During the forecast period, the global algal omega-3 components market is expected to increase at a CAGR of 5.8% (2021-2028) to reach US$ 1,043.96 Million in 2028.
Omega-3 oils are vital fatty acids with a wide range of health advantages, including heart, eye and brain function. Omega-3 supplements are widely used and they are also an important ingredient in a variety of food products such as functional foods, infant formulas and others. The ageing population is likely to create a market for cholesterol-lowering and heart-health-improving products. Local European players, such as Pharma Nord, have introduced omega-3 dietary supplements aimed towards various demographics. For example, the company's pure and natural algal oil in capsules, is marketed to infants in order to maximize their health advantages, resulting in a rise in parent purchases. Algal oil is also becoming more popular among vegans and those looking for a source of long-chain omega-3 fatty acids (EPA & DHA) and avoid fish derived food.
Market Dynamics
Drivers
- Growing consumption of omega-3 supplements among consumers
- Rising demand from Vegan and Vegetarians
Restraints
- High cost of algae omega-3 ingredients
Rising demand from Vegan and Vegetarians
Seafood is one of the major excluded food categories in vegan and vegetarian diets that all consumers are suggested to eat more due to its health benefits. Various organizations, including the USDA in the Dietary Guidelines for Americans and the American Heart Association, suggest consuming at least 8 oz of seafood per week, particularly fatty fish such as salmon, sardines and tuna for gaining high levels of the omega-3 fatty acids DHA and EPA.
There are approximately 79 million vegans globally as of 2021. Algae is one of the important sources of omega-3 ingredients for people on a vegan or vegetarian diet, as it is one of the rare plant groups that contain EPA and DHA.
Vegans are commonly recommended to consume an extra 2 grams of omega 3s per day or consume a supplement that includes 200-300 mg of DHA or EPA.
The shifting interest for the source of omega fatty acids across the companies is growing to approach vegetarian consumers globally. The demand for plant-based supplements is expected to observe a massive surge over the next decade.
Stakeholders are extending their products with the increasing vegan consumers and rising references of algae-based omega-3 ingredients to maintain the momentum. Numerous leading manufacturers are moving to algae as a new alternative source to fish, which is anticipated to grow the algae omega-3 ingredients market.
For instance, in 2020- Royal DSM has launched a novel plant-based and high-quality vegan DHA oil coined life’sDHA SF55-O200DS for maternal and early life nutrition solutions.
Geographical Analysis
Middle East & Africa is estimated to account for 3.6% of total revenue in 2020 with a value of US$ XXmillion, growing with a CAGR of 6.5% during the forecast period.
Algae omega-3 element is a long-term manufacturing source and even supports the vegan label, which is fueling market demand. The market's expansion is being stifled by high production costs and pricey downstream processing.Furthermore, the lack of a robust regulatory structure for dietary supplements and fortified foods limit the market's potential.
The expanding EPA/DHA consumer market in the region is the most evident market for EPA/DHA oil from phototrophic algae. On the other hand, poor nutrition has long been recognized as one of the contributing causes of mental illness in those living in underdeveloped nations.
Supplementation with omega-3 fatty acids, specifically Docosahexaenoic acid (DHA), is one of the available nutrient-based therapies that has demonstrated promising outcomes in enhancing mental health.
Because it is regarded as a premium DHA/EPA to supplement infant formula products, the market for the algal omega-3 ingredient has surged due to the region's rising birth rate. Because of the expanding consumption pattern among affluent consumers in the country, the dietary supplements industry is expected to increase rapidly.
In addition, competitors in the African Algae Omega 3 products market strive for new product launches as part of their plan to obtain a competitive advantage and market share.
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