Algae Omega Market To Reach USD 2.3 Bn in 2033 | CAGR of 8.6%

Updated · Jan 6, 2025

Market.us News, we strive to bring you the most accurate and up-to-date information by utilizing a variety of resources, including paid and free sources, primary research, and phone interviews. Learn more.

Table of Contents

Introduction
Key Takeaways
Algae Omega Statistics
Emerging Trends
Use Cases
Major Challenges
Market Growth Opportunities
Key Players Analysis
Conclusion

Introduction

The Global Algae Omega Market is poised for substantial growth, expected to escalate from a valuation of USD 1.0 Billion in 2023 to approximately USD 2.3 Billion by 2033, progressing at a compound annual growth rate (CAGR) of 8.6% over the forecast period from 2024 to 2033.

This market expansion is primarily driven by increasing consumer awareness of health and wellness benefits associated with omega fatty acids. Algae-based omega products, popular for their sustainability and vegan-friendly qualities, are gaining traction among health-conscious consumers, contributing to their market popularity. Additionally, the demand for plant-based supplements is surging as more people seek alternatives to fish oil, which has traditionally dominated the omega supplement market.

This shift represents a significant opportunity for algae omega producers to capture a growing market segment. The expansion of the algae omega market is further supported by innovations in algae cultivation and extraction techniques, making it easier and more cost-effective to produce high-quality omega-rich products. These factors collectively suggest a robust outlook for the algae omega market, highlighting its potential for expansion and profitability in the coming years.

As the market for algae omega products continues to expand, there are numerous opportunities for market players to innovate and differentiate their offerings. The rising trend towards sustainable and eco-friendly products is prompting manufacturers to invest in research and development to enhance the quality and efficiency of algae omega extraction.

This innovation caters to the increasing demand and improves the scalability of production processes, thus lowering costs and making these supplements more accessible to a broader consumer base. Furthermore, the global shift towards preventive healthcare and natural dietary supplements is propelling the popularity of algae omega products.

With growing consumer preference for non-animal-derived ingredients, especially among vegan and vegetarian populations, the algae omega market is set to capture a significant share of the dietary supplements industry. This shift is also supported by collaborations and partnerships among key players to expand their geographical footprint and product portfolio, thus facilitating market expansion and offering substantial growth opportunities in emerging economies where health awareness is increasing.

Key Takeaways

Algae Omega Market size is expected to be worth around USD 2.3 Billion by 2033, from USD 1.0 Billion in 2023, growing at a CAGR of 8.6%.
EPA (Eicosapentaenoic acid) held a dominant market position, capturing more than a 39.5% share.
Capsules held a dominant market position, capturing more than a 49.2% share.
Concentrated held a dominant market position, capturing more than a 47.1% share.
Dietary Supplements held a dominant market position, capturing more than a 56.4% share.
Offline held a dominant market position, capturing more than a 67.3% share.
North America is the dominant region in the Algae Omega market, holding a substantial market share of 42.4% and valuing approximately USD 0.43 billion.

Algae Omega Statistics

Algae Omega: Boosting Vegan Omega-3s

64% of supplement consumers globally would switch to a plant-based omega-3 option if available.
ALA can be converted into EPA and then to DHA, but the conversion (which occurs primarily in the liver) is very limited, with reported rates of less than 15%.
715 mg total omega-3s, for a higher daily dose than comparable vegetarian options.
To get just 500 mg omega-3 EPA+DHA, you’d have to eat a 5-ounce bag of flax or chia seeds.
It’s estimated that 90% of small fish caught each year; anchovies, sardines, and mackerel are processed to make fishmeal and fish oil.

Algae Omega: Sustainable Omega Solutions

The optimum combination of those tested was found, using a response surface design, to be 3% algal oil with 110ppm mixed tocopherols for maximum DHA and minimum oxidation.
Approximately 0.1g DHA may be consumed from a 28g serving of this cheese. Approximately 0.5-18 servings of this cheese are equivalent to DHA consumed from a 3oz serving of fish, depending on fish type.
Full replacement of FO significantly reduced the levels of PCDD/F and DLPCB in the fillet of 4 kg salmon by 70% and 79% respectively for 100AP + VO1 and 40% and 43% respectively for 100AP + VO2 fed fish.
Studies suggest that, in people consuming a typical Western diet, only about 5 to 8 percent of ALA converts into EPA. Even less converts into DHA, between 0.5 and 5 percent.
The ingredient will be offered commercially next year. It contains a total omega-3 content of 550 mg/g of natural triglycerides.

Emerging Trends

Sustainable Sourcing and Environmental Impact: There is a growing emphasis on sustainable sourcing of algae for omega-3 production. This shift is driven by the environmental impact of traditional fish oil extraction, leading to a preference for algae as a more sustainable and eco-friendly option.
Increasing Demand for Plant-Based Supplements: The market is experiencing a significant rise in demand for plant-based omega-3 supplements. This trend is bolstered by the increasing vegan and vegetarian populations looking for ethical and cruelty-free nutritional choices.
Expansion in Food and Beverage Applications: Algae omega-3 is increasingly being incorporated into a wide range of food products, including plant-based milk alternatives, breakfast cereals, and functional beverages. This trend is catering to consumer preferences for foods that offer additional health benefits.
Innovations in Product Formulation: There is continuous innovation in the forms of algae omega-3 available, including capsules, powders, and liquids. These innovations are aimed at improving the consumer experience by enhancing the taste, texture, and nutritional content of the supplements.
Growth in Dietary Supplements Market: Algae omega-3 continues to dominate the dietary supplements market, reflecting an ongoing trend where consumers are increasingly aware of the health benefits associated with omega-3 fatty acids, such as improved heart, brain, and joint health.

Use Cases

Nutritional Supplements: Algae omega is a key ingredient in nutritional supplements, especially for those seeking vegan sources of omega-3 fatty acids. Its incorporation into capsules, soft gels, and gummies makes it a convenient option for daily intake, supporting cardiovascular health and cognitive function.
Aquaculture Feed: Algae omega is increasingly used in aquaculture to provide high-quality, sustainable feed for fish. This not only helps reduce reliance on traditional fish oil but also supports healthier and more sustainable fish farming practices.
Functional Foods and Beverages: Algae omega is being incorporated into a range of food products, including plant-based milk alternatives and breakfast cereals, as well as functional beverages like juices and smoothies. This integration helps enhance the nutritional profile of these products with beneficial omega-3 fatty acids.
Animal Feed: Beyond aquaculture, algae omega is also used in general animal feed, contributing to the overall health and wellness of domestic animals and pets. It is particularly valued for improving coat quality and joint health in pets.
Biotechnological Applications: In the field of biotechnology, algae omega plays a role in developing sustainable solutions for various industries, including biofuels and bioplastics. Its versatility and sustainability make it a valuable resource for innovations aimed at reducing environmental impacts.

Major Challenges

Cost Challenges: Production costs for algae omega supplements are notably high, which can make these products less affordable for consumers. This impacts the pricing strategies and overall market penetration of algae-based omega-3s, as they compete with less expensive fish oil products.
Consumer Awareness: Despite the health benefits and environmental advantages of algae omega supplements, there is still limited consumer awareness and understanding of these products. This lack of knowledge hinders the market growth and acceptance of algae-based omega-3s.
Photobioreactor (PBR) Limitations: The scale-up of photobioreactors, crucial for algae cultivation, faces significant challenges. These include the efficient delivery of light, maintaining adequate mixing, and the cost and complexity of constructing large transparent surfaces necessary for optimal algae growth.
Contamination Risks: Large-scale cultivation of algae is susceptible to contamination by other microorganisms, which can reduce yield and pose health risks. Ensuring the purity of algae cultures is both challenging and costly, requiring strict controls and frequent monitoring.
Harvesting and Pre-treatment Costs: Efficiently harvesting algae and processing it at low cost remains a significant challenge. The pre-treatment processes, necessary to prepare algae for oil extraction, involve high energy consumption and complex technologies, which can be economically unfeasible.

Market Growth Opportunities

Plant-Based Food Products: As consumer preferences shift towards vegan and plant-based diets, there is a significant opportunity to incorporate algae-derived omega-3s into foods like plant-based meats and dairy alternatives. This trend not only caters to health-conscious consumers but also those concerned with environmental sustainability.
Expansion into Emerging Markets: The Asia-Pacific region, particularly countries like China and India, shows promising growth prospects due to increasing health awareness and rising incomes. This offers a vast potential customer base for algae omega products.
Infant Nutrition: There is a growing demand for algae omega in the infant formula market, driven by the need for sustainable, plant-based DHA sources for infant cognitive and visual development. This segment is particularly significant as parents increasingly seek cleaner, safer nutritional options for their children.
Pharmaceuticals: Algae omega is finding applications in the pharmaceutical sector where EPA and DHA are used for their anti-inflammatory properties and benefits to heart health. The development of medical products containing algae-derived omega-3s could see substantial growth, particularly in formulations designed to address chronic health issues.
Beauty and Personal Care Products: The antioxidant properties of omega-3s, particularly from algae, are being leveraged in skincare products to prevent aging and enhance skin health. The market for natural and effective skincare products using algae omega is expanding, reflecting broader trends toward natural beauty solutions.

Key Players Analysis

AlgaeCytes Limited focuses on sustainable production of high-quality omega-3 fatty acids from algae. Their proprietary technology cultivates algae in a controlled environment, ensuring pure, high-grade omega-3 oils that are both sustainable and scalable.
Algarithm Ingredients Inc. offers vegan omega-3 solutions derived from algae, providing an eco-friendly alternative to traditional fish oils. Their products are designed for a variety of applications, including food, beverage, and dietary supplements, emphasizing sustainability and plant-based nutrition.
AlgiSys BioSciences, Inc. is developing technology for the production of omega-3 fatty acids from genetically engineered algae. Their work promises to provide a sustainable and scalable source of EPA and DHA, crucial for cognitive and cardiovascular health.
Archer Daniels Midland Company is a major player in the algae omega sector, leveraging advanced biotechnological processes to produce algae-based omega-3 fatty acids. They cater to the dietary supplement and functional food markets, aiming to meet the growing demand for sustainable omega-3 sources.
Arizona Algae Products, LLC specializes in the production of omega-3 oils and protein powders from algae. Using proprietary production technologies and sustainable methods, they focus on enhancing human health and improving the quality of life through their products, which are used in food, dietary supplements, and wellness products.
BASF SE integrates algae-based omega-3 production as part of its nutrition and health division, offering high-quality omega-3 fatty acids that are essential for heart and brain health. BASF’s commitment to sustainability and innovation is evident in its advanced cultivation and extraction techniques.
Bioprocess Algae LLC designs builds and operates commercial-scale bioreactors that cultivate algae for the production of omega-3 fatty acids. Their systems are designed for energy efficiency and high yield, making them a key player in the sustainable production of bioactive compounds.
Bioriginal Food & Science Corp provides a range of algae-based omega-3 products that cater to the health and nutritional needs of their global clientele. Their focus on quality and customer-oriented solutions makes them a preferred provider of omega-3 and other health supplements.
BIOTECNOLOGÍAS APLICADAS SL focuses on leveraging biotechnological advances to produce algae-based omega-3 fatty acids. Their research and development efforts aim to enhance the bioavailability and effectiveness of their omega-3 products.
BrainMD Health offers a range of nutritional products including algae-derived omega-3 supplements that support brain health. Their products are scientifically formulated to meet the highest standards of purity and efficacy.
Chambio Co. Ltd. specializes in the development and production of algae-based health products, including omega-3 supplements. Their commitment to sustainable practices and high-quality products positions them well in the global health supplements market.
ConnOils LLC produces a wide array of bulk oils, including algae-based omega-3 oils. Their products are used in various applications from dietary supplements to personal care products, emphasizing their versatility and focus on natural ingredients.
Corbion has developed a range of algae-based omega-3 solutions that are sustainable and effective. Their products are aimed at providing functional benefits in food and dietary supplements while supporting overall health and wellness.
GC Rieber VivoMega AS is known for its high-quality omega-3 oils, including those derived from algae. They focus on purity and sustainability, catering to the needs of the pharmaceutical and nutraceutical industries.
Goerlich Pharma GmbH offers a variety of custom solutions in the health and nutrition sector, including algae-based omega-3 products. Their expertise in pharmaceuticals and dietary supplements enables them to provide tailored solutions that meet specific health needs.
KD Pharma Group produces highly purified omega-3 fatty acids from algae, focusing on the pharmaceutical and dietary supplement markets. Their state-of-the-art purification technologies ensure high-quality, effective products.
Koninklijke DSM NV is a global leader in health, nutrition, and materials, including the production of sustainable and high-quality omega-3 fatty acids from algae. Their innovative approaches aim to meet the growing demand for plant-based omega-3s.
Lonza Group PLC offers a range of health and wellness solutions, including algae-derived omega-3 fatty acids. Their products are designed to support cardiovascular, cognitive, and overall health, utilizing advanced biotechnological processes.
MiAlgae Ltd. focuses on the production of omega-3-rich oil from microalgae. They utilize by-products from the whisky distillation process as a nutrient source for the algae, highlighting their innovative approach to sustainable production.
Nature’s Way, Inc. is committed to providing health-promoting supplements, including algae-based omega-3 products. Their focus on purity and safety makes their supplements a popular choice among health-conscious consumers.
Neptune Wellness Solutions Inc. specializes in the extraction, purification, and formulation of health and wellness products, including algae omega-3 oils. Their focus on sustainable and innovative health solutions drives their market presence.
Nordic Naturals is renowned for its high-quality fish and algae-based omega-3 products, designed to support optimal health. Their commitment to purity and sustainability is evident in their extensive product line and environmental initiatives.
NORSAN by San Omega GmbH offers high-quality fish and algae oils rich in omega-3 fatty acids. Their focus on natural products and sustainability makes them a preferred choice for health-conscious consumers across Europe.
NutraPakUSA provides custom nutraceutical manufacturing, including algae-based omega-3 products. Their services range from product development to packaging, catering to clients in the health and wellness sector.
Polaris is dedicated to the innovation and production of lipid nutrition products, including algae-based omega-3 oils. Their focus on quality and sustainability helps meet the dietary needs of their global clientele.
Purazell GmbH specializes in the production of high-quality, organic health supplements, including algae-derived omega-3 fatty acids. Their commitment to sustainability and natural ingredients is key to their business philosophy.
Qualitas Health, Inc. produces algae-based omega-3 fatty acids that are sustainable and scalable. Their products are aimed at improving human health while maintaining environmental integrity.
R&G Strategic Inc. focuses on marketing and communication strategies for sustainable products, including algae omega-3s. Their expertise helps brands effectively reach and engage with their target markets.

Conclusion

The Algae Omega Market is poised for significant growth as consumers increasingly prioritize health, sustainability, and plant-based nutrition. With its rich content of essential omega-3 fatty acids like EPA and DHA, algae omega offers a highly effective and eco-friendly alternative to traditional fish oil. The market is driven by rising awareness of its health benefits, including improved heart, brain, and overall wellness.

Additionally, its vegan-friendly and environmentally sustainable attributes make it a preferred choice for health-conscious and environmentally aware consumers. Advancements in technology, increasing demand for clean-label products, and expanding applications across food, pharmaceuticals, and personal care sectors further underscore its growth potential. As challenges such as high production costs and limited consumer awareness are addressed, algae omega is set to emerge as a cornerstone of the global health and wellness industry.