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Algae Omega-3 Ingredients Market Size, Share, Industry, Forecast and outlook (2023-2030)

Published: 2023 September 21
SKU : FB2940
180 pages
Report Summary
Table of Contents
List of Tables and Figures

Global Algae Omega-3 Ingredients Market is segmented By Type (Docosahexaenoic Acid (DHA), Eicosapentaenoic Acid (EPA)), By Application (Infant Nutrition, Dietary Supplements, Fortified Food & Beverages, Animal Nutrition, Pharmaceutical), By Form Type (Triglyceride, Ethyl Ester, Phospholipids), and By Region (North America, Latin America, Europe, Asia Pacific, Middle East, and Africa) – Share, Size, Outlook, and Opportunity Analysis, 2023-2030


Algae Omega-3 Ingredients Market Overview

[150 Pages Report] The Algae Omega-3 Ingredients Market is expected to grow at a CAGR of 11% during the forecasting period (2023-2030). 

The omega-3 fatty acid is an essential fatty acid required by the human body for normal functioning and brain development. Ongoing research and development on omega-3 fatty acids have become vital to the food, pharmaceutical, and feed industries. The algae omega-3 application is growing at a faster rate than the infant food fortification as it provides the same benefit as that of the fish oil but with no taste odor. Also, the increased consumption of omega-3 supplements is responsible for market growth. Globally, algae omega-3 ingredients are gaining prominence and becoming a part of the consumer’s daily diet.  

Algae Omega-3 Ingredients Market Summary



Market CAGR


Segments Covered

By Type, By Application, By Form Type, and By Region

Report Insights Covered

Competitive Landscape Analysis, Company Profile Analysis, Market Size, Share, Growth, Demand, Recent Developments, Mergers and acquisitions, New Product Launches, Growth Strategies, Revenue Analysis, and Other key insights.

Fastest Growing Region

Asia Pacific

Largest Market Share 

North America


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Algae Omega-3 Ingredients Market Dynamics

Increased demand for infant formula products

Infant formula grew 86% in Feb 2020 in China while baby food demand grew by 98% after the Covid-19 impact due to the high demand for baby products. China accounts for 30% of the global consumption of Infant formula which is followed by other Asian countries holding 28% of the market. About 65% of the growth in the Infant formula market comes from China. In 2015, china imported 180 Kilo Tones of Infant formula from the world which is valued to be USD 2.4 billion. Europe accounts for about 90% of the import share. In addition, due to a recent scandal of domestically produced low-quality products, consumers of baby formula products are moving towards imported formula in the market. DHA and EPA are essential for infant brain development and immunity strength. DHA has well-established legal strains for incorporation into infant formula products in different regulations and WHO recommendations.

According to a Norwegian study, omega-3 demonstrates a positive effect on a child's brain and enhances a child’s problem-solving abilities. According to recent research studies, high doses of DHA in baby formula or breast milk can have a positive effect on the growth of preterm infants, such as an increase in height. In countries, such as China, where both the adult population and infant population are on the rise, the demand for infant nutrition and baby food is constantly increasing. The demand for infant nutrition fortified with omega-3 is increasing among parents who have busy lifestyles and less time to prepare meals.

However, the rising cost of raw materials especially natural ingredients has made a dent in the profit margins of many small-scale suppliers. This situation is more precarious for suppliers who are sourcing from China, India, and the U.S. Furthermore, fluctuating input costs and labor costs have also influenced the profitability margin of the suppliers and distributors and continue to surge. Additionally, the lack of inconsistent standards and guidelines in the global EPA/DHA (Omega3) ingredients market is also one of the defining factors that restrain the market growth. Regulations vary from country to country regarding the use of EPA / DHA (Omega 3) and its inclusion under the food category. Lack of regulations could lead to misuse of claims indicating health benefits.

Algae Omega-3 Ingredients Market Segmentation Analysis

The docosahexaenoic Acid (DHA) segment is expected to dominate the global algae omega-3 ingredients market, by type

The global algae omega-3 ingredients market has been segmented by type into DHA and EPA. The DHA segment is expected to hold the highest market share in the year 2019. Algal oil provides DHA, and because it does not come from fish, it’s sustainable and serves as a vegetarian option. There is also no risk of ocean-borne contaminants when using algal oil DHA. It is used mainly in infant formula, as it is an essential fatty acid for infant brain development and growth. DHA has a major role in infant and children's nutrition products and this is a major factor influencing the market growth. Soymilks, milk, juices, bread, cooking oils, eggs, yogurts, and even nutrition bars and drink mixes are being fortified with algal DHA.

DHA as a dietary supplement is used for preventing various diseases. DHA has potential health benefits for arthritis, hypertension, atherosclerosis, depression, and adult-onset diabetes. However, more research studies are required for drug applications to support the regulatory approval for its health benefits over diseases. Regulatory recommendation for DHA intake for adults, children, and pregnant women is the most important factor for its growth.

Algae Omega-3 Ingredients Market Geographical Share

North America is the largest market for algae omega-3 ingredients with a share of nearly XX% in 2020

By geography, North America is expected to dominate the global algae omega-3 ingredients market in the year 2019, growing with a CAGR of xx% during the forecast period. The United States in North America accounts for the largest share of the global algae omega 3 ingredient market. Increasing awareness about the long-term benefits of omega-3 consumption, fortified product availability, and growing market acceptance for such products is driving the market. Americans especially are becoming more aware of the need for Omega-3 products as part of a healthy diet, and roughly 17% of US consumers supplement their diet with Omega-3. There are approximately 35 million vegetarian buyers and 15 million vegans in the US and they get very little DHA in their diet. This is the major reason for the popularity of the algae-based Omega-3

Algae Omega-3 Ingredients Companies and Competitive Landscape

The global algae omega-3 ingredients market is fragmented, as key players, like Koninklijke DSM N.V, Corbion, BASF, Polaris S.A., and Neptune Wellness Solutions Inc. are facing competition from local players across various regions. Partnerships remained the most common strategy. Key players, like ADM, Koninklijke DSM N.V, and Neptune Wellness Solutions Inc. are focusing on partnerships and joint ventures to increase their production capabilities and consumer base across various regions. Moreover, other small players are also showing keen interest in the market due to the virtue of its wider array of applications in the pharmaceutical, nutraceutical, and food & beverage industries. For instance, in January 2019, Epax committed to investing 35 million USD to expand its omega-3 production capacity at its main facility in Norway allowing it to increase by 50% by 2021. In May 2020, DSM has expanded its nutrition portfolio with ARA and DHA powder which is especially for infant nutrition. This powder contains a minimum of 110 mg DHA and ARA. Furthermore, it is sourced from sustainable vegetarian DHA omega-3 and ARA omega-6 which aid to meet the global sustainable demands. In March 2020, Wiley companies introduced its first omega-3 concentrate in powdered form which has been designed for dietary supplements, food, and beverages. The product has been developed without a fishy smell or taste to appeal to consumers looking for attractive sensorial products.

COVID-19 Impact: Positive impact on Algae Omega-3 Ingredients Market

The impact of COVID-19 resulted in the generation of opportunities for manufacturers of health-oriented products, especially dietary supplements. The respective market has been prompted by the increase in consumer perception of these products to help maintain immunity and their efficiency in fighting the deadly virus. This in turn surges the demand for associated ingredients including algae omega-3. Recently, the CEO of omega-3 brand Wiley’s Finest has projected robust growth for supplement oils sales with high demand for vitamins, minerals, and supplements category. Companies with sound sourcing and efficient supply-chain principles will emerge resilient in the post-COVID economy.

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What is the Algae Omega-3 Ingredients Market growth?
The market is growing at a CAGR of 11%.
Who are the key players in Algae Omega-3 Ingredients Market?
Key players are DSM Nutritional Products, Corbion, Qualitas Health, Archer Daniels, Midland Company, Algisys LLC, Simris Alg, Polaris, AlgaeCytes, BioProcess Algae LLC, Source-Omega.
Which is the fastest-growing region in the Algae Omega-3 Ingredients Market?
Asia Pacific is the fastest-growing region in the Algae Omega-3 Ingredients Market.
Which is the Largest Market Share in the Algae Omega-3 Ingredients Market?
North America is the Largest Market Share in Algae Omega-3 Ingredients Market.
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