In 2019, the figures for sales from the Algae Omega industry globally were valued at USD 882.0 million. It was also determined to have historical growth from 2019 to 2023 with a CAGR of 5.3%, therefore its revenue figures are projected to hit USD 1,151.5 million by 2024. Within the years to come, it is expected that the global statistics will go up by 3.7% CAGR which would amount to USD 1,656.0 million by the year 2034.
The Global Algae Omega Omega industry is being considered a modern and sustainable substitute for fish oil because it is driven by the concern for more sustainable sources of omega-3 fatty acids. Because Algal oil is rich in omega-3 fatty acids, it provides vegetarians and vegans with a plant-based alternative.
The growth pace has been steady over the past few years, which can be attributed to the development of the biotechnological industry and the increasing knowledge regarding omega-3's health benefits. Significant funds have been allocated to enhancing the technologies available for the food production industry for algae cultivation and extraction processes aimed at lowering costs and increasing efficiency in production. In the years to come, the industry is positioned to experience major growth. Specifically, innovations in marine microalgae technology for effective algae growth and rising applications in functional foods, health supplements, and drugs are anticipated to enhance the level of activity in the market. The plant-based food trend, along with organic principles, will remain a focus.
| Attributes | Description |
|---|---|
| Estimated Global Industry Size (2024E) | USD 1,151.5 Million |
| Projected Global Value (2034F) | USD 1,656.0 Million |
| Value-based CAGR (2024 to 2034) | 3.7% |
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The table below presents a comparative assessment of the variation in CAGR over six months for the base year (2023) and current year (2024) for the Global Algae Omega industry. This analysis reveals crucial shifts in industry performance and indicates revenue realization patterns, thus providing stakeholders with a better vision of the ecosystem growth trajectory over the year. The first half of the year, or H1, spans from January to June. The second half, H2, includes the months from July to December.
| Particular | Value CAGR |
|---|---|
| H1 | 3.1% (2023 to 2033) |
| H2 | 3.9% (2023 to 2033) |
| H1 | 3.4% (2024 to 2034) |
| H2 | 4.2% (2024 to 2034) |
The above table presents the expected CAGR for the Global Algae Omega industry over several semi-annual periods spanning from 2024 to 2034. In the first half (H1) of the decade from 2024 to 2034, the business is predicted to surge at a CAGR of 3.1%, followed by a slightly variable growth rate of 3.9% in the second half (H2) of the same decade. Moving into the subsequent period, from H1 2024 to H2 2034, the CAGR is projected to change slightly to 3.4% in the first half and remain relatively moderate at 4.2% in the second half.
Benefits to brain and eye health making DHS the sought-after omega-3 type
DHA (Docosahexaenoic acid), which belongs to the omega-3 family is one of the most important fatty acids due to its positivity towards the development and sustainability of the brain and its benefits for the eyes. It is the major structural component of both the human brain and the cerebral cortex, skin as well as the retina.
Thus DHA is necessary for all age groups right from the infant stage up to old age in order to support cognitive processes memory and mental health. Moreover, DHA is also significant in healthy vision and reduces the chances of macular degeneration and other related vision problems. These health attributes are what have made DHA the most dominant omega-3 type in the global algae omega industry.
High-concentrated formulations in demand for rising applications in therapeutics
In view of the beneficial health effects attributed to omega-3 and its high demand, there has been an increase in the need for high-concentrated omega-3 formulations, particularly for therapeutic uses such as cardiovascular diseases. In order to manage chronic cardiovascular, inflammatory, and mental disorders, these formulations that are rich in EPA and DHA, are effective.
The design of high-potency supplements guarantees that patients get the required quantity of omega-3s for therapeutic use conveniently. Rising research activities regarding the phenomenal health benefits of omega 3s are likely to increase the demand for high-concentrated formulations in the future and hence, fuel the growing algae omega industry.
Tetra Packs gaining traction for their sustainability & convenience
Tetra packs are among the preferred packaging types in the global algae omega market and this popularity is growing because of their eco-friendliness and practicality. These packs are made from renewable resources and are 100% recyclable which responds to the rising need for green products.
Tetra packs are light in weight, easy to carry, and offer complete protection against light and air to preserve the omega-3 products inside. They are also designed to give users comfort in use whether at home or on the move. With the ever-increasing importance of sustainability in the purchasing process, tetra packs are rising in popularity as an effective means of packaging.
Global sales increased at a CAGR of 5.3% from 2019 to 2023. For the next ten years (2024 to 2034), projections are that expenditure on the industry will rise at 3.7% forecast CAGR.
In the past years, there has been an evolution within the Global Algae Omega industry. The growing trend of consumers looking for omega-3 fatty acids from plant-based and sustainable sources as opposed to fish oil is the leader in this change. The first initiatives were the result of technological progress in the field of biotechnology and growing concerns regarding the devastated stocks of fish. However, as companies moved towards more sustainable omega sources, most turned to algae due to its high omega levels and easy-growing methods.
Over the last 10 years, the industry has been on a constant uptrend, especially as consumers have been educated on the health advantages associated with omega-3s which include heart health and better brain activity. The trend toward vegetarianism and veganism, however, has contributed enormously to the increase in the popularity of omega-3 products obtained from algae. Key companies are focusing on research and development to improve the practicality and lower the costs of methods utilized to grow and extract algae.
Moving forward, the trends that have been analyzed in the context of the future of the Algae Omega industry are quite encouraging. It is anticipated that the ongoing rise in the tendency towards healthy and plant-based diet will be essential for further growth. New approaches in algae production will include new photo-bioreactors and genetic engineering that will increase output as well as reduce overhead costs. Additionally, further growth will also be achieved by applications in functional foods, dietary supplements, and the pharmaceutical industry.
Comparison of market concentration ratios in the algae omega industry produces interesting results. Market concentration explains the degree to which a number of business entities control the market. It can be either fragmented or
consolidated. Fragmented structures result in the presence of various small-sized players possessing no sizeable market share. This mostly results in stiffer competition and innovation as the companies seek to stand out from the rest of the players. On the other hand, in a consolidated structure, few large-sized players dominate an industry.
The Algae Omega industry is mostly found to have low concentration. MNCs like DSM or Corbion do have a presence because of the resources and network they command and they are basically at the forefront in technology and volume of production. However, there are also several regional companies serving local markets that are more focused on specific niches or applications of algae omega products.
For instance, even though DSM supplies across the globe, a regional player in India or China may target the local market and the local regulations by providing appropriate products to the market. This diversity in the players in the industry ensures that competition is upheld which translates to innovations and a wider range of products.
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Nordic Naturals' vegan Omega 3 Supplement Algae Omega is a product with a source from microalgae in a responsible manner. The ingredient does not provide any omega 3 coming from fish sources in order to cater to vegetarians and vegans. The company seeks to launch more new products in the assortments which are pure, high quality and non-GMO. Sustainability and quality are their main points in the manufacturing of products. Nordic Naturals' strategy focuses into improving the company's market share through investments in research and development with an aim of creating new products as well as enhancing the current ones in the market.
AlgiSys uses specific strains of microalgae for producing algal omega-3 EPA and high protein vegan biomass. Their vision is to make products that will be eco-friendly. AlgiSys is looking to enhance its production capacity with advanced fermentation technology in response to growing world demand for EPA omega-3. The company has plans to diversify its limits by venturing into highly lucrative markets such as human nutrition, animal health and pharmaceutics. They are also raising capital for commercial expansion and improving production capacity.
The following table shows the estimated growth rates of the top five markets. These countries are set to exhibit high consumption, recording high CAGRs through 2034.
| Country | CAGR, 2024 to 2034 |
|---|---|
| USA | 3.9% |
| UK | 3.0% |
| Germany | 3.4% |
| Japan | 4.2% |
| China | 4.7% |
Majority of Algae Omega sales happen in the United States due to the existence of leading companies and research laboratories. Corporations such as DSM, Corbion and ADM can be positioned at the crest, fostering innovation and crafting arcade-oriented products. These firms are focusing energy towards R&D to come up with some tested qualities in omega-3 supplementation. Also, in collaboration with industry, science enables algae omega products to find new applications and to render added benefits faster than otherwise possible. This strong protective covering of the market participants and research facilities helps to maintain the performance of the USA in the algae omega landscape. The industry for Algae Omega in the United States is projected to exhibit a CAGR of 3.9% during the assessment period and revenue from the sales of Algae Omega in the country is expected to reach USD 508.4 million with a market share of 30.7%.
In line with global trends, the algae omega industry in China has been growing rapidly supported by the proper framework of policies for the development of biotechnology. A more recent phenomenon is the Chinese government's design and implementation of policies and funding programs meant to seek the growth of the biotechnology industry, including the manufacture of omega-3 derived from algae. This includes funding for R&D, tax breaks and setting up of bio parks. These steps have attracted investors from within and outside the country to the Chinese economy.
This has led to China becoming one of the leaders in the world market of products containing algae omega oils and most other products in the industry are on the growth curve because of innovations and government support. These trends are leading to a projected value of USD 289.8 million by 2034 with Algae Omega demand calculated to rise at a value CAGR of 4.7% during the forecast period (2024 to 2034) with a value share of 17.5%.
Progress is being made in the Japanese algae omega industry thanks to the steady development of the nutraceutical sector. The specialty of Japanese enterprises is their sophisticated science and the willingness to improve themselves, which results in the perfect forms of omega-3 supplements. Developed extraction methods, improved bioavailability, and innovative delivery forms of products are making algae omega more consumer-oriented. In addition, the Japanese market is also very prosperous in terms of nutraceuticals because of Japan's strong interests in health as well as longevity. These factors are responsible for the robust projected forecast CAGR of 4.2% from 2024 to 2034, with the country achieving a global value share of 14.2% in 2034 with a value of USD 235.1
| Segment | Liquid |
|---|---|
| Main Segment | Form |
| Value Share (2034) | 27% |
Consumers are gravitating towards liquid forms of omega 3 supplements due to their flexible use. Unlike capsules or powders, omega 3s in liquid form can be incorporated into different recipes such as other food ingredients and are a great choice for consumers who dislike taking tablets. This flexibility allows for easy enhancement of everyday menus, where it can be included in smoothies or salads or even baked goods in various recipes. Besides, the liquid forms normally have an increased rate of absorption, thus providing quicker health benefits. Liquid forms are getting more preference among consumers due to their convenience in incorporating omegas into one's daily routine. This growth has propelled its value to USD 447.1 million in 2034 with a market share of 27% and further projections suggest its growth at a CAGR of 4.0%.
| Segment | Dietary Supplements |
|---|---|
| Main Segment | Application |
| Value Share (2034) | 58% |
The high rate of omega-3 supplement consumption has been linked to the numerous health advantages associated with them and thus, are standing out as the primary use in the world algae omega market. Omega 3s are known for being needed in maintaining a healthy heart, cognitive functioning and the reduction of inflammation among many other uses. With more people becoming aware regarding the various health benefits of omega-3 fatty acids, it is becoming common practice to include omega-3 supplements in diet. This pattern is especially pronounced among people who are health-oriented or who have some particular health concerns. The combination of easy availability, efficiency, and value of omega-3 dietary supplements makes them a prominent usage of all applications. Bolstering from these trends, this segment is set to achieve a market share of 58% with a market value of USD 960.5 million by 2034 due to growth at a forecast CAGR of 2.8%.
The Global Algae Omega sector has a great market and is in for splendid growth owing to acquisition strategies and new product and service launches.
Publishing firms have dramatically expanded their operations within certain agreements with hopes of gaining more market share and maximize gains. The trend of consolidating companies through acquisition has further made it possible for most firms to refresh their product line as well as to pursue new geographic markets, thus making up competitive edges.
Product improvement is still at the top of the strategies employed by the companies which include extracting new oleinic acid which is concentrated from algae for the health consumers. These products often highlight environmental friendliness and enhanced health benefits and are perfect for the rising population who are vegetarians.
Apart from these, companies continue to take advantage of strategic partnerships and alliances in order to support growth constantly. They help in research and development, enabling companies to produce advanced products and technologies. Moreover, companies are focused on promotion and customer education regarding the advantages of algae omega in order to increase sales.
In late 2022, Cargill announced a new dietary ingredient derived from algae omega-3 fats for animals. The purpose of this product is to replace fish oil in aquaculture and livestock feeds in
As per Type, the industry has been categorized into EPA (Eicosapentaenoic acid), ALA (Alpha-linolenic acid) and DHA (Docosahexaenoic acid).
As per Form, the industry has been categorized into Capsule, Powder and Liquid.
As per Concentration, the industry has been categorized into Concentrated, High-Concentrated and Low-Concentrated.
As per Sales Channel, the industry has been categorized into Online and Offline.
As per Packaging, the industry has been categorized into Tetra Pack, Bulk and Bottle.
As per Application, the industry has been categorized into Dietary Supplements, Pharmaceuticals, Food & Beverages, Animal Nutrition and Others.
Industry analysis has been carried out in key countries of North America, Latin America, Western Europe Eastern Europe, Balkans & Baltic, Russia & Belarus, Central Asia, East Asia, South Asia & Pacific, and Middle East & Africa.
The global market is estimated at a value of USD 1,151.5 million in 2024.
Prominent players in the landscape include Nordic Naturals, AlgiSys, Archer Daniels Midland Company, Cellana Inc, Solarvest BioEnergy, Polaris Industries, BASF SE and Neptune Wellness Solutions Inc.
The Global Industry grew at a Historical CAGR of 5.3% from 2019 to 2023.
The US sales are projected to hold a revenue share of 30.7% over the forecast period.
The industry is projected to grow at a forecast CAGR of 3.7% from 2024 to 2034.
| Estimated Global Industry Size (2024E) | USD 8,088.2 Million |
|---|---|
| Projected Global Value (2034F) | USD 22,555.3 Million |
| Value-based CAGR (2024 to 2034) | 10.8% |
| Estimated Industry Size (2024E) | USD 2.9 Billion |
|---|---|
| Projected Industry Value (2034F) | USD 5.7 Billion |
| Value-based CAGR (2024 to 2034) | 7.0% |
| Market Expected Market Value (2022) | USD 10.5 Billion |
|---|---|
| Market Anticipated Forecast Value (2032) | USD 17.4 Billion |
| Market Projected CAGR (2022 to 2032) | 8.2% |
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