Algal Oil Market: Introduction
- Algal oil is an oil made from certain marine algae. Akin to fish oil, algal oil is used as a source of omega-3 fatty acids.
- Two of the most important omega-3 fatty acids contained in algal oil are docosahexaenoic acid (DHA) and eicosapentaenoic acid (EPA). Algal oil is used in foods and as a medicine.
- Algal oil is commonly used along with other fatty acids to fortify infant formula. It is also used for improving thinking skills in children and older people, lowering cholesterol, improving vision in people with a certain eye condition (retinitis pigmentosa), and many other conditions. However, there is no strong scientific evidence to support these uses.
Key Drivers and Restraints of Algal Oil Market
Increase in demand for EPA/DHA-based algae omega-3 in infant formulations is boosting the demand for algal oil. DHA and EPA are essential for infant brain development and immunity strength. DHA has well-established legal strains for incorporation into infant formula products in different regulations and WHO recommendations. Increase in demand for dietary supplements due to the rise in awareness among working professionals about weight management is a major factor driving the market. However, high price of algae oil and parameters required for the growth of algae such as humidity and temperature are some of the key restraints of the algal oil market.
Algal Oil Market: Application Segment
- Based on of application, the algae oil market can be segmented into biofuel, dietary supplements, food & beverages, and animal feed
- Biofuel is the major application segment and is projected to account for significant share of the global market due to its rise in usage as a sustainable fuel. Biofuel is also being used increasingly as an alternative renewable fuel in blending biodiesel, gasoline, and jet fuel. It is an attractive investment option for non-oil producing nations, since it is environmentally-friendly and low sulfur-emitting fuel production method.
Algal Oil Market: Grade Segment
- Based on of grade, the algae oil market can be divided into fuel, food, and feed
- 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 increase in 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 feed segment of the algal oil market.
COVID-19 Impact on Global Algal Oil Market
- On January 30, 2020, the International Health Regulations Emergency Committee of the World Health Organization (WHO) declared the Coronavirus disease (COVID-19) outbreak a public health emergency of international concern. Originating in China, the virus has spread to at least 214 countries and territories around the world.
- Several governments and private sector businesses are operating at a limited capacity or have ceased operations completely due to recent events surrounding the COVID-19 pandemic
- The impact of COVID-19 resulted in generation of opportunities for manufacturers of health-oriented products, especially dietary supplements. Increase in consumer perception of these products in boosting immunity is driving the market.
North America to Hold Leading Share of Algal Oil Market
- In terms of region, the algal oil market can be divided into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa
- North America is expected to hold major share of the global algal oil market, followed by Asia Pacific and Europe, during the forecast period
- North America dominates the algae oil market due to rise in demand for algae oil in biofuel and food & beverages industries and increase in demand for dietary supplements in the region due to the growth in health consciousness and purchasing power of consumers
- The market in Europe is estimated to expand substantially due to the rise in preference for plant-based health supplements and growth of food & beverages and dietary supplement industries in the region
Key Manufacturers Operating in Global Algal Oil Market
The algal oil market was consolidated in 2020. Major players have prominent presence in developed and developing countries. Key manufacturers operating in the algal oil market include:
- DIC Corporation
- Royal DSM NV
- Bioprocess Algae LLC
- Cyanotech Corporation
- Cellana Llc
- Cargill Inc
- Diversified Energy Corporation
- Seaweed Energy Solutions A/S
- Alltech Inc
- TerraVia Holdings Inc
Algal Oil: Research Scope
Algal Oil Market, by Distribution Channel
- Convenience Stores
- Specialty Stores
Algal Oil Market, by Grade
Algal Oil Market, by Application
- Dietary Supplements
- Food & Beverages
- Animal Feed
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
- 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
- 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.