Omega 3 ingredients market

Omega 3 Ingredients Market, By Type (ALA, DHA, EPA), By Source (Nuts and Seeds, Vegetable Oils, Marine, Soya), By Application (Infant Formula, Supplements & Functional Foods, Animal Feed, Pharmaceuticals, Others), By Region (North America, Latin America, Europe, Asia Pacific, Middle East & Africa) -

Request Free Sample

Feb 2023
CMI370
270 Pages
Excel & Pdf
Food Ingredients

Summary

Omega 3 ingredients are naturally occurring polyunsaturated fatty acids and nutrients that are imperative for optimal human health. There are three types of omega 3 ingredients, namely, alpha-linoleic acid (ALA), eicosapentaenoic acid (EPA), and docosahexaenoic acid (DHA). EPA and DHA are primarily extracted from fish and ALA is primarily extracted from plants sources such as seeds and nuts.

The global omega 3 ingredients market was valued at US$ 2.5 Bn in 2022 and is expected to expand at a CAGR of 10.5% in terms of revenue during 2023 – 2030.

Drivers

EPA/DHA consumption

Docosahexaenoic Acid (DHA) products accounted for the dominant segment in omega 3 ingredients market in 2016, according to Coherent Market Insights Analysis. EPA/DHA consumption is gaining traction over alpha linoleic acid (AHA) due to certain health benefits such as stabilizing blood pressure, reducing bad cholesterol, and coronary heart diseases. This in turn, is expected to drive growth for the omega 3 ingredients market in the forecast period. Furthermore, the economically-efficient production of omega 3 fatty acids, has led to its wide application in supplements, food, and Pharmaceutical industries. This in turn, is propelling growth of the global omega 3 ingredients market, a trend that is expected to sustain over the forecast period.

Omega 3 fatty acids are basically extracted from fish, which includes fish oil extraction followed by refining of fish oil. Food industry is the largest user of the omega 3 polyunsaturated fatty acids, which are used to obtain omega 3 rich food products and in turn is expected to boost the market for omega 3 fatty acids during the forecast period. However, with growing demand for organic ingredients in food products, market players are focusing on developing more digestible triglyceride concentrates and natural ingredients. For instance, omega 3 ethyl ester derivatives are gaining traction and is expected to dominate the market of omega 3 ingredients during the forecast period.

Figure 1. Omega 3 Ingredients Market Value Share (%) by product type,2022

Market Restraints

Rising cost of raw materials

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 and 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 restrain the 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 of claims indicating health benefits.

Omega 3 Ingredients Market Report Coverage

Report Coverage	Details
Base Year:	2022	Market Size in 2022:	US$ 2.5 Bn
Historical Data for:	2017-2021	Estimated Year:	2023
Forecast Period 2023 to 2030 CAGR:	10.5 %	Forecast Period:	2023-2030
Geographies covered:	By Region: North America, Latin America, Europe, Asia Pacific, Middle East & Africa
Segments covered:	By Type: ALA, DHA, EPA By Source: Nuts and Seeds, Vegetable Oils, Marine, Soya By Application: Infant Formula, Supplements & Functional Foods, Animal Feed, Pharmaceuticals, Others
Companies covered:	Koninklijke DSM NV, BASF SE, Croda International Plc., NU-MEGA Ingredients Pvt. Ltd., Pronova BioPharma ASA, Omega Protein Corporation, and Ocean Nutrition Canada Limited, among others.
Growth Drivers:	Increasing cardiovascular disease and growing demand for supplements
Restraints & Challenges:	Rising cost of raw materials

Market Trends

Immense Growth in Concentrated Forms of Algal Omega-3 Ingredients

New ultra-high concentrated omega-3 ingredients offer numerous benefits to consumers willing to pay a higher premium price for high-end products. Suppliers are investing in producing highly concentrated algal omega-3 products and counting on increased demand to drive their sales. The market for concentrates has also been booming, as more consumers have been becoming familiar with the benefits of algal omega-3 and have been looking for the benefits of higher doses. Considering the existing opportunities in the market studied, major companies involved in the manufacturing of omega-3 have also started making strategic efforts to capitalize on the existing business expansion opportunity. For instance, in June 2021, Polaris launched Omega vie DHA 800 algae oil, which is sourced from microalgae that are rich in vitamins, proteins, pigments, and enzymes. Omega vie DHA 800 is unique because of its high potency, offering a minimum of 800 mg/g of DHA.

Figure 2. Omega 3 Ingredients Market Value Share (%) by Region 2022

North America dominated the market with the highest revenue share of 38% in 2022, followed by Europe, Asia Pacific, Latin America and MEA respectively. This is attributable to the presence of prominent manufacturers of omega 3-based pharmaceutical products. The demand in this region is also driven by the presence of major pharmaceutical companies such as Pfizer, Inc., Johnson & Johnson, Amway, and Amarin Pharma, Inc. among others.

Recent Developments

On September 1st 2022, Royal DSM, a global purpose-led science-based company, today announces the completion of its acquisition of Prodap, a leading animal nutrition and technology company in Brazil. By harnessing the power of Prodap’s digital solutions, DSM will take another step forward in its Precision & Personalization journey. DSM will strengthen and further develop its digital solutions to reach more markets globally, enabling smarter nutritional decision-making thanks to artificial intelligence and other tools.
On 21st November 2022, BASF [Frankfurt: BAS, LSE: BFA, SWX: AN] plans to acquire Pronova BioPharma ASA, Lysaker, Norway, [OBX: PRON], a pioneer in the field of research, development, and manufacturing of omega-3 fatty acids. BASF has reached an agreement with Pronova to make a recommended voluntary public takeover offer to Pronova’s shareholders, and will offer to pay NOK 12.50 in cash for each pronova share.

Competitive Section

Major players in the global Omega 3 Ingredients market include Koninklijke DSM NV, BASF SE, Croda International Plc., NU-MEGA Ingredients Pvt. Ltd., Pronova BioPharma ASA, Omega Protein Corporation, and Ocean Nutrition Canada Limited, among others.

Table of Content

Table of Contents

Segmentation

Detailed Segmentation:

- Frequently Asked Questions -

What was the Omega 3 Ingredients market size in 2022?

Omega 3 Ingredients market was valued at around US$ 2.5 Bn in 2022.

What are the major factors that are expected to drive growth of the market during the forecast period?

Increasing cardiovascular disease and growing demand for supplements, especially in North America and Europe are some of the major factors that are expected to propel growth of the market over the forecast period.

What are the trends in the market?

Immense Growth in Concentrated Forms of Algal Omega-3 Ingredients is the trend of the market.

What are the key factors hampering growth of the market?

Rising cost of raw materials is the key factor hampering growth of the market.

Which are the key players in the market?

Major players in the market include Koninklijke DSM NV, BASF SE, Croda International Plc., NU-MEGA Ingredients Pvt. Ltd., Pronova BioPharma ASA, Omega Protein Corporation, and Ocean Nutrition Canada Limited, among others.

What is the estimated CAGR for the market?

The market is estimated to grow at around 10.5 % CAGR in the forecast period (2023-2030).