Algae Omega-3 Ingredients Market Size, Share & Trends Analysis Report By Type (Eicosapentanoic Acid (EPA), Docosahexaenoic Acid (DHA), EPA/DHA), By Applications (Food and Beverages, Dietary Supplements, Pharmaceuticals, Animal Nutrition) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2024-2032

Algae Omega-3 Ingredients Market Size

The global algae omega-3 ingredients market size was valued at USD 0.97 billion in 2023 and is projected to reach USD 2.96 billion by 2032, registering a CAGR of 13.20% during the forecast period (2024-2032). The increase in algae omega-3 ingredients market share during the forecast period is related to the demand for convenient and highly efficient ultra-high concentrates with eicosapentaenoic acid (EPA) and docosahexaenoic acid (DHA) concentrations is augmenting the demand for algae omega-3 ingredients worldwide.

Omega-3 oils are fundamentally unsaturated fats with numerous health advantages, including cardiovascular, eye, and mental health, to promote diet, baby nutrition, substantial livelihoods and beverages, and pharmaceutical and clinical nutrition. Algae is the common name for a group of photosynthetic eukaryotes consisting of organisms affixed to the bottom of seas, rivers, and lakes, also known as seaweeds. These organisms range from microscopic unicellular microalgae to larger multicellular forms that typically float freely. In dairy products, non-dairy supplements, spirulina and chlorella products, shellfish, marine seasonings, fish oil, supplements containing omega-3 fatty acids, and turquoise seaweed, omega-3 ingredients derived from algae can be found. Some algae are protein-rich and can be utilized as culinary ingredients. Omega-3 constituents derived from algae have a high nutritional value regarding protein content, amino acid quality, and nutritional bioavailability.

Additionally, the global algae omega-3 ingredients market has experienced significant growth due to increasing consumer awareness about the health benefits omega-3, particularly in cardiovascular, cognitive, and infant health. Algae-based omega-3, a sustainable alternative to fish oil, is gaining traction as demand for plant-based products continues to rise. The market is driven by the rising consumption of dietary supplements, fortified foods, and infant formulas, especially in regions like North America, Europe, and Asia-Pacific. Key players like Koninklijke DSM NV, Polaris, and Corbion have invested heavily in R&D to introduce high-concentration algae-based omega-3 products, addressing the growing consumer need for cleaner, plant-based nutrition. Adopting advanced extraction techniques and sustainable production methods has further fueled market expansion.

Highlights

• The docosahexaenoic acid (DHA) segment is the most significant revenue contributor by type.
• The dietary supplements segment owns the highest market share by applications

Algae Omega-3 Ingredients Market Growth Factors

Immense growth in concentrated forms of algae omega-3 ingredients

The demand for concentrated algae omega-3 ingredients continues to grow, driven by the increasing preference for purified oils containing EPA and DHA. These concentrates, used in dietary supplements and pharmaceuticals, offer consumers higher dosages in smaller, more convenient forms. High-purity algal oils, like those from Polaris and Solutex, allow manufacturers to create space-efficient formulations that appeal to the health-conscious market. 

• For instance, In the U.S. sales of high-concentrate algae omega-3 supplements have surged by 12% in 2024 as consumers seek alternatives to traditional fish oils.
  

Additionally, smaller soft gels and capsules deliver higher doses, enhancing their appeal in regions like Europe, where demand for compact, easy-to-consume supplements is rising. This growing consumer awareness of high-concentrate omega-3 benefits has positioned the algae omega-3 market for sustained growth.

Rising demand for epa/dha-based algae omega-3 in infant formulas

The surge in demand for DHA and EPA-based omega-3 ingredients in infant formulas is a crucial driver of market growth. In 2024, the global infant formula market reached USD 60 billion, with significant contributions from China, where the growing middle class has propelled the consumption of premium baby nutrition. EPA and DHA are crucial for infant cognitive and immune development, and local regulations often mandate their formula inclusion. In a 2024 study by the University of Oslo, DHA-enriched infant formulas enhanced brain development and motor skills, reinforcing their role in infant health. As more working parents seek convenience, the demand for fortified formulas, particularly those enriched with algae-based omega-3, continues to climb, further driving market growth.

Algae Omega-3 Ingredients Market Restraining Factors

High market price

The high production costs of algae-derived omega-3 ingredients remain a significant barrier to market growth. Algae-based omega-3 products are often priced higher than fish oil due to labor-intensive cultivation and extraction processes. According to the Global Seafood Alliance, algae omega-3 production costs range between EUR 400 and EUR 950 per kilogram in 2024, driven by rising energy prices and water usage. Many food and supplement manufacturers, particularly in price-sensitive markets like Southeast Asia, need help incorporating these high-cost ingredients into their products. Despite technological advancements in algae cultivation, the high initial capital expenditure in producing algae omega-3 ingredients continues to hamper market penetration, particularly in developing regions.

Algae Omega-3 Ingredients Market Opportunities

Technological advancement and sustainability in algae omega-3 ingredients

The market is witnessing rapid innovation, especially in sustainable production technologies for algae omega-3 ingredients. Consumers’ growing demand for environmentally friendly alternatives has spurred advancements in extraction methods. 

• For instance, AlgaPrime DHA, developed by Corbion, utilizes fermentation technology to produce sustainable algae omega-3, significantly reducing environmental impact compared to traditional fish oil extraction. This aligns with the rising consumer demand for plant-based omega-3 alternatives, particularly in North America and Europe, where plant-based product sales grew by 18% in 2024.

Moreover, technological innovations, such as cold-pressed extraction techniques that preserve nutrient integrity, are expected to drive market growth by making production more efficient and sustainable. These advancements lower the carbon footprint of production and create lucrative opportunities for manufacturers looking to tap into the eco-conscious consumer base.

Regional Insights

North america is a dominant region with 11.92% market share

North America is the leading shareholder in the global algae omega-3 ingredients market, projected to grow at a CAGR of 11.92%. The United States holds the largest market share in the region due to the increased consumption of omega-3 supplements and fortified foods, driven by growing awareness of the health benefits of DHA and EPA. In 2024, U.S. supplement sales containing algae omega-3 ingredients are expected to increase by 13%, primarily fueled by the plant-based revolution. Notable brands like Enfamil, with products like Enfagrow A+ Stage 4, offer DHA-fortified nutrition, reflecting the high demand for algal-based DHA in neonatal formulas.

Moreover, companies like Corbion and DSM continue to expand their U.S. operations, driving market growth through innovation in sustainable production methods. For example, DSM's life’s™OMEGA is a plant-based alternative with enhanced formulations tailored to consumer preferences for cleaner, sustainable nutrition. These developments and increasing product launches have significantly boosted the U.S. algae omega-3 market.

Asia-pacific is the fastest growing region

Asia-Pacific is anticipated to exhibit the highest CAGR of 15.27% over the forecast period. A strong manufacturing base, rising disposable incomes, and an increasingly health-conscious middle-class population are driving demand for omega-3-rich products in this region. The omega-3 supplement market in China is expected to grow by 18% in 2024, driven by the burgeoning demand for infant nutrition and fortified foods. Health-focused startups, like India's WOW Science and Oziva, have capitalized on this growing trend, producing algae-based omega-3 products to meet the demands of vegetarians. Urbanization and changing consumer preferences have also stimulated investment in the region. Companies like Polaris and Solutex have announced plans to expand their operations in Asia-Pacific, recognizing the market's untapped potential. Additionally, with India’s large vegetarian population, algae-derived omega-3 ingredients have gained favor as a sustainable alternative, driving growth in this segment.

Europe is witnessing rapid growth in the algae omega-3 ingredients market, driven by the increasing adoption of preventive healthcare measures, especially after the COVID-19 pandemic. In 2024, the European dietary supplements market is expected to grow by 11%, with omega-3 supplements seeing significant uptake. The Health Food Manufacturers' Association (HFMA) survey revealed that 20 million people in the UK consume supplements daily, a 19% increase since 2019, demonstrating strong demand for health-enhancing products like omega-3. The growing preference for immunity-boosting and heart health supplements has fueled the demand for algae omega-3 ingredients. In Germany, AlgaeCytes is constructing its first commercial algal EPA plant, which is expected to boost regional production significantly. The company’s EPA oil, suitable for nutraceutical, pharmaceutical, and food applications, represents a significant opportunity for algae omega-3 growth in Europe. This trend is mirrored in other European countries, where sustainable and plant-based omega-3 alternatives are gaining traction.

In South America, Brazil remains the largest consumer of omega-3 ingredients, with the market expanding due to growing health awareness and increased functional food consumption. Brazil’s omega-3 market is projected to grow by 10.5% in 2024, driven by rising investments in the food and supplement industries. Depression and anxiety rates in Brazil have fueled demand for mental health supplements, which now feature omega-3 ingredients as a critical component. In March 2020, Wiley Companies launched omega-3 concentrate powder across Latin America, including Brazil, providing functional ingredients for dietary supplements, foods, and beverages. This powder, certified by the Marine Stewardship Council (MSC), highlights the market’s shift toward sustainable, high-quality omega-3 sources. Algae-based omega-3 ingredients have increased use in clinical nutrition and pharmaceutical applications in Brazil, reflecting the growing consumer demand for high-quality, sustainable omega-3 products.

Algae Omega-3 Ingredients Market Segment Analysis

By type

The docosahexaenoic acid (DHA) segment is the most significant revenue contributor to the market and is expected to exhibit a CAGR of 12.94% over the forecast period. As an essential building element for developing and maturing an infant's brain and retina, DHA is primarily driven by the increasing demand for infant formulae and nutritional products to improve children's health. It is derived predominantly from fish and phytoplankton oils. It is widely utilized in fortified foods and dietary supplements to treat coronary artery disease (CAD), dementia, Type 2 diabetes, and attention deficit hyperactivity disorder (ADHD).

In addition, the positive effects of DHA on healthy aging have also led to its successful incorporation into geriatric nutrition products. The industry is expanding due to the rising number of product launches worldwide in response to increased demand. 

• For instance, global firms such as Polaris seek to improve their product offering in the fish-free omega-3 sector. As a result, it introduced Omegavie DHA 800 microalgae oil in June 2021, guaranteeing at least 800 mg/g of DHA.

The rising sustainability concerns regarding wild-caught fish have sparked greater interest in alternative EPA sources, including algae. Companies are extensively focusing on the segment to meet growing market demand. In 2021, AlgiSys BioSciences, Inc. raised USD 45 million in Series B capital to fund the company's early commercial objectives, driven by global customer demand for EPA omega-3 fish oil alternatives. Nonetheless, the growing number of clinical trials proving the efficacy and safety of EPA-derived pharmaceutical products and the increasing interest of drug manufacturers to use EPA has propelled the demand for EPA in supplements.

According to a new study, EPA-produced by-products related to immune function modulation worked better than those derived from DHA after metabolizing. EPA enhanced the balance of pro- and anti-inflammatory proteins. Such research leading to innovations is projected to spur the segment's growth in the forecasted period significantly.

By applications

The dietary supplements segment owns the highest market share and is estimated to exhibit a CAGR of 10.54% during the forecast period. The algae omega-3-based supplements are mainly developed for addressing brain, heart, and inflammatory health. DHA-based ingredients are increasingly incorporated in dietary supplements for sports nutrition, endurance formulae, and active and lifestyle nutrition. Evidence from studies in athlete populations supports the claim that omega-3 supplementation may facilitate muscle growth during resistance training and help preserve muscle mass when calories are restricted or during immobilization.

In addition, the growing number of vegan/vegetarian consumers, particularly athletes, has generated a substantial opportunity for algal omega-3 ingredients in the supplement market. Instead of fish or krill, most vegan/vegetarian omega-3 supplements are made from algae.

In the pharmaceutical industry, the promising regulatory backup, in the form of approvals, has been a major driving factor for utilizing algae omega-3. The algae-based omega-3 with high concentrations, varying from 700 to 900 mg/g, is preferred in the pharmaceutical sector for its product formulation. The pharmaceutical formulations of EPA and DHA mainly target joint relief, heart health, lipid profiles, and overall immunity. In addition, producers are employing innovative technologies to improve their solutions' functionality or broaden their applications, mainly to replace fish oil.

• For instance, in September 2021, KD Nutra, based in Germany, launched Alga3TM, a new nutritional platform of plant-based omega-3 concentrates derived from microalgae that employ various state-of-the-art purification technologies. The range can be customized to provide a vegan alternative to KD-pür fish oil.

Recent Development

• March 2024- DSM launched a new algae-based omega-3 ingredient, life’s™OMEGA DHA+EPA, targeting the functional food and nutraceutical sectors. This new formulation offers a higher concentration of EPA and DHA, catering to the rising demand for plant-based omega-3 sources in North America and Europe. DSM also announced plans to expand its algae omega-3 production facilities to meet the growing global market.

• April 2024- AlgiSys BioSciences introduced a new omega-3 DHA and EPA product derived from a proprietary algae strain aimed at the nutraceutical and pharmaceutical sectors. This development follows AlgiSys’ announcement of a strategic partnership with a leading U.S.-based supplement manufacturer to co-develop algae omega-3 ingredients for clinical applications.