FNB News - Omega-3 market expected to reach $6,955 million at CAGR of 14.9% by ’22

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Omega-3 market expected to reach $6,955 million at CAGR of 14.9% by ’22

Saturday, 15 October, 2016, 08 : 00 AM [IST]

According to an Allied Market Research report titled, “Omega-3 Market - Global Opportunity Analysis and Industry Forecast, 2014 -2022”, the omega-3 market is expected to reach $6,955 million by 2022, with a compounded annual growth rate (CAGR) of 14.9 per cent between 2016 and 2022.

The docosahexaenoic acid (DHA) segment dominated with three-fourths market share, in terms of revenue, in 2015. The dietary supplement application accounted for three-fifths of the global omega-3 market share, in terms of volume, in 2015, and is anticipated to grow at a CAGR of 14.1 per cent.

The omega-3 market is driven by factors such as rise in awareness among consumers about a healthy and balanced diet and its health benefits. Moreover, omega-3 supplements such as eicosapentaenoic acid (EPA) and DHA reduce the risk of prostrate, colon, and breast cancer.

An adequate amount of EPA decreases the risk of depression and related health problems. The regulatory barrier limiting the consumption of omega-3 over a certain range may restrain the market growth in the near future. Omega-3 obtained from plant origin, a good source of alpha-linolenic acid (ALA) for vegetarians, provides an opportunity for omega-3 market growth.

The world ALA omega-3 market accounted for over $234 million in 2015. North America dominated it, in terms of revenue, generating $96 million in 2015.

Omega-3 has a wide range of applications such as dietary supplements, pharmaceuticals, infant formula, food and beverages, pet food, and fish feed.

Dietary supplements is the major application and accounted for three-fifths of the global omega-3 market volume in 2015.

Pharmaceuticals are expected to grow (in terms of revenue) at a CAGR of 18 per cent between 2016 and 2022.

The consumption of omega-3 (in terms of volume) in pharmaceutical and infant formula is estimated to increase at higher CAGR of 18.8 per cent and 16.3 per cent, respectively, during the forecast period.

Fish and krill oils are two major marine sources for omega-3 fatty acid. Fish oil is applicable in aquaculture and nutraceuticals.

Algal oil is one of the important sources of omega-3 fatty acid ingredients. It is the major alternative for production of omega-3. However, its relatively high price restricts its anticipated market penetration into the food and dietary supplements.

The omega-3 market for infant formula witnesses a high growth rate, in the packaged food category, due to developments in Asia (particularly China), Eastern Europe, and in some parts of the Middle East and Latin America.

Increase in the global omega-3 production and rise in its demand are the major reasons for the higher growth rate in countries such as Mexico, the Netherlands, Poland, India and Brazil.

Key findings of omega-3 market study

North America was the dominant region in 2015, both in terms of value and volume, and is expected to continue this trend throughout the forecast period.

Revenue generated by nuts and seeds is estimated to grow at a CAGR of 25.8 per cent.
Dietary supplement accounted for three-fifths of the global omega-3 demand in 2015.

Fish and krill oil sources dominated, in terms of revenue, in 2015, and is projected to grow at a CAGR of 14.2 per cent.

The DHA segment is expected to remain dominant throughout the period under consideration.
The United States accounted for one-third of the market revenue in 2015.

North America and Europe together contributed more than 60 per cent of the world omega-3 market revenue in 2015. North America dominated the world omega-3 market in the pharmaceutical application, in terms of volume, whereas Asia-Pacific is the fastest-growing region with a CAGR of 16 per cent, owing to the consumer awareness in the developing countries. China and India together account for three-fifths share (in terms of revenue) of the total Asia-Pacific omega-3 market.

The companies in this market adopt expansion and acquisition as their key strategies to develop distinguished products and reduce competition by capturing an additional market share.

The prominent players profiled in this report include Cargill, Incorporated, FMC Corporation, Croda International Plc, Royal DSM, Olvea Fish Oils, Omega Protein Corporation, GC Rieber Oils, Luhua Biomarine (Shandong) Co Ltd, Pharma Marine AS and Polaris.