biofuel Market 2019-2024 (Volume/Units) - Global Industry Research
4.2 Dietary Supplement Market 2019-2024 (Volume/Units) - Global Industry Research
4.3 Food Beverage Market 2019-2024 (Volume/Units) - Global Industry Research
4.4 Animal Feed Market 2019-2024 (Volume/Units) - Global Industry Research
5.North America Algae Oil:Grade Estimate Trend Analysis Market 2019-2024 ($M)
5.1 Fuel Grade Market 2019-2024 ($M) - Regional Industry Research
5.2 Food Grade Market 2019-2024 ($M) - Regional Industry Research
5.3 Feed Grade Market 2019-2024 ($M) - Regional Industry Research
6.North America Algae Oil:Application Estimate Trend Analysis Market 2019-2024 ($M)
6.1 Biofuel Market 2019-2024 ($M) - Regional Industry Research
6.2 Dietary Supplement Market 2019-2024 ($M) - Regional Industry Research
6.3 Food Beverage Market 2019-2024 ($M) - Regional Industry Research
6.4 Animal Feed Market 2019-2024 ($M) - Regional Industry Research
7.South America Algae Oil:Grade Estimate Trend Analysis Market 2019-2024 ($M)
7.1 Fuel Grade Market 2019-2024 ($M) - Regional Industry Research
7.2 Food Grade Market 2019-2024 ($M) - Regional Industry Research
7.3 Feed Grade Market 2019-2024 ($M) - Regional Industry Research
8.South America Algae Oil:Application Estimate Trend Analysis Market 2019-2024 ($M)
8.1 Biofuel Market 2019-2024 ($M) - Regional Industry Research
8.2 Dietary Supplement Market 2019-2024 ($M) - Regional Industry Research
8.3 Food Beverage Market 2019-2024 ($M) - Regional Industry Research
8.4 Animal Feed Market 2019-2024 ($M) - Regional Industry Research
9.Europe Algae Oil:Grade Estimate Trend Analysis Market 2019-2024 ($M)
9.1 Fuel Grade Market 2019-2024 ($M) - Regional Industry Research
9.2 Food Grade Market 2019-2024 ($M) - Regional Industry Research
9.3 Feed Grade Market 2019-2024 ($M) - Regional Industry Research
10.Europe Algae Oil:Application Estimate Trend Analysis Market 2019-2024 ($M)
10.1 Biofuel Market 2019-2024 ($M) - Regional Industry Research
10.2 Dietary Supplement Market 2019-2024 ($M) - Regional Industry Research
10.3 Food Beverage Market 2019-2024 ($M) - Regional Industry Research
10.4 Animal Feed Market 2019-2024 ($M) - Regional Industry Research
11.APAC Algae Oil:Grade Estimate Trend Analysis Market 2019-2024 ($M)
11.1 Fuel Grade Market 2019-2024 ($M) - Regional Industry Research
11.2 Food Grade Market 2019-2024 ($M) - Regional Industry Research
11.3 Feed Grade Market 2019-2024 ($M) - Regional Industry Research
12.APAC Algae Oil:Application Estimate Trend Analysis Market 2019-2024 ($M)
12.1 Biofuel Market 2019-2024 ($M) - Regional Industry Research
12.2 Dietary Supplement Market 2019-2024 ($M) - Regional Industry Research
12.3 Food Beverage Market 2019-2024 ($M) - Regional Industry Research
12.4 Animal Feed Market 2019-2024 ($M) - Regional Industry Research
13.MENA Algae Oil:Grade Estimate Trend Analysis Market 2019-2024 ($M)
13.1 Fuel Grade Market 2019-2024 ($M) - Regional Industry Research
13.2 Food Grade Market 2019-2024 ($M) - Regional Industry Research
13.3 Feed Grade Market 2019-2024 ($M) - Regional Industry Research
14.MENA Algae Oil:Application Estimate Trend Analysis Market 2019-2024 ($M)
14.1 Biofuel Market 2019-2024 ($M) - Regional Industry Research
14.2 Dietary Supplement Market 2019-2024 ($M) - Regional Industry Research
14.3 Food Beverage Market 2019-2024 ($M) - Regional Industry Research
14.4 Animal Feed Market 2019-2024 ($M) - Regional Industry Research

LIST OF FIGURES

1.US Algae Oil Market Revenue, 2019-2024 ($M)
2.Canada Algae Oil Market Revenue, 2019-2024 ($M)
3.Mexico Algae Oil Market Revenue, 2019-2024 ($M)
4.Brazil Algae Oil Market Revenue, 2019-2024 ($M)
5.Argentina Algae Oil Market Revenue, 2019-2024 ($M)
6.Peru Algae Oil Market Revenue, 2019-2024 ($M)
7.Colombia Algae Oil Market Revenue, 2019-2024 ($M)
8.Chile Algae Oil Market Revenue, 2019-2024 ($M)
9.Rest of South America Algae Oil Market Revenue, 2019-2024 ($M)
10.UK Algae Oil Market Revenue, 2019-2024 ($M)
11.Germany Algae Oil Market Revenue, 2019-2024 ($M)
12.France Algae Oil Market Revenue, 2019-2024 ($M)
13.Italy Algae Oil Market Revenue, 2019-2024 ($M)
14.Spain Algae Oil Market Revenue, 2019-2024 ($M)
15.Rest of Europe Algae Oil Market Revenue, 2019-2024 ($M)
16.China Algae Oil Market Revenue, 2019-2024 ($M)
17.India Algae Oil Market Revenue, 2019-2024 ($M)
18.Japan Algae Oil Market Revenue, 2019-2024 ($M)
19.South Korea Algae Oil Market Revenue, 2019-2024 ($M)
20.South Africa Algae Oil Market Revenue, 2019-2024 ($M)
21.North America Algae Oil By Application
22.South America Algae Oil By Application
23.Europe Algae Oil By Application
24.APAC Algae Oil By Application
25.MENA Algae Oil By Application
26.Algae Floating Systems, Inc, Sales /Revenue, 2015-2018 ($Mn/$Bn)
27.Algae Production System, Sales /Revenue, 2015-2018 ($Mn/$Bn)
28.Algae Tec Ltd, Sales /Revenue, 2015-2018 ($Mn/$Bn)
29.Algix, Llc, Sales /Revenue, 2015-2018 ($Mn/$Bn)
30.Aquatic Energy Llc, Sales /Revenue, 2015-2018 ($Mn/$Bn)
31.Cellana Inc, Sales /Revenue, 2015-2018 ($Mn/$Bn)
32.Diversified Energy Corporation, Sales /Revenue, 2015-2018 ($Mn/$Bn)
33.Live Fuels, Inc, Sales /Revenue, 2015-2018 ($Mn/$Bn)
34.Pond Technology Inc, Sales /Revenue, 2015-2018 ($Mn/$Bn)
35.Terravia Holdings, Inc, Sales /Revenue, 2015-2018 ($Mn/$Bn)