Single Cell Oil Market

Market Overview

The global single cell oil market size was valued at USD 87 billion in 2023 and is projected to reach USD 370 billion by 2032, registering a CAGR of 17.3% during the forecast period (2024-2032). The market is expected to experience significant growth due to its use in several essential compounds that have applications in nutrition and fuels.

Microorganisms such as fungi, algae, and bacteria, which consist of a single cell, are employed in the fermentation process to produce single-cell oils. These microorganisms were either selected or genetically altered to make significant lipids. Subsequently, these lipids undergo a conversion process and are turned into oils. These oils are considered to be sustainable and renewable sources of oil. They can be produced using various feedstocks, such as wastewater and other agricultural waste products.

Single-cell oils have a wide range of uses. They are utilized in various industries, including animal feed, cosmetics, and biofuels. The increasing need for specialized applications in multiple industries is expected to drive the growth of the single-cell oil market. Moreover, the growing apprehensions regarding the decline in biodiversity and the need for sustainability are anticipated to enhance the demand for single-cell oils due to their eco-friendly nature.

Highlights

• Fungal generates the highest revenue share based on microorganisms.
• Biofuel feedstock is influenced by application in market growth.
• Food grade generates the highest revenue share based on grade.

Market Dynamics

Single Cell Oil Market Drivers

Growing Demand for Biodiesel

Emerging market participants are poised to gain advantages from the disparity between supply and demand caused by restricted production capacity and the ample opportunities for research and development in selecting raw materials for product manufacturing. An essential determinant of the market is the increasing demand for eco-friendly fuels that ensure thorough combustion and potentially reduce Greenhouse Gas (GHG) emissions. Biodiesel's strong compatibility with existing diesel engines also increases demand.

Additionally, the demand for biodiesel is expected to increase due to the expanding population and the consequent rise in the number of vehicles and other industries utilizing this fuel. Due to its reduced greenhouse gas (GHG) emissions, biodiesel is highly sought after in the automotive sector. Consequently, there is expected to be a rise in demand in the United States throughout the projected time. The United States is one of the largest producers of soybeans. Once soy is crushed, it is repurposed as a feedstock for biodiesel production.

Moreover, the demand for biofuel is projected to grow by 38 billion liters between 2023 and 2028, representing an almost 30% rise compared to the previous five-year period. By 2028, the biofuel demand will increase by 23% to reach 200 billion liters. This growth will mainly be driven by renewable diesel and ethanol, accounting for two-thirds of the increase, while biodiesel and bio-jet fuel will contribute to the remaining third. Emerging nations such as India, China, Brazil, and several EU nations want to substitute biodiesel for 10 to 20% of the fossil-based fuels currently utilized in the transportation sector.

Single-Cell Oil Market Restraints

Performance Concern

Due to social and environmental considerations, it is considered imperative to substitute conventional fuels with biodiesel blends. However, there may be potential challenges when using biodiesel in automobiles. A notable example is increased water separation and fuel foaming compared to pure fossil fuels. Furthermore, combining low-stability biodiesel with the formation of low-molecular-weight acids might lead to higher levels of injector deposits and corrosion.

Furthermore, fuel injection and original equipment manufacturers have expressed concerns regarding this type of damage occurring in the field. Moreover, substandard biodiesel blends have been associated with a substantial decrease in performance in advanced direct injection engines.

Single Cell Oil Market Opportunity

Rising Awareness of Health Benefits 

Single Cell Oil is obtained from microbial sources, specifically microalgae and yeast. This cuisine has a distinctive nutritional makeup abundant in vital vitamins and minerals. Furthermore, these constituents promote cardiovascular well-being, increase cognitive function, and bolster immune response. As people become more concerned about their health, the demand for nutritional products increases. Single-cell oil is added to various foods and dietary supplements to enhance nutrition and promote health advantages.

Additionally, single cell oil can serve as an ingredient in functional meals, such as fortified beverages, nutrition bars, and dietary supplements designed to address specific health issues. Moreover, the increasing prevalence of vegan and vegetarian diets amplifies the need for alternative sources of nutrients derived from animal-based products. The single-cell oil is obtained from microorganisms. This diet offers both nourishment and an environmentally responsible, sustainable option for individuals. Due to its high nutritional content, it is highly valued by individuals who follow a vegan or vegetarian diet. The growing recognition of the health advantages linked to Single Cell Oil is propelling its market expansion.

Regional Analysis

The global single-cell oil market analysis is conducted across North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America.

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant global single cell oil market shareholder and is estimated to grow at a CAGR of 17.4% over the forecast period. The region's rising population and the growing number of individuals following vegan and vegetarian diets are driving the demand for single-cell oils as alternatives to fish oil. There has been a substantial rise in the oil market generated by single-celled microorganisms in recent years. Even countries such as Japan have many individuals who consume meat. Still, they are also witnessing a notable increase in the number of people who follow vegetarian and vegan diets.

As of 2022, India had the highest percentage of vegans, with 13% of the population following a vegan lifestyle, according to Vegan Statistics. In 2020, India had an estimated population of around 500 million vegetarians and 5 million individuals adhering strictly to a vegan diet. The growing need for alternatives to fish oil, functional oils, and infant formula is expected to drive the growth of the single-cell oils market.

North America is estimated to grow at a CAGR of 17.6% over the forecast period. Enterprises in the area are actively engaging in state-of-the-art technical advancements. They are allocating substantial resources to research and development in the food protein industry. An example is the utilization of single-cell proteins, which are created by and obtained from microbes, to develop genetically modified strains of microorganisms. The region's market growth is expected to be strengthened by the growing awareness of high-quality meals and items produced using single cell oils. The consumption of meat and poultry products in the region also affects the demand for the substances utilized in animal feed. In 2022, broiler chicken was the most widely consumed meat in the United States, with an average of approximately 98.9 pounds per person. By 2033, the per capita weight is projected to rise to around 107.5 pounds.

Furthermore, the United States has experienced significant growth in its chicken industry to meet American consumers' increasing demand for chicken. In 2019, the total worth of all hens in America exceeded 1.5 billion U.S. dollars. During that particular year, the value of a single chicken in the United States was 3.32 U.S. dollars. The average frequency of fresh meat purchases by Americans is approximately 27 times per year, while fresh seafood is purchased only about 4.3 times yearly. According to a 2018 survey, over 50% of Americans consume chicken a few times each week but not daily, whereas only 9% consume chicken daily. Customers in the United States highly favor prepared meat and poultry products, with over 40 percent of Americans consuming such products at least once a week in 2017.

Europe holds a significant market share. The market expansion in Europe is driven by the rising demand for sustainable and eco-friendly alternatives to conventional oils, fueled by environmental concerns and regulatory pressures. Recent developments in biotechnology have improved the effectiveness and cost-efficiency of SCO production, making it a practical choice for producing biofuels and nutraceuticals.

Consequently, the increasing consumer knowledge of the health advantages of SCOs, such as their omega-3 fatty acid concentration, continues to drive market expansion. Partnerships between research institutes and industrial entities facilitate innovation and the process of bringing new products or services to the market in this area.

Segmental Analysis

The global single cell oil market is segmented based on microorganisms, application, and grade. 

The market is segmented based on microorganisms into Microalgae, fungi, Bacteria, and Yeast. 

The fungal segment dominated in 2023. The demand for fungal single-cell oils is increasing due to the growing preference among consumers for healthier nutritional options. Fungus single-cell oils are rich in polyunsaturated fatty acids (PUFAs), such as omega-6 and omega-3. PUFAs are essential for human health due to their numerous beneficial impacts on the body. PUFAS improves overall health, cardiovascular health, and cognitive function. Consequently, there is likely to be an increase in the need for fungal single-cell oils as a valuable source of nutritious fats in functional meals, nutraceuticals, and nutritional supplements.

The bacterium segment is the fastest growing, primarily driven by the rising utilization of single-cell oil derived from bacteria in the creation of biofuels, functional oils that enhance nutritional absorption and breakdown, the biodegradation of polymers, and the formation of biofilms. In addition, the oil is utilized as a replacement for crude, plant, and fish oil due to its polyunsaturated fatty acids content.

Based on the application, the market is segmented into bio-fuel feedstock, fish oil substitutes, functional oils, animal feeds, infant formulae, pharmaceutical products, and aquaculture products.

The bio-fuel feedstock dominated in 2023. Weather fluctuations do not affect the lipids used as raw materials for biofuel production. They have little labor requirements. Single-cell oils are ideal for biodiesel production due to their ease of scaling up for industrial processing. The feasibility of manufacturing biofuel from single-cell oils relies on feedstock accessibility in adequate quantities and at a sustainable pace. Single cell oils are utilized as a biofuel feedstock primarily for sustainability reasons, such as their positive impact on biodiversity, efficient water usage, and minimal land requirements.

The pharmaceutical products segment is the fastest growing. Dried microbe extracts are extensively utilized in the medicinal sector. Microorganisms such as yeast and bacteria produce nutritional supplements and feed. Dried bacteria extract is used in medicinal production, whereas algae, fungus, and yeast are commonly employed to enhance the nutritional composition of food products.

The fish oil substitute segment is the second largest. Microorganisms such as algae, fungi, and bacteria can produce single-cell oils rich in polyunsaturated fatty acids (PUFAs). The increasing recognition of the product's advantages, such as enhancing human health, will propel its acceptance in the future.

The market is segmented based on grade into Fuel grade, Feed grade, and Food grade. 

The food grade segment dominated in 2023. The utilization of food-grade single-cell oil as a dietary supplement is increasing due to its high content of polyunsaturated fatty acids, including omega-6 and omega-3, as well as bioactive substances. This oil serves as an increased nutritional source for humans. Food-grade oil possesses a similar composition to both animal fats and vegetable oils. It is preferred over oils obtained from plants and animals due to its ability to produce on a larger scale quickly.

The feed-grade segment is the fastest growing, primarily due to its utilization in animal feed as a source of protein. The animals experience several health advantages, including enhanced immunological response, greater reproduction, better weight management, healthier skin, and a glossy coat. In addition, the widespread availability of these oils at affordable prices is projected to drive their usage in the future.

The fuel grade segment is the second largest. The utilization of high-quality second-generation cellulosic ethanol (SCO) as a substitute for traditional fossil fuels not only contributes to the preservation of the environment and resources but also enhances the overall efficiency of energy consumption, hence stimulating the market demand for this sustainable biofuel option. A combination of rising environmental restrictions and the promotion of renewable energy sources supports the expansion of the global SCO market.

Recent Developments

• March 2024- Canadian canola growers will soon have the opportunity to take advantage of new and growing market prospects for renewable fuel resources associated with bioenergy with the introduction of the Cargill Power CanolaTM program. Registration commences this month for the agricultural cycle of 2024.
• February 2024 – Cargill became the first global supplier of edible oils to adhere to the World Health Organization's guidelines for eliminating industrially-produced trans-fatty acids.