Global Omega 3 Ingredients Market By Ingredients (Alphalinolenic Acid, Eicosapentaenoic Acid, Docosahexaneoic Acid), By Source ( Animals, Fish Oil, Algal Oil, Others, Plants, Chia Seed Oil, Flax Seed Oil, Soybean Oil, Canola Oil, Walnut Oil, Mustard Oil, Others), By Application(Functional Food and Beverage, Dietary Supplements, Infant Nutrition, Pet food and Feed, Pharmaceutical, Clinical Nutrition, Others) , Region and Companies - Industry Segment Outlook, Market Assessment, Competition Scenario, Trends and Forecast 2024-2033

Report Overview

The Global Omega 3 Ingredients Market size is expected to be worth around USD 11.2 Bn by 2033, from USD 3.7 Bn in 2023, growing at a CAGR of 11.7% during the forecast period from 2024 to 2033.

Omega-3 fatty acids are essential nutrients critical for human health, notably impacting brain function and growth. These fats are sourced mainly from fish oils, which provide eicosapentaenoic acid (EPA) and docosahexaenoic acid (DHA), and plant oils like flaxseed and canola, which are rich in alpha-linolenic acid (ALA). The versatility of omega-3 sources allows for broad incorporation into dietary routines, reflecting their essential role in nutrition.

India’s Operation Greens initiative, launched with an INR 500 crore fund, aims to enhance agricultural productivity and minimize post-harvest losses, demonstrating significant governmental support for the agriculture sector.

This is part of a broader strategy that includes attracting USD 12.81 billion in foreign direct investment to the food processing industry, essential for bolstering agricultural and processing capacities. The growth in exports of processed fruits and vegetables by 12.93% as of May 2024 further underscores the global demand and potential for expansion in this sector.

The development of new agricultural technologies also receives support through partnerships between governments and private entities, enhancing efficiency across farming operations. For example, the Australian government’s allocation of USD 7 million to seasonal agriculture worker programs reflects such commitments.

Additionally, substantial private investments in biotechnology are evident, such as Epax’s USD 40 million investment to improve the molecular distillation processes of omega-3 fatty acids, showcasing the industry’s focus on enhancing efficiency and sustainability. This includes innovative approaches like MiAlgae’s recent funding round aimed at boosting sustainable algae-based omega-3 production.

Regulatory support from entities like the FDA, which provides compliance guides for small food businesses on nutrient content claims, plays a critical role in facilitating market participation and ensuring product quality and consumer safety. This regulatory framework is vital for maintaining standards and supporting industry growth by ensuring that products meet health claims, thus fostering consumer trust and industry credibility.

Key Takeaways

• Omega 3 Ingredients Market size is expected to be worth around USD 11.2 Bn by 2033, from USD 3.7 Bn in 2023, growing at a CAGR of 11.7%.
• Docosahexaenoic Acid (DHA) held a dominant market position, capturing more than a 42.2% share.
• Animals held a dominant market position, capturing more than a 62.2% share.
• Dietary Supplements held a dominant market position, capturing more than a 32.2% share.
• North America holds the largest share of the omega-3 ingredients market, accounting for 40.1% with a market value of USD 1.5 billion.

By Ingredients

In 2023, Docosahexaenoic Acid (DHA) held a dominant market position, capturing more than a 42.2% share. DHA is primarily valued for its critical role in brain health and development, making it a popular ingredient in infant formulas and adult supplements. Its widespread use is supported by numerous studies emphasizing its benefits in improving cognitive function and reducing inflammation.

Eicosapentaenoic Acid (EPA), another significant segment, is renowned for its cardiovascular benefits. EPA assists in reducing bodily inflammation and is often used in conjunction with DHA to support heart health. It has been increasingly incorporated into dietary supplements and functional foods, aiming to cater to the growing consumer demand for products that support cardiovascular health.

Alpha-linolenic Acid (ALA) is the plant-based member of the omega-3 family, mainly derived from seeds and nuts like flaxseeds, chia seeds, and walnuts. Although it converts to EPA and DHA at a lower rate in the body, ALA remains essential for energy production and normal body functioning. Its market appeal is bolstered by the rising vegan and vegetarian populations seeking plant-based omega-3 sources.

Each of these segments is shaped by consumer health awareness and regulatory support, encouraging their integration into daily diets through various products. This segmentation reveals the diverse applications and growing versatility of omega-3 ingredients in the health and wellness sector.

By Source

In 2023, Animals held a dominant market position, capturing more than a 62.2% share. This category primarily includes fish oils, which are rich sources of EPA and DHA. The high demand for fish oil is driven by its established health benefits, particularly in cardiovascular and cognitive health.

Algal oil is another noteworthy source within the animal category, growing in popularity due to its sustainability and vegan-friendly profile. It provides a potent form of DHA and is increasingly being used in supplements and fortified foods.

Turning to plant sources, flaxseed oil leads the segment. It is a primary source of ALA, which is essential for general health and is easily incorporated into daily diets through various food products. Chia seed oil and walnut oil are also gaining traction due to their high ALA content and associated health benefits, appealing to consumers seeking plant-based omega-3 options.

Soybean and canola oils are valued for their versatility and affordability, making them staples in the production of omega-3 enriched products. Mustard oil, though less common, is emerging as a source due to its omega-3 content and traditional use in certain cuisines.

By Application

In 2023, Dietary Supplements held a dominant market position, capturing more than a 32.2% share. This segment benefits from the widespread consumer awareness of the health advantages of omega-3s, particularly in the areas of heart health and cognitive function. The ease of incorporating these supplements into daily routines also contributes to their popularity.

Functional Food and Beverage is another key application, driven by the trend towards health and wellness. Omega-3s are increasingly being added to foods and drinks for enhanced nutritional profiles, appealing to health-conscious consumers looking for convenient nutrition solutions.

Infant Nutrition is a critical segment where DHA plays an essential role in the development of the brain and eyes in infants. This application continues to see robust demand, underscored by a strong emphasis on child development and supported by positive regulatory frameworks.

Pet Food and Feed reflect the growing consumer attention to the health of pets and livestock, with omega-3s added to feed to improve the overall health and coat quality of animals.

In the Pharmaceutical segment, omega-3s are utilized for their medicinal properties, such as lowering triglyceride levels and aiding in the treatment of depression. This segment is supported by clinical research and endorsements from the medical community.

Clinical Nutrition uses omega-3 fatty acids to manage nutrition in individuals with specific health conditions, supporting recovery and overall health maintenance.

Key Market Segments

By Ingredients

• Alphalinolenic Acid
• Eicosapentaenoic Acid
• Docosahexaneoic Acid

By Source

• Animals
• Fish Oil
• Algal Oil
• Others
• Plants
• Chia Seed Oil
• Flax Seed Oil
• Soybean Oil
• Canola Oil
• Walnut Oil
• Mustard Oil
• Others

By Application

• Functional Food and Beverage
• Dietary Supplements
• Infant Nutrition
• Pet food and Feed
• Pharmaceutical
• Clinical Nutrition
• Others

Drivers

Increased Health Awareness and Demand for Functional Foods

In 2023, functional foods and dietary supplements sectors dominated the omega-3 market with a significant revenue share, due in part to the recognized benefits of omega-3 in enhancing muscle health, managing weight, and promoting overall well-being.

The sector is benefiting from consumers, including athletes and professionals, who are increasingly mindful of their health and dietary choices, thus integrating omega-3 enriched foods into their daily regimen to optimize health outcomes​.

Technological Advancements in Omega-3 Production

Technological innovations in the extraction and processing of omega-3 have also played a crucial role in market growth. Advances such as microencapsulation have improved the stability and taste of omega-3 products, making them more appealing and accessible to a broader consumer base.

These advancements have facilitated the introduction of various consumer-friendly omega-3 formats, such as gummies, soft gels, and high-concentrate capsules, which are tailored to enhance consumer convenience and intake accuracy​.

Regulatory Support and Strategic Marketing

Regulatory endorsements by reputable organizations like the American Heart Association, alongside strategic marketing efforts by major companies, have bolstered consumer confidence in the efficacy and safety of omega-3 products. These endorsements have been instrumental in educating consumers on the benefits of omega-3, thereby increasing consumer demand across global markets​.

Global Market Reach and Expansion

The omega-3 ingredients market is experiencing robust growth on a global scale, particularly in the Asia-Pacific region, where there is a substantial demand driven by the rising need for infant nutrition and the overall improvement in dietary standards due to economic growth and increased health awareness. Notably, China and India are leading the demand in Asia due to their high population and growing per capita health consciousness

Restraints

Impact of Environmental Pollution on Fish Sources

One of the primary challenges facing the omega-3 ingredients market is the increased pollutant content in marine sources, particularly fish, which are the main sources of EPA and DHA omega-3 fatty acids. Pollutants, heavy metals, and other environmental contaminants accumulated in fish tissues can pose significant health risks when consumed, thus deterring market growth.

As the demand for fish increases globally, both for consumption and as a source of omega-3, the availability of uncontaminated fish has become a crucial concern, which is compounded by overfishing and environmental degradation​.

Regulatory Challenges and Fishing Quotas

Stringent fishing regulations and quotas, especially in critical regions like Peru, which is a major supplier of fish oil, further exacerbate supply issues. The Peruvian anchovy fishery, a significant source of crude omega-3 oil, has faced repeated reductions in fishing quotas due to environmental factors like El Niño, which affects fish populations and availability. These restrictions are intended to protect marine life and ensure sustainability but result in decreased production capacity for omega-3 oils​.

Supply Chain and Economic Impacts

Supply chain disruptions, influenced by regulatory, environmental, and economic factors, significantly impact the availability and cost of omega-3 ingredients. The fluctuating supply of raw materials not only affects production volumes but also leads to price instability, which can deter manufacturers and consumers from investing in or purchasing omega-3 products.

This situation was particularly evident during the COVID-19 pandemic, which shifted consumer purchasing patterns and strained the supply chains further, impacting the overall market dynamics

Opportunity

Expansion in Plant-based and Algal Omega-3 Sources

The increasing consumer preference for plant-based diets and sustainable products is significantly driving growth in the omega-3 ingredients market. Innovations in algal farming and the extraction of omega-3 from sources like algae, which offer a sustainable alternative to fish oil, are particularly promising. These advancements are making it easier to incorporate omega-3 into a broader range of dietary preferences and are expected to contribute to a robust CAGR in the omega-3 market from sources like microalgae​.

Technological Advancements in Extraction and Processing

Technological improvements in the extraction and stabilization of omega-3 fatty acids have enhanced their incorporation into functional foods and dietary supplements without compromising taste or nutritional value. This has opened up new avenues for the use of omega-3 in the food industry, making it more accessible to consumers seeking to enhance their diet with these beneficial nutrients​.

Growing Demand in Developing Regions

The rising awareness of the health benefits of omega-3, coupled with increasing economic prosperity in Asia-Pacific regions like China and India, is propelling the demand for omega-3 enriched products. This is especially notable in segments such as infant nutrition, where the developmental benefits of DHA and EPA are well recognized. The expansion of the middle class in these regions is leading to increased consumer spending on health and wellness products, which in turn is driving the growth of the omega-3 market​

Increased Use in Pharmaceutical Applications

There is a growing trend of using omega-3 fatty acids in pharmaceutical applications due to their beneficial effects on health conditions such as cardiovascular diseases and inflammation. The pharmaceutical segment of the omega-3 market is seeing significant growth, supported by clinical research that continues to underline the health benefits of omega-3 fatty acids. This sector’s growth is facilitated by ongoing advancements in medical research and pharmaceutical technologies​

Trends

Sustainable and Plant-based Sources

The omega-3 ingredients market is witnessing a significant shift towards more sustainable and environmentally friendly sources. Particularly, the use of microalgae as a source of omega-3 is gaining popularity due to its sustainability and the ability to cater to vegan preferences.

This trend is supported by advancements in biotechnology that enhance the yield and cost-effectiveness of algae-based omega-3 production, making it a compelling alternative to traditional fish oil sources​.

Innovative Product Formulations and Delivery Systems

There is a growing focus on improving the palatability and consumer appeal of omega-3 products through advanced formulation technologies. Microencapsulation techniques are increasingly being utilized to enhance the stability and taste of omega-3, making it easier to incorporate into a wide range of products including gummies, soft gels, and functional foods.

These innovations help in broadening the consumer base by improving the sensory attributes and convenience of omega-3 supplements​.

Increased Utilization in Clinical and Therapeutic Settings

Omega-3 fatty acids are being increasingly recognized for their therapeutic benefits, particularly in managing cardiovascular diseases and supporting cognitive health. This has led to a rise in their incorporation into pharmaceuticals and clinical nutrition products. The pharmaceutical application of omega-3 is expanding, with ongoing research focusing on its potential in dermatological applications and as an adjunct therapy for various chronic conditions​.

Strategic Marketing and Consumer Education

Manufacturers are also enhancing their marketing strategies to educate consumers about the benefits of omega-3. There is a growing use of digital marketing, influencer partnerships, and transparency in sourcing and sustainability practices to build consumer trust. These efforts are complemented by endorsements from reputable organizations like the American Heart Association, which bolster the credibility of omega-3 fatty acids’ health benefits

Regional Analysis

North America holds the largest share of the omega-3 ingredients market, accounting for 40.1% with a market value of USD 1.5 billion. This dominance is driven by high consumer awareness of dietary supplements’ health benefits and well-established pharmaceutical and food processing industries. The U.S. leads the region, spurred by stringent regulations supporting the use of omega-3 in various health products and a high prevalence of cardiovascular diseases that drive demand for EPA and DHA supplements.

Europe follows closely, characterized by increasing consumer demand for sustainable and traceable ingredients. The market benefits from the presence of a large aging population seeking nutritional supplements to support health and wellness. European regulations promoting the labeling and usage of omega-3 in functional foods also bolster the market growth, alongside rising public awareness about cognitive and cardiovascular health.

Asia Pacific is the fastest-growing region due to rising health consciousness, increasing disposable incomes, and expanding urbanization, particularly in China and India. The region’s growth is bolstered by the integration of omega-3 into traditional diets and increasing prevalence of lifestyle diseases, which has heightened the demand for dietary supplements and functional foods enriched with omega-3.

Latin America and the Middle East & Africa are emerging markets with increasing potential. Growth in these regions is propelled by improving healthcare infrastructure, rising awareness of omega-3 benefits, and government initiatives aimed at enhancing the general health of the populace. However, these regions still face challenges such as price sensitivity and underdeveloped distribution networks for health supplements.

Key Regions and Countries

• North America
  • US
  • Canada
• Europe
  • Germany
  • France
  • The UK
  • Spain
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • India
  • Australia
  • Rest of APAC
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • South Africa
  • Saudi Arabia
  • UAE
  • Rest of MEA

Key Players Analysis

The omega-3 ingredients market features a diverse array of key players, each contributing to the global supply and innovation within this sector. Aker BioMarine, BASF, and Cargill Incorporated are prominent for their substantial market presence and comprehensive range of omega-3 products.

Aker BioMarine, for instance, specializes in krill-derived omega-3s, which are noted for their superior absorption and sustainability. BASF and Cargill extend their market influence by offering high-quality EPA and DHA products derived from both marine and algal sources, catering to the rising demand for plant-based omega-3s.

Archer Daniels Midland Company and Corbion N.V. play significant roles in the expansion of the omega-3 ingredients sector through their innovations in algae-based omega-3 solutions, addressing the needs of vegetarians and environmentally conscious consumers. Similarly, Croda International PLC and Epax are at the forefront of developing highly refined, pharmaceutical-grade omega-3 oils, ensuring high purity and efficacy, particularly in therapeutic contexts.

Other notable participants such as Koninklijke DSM N.V. and Omega Protein Corporation enhance the market dynamics through technological advancements in extraction and processing, improving the concentration and purity of omega-3 oils. Smaller specialized firms like NU-MEGA Ingredients Pty Ltd. and Polaris SA focus on niche markets, introducing innovations like microencapsulation to increase the application range of omega-3 in food and beverage products.

Collectively, these companies drive the omega-3 ingredients market forward through strategic expansions, technological upgrades, and extensive research and development activities, ensuring their competitive edges are maintained in this rapidly evolving market landscape.

Top Key Players in the Market

• Aker BioMarine
• Archer Daniels Midland Company
• BASF
• Cargill Incorporated
• Copeinca ASA
• Corbion N.V.
• Croda International PLC
• Denomega Nutritional Oils
• Epax
• GC Rieber Oils AS
• KD Pharma
• Koninklijke DSM N.V.
• Luhua Biomarine (Shandong) Co.Ltd
• Marine Ingredients, LLC.
• Nordic Naturals
• NU-MEGA Ingredients Pty Ltd.
• Omega Protein Corporation
• Orkla Health
• Pelagia AS
• Polaris SA
• Runke Bioengineering

Recent Developments

In 2023 Aker BioMarine reported revenue of USD 94.6 million, a notable increase from the previous year, primarily driven by sales growth in their ingredients segment.

In 2023, ADM has continued to enhance its position in this sector through strategic expansions and innovations, focusing on both algal and traditional fish-derived omega-3 oils, which cater to a diverse market demand including dietary supplements and functional foods.

Report Scope