Algal Oil Market: Overview
- According to the Food and Agricultural Organization of the United Nations, algae is termed as the ‘Food of Millennium.’ Investments in algae manufacturing have been rising, led by the rising demand for high-protein foods across the globe.
- Types of algae such as blue-green and green algae are considered omega-rich sources. Microalgae consists of nearly 60% of protein, which includes all the essential amino acids, polysaccharides, polyunsaturated fatty acids, vitamins, carotenoids, and other substances.
- Market share of algal oil has been rising in the global dietary supplements and food & beverages sectors owing to the increase in awareness about algae products
Rising Demand for Functional Foods
- Growth in concerns about overfishing and minimal requirement of land are two major factors boosting microalgae culture across the globe. From a nutritional standpoint, algal oil possesses a higher ratio of DHA to omega-3 fatty acids compared to fish oils. This algal oil trend is further escalated in 2018, with the allowance of algal oil inclusion in the European dietary supplements.
- Algal oil is used as a coating ingredient in sauces and dressings owing to its relatively higher smoke point and neutral taste. Algal oil serves as an ideal fit vegetable alternative for fish oils owing to the rising trend of veganism.
- Major players such as Royal DSM, Evonik Industries, ADM, and Cargill are investing significantly in algal oil production. DSM and Evonik have collaborated to form Veramaris in order to increase algae production.
- Ongoing research studies by the Fatty Acid Research Institute explore the benefits of supplementing omega-3 fatty acids to counteract the COVID-19 disease. In 2020, the Algae Biomass Association reported a federal support of US$ 40 Mn from the Department of Energy for advanced algae systems post COVID-19 outbreak. These investments are likely to propel algal oil production in the next few years.
Demand for Protein Rich Edible Oil Sources to Boost Food Grade Algal Oil Derivatives
- Ongoing investments in algae R&D are likely to promote algal oil inventions in the food sector. The Algae Biomass Association of the U.S. has lent lucrative support for research on algae and algae applications in agriculture. This investment also includes new commercial markets for renewable and sustainable products derived from algae.
- Thus, rise in investments complemented with the neutral flavor and higher smoke point of algal oil are boosting the adoption of algal oil as an acceptable vegetable alternative in the food & beverages sector
Animal Feed Industry to Offer Lucrative Opportunities
- The animal feed industry offers lucrative opportunities for the global algal oil market. Key players such as DSM, Evonik, Alltech, and ADM are making significant investments in the market.
- With an increasing focus on proteins and lipids segment, Fermentalg invested around US$ 76.5 Mn in 2020 for building its technology and industrial platforms. Similarly, DSM and Evonik collaborated to form Veramaris in order to boost algae production in the animal feed space. Thus, rise in investments is likely to strengthen the consumption share of the animal feed segment in the algal oil market.
Global Algal Oil Market: Regional Outlook
- In terms of region, the global algal oil market can be split into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
- According to the European Commission’s Knowledge Centre for Bio-economy, Europe accounted for small share of the global biomass production in 2019, while microalgae production in the region held 98% share in the same year. Production of microalgae in Europe is primarily based on wild harvesting stocks rather than aquaculture.
Key Players in Global Algal Oil Market
The global algal oil market is slightly fragmented, with the presence of a few regional and global manufacturers. Prominent players are investing in mergers, acquisitions, expansion, and new product launches in order to maintain their leading position in the market. Expansion of global reach is one of the key strategies adopted by major players such as DSM, Alltech, and Evonik Industries to strengthen their share in the market.
Key players operating in the global algal oil market include:
- DIC Corporation
- Alltech, Inc.
- Royal DSM NV
- Cyanotech Corporation
- Bioprocess Algae LLC
Global Algal Oil Market: Research Scope
Global Algal Oil Market, by Grade
Global Algal Oil Market, by Application
- Dietary Supplements
- Food & Beverages
- Animal Feed
Global Algal Oil Market, by Region
- North America
- Russia & CIS
- Rest of Europe
- Asia Pacific
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa
This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.
Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:
- Customer Experience Maps
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The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.
The following regional segments are covered comprehensively:
- North America
- Asia Pacific
- Latin America
- The Middle East and Africa
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Below is a snapshot of these quadrants.
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The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:
1. What can be the best investment choices for venturing into new product and service lines?
2. What value propositions should businesses aim at while making new research and development funding?
3. Which regulations will be most helpful for stakeholders to boost their supply chain network?
4. Which regions might see the demand maturing in certain segments in near future?
5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?
6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?
7. Which government regulations might challenge the status of key regional markets?
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10. What will be the barrier to entry for new players in the market?
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