Single Cell Oil Market Size, Share & Industry Analysis, By Microorganism (Filamentous fungi and yeasts, Bacteria, and Microalgae), By Application (Food Supplements, Functional Food, Cosmetics, Biodiesel, Aquaculture, and Others), and Regional Forecast, 2024-2032

The global single cell oil market size was valued at USD 57.90 million in 2023. The market is projected to grow from USD 67.36 million in 2024 to USD 338.51 million by 2032, exhibiting a CAGR of 22.36% during the forecast period. Europe dominated the single cell oil market with a market share of 44.18% in 2023.

Single cell oils, also called microbial oils, are derived from unicellular organisms, which mainly include microalgae and yeasts, bacteria, and fungi. Depending on the composition of fatty acids, they are classified as nutritional oils. Among these products, those microbial oils that have high nutritional content, such as Omega 3 nutritional oils, are more highly sought after than other microbial oils. The commercial production of such oil, specifically microbial oil, started in recent years, and a significant proportion of such oils are rich in Polyunsaturated Fatty Acids (PUFA). These oils are majorly used in the production of nutraceuticals, biodiesel, and animal feed.

MARKET DYNAMICS

MARKET DRIVERS

Increasing Demand for Healthy Specialty Oils to Fuel the Demand

Food manufacturing companies are seeking alternative products that are healthy and can mimic the properties of traditional oil ingredients that are typically used in the industries. Emphasis is placed on products that offer improved functionality and versatility which includes heat resistance. Commercial microbial oils, specifically algal oil, are rich in Docosahexaenoic (DHA), Docosapentaenoic (DPA), and Eicosapentaenoic (EPA) omega-3 fatty acids, which makes it a healthy alternative to other oil products. Therefore, such products are used in the production of functional food products such as infant formulas, dietary supplements, and functional foods. Microbial oils are also used in animal feed due to the presence of high quantities of omega-3 fatty acids. The gradual increase in the commercialization and application in a wide range of industries acts as one of the major factors that drive the global single cell oil market growth.

Environment Sustainability of Microbial Oils in Comparison to Traditional Oil to Boost Market Growth

There is a growing concern about the environmental impact and release of chemicals into the environment from the exploration of oil and gas. In response, governments are implementing several policies aimed at reducing greenhouse gas emissions. Stringent policies of the government are forcing several manufacturers to opt for sustainable oil products, which help to reduce their environmental footprint. Microbial oil is one of the suitable alternatives that help to minimize environmental impact and act as a suitable renewable fuel alternative. Microbes have high oil content, can be grown at fast rates, and have the potential to co-generate value-added substances.

MARKET RESTRAINTS

High Production Cost of Single Cell Oil May Hinder Market Growth

Production of large-scale oil requires large-sized bioreactors, which makes the production process costly. As per research studies published in the research journal Science Direct, pilot-sized bioreactors have a volumetric capacity of 10 m3. Apart from the apparatus cost, the production process is complicated and it requires a balanced flow of heat and oxygen mass in the reactor for the microbes to grow. The wall structures of microalgae are complex, which makes it difficult to access and extract proteins from these organisms. Traditional methods for extraction can be expensive and energy-intensive leading to lower yield. This acts as one of the major factors restraining the growth of the market.

MARKET OPPORTUNITIES

Growing Investment in Single Cell Oil to Help Companies Assess Potential Areas for Growth

With the growing interest in microbial oil production, manufacturers are emphasizing on developing tailor-made products for application in both human consumption and biofuel production. Several clinical studies were conducted in the past and are also conducted currently where the microbial oils are tested for their safety. For instance, extensive studies on Gamma-linolenic acid derived from filamentous fungus, Mucor circinelloides showed that it is safe and hence can be used for manufacturing products such as food and supplements aimed at human consumption. Hence, manufacturers need to invest more in research and development and clinical studies of the products to assess their properties, scale up for industrial processing, and identify potential application areas.

SINGLE CELL OIL MARKET TRENDS

Increasing Investment in Capacity Expansion to Fuel Market Growth

Manufacturers are investing in scaling up the production of microbial oils that can be used in various industrial applications. Researchers are working with yeast, bacteria, and other microbial strains to improve lipid acclamations and increase microbial oil production. Researchers are also working on reducing production costs and identifying alternative sources, which is helpful in enhancing economic viability. Some of the major alternative sources that are currently being used for such oil production include molasses, corn starch, and others.

Request a Free sample to learn more about this report.

Impact of COVID-19

The COVID-19 pandemic had a negative impact on the growth of microbial oil. Startups, mainly conducting clinical studies on such oils, saw their operations significantly hampered. Sourcing of raw materials such as molasses and other products was disrupted during the period, leading to a decline in production and manufacturing. The disruption in the supply chain and increase in procurement cost disrupted the production and innovation in microbial oil, leading to slower growth.

SEGMENTATION ANALYSIS

By Microorganism Analysis

Filamentous fungi and Yeasts Account for Largest Market Share Owing to Higher Oil Yield

Based on microorganism, the market is segmented into filamentous fungi and yeasts, bacteria, and microalgae.

Among the various sources from which it is obtained, oil derived from filamentous yeast and fungi has a higher growth rate compared to other sources. Such microorganisms can cope with changing climate conditions and can be easily harvested compared to other sources. Hence, the oil derived from such fungi and yeast can be used in edible food products, cosmetics, biodiesel, detergents, paints, and other products.

Bacteria and microalgae are some of the prominent microorganisms that are actively being considered for the production of microbial oils that can find application in the biofuel industry. Manufacturers are aiming to produce fatty acids economically in the application as biofuel and ensure that in the future, these microorganisms can yield a high quantity of oil similar to plant derived oils.

By Application Analysis

To know how our report can help streamline your business, Speak to Analyst

Food Supplements Lead Due to Perceived Health Benefits and Higher Demand for Nutraceuticals

Based on application, the market is divided into food supplements, functional food, cosmetics, biodiesel, aquaculture, and others.

Food supplements accounted for the largest market share in the application segment of the global single cell oil market in 2023. The adoption of single cell organisms for the production of dietary supplements is increasing as global demand for nutritional products is increasing. As per Fortune Business Insights, the projected value for the global nutraceuticals market is poised to be USD 976.74 billion by 2032, exhibiting a CAGR of 9.95% during the forecast period 2024-2032. This growth is leading to a corresponding rise in demand for raw materials for manufacturing innovative and healthy food supplements. Microbial oil, enriched with Omega 3 fatty acids, is one of the most promising ingredients for manufacturing new supplements, and hence, the application of such products in the region is increasing rapidly.

Microbial oils are also used in manufacturing novel functional food production. Oil produced by microbes such as Schizochytrium sp., Ulkenia sp. Others are used for manufacturing bakery products, cereal bars, infant formula, and other food products. The demand for these products is also increasing, especially in the manufacturing of prepared foods where it is used as a functional oils. 

Research is also being conducted on the potential use of these products for manufacturing biofuels. Fatty acids produced by microbes can be converted into fatty esters, which can be used for biodiesel production. These lipids are also suitable as biofuel feedstock, feed additives, cosmetics, and other value-added products. Microbial species such as microalgae, yeasts, fungi, and bacteria have intrinsic properties that are used to manufacture high levels of oil for application in different areas.

SINGLE CELL OIL MARKET REGIONAL OUTLOOK

Based on geography, the market is segmented into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

Europe

To get more information on the regional analysis of this market, Request a Free sample

Europe accounts for the largest market share and was valued at USD 25.58 million in 2023. Companies such as DSM-Firmenich manufactured algal oil, a suitable alternative to fish oil and can be used in the aquaculture industry. Such oil is environmentally sustainable as products such as 1 ton of Veramaris Omega-3 oil is equivalent to 60 tons of wild-caught fish for producing fish oil.  These products are slowly being adopted in several industries to create new product lines and expand their market presence. This includes companies such as Goerlich Pharma GmbH which are using algal oil to develop novel food and supplements to meet the growing market demands.

To know how our report can help streamline your business, Speak to Analyst

North America

North America is anticipated to account for another major share of the global market during the forecast period. The U.S. is one of the major adopters of such oil in industrial applications, followed by Canada. As one of the most promising markets for growth and expansion, manufacturers are targeting these countries and working to launch new products. For instance, in 2024, after completing three years of testing process, Veramis received approval from Canadian regulators to market its algal oil in Canada.

Manufacturers in the U.S. are investing heavily in the production of microbial oil, specifically algal oil, which can be used as an environmentally sustainable alternative in various industries. European companies such as DSM and others are also expanding their market presence in the U.S. market to manufacture products that can be used in the aquaculture industry.

Asia Pacific

Asia Pacific is another major market for microbial oil, with its adoption in food products for human consumption and biodiesel production gradually increasing. In emerging economies such as China, India, and Japan, several government-funded institutions and private companies continue to invest in the research and development of such oil.  As a result, the demand for this product is expected to grow at a fast pace in the future.

South America and Middle East & Africa

The market in South America and the Middle East & Africa is still in the early stages of growth. Algal oil manufacturers are expanding their presence in the region to meet the growing demand for omega-3 oil in the industry. For instance, in April 2024, Dutch manufacturing company Corbion invested USD 54 million to expand its algal oil production in Brazil. Moreover, the demand for functional food and food supplements is rising rapidly due to which the demand for environment-friendly sustainable ingredients is growing in the region. This trend is expected to support market growth in these regions.

COMPETITIVE LANDSCAPE

KEY INDUSTRY PLAYERS

Key Industry Players are Launching Base Expansion Strategies to Expand Their Product Portfolio

The market is highly fragmented, with several startups and small-scale manufacturers focused on researching and developing new products for the global market. Some of the prominent market players include DIC Corporation, DSM-Firmenich, Corbion N.V., and others. New product launches, along with investment in clinical trials and adoption of advanced technologies, are some of the major strategies manufacturers are adopting to boost their production and expand their product portfolio. Some market players are partnering with industries to enhance their market penetration and increase the acceptance of their food and feed products.

Major Players in the Single Cell Oil Market

To know how our report can help streamline your business, Speak to Analyst

DSM Firmenich, Cellana, Corbion N.V., Slgatech, and others are the largest players in the market. The global market is fragmented, with the top 5 players accounting for around 25% of the global single cell oil market share.

LIST OF KEY SINGLE CELL OIL MARKET COMPANIES PROFILED:

• DSM-Firmenich (Netherlands)


• Cellana  (U.S.)


• Corbion N.V. (Netherlands)


• Algatech (Israel)


• DIC Corporation (Japan)


• Henry Lamotte Oils (Germany)


• Algaecytes (U.K.)


• Bioriginal Food & Science Corp (Canada)


• ALGENOL (U.S.)


• Chevron Corporation (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• July 2024: U.S.-based company Gold H2 introduced advanced technology, namely Black 2 Gold Technology (B2G) to develop and transform crude oil into biologically produced oil named “Gold Hydrogen”.


• April 2024: Mara Renewables, one of the promising start-ups in the production of algal oil, announced a strategic partnership with biotechnology company Checkerspot to develop innovative ingredients from renewable sources such as microalgae. This partnership aims to develop omega-3 oils, which are composed of unique fatty acid composition with improved performance.


• April 2023: Chevron U.S.A. Inc. invested in algal biofuel company Viridos, Inc., aiming to manufacture algae-based fuel that can be used as an alternative to jet and diesel fuel.


• April 2024: Belgium-based company Amphistar, offering locally manufactured microbial biosurfactants, received funding of USD 4.67 million. This funding helped the company improve the company’s capacity to improve microbial-based surfactant production.


• September 2021: AAK partnered with Progress Biotech to supply algae-based oil for the production of infant formula. This partnership helped the company manufacture high-quality DHA oil for infant formula products.

INVESTMENT ANALYSIS AND OPPORTUNITIES:

Manufacturers are investing in research and development to develop new products that can be applied in a wide range of industries. As industrial demand for these products is increasing, several manufacturers are investing in capacity expansion to meet the growing demand. For instance, in December 2023, Aker BioMarine, a U.S.-based company, announced to increase its algal oil production by fivefold. Manufacturers are also trying to identify new application areas where such products can be applied or used as an alternative to traditional products.

REPORT COVERAGE

The report includes quantitative and qualitative insights into the market derived from different research methodologies. This growth forecast includes a detailed regional analysis, market analysis, trends, dynamics, and projections for all potential market segments. This market analysis report provides key insights into the market, an overview of single cell oil industry, a competitive landscape, recent industry developments, mergers & acquisitions, the regulatory scenario in critical countries, and key industry trends.

To gain extensive insights into the market, Request for Customization

Report Scope & Segmentation