Omega-3, obtained from algae, is the sustainable, vegan source of omega-3, as compared to fish oil and krill oil. Many international companies are introducing new algal EPA products or collaborating with Brazilian companies to launch Algal EPA-based fortified products and supplements in the Brazil market. Global companies, such as TerraVia, Bunge, Solazyme, Polaris AlgaPrime and Altech, have understood the market potential of Brazil in the algal EPA industry and are working on projects, in Brazil, to deliver high-quality algae-based ingredients/food/feed/supplements
The South America algae omega-3 ingredient market is expected to register a CAGR of 12.4%, during the forecast period of 2017-2022. The market, estimated at USD XX billion, as of 2017, is projected to reach USD XX billion by 2022.
The growing demand for fortified oil, eggs, bread and processed food products are the major factors driving the growth of the market. Algal omega-3 provides a sustainable solution to industries and is suitable for the vegetarian label, which is accelerating the market growth rate. Increased cost of production and costly downstream processing are the major factors affecting the market growth. At present, the Brazil food industry is affected by inflation, which is restricting the market growth. Consumer spending on health and wellness products has decreased, significantly, from the previous year.
The market has been segmented by type, concentration type, application type and purity/quality type. There are commercially two types of essential omega-3 fatty acids derived from algae, namely, Eicosapentaenoic Acid (EPA) and Docosahexaenoic Acid (DHA). DHA holds the largest share in the market due to the high demand for infant formula products and its legal recommendations. EPA is the fastest-growing market, supported by various health benefits, which has increased its importance in drug formulation. By concentration type, the market is divided into high-concentrated, concentrated and low-concentrated products. Based on the product purity and quality type, algae omega-3 is segmented into premium grade and others. By application, the market is segmented into infant formula, dietary supplements, pharmaceuticals and animal nutrition. Dietary supplement holds the largest share of the market, followed by infant formula application. The use of algae omega-3 ingredient is quite less in the pharmaceutical application, but its value is high. The high awareness of the health benefits of EPA has triggered its application, in pharmaceutical products.
Brazil dominates the market due to its high consumption of food products, followed by Argentina. Some of the major products in the omega-3 fortified industry in Argentina are bread, milk and cooking oil. Due to the growing economy, the rise in disposable income and health awareness, the algal-based EPA market has great potential in Argentina in future.
DSM Nutritional Products
Bioprocess Algae, LLC
Algae omega-3 supplements will be the target products in the market, as consumers are looking for health and wellness products. Fish oil is the major competitor for algae omega-3 oil, reducing its cost on lines of fish oil, is expected to attract the consumer market.
Key Deliverables in the Study
Market analysis for the South America algae omega-3 ingredient market, with region-specific assessments and competition analysis on South America and regional scale.
Market definition along with the identification of key drivers and restraints.
Identification of factors instrumental in changing the market scenario, rising prospective opportunities, and identification of key companies that can influence this market on South America and regional scale.
Extensively researched competitive landscape section with profiles of major companies along with their market share.
Identification and analysis of the macro and micro factors that affect the South America algae omega-3 ingredient market on, both, South America and regional scale.
A comprehensive list of key market players along with the analysis of their current strategic interests and key financial information.
A wide-ranging knowledge and insights about the major players in this industry and the key strategies adopted by them to sustain and grow in the studied market.
Insights on the major countries/regions where this industry is growing and identify the regions that are still untapped.
1.1 Key Deliverables of the study
1.2 Study Assumptions
1.3 Market Definitions
2. Research Approach and Methodology
2.2 Research Design
2.3 Study timelines
2.4 Study Phases
2.4.1 Secondary Research
2.4.2 Discussion Guide
2.4.3 Market Engineering & Econometric Modelling
2.4.4 Expert Validation
3. Market Overview
3.1 Market Dynamics
22.214.171.124 Growing demand for fortified food & beverages
126.96.36.199 Sustainable source of Omega 3 fatty acid suitable for vegeterian label
188.8.131.52 Superior product quality and best alternative for fish oil Omega 3
184.108.40.206 High downstream processing cost which increases the price
220.127.116.11 Economic inflation affects the health supplement products
18.104.22.168 Growing demand of algae EPA in drug application
22.214.171.124 High demand of premium quality Omega 3 products in developed region
3.1.4 Porter's Five Forces Analysis
126.96.36.199 Bargaining Power of Suppliers
188.8.131.52 Bargaining Power of Buyers
184.108.40.206 Threat of New Entrants
220.127.116.11 Threat of Substitute Products and Services
18.104.22.168 Degree of Competition
4. Market Segmentation
4.1 By Type
4.1.1 Eicosapentanoic acid (EPA)
4.1.2 Docosahexanoic acid (DHA)
4.2 By Concentration Type
4.2.1 High Concentrated
4.2.3 Low Concentrated
4.3 By Purity/Quality type
4.4 By Application
4.4.1 Food & Beverages
22.214.171.124 Infant Formula
126.96.36.199 Fortified food & Beverages
4.4.2 Dietary Supplement
4.4.4 Animal Nutrition
4.5 By Geography
4.5.1 South America
5. Competitive Landscape
5.1 Strategy adopted by Key players
5.2 Most active companies in the past five years
5.3 Market Share Analysis
6. Company Profiles
6.1 DSM NUTRITIONAL PRODUCTS
6.2 BIOPROCESS ALGAE, LLC
6.3 NEPTUNE WELLNESS SOLUTIONS (Biogroga)
6.5 QUALITAS HEALTH
6.6 NORDIC NATURALS
6.9 SIMRIS ALG
6.12 TerraVia (Solazyme)
6.13 Xiamen Huison Biotech
6.14 Nature's Way (Ascenta Health)
6.16 SYNTHETIC GENOMICS