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Algal Oil Market

Algal Oil Market

The market for Algal Oil was estimated at $2.5 billion in 2024; it is anticipated to increase to $4.0 billion by 2030, with projections indicating growth to around $6.1 billion by 2035.

Report ID:DS1805019
Author:Debadatta Patel - Senior Consultant
Published Date:March 2025
Datatree
Life Science
Nutraceuticals
Algal Oil
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Report Summary
Table of Contents
Methodology
Market Data

Global Algal Oil Market Outlook

Revenue, 2024

$2.5B

Forecast, 2034

$5.6B

CAGR, 2024 - 2034

8.6%
The Algal Oil industry revenue is expected to be around $2.7 billion in 2025 and expected to showcase growth with 8.6% CAGR between 2025 and 2034. The global rise in the popularity of Algal Oil is largely driven by significant factors such as the growing emphasis on sustainability in the worldwide economy and an increasing consumer liking for plant derived goods! Additionally the support from regulations for eco energy projects and progressions in biotechnology play a crucial role too! Algal Oils significance extends across sectors, like personal care products and pharmaceuticals to nutritional supplements demonstrating its importance in a constantly changing global market.

Algal Oil containing levels of Omega 3 fatty acids like DHA and EPA shows great promise across different industries such as biofuel production and as a key component in dietary supplements for both humans and animals also finding utility in cosmetic products too! With the growing trend towards eco sustainable resources in the market nowadays even more emphasizes the need, for Algal Oil.

Algal Oil market outlook with forecast trends, drivers, opportunities, supply chain, and competition 2024-2034

Market Key Insights

  • The Algal Oil market is projected to grow from $2.5 billion in 2024 to $5.6 billion in 2034. This represents a CAGR of 8.6%, reflecting rising demand across Nutraceuticals and Dietary Supplements, Animal Feed and Biofuels Production.
  • ADM (Archer Daniels Midland Company), DSM, Cargill are among the leading players in this market, shaping its competitive landscape.
  • U.S. and China are the top markets within the Algal Oil market and are expected to observe the growth CAGR of 6.3% to 9.0% between 2024 and 2030.
  • Emerging markets including Brazil, South Africa and Malaysia are expected to observe highest growth with CAGR ranging between 8.3% to 10.8%.
  • Transition like Shift to Sustainable Alternatives is expected to add $500.0 million to the Algal Oil market growth by 2030
  • The Algal Oil market is set to add $3.1 billion between 2024 and 2034, with manufacturer targeting Infant Nutrition & Culinary Use Application projected to gain a larger market share.
  • With Rising health consciousness, and Growth in vegan and vegetarian diets, Algal Oil market to expand 128% between 2024 and 2034.
algal oil market size with pie charts of major and emerging country share, CAGR, trends for 2025 and 2032

Opportunities in the Algal Oil

Innovations in technology for extracting and refining Algal Oil have the potential to significantly increase its appeal to consumers in the market space by improving efficiency and quality while lowering costs It could also pave the way for uses of algal oil, in different industries.

Growth Opportunities in North America and Europe

North America Outlook

North America stands out as a player in the algal oil market due to its strong presence driven by the increasing embrace of healthy living habits among its population. The regions focus on reducing fats and substituting fish oil with algal oil in various products like food and beverages and cosmetics is driving market growth. Additionally advancements in technology that enhance the extraction of oil are also contributing to North America's leading position, in this market. The competition in this industry is intense as companies like DSM and Corbio fight for dominance in the market in North America where vegan diets are gaining popularity and creating new opportunities, for algae oil producers.

Europe Outlook

Europe's steady expansion in the oil sector reflects the regions dedication to sustainable practices and energy efficiency initiatives. The rise in oil consumption in the region is being driven by a flourishing aquaculture sector and a growing preference for sustainable and organic personal care items. Despite facing competition from international giants like Polaris and Fermentalg the European market views these challenges as opportunities, for creativity and distinguishing their products from others. The market is anticipated to see a rise due to the growing cultivation of algae for producing biofuels and the use of oil in health supplements. This highlights Europe's potential, for expanding the algal oil market.

Market Dynamics and Supply Chain

01

Driver: Rising Health Consciousness, and Industry Applications Expansion

As people become more aware of the benefits of living a lifestyle the interest in algal oil is also on the rise. Algal oil is also packed with omega 3 fatty acids. Is also known to offer a range of health advantages, such, as easing inflammation decreasing blood pressure and enhancing heart health. Since it comes from plants algal oil is also seen as an eco animal friendly option compared to fish oil and other animal based supplements which may also be driving its popularity. Algae based oil offers a range of uses across various industries such as food and drinks to medications and beauty products as well as renewable fuels thanks to its versatility and the progress made in biotechnology and extraction methods which are also predicted to drive the market for algal oil towards new opportunities, for growth.
With the trend towards plant based diets growing steadily the need for vegan friendly nutritional supplements like algal oil is also increasing.
02

Restraint: High Production Costs

Although algal oil has advantages to offer a significant obstacle hindering its market expansion is the steep production costs linked to its manufacturing process. Extracting oil from algae requires complex bioengineering methods that rely heavily on technology and skilled workers. This relianceon technology and labor intensive production processes can drive up the cost of the final product. thus making it less accessible, to a wider consumer base. Manufacturers are facing challenges in expanding algae cultivation and maintaining a yield which has led to increased production costs and hindered the widespread adoption of algal oil, in the market.
03

Opportunity: Expanding Health Consciousness and Strategic Collaborations in the Algal Oil Industry

The increasing awareness of health and well being among people worldwide presents an opportunity for Algal Oil in the market sphere. Known for its omega 3 content this oil appeals to a wide range of consumers looking for dietary supplements to maintain a healthy balance. Given the growing body of research and promotion surrounding the health advantages linked to oil this sector shows promising growth prospects and could lead to a rise, in consumer interest.
Collaborating strategically among producers of Algal Oil marketers and research institutions may drive market expansion. Enhance product advancements Joint ventures enable the combining of resources and knowledge leading to technological enhancements innovation in products and increased visibility in the market Furthermore these partnerships hold promise for expanding the range of applications for algal oil, across various fields.
04

Challenge: Regulatory and Environmental Concerns

The growth of the oil sector may face obstacles due to strict regulations and environmental issues such as managing waste from algal biomass and the possible ecological effects of large scale algal cultivation leading to disturbances, in ecosystems.

Supply Chain Landscape

1
Cultivation & Harnessing

DSM

Cellana

2
Processing & Refining

Evonik Industries

Polaris

3
Distribution & Marketing

Goerlich Pharma

ADM Bioproducts

4
Consumption

Nutritional Supplements

Cosmetics

Biofuels

*The illustration highlights the key stakeholders within the supply chain ecosystem.

Applications of Algal Oil in Nutraceuticals & Dietary Supplements, Animal Feed & Biofuels Production

Nutraceuticals and Dietary Supplements

In the health and wellness field algal oil is commonly used for its content of omega 3 fatty acids that play a key role in preventing and treating heart disease issues Algal oil enriched health products and supplements are becoming popular due to their improved absorption and lack of allergens Key industry leaders such, as Archer Daniels Midland and DSM have leveraged their distribution channels and strong research and development capacities to establish dominance in the market.

Biofuels Production

The worldwide focus on eco energy solutions is increasing as the use of algal oil in the biofuels sector grows as well. Algal oil not only provides sustainable energy but also helps lower carbon emissions. Key players like Renewable Energy Group and ExxonMobil are deeply involved in this field. Are using advanced techniques to cultivate algae, for efficient biofuel manufacturing.

Animal Feed

Algal oil is widely utilized in animal feed due to its nutritional content which boosts the quality of products like eggs and dairy while eliminating any fish like taste typically associated with omega 3 fatty acids supplementation in feed by BASD and Neptune Wellness Solutions innovative algal oil offerings, for feed manufacturers.

Recent Developments

December 2024

Algoil Corp has obtained funding from leading investors to enhance and expand its unique technology for extracting algal oil pointing towards significant potential growth, in the worldwide market.

November 2024

BioMarine Innovations is enlarges its oil production facility in North America to meet the increasing demand and create a promising future, for the market.

October 2024

Greenseal Biolabs introduced a range of products with increased levels of DHA, in their algal oil. This move demonstrates a competitive stance and aims to set their offerings apart in the market.

Over the few years algal oil has become increasingly popular in the nutraceutical and biofuel sectors as a sustainable and renewable source of omega. 03 Fatty acids. The growing interest, in this plant. Derived option is driven by a rising recognition of the health advantages linked to omega. 03 And the conscious choices made by consumers.

Impact of Industry Transitions on the Algal Oil Market

As a core segment of the Nutraceuticals industry, the Algal Oil market develops in line with broader industry shifts. Over recent years, transitions such as Shift to Sustainable Alternatives and Technological Advancements in Algal Oil Production have redefined priorities across the Nutraceuticals sector, influencing how the Algal Oil market evolves in terms of demand, applications and competitive dynamics. These transitions highlight the structural changes shaping long-term growth opportunities.
01

Shift to Sustainable Alternatives

Amid growing worries about the environments healthiness and sustainability issues gaining momentum in the Algal Oil sector are becoming more pronounced lately with a shift towards eco practices The push for eco friendly energy and food sources has sparked a surge in research and funding, for Algal Oil extraction Experts are investigating how Algal Oil could serve as a sustainable alternative biofuel to counteract the harmful effects of fossil fuels in causing climate change In the health and wellness sector Algal Oil is acknowledged for its Omega 03 fatty acid content and is touted as a more environmentally friendly option compared to fish oil in dietary supplements. A shift, towards sustainable choices that is shaping the Algal Oil sector and impacting its expansion and market trends. This industry transition is expected to add $500 million in the industry revenue between 2024 and 2030.
02

Technological Advancements in Algal Oil Production

Advancements in technology within the Algal Oil sector are improving the effectiveness and cost effectiveness of Algal Oil manufacturing processes. Innovative approaches, to growing and harvesting algae and extracting oil are enabling producers to achieve volumes of Algal Oil while reducing production expenses and ultimately lowering the price of the end product.

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