GVR Report cover Algae Oil Market Size, Share & Trends Report

Algae Oil Market Size, Share & Trends Analysis, By Grade (Fuel, Food, Feed), By Application (Biofuel, Dietary Supplement, F&B, Animal Feed), By Region, And Segment Forecasts, 2018 - 2025

  • Report ID: GVR-1-68038-784-1
  • Number of Pages: 65
  • Format: Electronic (PDF)

Report Overview

The global algae oil market size was valued at USD 1.38 billion in 2015 and is expected to grow at a CAGR of 4.3% over the forecast period on account of its increased use in biofuel applications due to its lower carbon footprint. The algae oil would be an attractive investment alternative as it offers a solution for depleting fossil fuels.

U.S. algae oil market revenue, by application, 2014-2025, (USD Million)

U.S. algae oil market

The market demand has been rising in food & beverage and dietary supplement industry on account of its increasing use as omega-3 fatty acids, phycocyanin, antioxidants, proteins, and others. The rising popularity of natural products in dietary supplement industry has boosted the need for plant-based health supplements and is expected to propel market growth over the next nine years. It can also be used as specialty oil in the food industry owing to low content of saturated and trans fats, which makes it a healthy choice. The growth of application segments particularly in North America and Europe is expected to have a positive impact on the industry.

Biofuel was estimated as the largest application segment and is projected to gain a significant share on account of its growing use as a sustainable fuel. Biofuel is also being used increasingly as an alternative renewable fuel in blending biodiesel, gasoline, jet fuel, and others. It is a very attractive investment option for non-oil producing nations, since it is environmentally friendly and low sulfur-emitting fuel production method. Emergence of alternative renewable fuel sector across geographies is expected to propel market demand over the next nine years.

Algae oil offers more nutritional value in comparison with grain feed as it contains omega-3, which is leading the demand in animal feed sector. Also, it has an advantage over the land crops which are used as animal feed, since algae cultivation requires less quantity of water and land. In addition, rising consumption from animal feed sector is expected to drive the algae oil market from 2015 to 2025.

Specific temperature and humidity conditions along with other parameters for algae cultivation, & harvesting, coupled with high price of the product are expected to pose a challenge for industry growth. Additionally, a considerable area required for the production of algae may restrain the industry growth over the coming years.

Application insights

Animal feed was estimated as the second largest application segment accounting for over 27% of the global volume in 2015. The presence of micronutrients and proteins as primary ingredients of animal feed obtained from algae oil is expected to boost its demand over the next nine years.

Food & beverage application was estimated at over USD 150 million in 2015. It can be used in the production of various types of edible oil products. Escalating growth in the food industry and increasing health conciseness is expected to further encourage the market growth over the forecast period.

Global algae oil market volume, by grade, 2015

Global algae oil market share

The biofuel and dietary supplement application segmented cumulatively accounted for more than 60% of the global revenue share in 2015. Increased demand for these applications can be attributed to the factors such as environmental benefits, and a rich source of omega-3.

Grade insights

The fuel grade segment was valued at USD 779.2 million in 2015 and is anticipated to register a CAGR of 4.5% during the next nine years. The fuel grade was the largest segment by volume accounting for more than 57% of the global market in 2015. It is used in the processing of biofuel which includes biodiesel, jet fuel, gasoline, and others.

Various environmental advantages of the product include lower carbon footprint, less greenhouse gas emissions, and consume carbon dioxide. Hence, different grades of algae oil are expected to witness significant growth over the forecast period.

Regional Insights

The U.S. accounted for the over 80% of the North America market volume in 2015 on account of rising need from the biofuel application segment. The innovative use of cultivation and harvesting technology to provide quality algae oil as per fuel industry requirement is expected to have a positive impact on the industry over next nine years.

Demand in Asia Pacific was valued at over USD 300 million in 2015. This growth is attributed to the development of various application sectors including biofuel, food & beverage, dietary supplements and animal feed. Asia Pacific is expected to remain the second largest market during the period 2016 to 2025.

Increasing demand from China on account of government mandates to control pollution is anticipated to result in higher overall production capacity. Substantial demand from the biofuel industry in Asia Pacific is expected to boost the market over the forecast period.

Algae Oil Market Share Insights

Key players in the market include TerraVia Holdings, Inc, Diversified Energy Corporation, Algix, LLC, and Cellana Inc.Intense competition has made producers focus on the affordable pricing structure, integrated supply chain, and product quality differentiation. Hence, companies have been investing in integrating the supply chain to maintain market share along with a focus on sustainable growth.

In October 2014, Algix, LLC, was assigned by the government to clean pond scum of 10,000 acres’ catfish farms and use for conversion to biodegradable plastics. The company capitalized this as an opportunity to set up algae treatment plant which yields approximately 200 million pounds of bio-plastic resin. 

Algae Oil Market Report Scope

Report Attribute


Market size value in 2019

USD 1.63 billion

Revenue forecast in 2025

USD 2.09 billion

Growth Rate

CAGR of 4.3% from 2019 to 2025

Base year for estimation


Historical data

2014 - 2017

Forecast period

2019 - 2025

Quantitative units

Revenue in USD billion and CAGR from 2019 to 2025

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Grade, application, region

Regional scope

North America; Europe; Asia Pacific; Central & South America; Middle East & Africa

Country scope

U.S., UK, Germany, China, India, Brazil

Key companies profiled

TerraVia Holdings, Inc, Diversified Energy Corporation, Algix, LLC, and Cellana Inc.

Customization scope

Free report customization (equivalent up to 8 analysts working days) with purchase. Addition or alteration to country, regional & segment scope.

Pricing and purchase options

Avail customized purchase options to meet your exact research needs. Explore purchase options

Segments covered in the report

This report forecasts revenue growth at global, regional & country levels and provides an analysis on the latest trends and opportunities in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the algae oil market on the basis of grade, application, and region:

  • Grade Outlook (Volume, Gallons; Revenue, USD Million; 2014 - 2025)

    • Fuel Grade

    • Food Grade

    • Feed Grade

  • Application Outlook (Volume, Gallons; Revenue, USD Million; 2014 - 2025)

    • Biofuel

    • Dietary Supplement

    • Food & Beverage

    • Animal Feed

  • Regional Outlook (Volume, Gallons, Revenue, USD Million; 2014 - 2025)

    • North America

      • U.S.

    • Europe

      • UK

      • Germany

    • Asia Pacific

      • China

      • India

    • South & Central America

      • Brazil

    • Middle East and Africa

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