EPA And DHA Market Size, Share & Trends Analysis Report By Type (Eicosapentaenoic Acid (EPA), Docosahexaenoic Acid (DHA)), By Source (Fish Oil, Algae Oil, Krill Oil, Other Sources), By Applications (Infant Formulae, Dietary Supplements, Fortified Food and Beverages, Pharmaceuticals, Other Applications) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Market Overview

The global EPA and DHA market size was valued at USD 1,711.60 million in 2022. It is projected to reach USD 3,120.34 million by 2031, growing at a CAGR of 6.90% during the forecast period (2023-2031). 

EPA and DHA are becoming more significant and common in consumers' daily diets. The leading causes of this trend have been the rise in lifestyle diseases and the number of persons using preventative healthcare. Additionally, the market expansion has been fueled by the newly developed uses for EPA and DHA in food, dietary supplements, and clinical nutrition. Recently, news about new EPA and DHA sources has been making the rounds. Omega-3 and beta-carotene-rich microalgae have become extremely popular among manufacturers as a sustainable source of food and fuel. Due to the increased demand for algae omega in infant food fortification, algae omega ingredients are a significant factor in the market's growth since they offer advantages comparable to fish oil without the unpleasant taste or odor.

Market Dynamics

Global EPA And DHA Market Drivers

Significant Growth of Omega-3 Ingredients in Concentrated Forms

In a convenient tiny dosage form, omega-3 concentrates are highly refined oils containing only the necessary fatty acids, EPA and DHA. This makes it possible to consume large amounts conveniently and creates the circumstances for a particular use. As supplement consumers become more aware of high concentrates and demand greater convenience and higher omega-3 dosages, the use of high-concentrate fish oils, high-purity krill oils, and purified algal oils is predicted to rise. With a focus on improved absorption/utilization of omega-3 concentrates in dietary supplements and pharmaceuticals, research on new product formulations is being conducted to tailor new products with additional benefits for consumers.

Consumer demand for dietary supplement sources has changed in nations and areas such as the United States, China, and Europe. Consumers of supplements gravitate toward omega components with higher concentrations and away from processed anchovy oils. Omega-3 concentrates are popular for various reasons, including the simplicity of delivery they provide. The ability to deliver a dose of highly concentrated omega-3 in smaller capsules and soft gel sizes is highly valued by consumers, which has been driving up sales for the market for global omega ingredients.

Global EPA And DHA Market Restraint

High Market Price of Algae-Based Ingredient and Downstream Processing Cost

Algae have a low impact on the environment and are a more affordable source of raw materials than fish and krill, making them a sustainable basis for industrial manufacturing. Algae must be grown and harvested across a broad region before being extracted and refined into a pure state. 2%–3% of the overall capital cost goes on the cost of harvesting microalgae. The Global Seafood Alliance claims that the price per kilogram of algae is excessively high due to the need for labor, water, and energy, with an estimated value of between EUR 300 and 900 per kilogram in February 2020. Developing efficient, long-lasting technologies with the primary goals of lowering production costs, managing metabolism, and extracting raw materials is essential for industrial-scale microalgae manufacturing.

The foremost step in effective biomass recovery is centrifugation. Due to high equipment expenditures, the process is costly. Moreover, centrifuges have substantial capital and running costs. Microalgae are dried for oil extraction after being converted to biomass to lengthen the product's shelf life. Some drying techniques used to prepare the materials for algal omega products include spray drying, freeze drying, solar drying, and convective hot air drying. The popular methods that produce high-quality products include freeze-drying and spray-drying. In comparison, freeze-drying is more efficient since biomass is not exposed to high temperatures, preserving the ingredient's optimal nutritious quality.

Global EPA And DHA Market Opportunities

Upgraded Requirements for EPA in Drugs Applications

Due to its unique health advantages in adult health, EPA is an expanding prospective section of the market for omega components. Pharmaceutical companies have noticed because it uses highly concentrated EPA in heart-healthy medications. Additionally, unlike EPA-based supplements, EPA medications are highly focused and need extensive testing and clinical research to demonstrate their safety and efficacy before receiving Food and Drug Administration approval (FDA). This has increased customer faith in pharmaceutical treatments rather than dietary supplements. Several market participants have been identified and examined to address the changing need for EPA omega-3-based product firms for collaborative medicine manufacture and marketing. 

For example, Crius Life Sciences can formulate EPA/DHA with concentration levels tailored to the client's needs, and this functionality allows a greater degree of freedom. Due to the increasing contamination levels in fish oil, businesses are turning to krill oil as a substitute. For instance, Aker BioMarine and Acasti Pharma signed a krill oil supply agreement in November 2019 to develop a novel hypertriglyceridemia medication with krill oil as its main component. Considering that over-the-counter products must obtain permission before being on sale, they are safer than dietary supplements. Omega EPA is highly concentrated, exceptionally pure, and expensive in pharmaceutical preparations.

Regional Analysis

The global EPA and DHA market is bifurcated into four regions: North America, Europe, Asia-Pacific, and LAMEA. 

Asia-Pacific Dominates the Global Market

Asia-Pacific is the most significant revenue contributor and is expected to grow at a CAGR of 8.65% during the forecast period. The demand for goods containing EPA and DHA ingredients in China is fueled by the country's robust manufacturing sector, expanding middle-class population, disposable income, and consumers' increased awareness of their health. Due to the fact that many infant formulas contain DHA and EPA ingredients, an omega-3 that helps with brain and eye development, the Chinese are aware of the health benefits of these ingredients. In China, DHA derived from fish oil was legally recognized as a nutritional supplement that could be added to infant formula and kid-friendly foods. 

North America is expected to grow at a CAGR of 5.65% during the forecast period. Innovations in both items and technologies drive the US market. The top businesses are making technological investments to create better omega components for use in a more extensive range of industries, including, among others, medicines, nutraceuticals, newborn nutrition, and food and beverage. 3C technology, a new process technology, was introduced by DSM in October 2016. Manufacturers of omega-3 can develop compounds that are up to 85% more concentrated thanks to technology. Additionally, it makes it easier for producers to create unique EPA and DHA blends for pharmaceuticals and dietary supplements.

Spain is one of the developing markets for omega-3 goods in the European region due to the country's significant supply of raw materials like tuna fish. This motivates domestic ingredient manufacturers to focus on the market under investigation with their product lines. One-third of the nation's overall fisheries output, according to the organization Eurofish, is made up of tuna. Local businesses in the country are pursuing eco-friendly claims and certifications to increase their sales sustainably and show their dedication to the environment. Biosearch, which develops dairy products, newborn feeding, bread, and functional drinks containing EPA and DHA-rich oils, emulsions, and microencapsulated powders, was recognized as a Friend of the Sea (FOS) in 2016.

Brazil, Argentina, Venezuela, Colombia, Peru, Chile, Bolivia, and Paraguay are all part of the South American continent. Brazil, which continues to be the region's largest consumer market, offers tremendous potential for functional food and beverage products that integrate active ingredients like EPA and DHA. Through the fortification of some of its products, like NESPRAY and NIDO 3+ powdered milk (which have DHA, omega-3 fatty acids, Vitamin A, C, E, and calcium to help prevent micronutrient deficiencies), the primary food and beverage giants in the area, like Nestle, are assisting in the alleviation of micronutrient deficiencies.

Segmental Analysis

The global EPA and DHA market is segmented by type, source, and application.

Based on type, the global EPA and DHA market is bifurcated into Eicosapentaenoic Acid (EPA), Docosahexaenoic Acid (DHA).

The docosahexaenoic acid (DHA) segment is the highest contributor to the market and is estimated to grow at a CAGR of 7.20% during the forecast period. Since it is a crucial component for developing an infant's brain and retina, the growing demand for DHA and its inclusion in infant formulae and nutritional goods aimed at children's health are the main factors driving this market. The primary sources of it are fish and algal oils. It is widely used in dietary supplements and fortified foods, where it is primarily used to treat dementia, attention deficit hyperactivity disorder, Type 2 diabetes, and coronary artery disease (CAD) (ADHD). The advantages of DHA for healthy aging have also made them successful ingredients in geriatric nutrition solutions. Additionally, its use in animal feed has grown significantly.

Omega-3 fatty acid eicosapentaenoic acid (EPA) is a necessary food for humans and animals. Cold-water fish such as mackerel, herring, tuna, halibut, salmon, cod liver, whale blubber, and seal blubber are commercially derived EPA sources. Alternative EPA sources are more popular now because of the potential for lack of this crucial nutrient and worries about the sustainability of wild-caught fish. EPA's global growth is thus being constrained. However, the demand for EPA supplements has increased due to the growing number of clinical trials demonstrating the effectiveness and safety of pharmaceutical products produced by EPA and the ever-increasing interest of drug producers in using EPA.

Based on the source, the global EPA and DHA market is bifurcated into fish oil, algae oil, krill oil, and other sources.

The fish oil segment owns the highest market and is estimated to grow at a CAGR of 7.90% during the forecast period. Docosahexaenoic acid (DHA), omega-3 fatty acids, and eicosapentaenoic acid are fish oils' three essential components (EPA). These ingredients are thought to provide a wide range of health advantages, including the capacity to boost immunity, improve mood, and lessen oxidative stress and inflammation in the body. Commercially available dietary supplements and pharmaceutical formulations that target cardiovascular disease, high blood pressure, brain health, baby nutrition, and prenatal care use EPA and DHA derived from fish oil. 

Compared to fish oils, algae oils have many significant advantages, including uniformity in composition, sensory qualities, and ease of manufacture. Additionally, producing algal biomass yields more than fish oil manufacturing does while being more straightforward and environmentally benign. According to research, Nannochloropsis sp. has the highest theoretical calorific value (187.69 kcal/kg dry microalgae) and algal oil output (0.0346 g dry algal oil/g dry microalgae). Algal oils are gaining popularity and making their way into consumers' regular diets on a global scale. The rise in the incidence of lifestyle diseases has been a significant driver of this transformation. As a result, there is an increasing demand for algal oil as a source of EPA and DHA in functional and fortified foods.

The other sources section includes concentration, plant sources, and refined anchovies. The fish oil EPA and DHA content concentrates are extremely pure oils that only provide the two necessary fatty acids, EPA and DHA, in a manageable, tiny dosage form. This makes it possible to consume large amounts conveniently and creates the environment for a particular use. These concentrates, also available in powdered form, are utilized to make pharmaceutical-grade components and dietary supplements. As a result, these advances are boosting the market under investigation by introducing new products. 

Based on application, the global EPA and DHA market is bifurcated into infant formulae, dietary supplements, fortified food and beverages, pharmaceuticals, and other applications.

The dietary supplements segment is the highest contributor to the market and is estimated to grow at a CAGR of 6.30% during the forecast period. A significant portion of EPA and DHA are found in dietary supplements, resulting from the global health trend among consumers toward a healthier lifestyle. Due to consumer perceptions of its purported health benefits, EPA-based supplements are famous worldwide. These vitamins were explicitly made to address issues with heart and brain inflammation. Dietary supplements for active and lifestyle nutrition, endurance formulas, and sports nutrition increasingly use DHA-based components. The target market for these supplements includes customers who have heart-related problems. 

Numerous infant formulae have become available on the international market due to the substantial body of scientific research demonstrating the importance of EPA and DHA in infants' cognitive and visual development. EPA is frequently included with DHA in different infant formulas. However, DHA has found wider use as a solo component. Due to the synergistic health benefits of EPA and DHA, most products under study contain these nutrients. These results are from an abundance of recent studies that unequivocally show that low EPA and DHA levels are significant risk factors for preterm birth.

The encouraging regulatory support has dramatically influenced the use of EPA and DHA in pharmaceutical applications in the form of approvals. For instance, the US FDA's regulatory clearance of EPA-based component formulation for the treatment of hypertriglyceridemia has improved market perceptions of the product. Therefore, the current scenario needs thorough research and clinical studies to prove a strong and direct link between EPA and DHA consumption and its disease-healing claims. Additionally, the FDA announced new qualified health claims in June 2019 for EPA and DHA omega-3 consumption, claiming that doing so lowers the risk of hypertension and coronary heart disease. Pharmaceutical businesses are expanding their product line by producing medicated EPA/DHA medications due to these health advantages.

Impact of covid-19

Recent Developments

• September 2021- KD Pharma Group introduced omega-3 products made from algae that are vegan and sustainable. Omega-3 concentrates in a variety of forms were produced thanks to KD Nutra's cutting-edge technology and production versatility. This means that the business can adjust the EPA and DHA ratio based on customer preferences, and for every variety of kd-pür® fish oil, there is an equivalent Alga3TM plant-based alternative.
• June 2021- Omegavie® DHA 800 Sensory Qualitysilver ® 5 algae, a high-concentration microalgae DHA ingredient that Polaris introduced, is derived from the vitamin-, protein-, pigment-, and enzyme-rich microalgae (Schizochytrium sp.). The component provided a sustainable and plant-based source for polyunsaturated fatty acids (PUFAs).