Global Algae Omega 3 Ingredient Market - Segmented by Product Type, Application, and Geography - Growth, Trends and Forecasts (2018 - 2023)
The global algae omega 3 ingredient market records a revenue of USD 431.5 million in 2016 and is expected to grow at a CAGR of 11.5 % during the forecast period of 2018 – 2023. Algae as a source accounts for 18% of the global Omega 3 Ingredient market. The market is highly fragmented with the regional domestic players and the international players.
Strong Demand in Infant Formula Products
The demand for algae omega 3 is growing at a faster rate in infant food fortification as it provides the same benefit that of fish oil, but it has no off odor or taste. Omega 3 obtained from algae is considered as more bioavailable and sustainable for production which is highly required at present time, where overfishing is a major problem. Another benefit associated with algae Omega 3 is, it is vegan. Moreover, the product quality of algae Omega 3 is superior as compared to fish oil because it is free from any toxic pollutants, and possesses high purity in terms of form of fatty acid, and off sensory properties. The major restraining factor with market is the high cost of product due to higher downstream processing cost. However, with passage of time due to technological advancement, the market can be highly competitive.
High Adoption of Docosahexanoic acid (DHA)
Commercially, there are two types of essential Omega 3 fatty acid derived from algae: Eicosapentanoic acid (EPA) and Docosahexanoic 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 the various health benefits, which has increased its importance in drug formulation.
By concentration type, market is divided into high concentrated, concentrated and low concentrated product. Currently, low concentrated and concentrated algae ingredient are capturing the market demand. Dietary supplement holds the largest share in the algae omega 3 ingredient market followed by infant formula application. Growing awareness among consumers regarding the daily dosage of Omega 3 has focused the demand of high concentrated products.
The use of algae Omega 3 ingredient in dietary supplements accounts for the largest share of 53.5% in 2016. Increasing demand by pharmaceutical companies for Omega 3 oils sourced from algae is driving its demand in pharmaceuticals. Animal nutrition is another major growing segment for the market due to increased health concern among pet owners.
North America to Dominate the Market Growth
North America followed by Europe dominates the market. Increased consumption of Omega 3 supplements in countries like U.S is driving the market in developed regions. Asia- Pacific is the fastest growing region due to growing fortified food market and increased consumer awareness. Japan and China are the significant market in Asia- Pacific captured with major domestic players. South America is another growing market for algae omega 3 ingredient market driven by the high consumption of fortified products.
Key Developments in the market
January 2018: Startup Triton Algae is bringing healthy and safe non GMO, and vegan algea powder rich in omega – 3, 6, and 9 fatty acids, vitamin A/ Betacarotene and iron. This is an excellent source of high protein.
September 2017: Nordic Naturals® Introduces Five New Children’s Products. The new products offer concentrated, triglyceride-form omega-3 fish oil in age-appropriate formulations for cognition, learning and attention, mood health, and more, plus a kid-friendly, fast-melt probiotic powder.
Analyzing outlook of the market with the recent trends and Porter’s five forces analysis
Market dynamics which essentially consider the factors which are impelling the present market scenario along with growth opportunities of the market in the years to come
Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and non-economic aspects
Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market
Competitive landscape involving the market share of major players along with the key strategies adopted for development in the past five years
Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis and strategies employed by the major market players
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Value chain analysis
Consumer behavior analysis in country level
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