North America Algae Omega-3 Ingredient Market - Growth, Trends and Forecasts (2017 - 2022)
North America is the largest market for the algae omega-3 ingredient, due to the increased consumption of omega-3 supplements in the United States. Omega-3 oil from algae sources is considered to be a premium source. The major players in the market are DSM, Bioprocess Algae, Algaecides, Algisys, Terravia (Solazyme), among others.
The North America algae omega-3 ingredient market is expected to register a CAGR of 10.1%, during the forecast period of 2017–2022. The market, estimated at USD XX billion in 2016, is projected to reach USD XX billion by 2022. At present, omega-3 in North America is dominated by fish oil; however, due to the recent concern about its sustainability, the demand for algae omega-3 is growing at a faster rate.
The algae omega-3 ingredient market is dominantly driven by the strong demand for dietary supplement products. The algae omega-3 demand is growing at a faster rate in the health supplement segment, as it provides the same benefit as that of fish oil, but with no off-odor or taste. Omega-3 obtained from algae are considered as more bioavailable and sustainable. The use of premium-grade omega-3 for infant formula is another major driver for the market, as algae omega-3 has proved to be of superior quality. In North America, consumers are highly aware of the EPA/DHA benefits and its daily recommended dosage. The major restraining factor for the market is the high-cost of the products, due to higher downstream processing cost. However, with the passage of time and technological advancement, its price is forecasted to reduce, which can make it a highly competitive market.
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 pharmaceutical application, but its value is high. The high awareness of the health benefits of EPA has triggered its application, in pharmaceutical products.
The United States dominates the market due to the increased awareness regarding the algae source of omega-3 and its high consumption in dietary supplement products. In the US market, almost 9% of the buyers are purchasing products that are either naturally high in omega-3 or fortified with the addition of omega-3. Most of the omega-3 oil is available in soft gelatin capsules. Canada is the second-largest market for algal omega-3 oil, followed by Mexico.
DSM Nutritional Products Algaecytes Bioprocess Algae, LLC Terravia (Solazyme) Qualitas Health Recent Industry Insights
“DSM acquired Martek Bioscience, an algae omega-3 ingredient leader, to become the global leader.”
Pharmaceutical products based on algae omega-3 EPA will be the future spotlight in the market. EPA, individually, has high-potential in the market, especially, in pharmaceuticals and nutraceuticals market. There is a huge opportunity for the premium omega-3 ingredient in infant nutrition application in the region; sensory attributes is a major factor for the purchase of the products.
Key Deliverables in the Study
Market analysis for the North America algae omega-3 ingredient market, with region-specific assessments and competition analysis on North 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 North 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 North America algae omega-3 ingredient market on, both, North 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.