The global algae omega-3 ingredient market continues to drive the market with the increased consumption of omega-3 supplements from the US in the developing regions. The market is highly fragmented with the presence of regional domestic and the international players. The major players in the market are DSM, Bioprocess Algae, Algaecides, Algisys, Terravia (Solazyme), among others.
The global algae omega-3 ingredient market is expected to grow at a CAGR of 11.8% during the forecast period of 2017-2022. The market, estimated at USD 431.5 million as of 2016, is projected to reach USD XX billion by 2022. At present, omega-3 is commercially obtained from the fish source; however, there are other sources available in the market (e.g., krill, algae, etc.). Algae are the sustainable source of omega-3 fatty acid production, which has attracted the interest of various manufacturers in recent years.
The algae omega-3 ingredient market has been dominantly driven by the strong demand for infant formula products in developing countries, such as China. The algae omega-3 demand is growing at a faster rate in the infant food fortification as it provides the same benefit as that of the fish oil but with no bad odor or taste. Omega-3 obtained from algae are considered as more bioavailable and sustainable for production, which is highly required at present where overfishing is a major problem. Another benefit associated with algae omega-3 is its suitability for the vegetarian label. Moreover, the product quality of algae omega-3 is superior as compared to fish oil as it is free from any toxic pollutants, and is of high purity regarding the form of fatty acid, and off-sensory properties. The major restraining factor for the market is the high-cost of the product due to higher downstream processing cost. However, with the passage of time and technological advancement, the price is forecasted to reduce, which can make it a highly competitive market.
The market has been segmented into type, concentration type, application type and purity/quality type. There are commercially two types of essential omega-3 fatty acid derived from algae which include Eicosapentaenoic Acid (EPA) and Docosahexaenoic Acid (DHA). DHA holds the largest share in the market due to its high demand in infant formula products and legal recommendations on it. 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. Currently, low-concentrated and concentrated algae ingredients are capturing the market. The growing awareness among consumers regarding the daily dosage of omega-3 has focused the demand on high-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 pharmaceutical application but its value is high. Animal nutrition is another major growing segment of the market due to the increased health concern among pet owners.
The global algae omega-3 ingredient market has been divided into North America, Europe, Asia-Pacific, South America and Africa. North America and Europe dominate the market with the dominated production and consumption of omega-3 fortified and supplemented products. Asia-Pacific is the fastest-growing region due to the growing fortified food market and increasing consumer awareness. Japan and China are significant markets in Asia-Pacific with the presence of major domestic players. South America is another growing market for algae omega-3 fatty acid, driven by the high-consumption of fortified products.
DSM Nutritional Products
Bioprocess algae, LLC
Recent Industry Insights
“Bio process algae has signed an agreement with KD Pharma to supply EPA-rich Omega oil from algae.”
Products designed on the algae omega-3 EPA will be the future spotlight in the market. EPA, individually, has a high-potential in the market, especially in the pharmaceuticals and nutraceuticals market. There are huge opportunities in the developed regions such as North America and Europe, where sensory attributes are a major factor for the purchase of products.
Key Deliverables in the Study
Market analysis for the global algae omega-3 ingredient market, with region-specific assessments and competition analysis on global and regional scales.
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 a global 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 global algae omega-3 ingredient market on both, global and regional scales.
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 s=Study
1.2 Study Assumptions
1.3 Market Definition
2. Research Approach and Methodology
2.2 Research Design
2.3 Study Timeline
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
188.8.131.52 Increased Demand for Infant Formula Products in Developing Region Such as China
184.108.40.206 Sustainable Source of Omega-3 Fatty Acid Suitable for Vegetarian Label
220.127.116.11 Superior Product Quality and Best Alternative for Fish Oil Omega-3
18.104.22.168 High Downstream Processing Cost Which Increases the Price
22.214.171.124 Low Consumer Awareness
126.96.36.199 Growing Demand for Algae EPA in Drug Application
188.8.131.52 High Demand for Premium Quality Omega-3 Products in Developed Regions
3.1.4 Porter's Five Forces Analysis
184.108.40.206 Bargaining Power of Suppliers
220.127.116.11 Bargaining Power of Buyers
18.104.22.168 Threat of New Entrants
22.214.171.124 Threat of Substitute Products and Services
126.96.36.199 Degree of Competition
4. Market Segmentation
4.1 By Type
4.1.1 Eicosapentanoic Acid (EPA)
4.1.2 Docosahexanoic a=Acid (DHA)
4.2 By Concentration Type
4.3 By Purity/Quality Type
4.4 By Application
4.4.1 Food & Beverages
188.8.131.52 Infant Formula
184.108.40.206 Fortified Food & Beverages
4.4.2 Dietary Supplement
4.4.4 Animal Nutrition
4.5 By Geography
4.5.1 North America
220.127.116.11 United States
4.5.4 South America
18.104.22.168 South Africa
5. Competitive Landscape
5.1 Strategies 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
- Bioprocess Algae, LLC
- DSM Nutritional Products
- Nature's Way (Ascenta Health)
- Neptune Wellness Solutions (Biogroga)
- Nordic Naturals
- Qualitas Health
- Simris Alg
- Synthetic Genomics
- Terravia (Solazyme)
- Xiamen Huison Biotech