Health Awareness Among Consumers Drive Growth
Algae are rich sources of varied micro and macro nutrients, and comprise a number of fiber, fats, minerals, proteins, vitamins, and others. Also, the production of algae is largely sustainable and meet a number of parameters for numerous applications.
With growing investments into dietary supplements and awareness about microalgal foods, algae fats are finding roles in numerous nutrition and health sector applications. Growing awareness about health benefits among consumers and health-care practitioners, largely in terms of solutions for lifestyle based ailments drive long-term growth.
Potential in Pharmaceuticals Support Industry
Algae fats find wide scope of applications in the pharmaceutical sector. This can be attributed to characteristics of antioxidants, anti-cancer and anti-viral applications. In addition, algae fats are also increasingly playing roles in nutraceutical products.
Further fatty acid content in algae is increasingly popular as bio-active compounds drug development. Algae fat can be used in the development of targeted cancer solutions. Also, research by market players towards genetic engineering in algae will positively impact market developments in the long-term.
Biofuel Applications Key to Revenue
Biofuel production, followed by dietary supplements are the leading applications of algae fats. Higher demand for such applications can be largely attributed to omega-3 nutrition in terms of supplements and environmental conservation in terms of fuel.
Fuel grade algae fats are expected to reflect steady growth rate, accounting for majority market share with applications including the production of gasoline, biodiesel, and jet fuel. These applications are gaining traction for low carbon, and greenhouse gas emissions .
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High Operational Costs are a Concern
The wide scope of applications for algae fats has resulted in a substantially positive trajectory of growth for the industry through the forecast period. However, participants in the market are likely to face certain challenges in terms of market developments.
The primary factor restraining adoption of algae fat products is the high cost of production associated in industry operations. Also, complexity of production processes and the lack of adequately skilled professionals are key concerns for market players.
South Asia and Pacific Generates Key Growth Opportunities
Emerging markets such as the South Asia and Pacific region followed by the Middle East and Africa region are reflecting optimistic growth prospects for the algae fats market in the long term. The growing levels of disposable incomes among consumers and increasing health awareness in the region contribute to growth.
Europe is a predominant market accounted for by relatively higher use of algae fats in food sector, especially in major countries of the EU such as Spain, Germany and France. Similar factors will enable steady growth in North America.
Algae Fats Market – Leading Players
FMI has analyzed the following major players in the algae fats market*.
- Thrive Algae
- Novosana Co. Ltd.
- Simris ALG AB
- Lonza Group Ltd.
- Evonik Industries AG
- Cargill Inc.
- Corbion Biotech
- Archer Daniels Midland Company
*This list is indicative – full details about the algae fats market players are available on request.
Market players in the algae fats sector have largely invested in the optimizing product portfolios towards commercialization with research into expanding the scope of applications, and strategic collaborations gaining importance for long-term market prospects.
In August 2020, Corbion Biotech announced the discontinuation of its Thrive brand of culinary algae oil, owing to lack of commercial success despite superior nutrition, clean taste and higher smoke points. However, the company’s AlgaWise algae oil for food manufacturers remains available.
Amazon Air, a cargo airline has been considering algae for a source of sustainable jet biofuel. The company has initiated the project with more than 20 million liters of the product for operations in the coming year.
In Nov 2019, Synthetic Genomics Inc. joined hands with ExxonMobil to develop algae strains with the aim of converting carbon into fat, which can potentially be converted further into biofuels at an industrial scale.
Algae Fats Market- Report Scope
Historical Data Available for
US$ Mn for Value and 000’ Tons for Volume
Key Regions Covered
North America, Latin America, Europe, Middle East & Africa (MEA), East Asia, South Asia and Pacific
Key Countries Covered
U.S., Canada, Brazil, Mexico, Germany, U.K, France, Spain, Italy, China, India, Japan, South Korea, Indonesia, Malaysia, Singapore, Australia, New Zealand, South Africa, Israel, and GCC
Key Segments Covered
Type, Application, Distribution Channel, and Region
Key Companies Profiled
BASF SE, Stepan Company, Polaris, Archer Daniels Midland Company, Cellana Inc., Lonza Group AG, Bunge, Corbion Biotech, Cyanotech, DSM, Algae Floating Systems, Algix, Algae Production Systems, Bioprocess Algae, Cargill Inc., Evonik Industries AG, Guangdong Runke Bioengineering Co., Simris ALG AB, Novosana Co Ltd, and Thrive Algae.
Market Overview, Key Trends, Success Factors, COVID-19 Impact Analysis, Demand Analysis, Segmental Overview, Regional Profiling. Market Structure Analysis & Competition Analysis
Customization & Pricing
Key questions answered in the report
- How will algae fats market grow in the future?
As per the Future Market Insights (FMI) market study, the algae fats market will continue to reflect steady growth in the near-term, driven by demand in biofuels and animal feed formulations in addition to uses in dietary applications concerning improving immunity during the COVID-19 crisis.
- What trends influence the algae fats market?
Niche applications in the animal nutrition and pharmaceutical sectors are positive influencers affecting the demand for algae fats in recent years. FMI’s research has stated that health awareness and higher interest in the optimization of diets is likely to affect market growth.
- Which is the more prominent use of algae fats?
Applications of algae fats in the biofuel segment is expected to hold major market share for the duration of the projection period. Environmental concerns and demand for fossil fuel alternatives drive demand. However, food & beverage applications are reflecting faster growth on the back of the rising vegan and vegetarian consumer demographics.
- How is COVID-19 Impacting the algae fats market?
The COVID-19 pandemic has substantially affected the global economy owing to restrictions on business and industry in varied sectors. However, in terms of fortified foods, supplements and pharmaceuticals, the demand for algae fats is likely to rise during the crisis bolstering market developments for the short term.
Analysts have stated that the algae fats market will display steady, healthy growth with widening scope of use in nutritional supplements.
- Which are the major players in the global algae fats market?
Leading players in the global algae fats market include BASF SE, Archer Daniels Midland Company, Cargill Incorporated., Cellana Inc., Archer Daniels Midland Company, Corbion Biotech, Cyanotech, Algix, Evonik Industries AG, Lonza Group Ltd., Polaris, Simris ALG AB, Thrive Algae, and others.
Enquiry before Buying
- Is this research conducted by Future Market Insights?
Yes, the algae fats market research has been conducted by expert analysts from Future Market Insights through a combination of primary and secondary research. To know more about how the research was conducted, you can speak to the research analyst.
- What research methodology is followed by FMI?
FMI follows a methodology that encompasses the demand side assessment of the market, and triangulates the same through a supply side analysis. This methodology is based on use of standard market structure, methods and definitions.
- Who are the respondents for primary research?
FMI speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, industry experts. For a full list of primary respondents, please reach out to us.
- What are the sources of secondary research?
FMI conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request.
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- Food Grade
- Feed Grade
- Dietary Supplements
- Animal Feed
- Specialty Retailers
- North America (U.S & Canada)
- Latin America (Brazil, Mexico, & Rest of Latin America)
- Europe (Germany, U.K., France, Spain, Italy, & Rest of Europe)
- Middle East & Africa (GCC, South Africa, Israel, & Rest of MEA)
- East Asia (China, Japan & South Korea)
- South Asia & Pacific (India, Thailand, Malaysia, Indonesia, Australia & New Zealand, & Rest of South Asia & Pacific)