By 2028, the size of the algae oil market will have grown by a large amount due to rising demand for better animal feed grade and use in the food and beverage sector. Also, biofuel will be a good use of algae because algae are a key source of biomass. Algae-based biofuels can be used in place of oil-based fuels and are one of the fastest-growing markets in the world.
Algae oil is made from marine algae and is used to improve vision in people with a certain eye condition and to lower cholesterol. It is also used as a speciality oil because it is low in saturated fat. Algae oil has become popular in dietary supplements.
Based on grade, the algae oil market share from the feed segment is expected to grow at a high CAGR from 2022 to 2028. Since algae oil has more nutritional value than grain feed, it is being used more in the animal feed industry. It is used to feed animals, since the oil is mostly made of proteins and micronutrients.
Request Access Full Report is Available: https://www.zionmarketresearch.com/report/algae-oil-market
Based on the end-user, pharmaceuticals are likely to be the biggest consumer of algae oil. It is highly regarded in the field of drug development and is a rich source of natural products with pharmacological effects. Algae oil is used to make a wide range of things, including antivirals, antifungals, therapeutic proteins, drugs, and antimicrobials. More importantly, the need for sustainability in drug development will work in favour of algae oil suppliers.
In terms of geography, the North American algae oil market share will have a lot of room for growth until 2028. Biofuel, in particular, has become a good choice because it is made in a way that doesn’t release much sulphur into the air. The low carbon footprint of biofuel will push algae oil into the regional energy sector. In the U.S., groups have come together to make it possible to sell algae biofuels. For example, the Energy Independence and Security Act set a goal of 36 billion gallons of biofuel by 2022.
Leading companies in the global algae oil market are likely to invest in research and development, product launches, and partnerships. Some of the companies in this field are Cargill, Lonza Group, Seaweed Energy Solutions, TerraVia Holdings, Royal DSM, Cyanotech, Algix, Alltech, Diversified Energy, and DIC, among others.
In 2015, the U.S. made up more than 80% of the North American market volume. This was due to the growing demand from the biofuel application segment. Over the next nine years, the innovative use of cultivation and harvesting technology to provide high-quality algae oil to meet the fuel industry’s needs is expected to have a positive effect on the industry.
Demand in Asia-Pacific was worth more than $300 million in 2015. This growth is due to the growth of several application sectors, such as biofuel, food and beverage, dietary supplements, and animal feed. Asia-Pacific is expected to remain the second largest market from 2016 to 2025.
China’s government rules to cut down on pollution are expected to lead to a rise in demand, which is expected to lead to a higher overall production capacity. Over the next few years, the market is expected to grow because the biofuel industry in Asia and the Pacific will need a lot of biofuel.
Algal Oil Market Share Insights:
Key players in the market are TerraVia Holdings, Inc, Diversified Energy Corporation, Algix, LLC, and Cellana, Inc.
Because there is a lot of competition, producers are focusing on making prices reasonable, integrating the supply chain, and making their products stand out in terms of quality. So, companies have been investing in integrating the supply chain to keep their market share and focus on long-term growth.
In October 2014, the government told Algix, LLC to clean pond scum from 10,000 acres of catfish farms and turn it into biodegradable plastics. The company used this as an opportunity to set up an algae treatment plant that makes about 200 million pounds of bio-plastic resin.
The global algae oil market is segmented as follows:
- Fuel grade
- Food Grade
- Feed Grade
- Animal Feed
- Food & Beverage
- Dietary Supplements
- North America
- The U.S.
- The UK
- Rest of Europe
- Asia Pacific
- South Korea
- Southeast Asia
- Rest of Asia Pacific
- Latin America
- Rest of Latin America
- Middle East & Africa
- South Africa
- Rest of Middle East & Africa