A new report released by The Centre for Feed Innovation sheds light on the opportunities for algal oil to serve as an alternative to fish oil in aquaculture. All About Feed talks to Oisín Nolan, Director of Public Relations at the Centre for Feed Innovation.
According to the 2025 State of the Industry Report, algal oil is emerging as a scalable, safe alternative to fish oil. In recent years, the algal oil industry has moved from the pilot stage to commercial use in fish feeds. In particular, the fish oil supply crisis in 2023 boosted industry growth, explains Oisín Nolan: “During the 2023 fish oil crisis, it became clear that the volatile supply of marine ingredients such as fish oil represented a bottleneck to the growth of global aquaculture production. Unlike fish oil, algal oils are produced on land. This decouples the supply of EPA & DHA from scarce marine resources. Algal oil provides a stable, year-round supply of EPA & DHA, ensuring business continuity in the event of future fish oil supply shocks. This has led major aquafeed companies, including Skretting, BioMar, Cargill and Mowi, to announce the adoption of algal oil in salmon feed formulations.”
“…algal oil is emerging as a scalable, safe alternative to fish oil. In recent years, the algal oil industry has moved from the pilot stage to commercial use in fish feeds.”
How ready is the global aquafeed industry to adopt algal oil as a full or partial replacement, and what are the main barriers?
There are still several barriers to the wider adoption of algal oil in aquafeed. The first of these is price. The cost of algal oil remains higher than that of fish oil, which limits widespread adoption in aquafeed. The second key barrier is supply. The algal oil industry only produces around 20,000 tonnes of product, while fish oil production totals around 1.2 million tonnes annually. Simply put, around 2% of the global demand for EPA & DHA is met by the algal oil industry, whereas 98% is provided by fish oil.
What are the biggest challenges in scaling production, and how can the supply chain meet growing feed demand?
Algal oil production is initially very capital-intensive. The upfront investment required to open a new production facility is high, and only a handful of ingredient producers have the capital to fund it. This production method requires investment in manufacturing facilities, including bioreactors and processing equipment. Production is also energy-intensive and most competitive when inputs are sourced from coproducts.
Securing long-term offtake contracts from aquafeed producers will be key to creating a predictable demand environment, which is critical to securing the next wave of investment required to further scale production. With this investment, algal oil producers will be able to commission new industrial lines to expand supply. Using integrated lower-cost energy inputs or circular carbon sources may also improve unit economics.
“The inclusion of algal oil in aquafeed as a fish oil substitute significantly reduces the environmental and food security harms associated with aquafeed by lowering the volume of marine ingredients required to produce it.”
The report highlights the sustainability benefits of algal oil. How significant is its potential to improve the sustainability of aquaculture feeds?
The inclusion of algal oil in aquafeed as a fish oil substitute significantly reduces the environmental and food security harms associated with aquafeed by lowering the volume of marine ingredients required to produce it. The EPA & DHA fatty acids found in fish oil are essential nutrients for aquafeed. To produce just one tonne of fish oil, up to 25 tonnes of wild-caught pelagic fish are required. In contrast, algal oil contains far higher concentrations of EPA and DHA than fish oil. Only one tonne of algal oil can replace the DHA obtained from around 40 tonnes of wild-caught fish. Additionally, pelagic fish are crucial for food security in regions such as West Africa. Therefore, replacing fish oil with algal oil also helps protect fisheries for human consumption. Regarding the carbon footprint of algal oil, it can achieve greenhouse gas emissions up to 30% lower than those of fish oil under favourable production conditions, particularly when circular feedstocks and renewable energy are used.
Can algal oil fully replace fish oil in commercial aquafeeds without compromising growth and health in farmed species?
Both academic trials and commercial-scale testing have confirmed that algal oil can fully replace fish oil without compromising growth performance or feed efficiency in most finfish and shrimp species. The maximum inclusion rate varies by species, reaching 12.5% in salmon and tilapia and 7.5% in shrimp. Algal oil can also deliver other health and performance benefits in aquaculture production, including improved anti-inflammatory responses and greater stress resilience.
Replacing fish oil with algal oil in salmon and shrimp feeds also consistently maintains product quality with high omega-3 levels. Some trials have shown that algal oil diets yield end products with omega-3 content higher than conventional diets, with up to 50% more EPA and DHA in salmon fillets and three to four times higher levels in shrimp muscle. They can also enhance sensory appeal without adversely affecting texture, flavour or appearance.
How do regulatory frameworks in key markets (EU, USA and Asia) influence the adoption of algal oil?
Regulatory frameworks in both production and consumption markets affect the pace at which algal oil ingredients can be adopted at scale. As a novel ingredient, algal oil must be approved by the relevant regulatory authorities before it can be used in aquafeed. Key regulatory authorities in the EU and the US have already approved algal oil for use in aquafeed, supporting its broader adoption in aquafeed produced and used in these regions. Nevertheless, regulatory progress in key markets such as Asia remains slower. The recent regulatory approval of Corbion’s AlgaPrime in China points to the broadening adoption of algal oil in Asia.
Looking ahead, what role do you see algal oil playing in the global aquafeed industry over the next 5 to 10 years, and what key developments or innovations do you expect?
As fish oil scarcity increases in the coming decade, we will see algal oil becoming an essential component of omega-3 supply rather than a premium niche ingredient. Algal oil supply is projected to grow from 20,000 MT EPA+DHA today to 36,000 MT by 2030, an 80% expansion driven mainly by increasing industrial capacity. Key developments will include expanded regulatory approvals in Asia and Latin America, where there is strong potential to increase both production and the integration of algal oil into aquafeed. Key innovations we expect to drive growth include continued advances in strain selection and cultivation, feedstock sourcing and modular bioprocessing. These innovations will enable producers to fine-tune omega-3 ratios and extend applications to more aquaculture species, while increasing resource-use efficiency and reducing costs.
