Get In Touch

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

  • Food
  • Feed
  • Fuel

Global Algal Oil Market, by Application

  • Dietary Supplements
  • Food & Beverages
  • Biofuel
  • Animal Feed
  • Others

Global Algal Oil Market, by Region

  • North America
    • U.S.
    • Canada
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
    • Russia & CIS
    • Rest of Europe
  • Asia Pacific
    • China
    • Japan
    • India
    • ASEAN
    • Rest of Asia Pacific
  • Latin America
    • Brazil
    • Mexico
    • Rest of Latin America
  • Middle East & Africa
    • GCC
    • 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
  • Insights and Tools based on data-driven research
  • Actionable Results to meet all the business priorities
  • Strategic Frameworks to boost the growth journey

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
  • Europe
  • Latin America
  • The Middle East and Africa

The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.

Below is a snapshot of these quadrants.

1. Customer Experience Map

The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.

2. Insights and Tools

The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.

3. Actionable Results

The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.

4. Strategic Frameworks

The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.

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?

8. How will the emerging political and economic scenario affect opportunities in key growth areas?

9. What are some of the value-grab opportunities in various segments?

10. What will be the barrier to entry for new players in the market?

Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.

Custom Market Research Services

TMR offers custom market research services that help clients to get information on their business scenario required where syndicated solutions are not enough.

REQUEST CUSTOMIZATION

Algal Oil Market

Pre Book