Global Regulatory Outlook for Algal Oil in Aquafeed

Algal oil is approved for use in aquafeed in several key markets, but key regulatory gaps remain.

Algal oils are safe alternatives to fish oil in aquafeed. Using algal oils in feed formulations eliminates exposure to marine contaminants like heavy metals and removes the risk of pathogen transmission from wild-caught fish. Algal oils are also chemically stable, non-allergenic, and can be protein-free. 

Approved for use in aquafeed in key markets

The exemplary safety profile of algal oils, alongside their promising sustainability and market potential, has facilitated their regulatory approval in several key countries. In Australia, Canada, Chile, the European Union (EU), the United States (US), New Zealand, and Norway, Schizochytrium-based algal oil is approved for use in aquafeed. Critically, these approvals cover all major Salmon-producing countries, which are key markets for algal oils. A smaller number of other genera, such as Crypthecodinium and Nannochloropsis, have also been approved for use in aquafeed in these regions.

(Table 1: Regions where the use of algal EPA and/or DHA oils is currently permitted in aquaculture)

Supported as a sustainable alternative to fish oil by certification schemes

Many of the leading certification schemes, including the Aquaculture Stewardship Council (ASC),  Best Aquaculture Practices (BAP), and Friends of the Sea, explicitly support algal oils as sustainable substitutes for fish oil (Table 2 ). Other standards, including GlobalG.A.P. and Organic labels, also permit the use of algal oil (Table 2). Positive support from certification schemes promotes the sustainability and marine conservation benefits of algal oil to consumers and distributors. 

(Table 2: Certification scheme positions on the use of algal oils in aquafeeds)

Constrained by regional gaps, feedstock limitations, and GM restrictions

Three key barriers remain that will need to be overcome to facilitate algal oils' wider adoption in aquafeed: regional gaps in regulatory approval, feedstock limitations, and restrictions on the use of genetically modified (GM) strains: 

1. Regional gaps in regulatory approval - While several key markets have approved algal oil for use in aquafeed, key gaps remain in emerging markets like Asia. While China and Japan already authorise algal DHA for human nutrition, it has yet to be approved for aquaculture. In Vietnam and Thailand, efforts are being made to align phytosanitary standards with EU and US frameworks as part of free trade agreements. Securing approval in these regions will be key to reaching large aquaculture markets. 

2. Feedstock limitations - Regulations on circular feedstocks safeguard safety, but are costly to achieve. For example using industrial side streams, such as lignocellulosic inputs, as feedstock for microalgae requires hazard analyses and quality performance against food safety benchmarks. Instead, producers often opt to use feed-grade sugars as feedstocks rather than industrial side streams. Scaling production models that use circular feedstocks is limited by the current regulatory framework.

3. Restrictions on the use of GM strains - GM microalgae strains could improve yields and reduce costs in algal oil production by increasing productivity. However, narrow regulatory approval pathways combined with consumer scepticism against GM ingredients have effectively blocked their development as a feed ingredient in the EU, UK, Japan, and China. The regulatory environment for GM products is more favourable in the US, Canada, Chile, and Oceania. In the aquaculture industry, algal oil producers must navigate trade-offs between developing GM strains and securing market access in key regions such as the EU and Norway. For now, most prioritise market access over potential production efficiency gains from GM algae strains.

Moving forward

Obtaining regulatory approval in key markets and increasing support from certifiers will enable wider use of algal oil in aquafeed. In particular, obtaining approval for use in Asian markets will allow algal oil producers to enter emerging markets with high aquaculture growth. With proactive and transparent regulation, algal oil can achieve mainstream adoption while preserving its reputation as a safe, transparent, and sustainable feed ingredient. 

To explore detailed insights into global approvals, certification frameworks, and the evolving regulatory landscape, read our 2025 State of the Industry Report on Algal Oil, here.