The algae oil is being employed in food and beverage applications as a natural source of omega-3, fatty acids, antioxidants, and proteins. Rising demand from this sector on account of its low fat content is expected to have positive impact on the market. Growing awareness about the naturally obtained supplements is expected to fuel its demand in the dietary supplement market, which in turn will fuel the overall market growth.
Rising demand from the animal feed sector can be attributed to its higher nutritional content as compared to the grain feed. The algae production and harvesting requires comparatively lower amounts of water and land as compared to the land crops grown for animal feed. These factors would cumulatively drive the market in the forecast period.
However, the higher price of algae oil than conventional oil may challenge the market growth over the forecast period. Apart from this, specific parameters required for the growth of algae, which imply a high production cost, results in increased product price. These factors may restrain the industry development over the forecast period.
