The projected value of the worldwide algae oil market is set to hit the mark of USD 3,495.8 million by 2034, which is set to be measured at USD 2,442 million by 2024. Pertaining to various developments made by key players in the industry, the competitive space is estimated to progress at a sluggish CAGR of 3.7% during the forecast period.
Pertaining to the growing emphasis on reflecting on environmental stewardship, more focus is made on using algae oil, which increases the demand for products. With the growing use of such oils in the aquaculture sector, the prominence of algae oil has increased, driving the growth of the industry.
The rising focus on developing sustainable policies and regulations has helped several firms in the industry to innovate. The demand for algae oil, subsequently, has increased drastically recently.
With the rising consumer attention toward better skincare products, algae oil is likely to receive more attention. Due to the inclusion of fatty acids and vitamins along with key antioxidants, the cleansing action of such oils can be better. This spurs the demand for this type of oil.
Owing to the diversified and versatile applications of algae oil across several end-use industries, the scope for such products is higher. Industries like cosmetics, food and beverage, nutraceuticals, and many others demand algae oil, fueling the industry’s share of products.
According to Future Market Insights (FMI), primary factor influencing the sales in the global algae oil market include, rising use of algal oil in the food and beverage industry. Several health benefits are associated with algae oil, which includes high proteins, phycocyanin, and antioxidants in addition to DHA and Omega 3. This is another factor driving the demand in global algae oil market.
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What are the Key Trends Stimulating the Sales in Algae Oil Market?
Further, with rising inclination towards organic food products, the demand for natural food ingredients has increased. The adaptability of natural products and the related health advantages is one of the primary factor improving the growth of natural products and, as a result, the algae oil market.
Hence, manufacturers are increasingly looking for natural components in response to rising demand for natural products with more efficacy. This, in turn, is increasing the sales of algae oil. Moreover, sales prospects are projected to boost by the vegan population.
Consequently, with growing importance of maintaining vitals and boosting immunity, the demand for algae oil in dietary supplements will surge over the next decade.
Key Takeaways from the Market Study
- Compared to the historical figures, the market is likely to encompass a CAGR of 3.7% through 2034.
- The cosmetic grade category is likely to be the most prominent revenue-generating category and is likely to hold 34.6% of the market share in 2024.
- The growing use of algae oil in animal feed is expected to augment Italy to witness a CAGR of 4.3% through 2034.
- The anticipated advancement of the algae oil market in the United States is estimated to adhere to a sluggish CAGR of 3.5% in the evaluation period.
- By application, the food and beverages segment is projected to generate a share of 28.6% in 2024.
“The rising production costs of algae oil is a key barrier for growth of the competitive landscape, hampering the expansion of the market,” says Nandini Roy Choudhury, Client Partner at Future Market Insights
Competition Outlook
Owing to better technological infrastructure, key players in the Tier 1 category expand extensively across the globe. The concentration of such organizations is high in the industry, thereby affecting the entry of new players.
Pertaining to the competitive force, emerging players can choose to partner with larger firms, export, form strategic alliances, and innovate products in order to gain a significant competitive advantage over large-scale players. Leading manufcturers in the algae oil industry, on the other hand, expand freely with the help of several important strategies, including strategic partnerships, collaborations, mergers, and acquisitions.
Leading Algae Oil Brands
- Algae Floating Systems, Inc.
- Cargill
- Algae Production Systems
- Lonza Group
- Algatech Ltd.
- Seaweed Energy Solutions
- Royal DSM
- Algix LLC
- Cyanotech
- Pond Technologies Inc.
- Others
The collective system of key players and emerging start-ups can fuel the growth of the competitive landscape across the world. Some key recent developments shaping the size of the algae oil market are as follows-
- In March 2024, Lonza Group acquired a biologics site in Vacaville from Roche. This strategic initiative has helped the business gain an advantage in terms of diversifying the reach of the firm in the United States, thereby consolidating the organization’s position in the global landscape.
- In April 2024, Cargill partnered with Nestlé Purina. This strategic move was aimed at upholding regenerative agricultural practices. The initiative can also consolidate the strategic position of the organization in the competitive landscape.
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Key Segments of the Algae Oil Market
By Grade:
In terms of grade, the industry is divided into feed grade, food grade, fuel grade, and cosmetic grade.
By Application:
Different applications of the product are food and beverages, animal feed, pharmaceuticals, dietary supplements, personal care, biofuels, and others.
By Sales Channel:
The product is sold via direct sales and retail sales. The retail sales segment is further divided into hyper/supermarkets, specialty stores, online, and other retail formats.
By Region:
The report tracks algae oil sales across several continents like North America, Latin America, Europe, East Asia, South Asia, the Middle East and Africa, and Oceania.
About Future Market Insights (FMI)
Future Market Insights, Inc. (ESOMAR certified, recipient of the Stevie Award, and a member of the Greater New York Chamber of Commerce) offers profound insights into the driving factors that are boosting demand in the market. FMI stands as the leading global provider of market intelligence, advisory services, consulting, and events for the Packaging, Food and Beverage, Consumer Technology, Healthcare, Industrial, and Chemicals markets. With a vast team of over 400 analysts worldwide, FMI provides global, regional, and local expertise on diverse domains and industry trends across more than 110 countries.
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