Alexandria, Louisiana Aug 17, 2021 (Issuewire.com) - Market Overview
An omega-3 fatty acid is an essential fatty acid required by the human body for normal functioning and brain development. Ongoing research and development on omega-3 fatty acids have become vital to the food, pharmaceutical, and feed industries. The algae omega-3 application is growing at a faster rate in infant food fortification as it provides the same benefit as that of the fish oil but with no taste or odor. Also, the increased consumption of omega-3 supplements is responsible for market growth. Globally, algae omega-3 ingredients are gaining prominence and becoming a part of the consumer’s daily diet. The key reasons for this change have been the increased prevalence of lifestyle diseases and people taking preventive healthcare measures.
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Market Dynamics
Increased demand for infant formula products
Infant formula grew 86% in Feb 2020 in China while baby food demand grew by 98% after the Covid-19 impact due to the high demand for baby products. China accounts for 30% of the global consumption of Infant formula which is followed by other Asian countries holding 28% of the market. About 65% of the growth in the Infant formula market comes from China. In 2015, china imported 180 Kilo Tones of Infant formula from the world which is valued to be USD 2.4 billion. Europe accounts for about 90% of the import share. In addition, due to a recent scandal of domestically produced low-quality products, consumers of baby formula products are moving towards imported formula in the market. DHA and EPA are essential for infant brain development and immunity strength. DHA has well-established legal strains for incorporation into infant formula products in different regulations and WHO recommendations.
According to a Norwegian study, omega-3 demonstrates a positive effect on a child's brain and enhances a child’s problem-solving abilities. According to recent research studies, high doses of DHA in baby formula or breast milk can have a positive effect on the growth of preterm infants, such as an increase in height. In countries, such as China, where both the adult population and infant population are on the rise, the demand for infant nutrition and baby food is constantly increasing. The demand for infant nutrition fortified with omega-3 is increasing from the parents who have busy lifestyles and less time to prepare meals.
However, the rising cost of raw materials especially natural ingredients has made a dent in the profit margins of many small-scale suppliers. This situation is more precarious for suppliers who are sourcing from China, India, and the U.S. Furthermore, fluctuating input costs, labor costs have also influenced the profitability margin of the suppliers and distributors and continue to surge. Additionally, the lack of inconsistent standards and guidelines in the global EPA/DHA (Omega3) ingredients market is also one of the defining factors that restraints market growth. Regulations vary from country to country regarding the use of EPA / DHA (Omega 3) and its inclusion under the food category. Lack of regulations could lead to misuse claims indicating health benefits.
Market Segmentation
By Type
- Docosahexaenoic Acid (DHA)*
- Eicosapentanoic Acid (EPA)
By Application
- Dietary Supplements
- Fortified Food & Beverages
- Animal Nutrition
- Pharmaceutical
- Infant Nutrition
By Form Type
- Ethyl Ester
- Phospholipids
- Triglyceride
Geographical Penetration
North America is the largest market for algae omega-3 ingredients with a share of nearly XX% in 2020
By geography, North America is expected to dominate the global algae omega-3 ingredients market in the year 2019, growing with a CAGR of xx% during the forecast period. The United States in North America accounts for the largest share in the global algae omega 3 ingredient market. Increasing awareness about the long-term benefits of omega-3 consumption, fortified product availability, and growing market acceptance for such products is driving the market. Americans especially are becoming more aware of the need for Omega-3 products as part of a healthy diet, and roughly 17% of US consumers supplement their diet with Omega-3. There are approximately 35 million vegetarian buyers and 15 million vegans in the US and they get very little DHA in their diet. This is the major reason for the popularity of the algae-based Omega-3
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Competitive Landscape
The global algae omega-3 ingredients market is fragmented, as key players, like Koninklijke DSM N.V, Corbion, BASF, Polaris S.A., and Neptune Wellness Solutions Inc. are facing competition from local players across various regions. Partnerships remained the most common strategy. Key players, like ADM, Koninklijke DSM N.V, and Neptune Wellness Solutions Inc. are focusing on partnerships and joint ventures to increase their production capabilities and consumer base across various regions. Moreover, other small players are also showing keen interest in the market due to the virtue of its wider array of applications in the pharmaceutical, nutraceutical, and food & beverage industries. For instance, in January 2019, Epax committed to investing 35 million USD to expand its omega-3 production capacity at its main facility in Norway allowing it to increase by 50% by 2021. In May 2020, DSM has expanded its nutrition portfolio with ARA and DHA powder which is especially for infant nutrition. This powder contains a minimum of 110 mg DHA and ARA. Furthermore, it is sourced from sustainable vegetarian DHA omega-3 and ARA omega-6 which aid to meet the global sustainable demands. In March 2020, Wiley companies introduced its first omega-3 concentrate in powdered form which has been designed for dietary supplements, food, and beverages. The product has been developed without a fishy smell or taste to appeal to consumers looking for attractive sensorial products.
Related Topics:
Fish-free Omega-3 Ingredients Market
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