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The global omega-3 fatty acids market size was USD 1.45 billion in 2019 and is projected to reach USD 1.92 billion by 2027, exhibiting a CAGR of 3.89% during the forecast period (2020-2027).
The global market is witnessing robust growth primarily due to the increasing demand for dietary supplements and functional foods. The increasing awareness regarding the health benefits of polyunsaturated fatty acids (PUFA) and the technological advancements to improve their bioavailability are the key factors driving the growth of the global omega fatty acid ingredients market.
The supply-demand gap resulting from the COVID-19 pandemic will culminate in the disruption of 8-10% in global food additives and ingredients sector – omega-3 fatty acids; being a crucial ingredient is also expected to witness a sharp decline in the current year. This is mainly due to the demand-dampening across most end-user industries at a global level. Recently, Sam Wiley, CEO of omega-3 brand Wiley’s Finest has projected robust growth for supplement oils sales with high demand for vitamins, minerals, and supplements (VMS) category. Companies with sound sourcing and efficient supply-chain principles will emerge out resilient in the post-COVID economy.
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Incorporation of Dietary Supplements in Daily Life to Maintain Health & Wellness
In recent years, consumer inclination towards including dietary supplements in daily lives has increased owing to the increasing prevalence of health conditions due to sedentary lifestyles, stress, aging, and other hereditary factors. This trend has led to the exploration of various ingredients that positively affect certain body functions to maintain overall health and wellness. Several manufacturers are focused on exploring novel functional ingredients and developing innovative methods for their delivery to capitalize on this emerging trend. Functional/fortified foods is the budding category that involves the incorporation of active principles in certain ingredients for the improvement of overall health. The increasing demand for monounsaturated and polyunsaturated fatty acids in dietary supplements has contributed to the growth of the omega fatty acids market. The rising trend of consuming natural, plant-based, and non-GMO ingredients has led to an increase in research and development activities to bring forth innovative ingredient solutions for consumers.
Rising Awareness of Health Benefits of Polyunsaturated Fatty Acids (PUFA) Will Aid Market Growth
The recent recognition of the positive health effects of PUFAs has created a huge demand. The product is used in various applications such as dietary supplements, functional foods, and pharmaceuticals. Several clinical studies carried out recently, suggest that the consumption of PUFAs primarily support cardiovascular health and various other functions in the body. The growing understanding of the importance of essential fatty acids is fuelling the demand for long-chain PUFAs. In the past few years, omega-3 fatty acids have gained remarkable popularity as they can not be produced by the body and have to be administered externally with omega-3 rich diets or dietary supplements.
The most significant source of polyunsaturated fatty acid is fish oil. The recent evolution in market trends such as the rising popularity of plant-based, clean-labeled ingredients has contributed to the exploration of novel sources to extract PUFAs. Algae oil and flax seeds are the noteworthy sources of this type of fatty acids that are perfect for the consumers following vegetarian diets. The emerging methods and studies that prove the health claims of PUFAs are expected to aid the growth of the market in the years to come.
Technological Advancements to Support Market Growth
One of the major factors supporting the omega-3 fatty acids market growth is ongoing technological advancements that improve the delivery and absorption of these substances in the body. The development of lipid-based supplements remains a challenging endeavor due to its unpredictable absorption rate and bioavailability. Various studies suggest that several factors can limit the uptake of this type of fatty acids in the body. The key players in the market are investing huge capitals in research and development in the integration of technology that will improve the bioavailability of omega-3 in the body. For instance, in October 2019, Pharmako Biotechnologies launched a new AquaCelle self-emulsifying drug delivery system that boosts oral omega-3 absorption by six-fold as compared to the standard fish oil.
Furthermore, the advances in processing techniques that enable the extraction of omega-3 from novel sources will fuel the demand for the product. Moreover, the efforts taken to improve the organoleptic properties of the fatty acids extracted from marine sources are expected to aid growth of the market in forthcoming years.
Organoleptic Properties and other Process-related Challenges to Impede Market Growth
Fish and Krill are the most significant marine sources of omega-3 fatty acids. The extraction process of omega-3 from marine sources has evolved in the last few years. Having said that, there are few process-related challenges faced by producers that hamper the growth of the market. Omega-3 sourced from marine sources have fishy odor and taste which results in an unpleasant sensory experience. The functional foods containing these fatty acids may lose its flavor balance. Furthermore, high temperatures in the processing may also affect the quality of the product. The extraction and purification processes of omega-3 fatty acid from marine sources produce large amount of waste and the contamination in the extracted product can limit its purity. The challenges faced in the process of producing high-quality, extremely purified product are impeding the growth of the market.
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Concentrates Hold the Largest Market Share Owing to High Content of EPA & DHA
The global market is expected to exhibit promising growth owing to their increasing demand in health and wellness space. Based on the source, the concentrates segment is expected to hold largest market share. This is mainly attributable to the high percentage of eicosapentaenoic acid (EPA) and docosahexaenoic acid (DHA) present in them. Concentrates are highly pure, generally containing more than 80% EPA & DHA combined. These favorable attributes are the main reason why this segment is expected to exhibit dominance in the forecast period.
Traditionally, fish oil was a primary source in the extraction of omega-3 fatty acids as they are rich in the content. Declining fish population due to over-fishing in the wake of increased demand for direct consumption has led to the search for natural and more sustainable alternatives to fish sources. Krill oil and algae oil have gained higher importance in recent years as alternatives to fish source for the extraction of omega-3 fatty acid contents. Krill oil contains approximately 30-40% of EPA and DHA and is widely considered as a rich source of these product as well as carotenoids. Algae are also classified as generally recognized as safe by the FDA and it majorly serves as an option for vegetarian population. Algae contains only DHA while krill oil and fish oils contain both EPA & DHA. At the same time, the emerging trend of plant-based ingredients are in high demand and sources such as flax and sunflower seed oils are projected to witness a huge demand in the coming years.
Rising Popularity of Dietary Supplements Contributes to the Market Growth
One of the major factors contributing to the growth of this market is the rising popularity of dietary supplements. The positive health effects of omega-3 that support heart health, mental health, and brain development in infants have led to an increase in the demand for omega-3 fatty acid supplements. The newly emerged trends of personalized nutrition has enabled consumers to independently measure the levels of EPA & DHA in their blood. This in turn will create a huge demand for supplements that provide omega-3. The development of innovative delivery techniques to improve the absorption of EPA & DHA in the body is driving the advances in omega-3 fatty acids dietary supplements space. The increasing incorporation of these products in infant formulae is also contributing to the growth of the market.
Functional/fortified foods is the fastest-growing application category in the market. Consumers in the developed markets of North America and Europe are focusing more on health management with the aid of functional food products such as dietary supplements. Moreover, rising popularity and preference for healthy snacking has brought several inventions in the functional food category. The recent surge in sales in this category has encouraged processors and manufacturers to fortify a wide variety of food mediums with omega-3 fatty acids.
North America Omega-3 fatty Acids Market Size, 2016-2027 (USD Million)
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North America is the Leading Region while Asia Pacific is the Fastest Growing
The robust growth of the market in North America is attributed to the rising awareness about the positive health effects of polyunsaturated fatty acids. The increasing prevalence of lifestyle-related health conditions, the increasing number of aging population, hectic lifestyle, and stress factors will create a huge demand for dietary supplements and functional foods in this region. The rising trends of veganism and vegetarianism in the region will lead to a huge demand for omega-3 fatty acids sourced from plants. The recent development in regulations by the U.S. Food & Drug Administration (FDA) that allow qualified health claims confirming these products can be used in reducing the risk of cardiovascular conditions is expected to boost their demand in this region. The increasing investments by key giants for the development of innovative solutions to improve delivery and the absorption of omega-3 acids in the body are further contributing to the growth of the market.
Asia Pacific has immense potential for omega-3 fatty acids and it is expected to witness growth rates higher than the global average. The growth of the market is attributed to the rising awareness of the health benefits and increasing discretionary incomes that enable consumers to spend on healthcare products that promote well-being. The demand for dietary supplements is increasing at a rapid pace in highly populated countries of the region such as China and India. The increasing popularity of functional food and beverages in the region is contributing to the growth of omega-3 fatty acid-fortified foods.
Increasing R&D Activities to Aid the Growth of the Market
The global omega-3 fatty acids market structure is moderately consolidated due to the presence of players such as DSM, Evonik, BASF, Lonza & Epax. These major players are working towards further consolidation by acquiring small players in the industry. Partnerships, agreements, and investment in research & development are some of the key strategies adopted by these players to further strengthen their market position.
The new entry of small and niche players in the market is further escalating the competition in the market and the same is adding stimulus to the market growth. The exploration of novel sources for omega-3 by key players is significantly contributing to the growth of the market.
The increasing understanding of the health benefits of polyunsaturated fatty acids among consumers has resulted in the enhanced demand for omega-3 fatty acids in dietary supplements & functional foods. The omega-3 fatty acid concentrates segment has witnessed significant growth in the overall market globally. The extraction of omega-3 acids from various novel sources is driving the growth of the market.
The report provides qualitative and quantitative insights into the market. It also offers a detailed analysis of the type and applications of omega-3 acids, market size, and growth rate for all possible segments in the market.
Along with this, the report provides an elaborative analysis of the market dynamics and competitive landscape. Various key insights presented in the report are an overview of related markets, recent industry developments such as mergers & acquisitions, the regulatory scenario in important countries, and key industry trends.
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Value (USD Million)
Fortune Business Insights says that the value of the market was at USD 1.45 billion in 2019 and is projected to reach USD 1.92 billion by 2027.
Growing at a CAGR of 3.89%, the market will exhibit steady growth in the forecast period (2020-2027).
The omega-3 concentrates segment is expected to be the leading segment based on the source in the global market during the forecast period.
Rising awareness of the health benefits of polyunsaturated fatty acids is the key driving factor for the market.
DSM, BSF SE, Evonik, and Lonza are few key players.
North America is expected to hold the highest market share in 2019.
Algae oil is expected to witness the fastest growth in the sources segment.
Rising awareness of the health benefits of polyunsaturated fatty acids is the key driving factor for the market.
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