Global Algae Omega-3 Ingredients Market Size expanding at a CAGR of 13.16%

Introduction

Omega-3 oils are fundamentally unsaturated fats with various health benefits, including cardiovascular, eye, and mental health, to support diet, infant nutrition, healthy lifestyles and drinks, and pharmaceutical and clinical nutrition. "algae" refers to a group of photosynthetic eukaryotes, sometimes known as "seaweeds," attached to the bottom of lakes, rivers, and oceans.

Omega-3 elements derived from algae can be found in dairy goods, non-dairy supplements, spirulina and chlorella products, shellfish, marine spices, fish oil, omega-3 fatty acid supplements, and turquoise seaweed. Certain algae can be used as ingredients in food since they are high in protein. Regarding protein content, amino acid quality, and nutritional bioavailability, omega-3 components synthesized from algae have a high nutritional value.

Market Dynamics

Immense Growth in Concentrated Forms of Algae Omega-3 Ingredients Drive the Global Market

Algae omega-3 concentrates are highly refined oils that only provide the required fatty acids, EPA and DHA, in a handy, small dosage form. This makes it possible to use certain situations and big amounts conveniently. As supplement consumers become more aware of high concentrations and the need for larger omega-3 dosages has grown, the popularity of high-concentrate fish oils, high-purity krill oils, and purified algal oils is anticipated to rise.

Moreover, supplement customers have been moving away from refined anchovy oils and toward omega components with higher concentrations in nations and regions like the United States, China, and Europe. A high concentration of algal omega-3-based substances also enables producers to create formulations with additional active components and free up space in their products. The dietary and pharmaceutical makers are aware that smaller capsule and soft gel sizes can be employed to give a dose of concentrated algal omega-3, which has been boosting sales in the industry under study.

Technological Advancement and Sustainability in Algae Omega-3 Ingredients Creates Tremendous Opportunities

Consumers are moving toward plant-based diets because they offer sustainable solutions that improve the state of the environment as awareness of humanity's influence on the environment grows. Market leaders are expanding their product lineups in support of this to meet the increasing demand. For instance, Koninklijke DSM NV provides life'sTM OMEGA, a plant-based substitute for fish oil with at least 500 mg/g of EPA and DHA in the triglyceride form, and is extracted from a vegetarian source using a sustainable technique.

Additionally, omega-3 algal oils are becoming in demand on a global scale. Conventional oil production methods use high temperatures and chemicals, which degrade oil quality and the environment. In order to extract oils from aquatic sources, researchers have explored alternate ecological methodologies. As a result, these developments are anticipated to open up new market expansion opportunities.

Regional Analysis

North America is the most significant global algae omega-3 ingredients market shareholder and is anticipated to exhibit a CAGR of 11.92% during the forecast period. The expanding consumption of omega-3 supplements, fortified foods, and increasing knowledge of the health advantages of omega-3 all contribute to regional market growth. The market expansion in the area has also been fueled by the top companies' domestic expansion and the regular launch of products with improved formulas. In the United States, docosahexaenoic acid (DHA) is important to newborn nutrition. DHA is a component of almost every brand of newborn formula sold in the nation, which drives up the price of the formula and helps the market for phytoplankton omega-3 components grow. The American business Enfamil sells Enfagrow A+ Stage 4 Nutritional Milk Powder, which includes DHA and other vital prebiotics and minerals. Likewise, as the "plant-based revolution" continues to spread throughout the US, customers are continually looking for better, more sustainable options, such as supplements. All of these elements encourage regional market expansion.

Asia-Pacific is predicted to exhibit a CAGR of 15.27% over the forecast period. The Asia-Pacific region's demand for products containing Omega-3 components is driven by a robust manufacturing base, a growing middle class, rising disposable income, and increasing consumer health awareness. As a result, manufacturers are making investments in producing Omega-3-rich ingredients. Furthermore, with the increase in urbanization and rising health consciousness in nations like India, numerous health-focused start-ups such as WOW Science and Oziva have entered the Asia-Pacific market to meet the booming consumer demand for functional foods and supplements, supporting the nation's expanding use of algal Omega-3 ingredients. Algal oil is also anticipated to grow as a source of Omega-3 components during the projection period due to India's large percentage of vegetarian consumers.

Key Highlights

• The global algae omega-3 ingredients market was valued at USD 14 million in 2022. It is estimated to reach USD 2,966.90 million by 2031, growing at a CAGR of 13.16% during the forecast period (2023–2031).
• Based on type, the global algae omega-3 ingredients market is segmented into eicosapentaenoic acid (EPA), docosahexaenoic acid (DHA), and EPA/DHA. The docosahexaenoic acid (DHA) segment is the largest revenue contributor to the market and is expected to exhibit a CAGR of 12.94% over the forecast period.
• Based on application, the global algae omega-3 ingredients market is segmented into food and beverage, dietary supplements, pharmaceuticals, and animal nutrition.The dietary supplements segment owns the highest market share and is estimated to exhibit a CAGR of 10.54% during the forecast period.
• North America is the most significant global algae omega-3 ingredients market shareholder and is anticipated to exhibit a CAGR of 11.92% during the forecast period.

Competitive Players

1. Koninklijke DSM NV
2. Polaris
3. Source Omega LLC
4. Corbion
5. BASF SE
6. Archer Daniels Midland Company
7. Neptune Wellness Solutions Inc.
8. Lonza
9. Bioprocess Algae LLC
10. Algaecytes

Recent Developments

Recent Development

• March 2024- DSM launched a new algae-based omega-3 ingredient, life’s™OMEGA DHA+EPA, targeting the functional food and nutraceutical sectors. This new formulation offers a higher concentration of EPA and DHA, catering to the rising demand for plant-based omega-3 sources in North America and Europe. DSM also announced plans to expand its algae omega-3 production facilities to meet the growing global market.

• April 2024- AlgiSys BioSciences introduced a new omega-3 DHA and EPA product derived from a proprietary algae strain aimed at the nutraceutical and pharmaceutical sectors. This development follows AlgiSys’ announcement of a strategic partnership with a leading U.S.-based supplement manufacturer to co-develop algae omega-3 ingredients for clinical applications.

Segmentation

1. By Type
   1. Eicosapentanoic Acid (EPA)
   2. Docosahexaenoic Acid (DHA)
   3. EPA/DHA
2. By Applications
   1. Food and Beverages
   2. Dietary Supplements
   3. Pharmaceuticals
   4. Animal Nutrition