The global algae oil market is evaluated at a value of US$1.817 billion in 2020 and is projected to grow at a CAGR of 4.37% to reach a market size of nearly US$2.451 billion by the year 2027.
Algae oil is an oil that is rich in protein content, Omega 3 fatty acids, and DHA. Omega 3 fatty acids and DHA are reported as the essential nutrients for infant brain development and immune strength. The high presence of DHA and omega 3 fatty acids gives algae oil immense value in the food and health market. Algae oil is a type of oil, that is mainly extracted from certain marine algae. Algae oil is also commonly considered good medicine for certain eye problems, for reducing cholesterol, and for the improvement of creativity and thinking ability in children, without any support from strong scientific evidence. After all, the presence of high Omega 3 fatty acid content makes it a suitable brain food, as about 97% of the human brain is constituted by the presence of Omega 3 fatty acids. The increasing health consciousness and the increase in the need for dietary supplements in the market act as major drivers for the growth of algae oil in the global market. Depending on data from UNICEF, it's stated that about 149 million children aged under 5 are suffering from malnutrition across the globe. As the health of children is now keenly watched worldwide, the supplements and health nutrients all in one giving all major important nutrients are of high value in the market. As algae oil products are important source providing almost all essential nutrients, including DHA, which is regarded as very important in brain growth of children. The high presence of omega 3 and DHA which are rare to obtain at a large level through a single food source, also positively drives the demand for algae oil. The immense use of algae oil in animal food, dietary items, biofuel, and beverages are also the constraints that boost the value of algae oil in the market. The low availability and high cost of algae oil, restrain the value and acceptance of algae oil in the public domain, making it less affordable. The high cost of production, certain production parameters and extraction costs also restrain the market’s growth.
The impact of COVID 19 has resulted in both positive and negative impacts on the market for algae oil. The increased demand and need for dietary supplements and healthcare medicines after the COVID 19 outbreak has spurred substantial growth in the algae oil market. The increased health consciousness in professionals and individuals made the market conditions effective and suitable for algae oil supplements. On the other hand, the government lockdowns and isolations also made the production and extraction of algae oil more costly. The production parameters, such as the need for a higher number of workers and large amounts of water availability for marine algae production, also negatively restrain the value of the algae oil market.
The rising need for health and dietary supplements
The increased need for health and dietary supplements has rocketed the growth of the algae oil market. The increasing health consciousness of people drives the demand for algae oil as a health and dietary product. DHA and Omega 3 fatty acids are nutrients that are less available in food sources large amounts. Algae oil's high content of DHA and Omega 3 fatty acids makes it an attractive product on the global market. The need for DHA and Omega 3 fatty acids for brain development in infants, boosts the market for algae oil as a nutrient supplement and baby product.
A hike in demand for animal food and biofuel
The rich nutrient content also gives algae oil a significant role in animal food production. Food supplements developed from algae oil have been significantly proven to provide good health conditions and immunity in animals. The cattle feed developed from algae oil resulted in good health conditions for cattle and increased milk production. The richness of Omega 3 fatty acids, DHA, and essential protein content leads to boosted and increased immunity in animals, which can have a positive impact on agriculture and domestic animal products globally. The need for renewable sources of energy is increasing the demand of algae oil as a biofuel. To a certain extent, biodiesel can be extracted and synthesised from algae oil, which can be substantially used as an alternative to fossil fuel The research and development ongoing regarding algae as a biofuel can impact the global market in positive terms.
The impact of COVID-19 on health consciousness
The pandemic effect has resulted in a developing consciousness in society regarding the need for immunity and health. The use of dietary supplements and health products has significantly increased in the market. The vital role of DHA and Omega 3 fatty acids in providing health and boosting immunity in people, has increased the demand and market value of algae oil-based health supplements and products. According to PMC (US National Library of Medicine and National Institutes of Health), the rate of usage of health supplements on a daily diet has been increased after post-Covid compared to the previous years. The statistics data from WHO (world health organization) from different nations states that the mortality rate of people affected by COVIDwith pre-existing health problems is far greater than the mortality rate of people who died of COVID without any previous health disorders. This report paves the way for an increased health consciousness in people after the COVID strike, increasing the demand for health supplements. The role of algae oil as a good and large source of healthy nutrients acts as a major driver of algae oil in the global market.
North America has the world's largest market share for algae oil. North America is taking the largest market share of algal oil in the world. The lion's share of market value and revenue from algae oil is reported from North America. The FAO (Food and Agriculture Organization of the United Nations) accounts for North America as having more value in the algae oil market, followed by Europe and Asia Pacific. The total confirmed cases were about 96,066,194 from January 20, 2020, to November 15 2021 in the Americas, according to the National Records of WHO regarding the American continents. Which boosts the total health and medicine market in North America as this region has more cases reported compared to South America. Also resulted in holding a major share in the market for health care supplements. The market share of Arab countries and Africa is considerably lower compared to other regions in terms of the algae oil market.
|Market size value in 2020||US$1.817 billion|
|Market size value in 2027||US$2.451 billion|
|Growth Rate||CAGR of 4.37% from 2020 to 2027|
|Forecast Unit (Value)||USD Billion|
|Segments covered||Grade, Application, Sales Channel, And Geography|
|Regions covered||North America, South America, Europe, Middle East and Africa, Asia Pacific|
|Companies covered||Polaris, Fermentalg, Algix LLC, TerraVia Holdings, Inc, British Algoil Ltd, Chevron Corporation, Algae Floating Systems, Inc., Cellana Inc., Veramaris (DSM and Evonik joint venture), Archer-Daniels-Midland Company|
|Customization scope||Free report customization with purchase|
Frequently Asked Questions (FAQs)
Q1. What will be the algae oil market size by 2027?
A1. The global algae oil market is projected to reach a market size of US$2.451 billion by 2027.
Q2. What is the size of the global algae oil market?
A2. Algae Oil Market was valued at US$1.817 billion in 2020.
Q3. What are the growth prospects for the algae oil market?
A3. The algae oil market is projected to grow at a CAGR of 4.37% during the forecast period.
Q4. What factors are anticipated to drive the algae oil market growth?
A4. The increasing health consciousness and increase in the need for dietary supplements in the market act as a major driver for the algae oil market growth.
Q5. Which region holds the largest market share in the algae oil market?
A5. North America holds a dominant share of the algae oil market.
TerraVia Holdings, Inc
British Algoil Ltd
Algae Floating Systems, Inc.
Veramaris (DSM and Evonik joint venture)
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