Fish Oil Market

Market Overview

The global fish oil market size is to grow to USD 3603 million by 2030 at a CAGR of 6% from the early figures of USD 2133 million in 2021.

Fish oil comes from the tissues of oily fish, which have omega-3 fatty acids like eicosapentaenoic acid (EPA) and docosahexaenoic acid (DHA) (DHA). Omega-3 fatty acids are used a lot in aquaculture, animal nutrition, pet food, supplements, functional foods, and pharmaceuticals, among other things. Omega-3 fatty acid also helps the heart and nervous system work better, and it is an essential part of how the nervous system works. The public and the medical community are becoming more aware of how important omega-3 fatty acids are, which has led to a big rise in fish oil consumption.

Due to this, the companies are now adding concentrated EPA and DHA to their line of nutraceutical products. The growing need for EPA and DHA in human food has had a big effect on the fish oil market around the world. Also, as technology has improved, aquaculture has become more sustainable and less harmful to the environment. Aquaculture has also grown worldwide because of things like on-land recirculating aquaculture systems, aquaponic systems, offshore systems, and information technology. So, the biggest thing driving the fish oil market in terms of sales value is the rise in technology in the aquaculture industry.

Market Dynamics

Global Fish Oil Market Drivers

• Significant Growth in the Aquaculture Industry and Increase in Health Awareness are Proving to be the Key Drivers for the Fish Oil Market

As the number of many marine species has dropped significantly, governments in many countries have put limits on how much wild fish can be caught. This is done to protect marine life. This also led to the rise of aquaculture, which is a good solution that involves raising fish in environments that humans control. Also, raising fish in farms is much more stable and safe from environmental threats. This means that there is a steady supply of fish, which is important for buyers like large retailers and the food and hotel industries. Due to its high production yield and high protein yield, fish oil is a key ingredient in aquafeed. So, as the aquaculture industry grows, so does the amount of fish oil people use. 

• Increased Health Awareness among People Proving to be a Good Sign for the First Oil Market to Grow

Omega-3 fatty acids like EPA (Eicosapentaenoic acid) and DHA (Docosahexaenoic acid) are good for your health and should be taken as supplements. EPA helps the heart and blood vessels a lot, and DHA is a very important part of how the nervous system works. The public and the medical community are becoming more aware of how important omega-3 fatty acids are, which has led to a big rise in fish oil consumption. Because of this, the companies are now adding concentrated EPA and DHA to their line of nutraceutical products. The growing need for EPA and DHA in human food has had a big effect on the fish oil market worldwide.

Global Fish Oil Market Restraints

• Adverse Climatic Conditions and Demand-Supply Gap with Stringent Government Regulations are Becoming Major Barriers to the Market Growth

Most of what keeps the fish oil market from growing is the bad weather. El Nino is a bad weather event that happens in the central and east-central parts of the Pacific and is marked by high air pressures and warmer ocean water. El Nino causes a big change in temperatures around the world. It also causes a lot of rain and changes in air temperature, which hurt farming and fishing in developing countries near the coast.

El Nino slows the rise of cold ocean water, making it harder for fish to find food and forcing them to move to deeper waters. This hurts fish oil production in prime fishing areas like Chile, Peru, Iceland, Denmark, and Norway in Europe. El-Nino also makes it hard to move around in these coastal areas, which drives up the cost of moving around.

Both the nutraceuticals industry and the aquaculture industry are increasing their demand for fish oil. Because more people want omega-3 fatty acids, more fish oil is being used in pharmaceutical and nutraceutical products. Aquaculture feed is at risk of running out of fish oil because more and more people are eating it. Also, bad environmental conditions and rules about fishing mean that the companies cannot meet the demand-supply gap. The main reasons why fish oil prices are going up are rising demand and a lack of supply. So, it is likely that the fish oil market will not grow as fast as it could if prices keep going up and down. 

Not only this, the industry that makes fish oil has to deal with a lot of permits from both the Ministry of Production and the Ministry of Environment. Different countries' governments have put in place strict rules and fishing quotas, limiting fishing and hurting the production of fish oil. The main reason the quota is set is to make the fishing industry more stable. The European Union has put in place TAC (Total Allowable Catches) and quotas for each nation or country to strictly control fishing in the area. Because of this, manufacturers do not get enough raw fish to extract oil from, which causes a shortfall in production.

Global Fish Oil Market Opportunities

• Rapid Aging Population Connectivity and Production of By-product Creates a Wide Range of Opportunities in the Global Fish Oil Market

Omega-3 fatty acid, which is found in fish oil, is very important for older people because it lowers their risk of chronic diseases. Most importantly, older people want to take preventive measures against heart, brain, eye, and joint problems. As more people learn about the health benefits of omega-3, more of these consumers will buy it. The market for omega-3 fish oil will grow a lot because a lot of people are expected to die out in the next 65 years. More than 25.9% of the Japanese population is over 65 years old. Because of this, many older Japanese people eat omega-3 fish oil to lower their risk of heart disease and stroke. 

In recent years, there has been a big drop in the amount of fish oil made. This is because there have been fewer raw fish available because of quotas and the El Nino effect. This drop-in production is causing a demand-supply gap in industries that use fish oil. Because of this, the industries that use fish oil the most, like aquaculture, have started investing in alternatives.

If there is no whole fish, fish oil can be made from the heads, guts, and backbones of fish, which are also great sources for making fish oil. Fishmeal and fish oil can be made from these waste products. At the moment, almost 30% of fish oil and fishmeal is made from fish waste and by-products. Due to a lack of whole fish, by-products will probably be used to make more fish oil, which will help the fish oil market grow even more.

Regional Analysis

The global fish oil market share is primarily segmented into three regions, namely North America, Europe, and Asia-Pacific, where the Asia-Pacific region has a sheer dominance over the market with the maximum market share.

North America

North America's biggest fish oil producers and consumers are the U.S. and Canada. Government obligations and recommendations for Omega 3 fatty acid intake, such as EPA and DHA, drive the U.S. and Canada fish oil market in pharmaceutical, supplements, and functional food applications. This is why it has a market value of USD 218 million in 2021 and is expected to grow to USD 466 million by 2030 at a CAGR of 9%. 

Europe

Europe is the world's leading producer and consumer of fish oil, which is why it has a substantial market share that stood at USD 395 million in 2021 and is expected to grow to USD 677 million by 2030 at a CAGR of 6%. 

Asia-Pacific

Asia-Pacific is the region with the major market share of the global fish oil market, has a market value of USD 1162 million in 2021, and is expected to reach USD 1817 million by 2030 at a CAGR of 5%. The region is driven by aquaculture as the countries like China, Japan, and India use fish oil as aquafeed. 

Segmental Analysis

The global fish oil market share is segmented by species and application. 

By species segmentation is further categorized into anchovy, cod, and sardines, where the anchovy segmentation dominates the said market with maximum market share. 

By Species

• Anchovy

Anchovy is small, saltwater fish that live in the Atlantic, Indian, and Pacific Oceans. This type of fish has oil that is very high in healthy fats, especially omega-3 fatty acids, which are polyunsaturated fatty acids. Anchovy contains both omega-6 and omega-3 fatty acids, such as eicosapentaenoic acid (EPA) and docosahexaenoic acid (DHA). It has a market value of USD 827 million in 2021 and is expected to grow to USD 1188 million by 2030 at a CAGR of 4%.

• Cod

Cod is a type of fish that lives mostly at the bottom of lakes and oceans. Codfish has a very small amount of oil compared to other fish. The liver of the codfish is used to make cod liver oil. Cod liver oil is mostly used as a supplement because it is high in vitamin A and vitamin D and has a long chain of omega-3 fatty acids. Cod Fish oil has a market value of USD 432 million in 2021 and is expected to grow to USD 870 million by 2030 at a CAGR of 8%.

• Sardines

The sardine is a small fish that is in the same family as the herring. It lives mostly on the coasts of South America and Asia. There is a lot of omega-3 in sardines and not much mercury. Besides omega-3 and omega-6, sardine also contains protein, vitamin B-12, vitamin D and calcium. Fish oil from sardines is good for both animals and people. It accounts for a market value of USD 314 million in 2021 and is anticipated to reach USD 482 million by 2030 at a CAGR of 5%.

The global fish oil market, when segmented by application, is further classified into Supplements & Functional Food, Pharmaceuticals, and Aquaculture, where the Supplements and Functional Food owe the major share of the global fish oil market. 

By Applications

• Supplements & Functional Food 

Fish oil is mostly used in nutraceuticals and pharmaceuticals and being fed to animals. The purest and most refined grade of fish oil is used for human consumption. Before being used in supplements and functional foods, fish oils go through several quality checks to ensure they are safe, pure, clean, and have the right nutrients. This is why it has a major market share of USD 872 million in 2021 and is expected to grow to USD 1307 million by 2030 at a CAGR of 5%.

• Pharmaceuticals

The fish oil used in pharmaceuticals contains the highest concentration of omega-3 fatty acid and other essential fatty acids like Docosahexaenoic acid (DHA) and Eicosapentaenoic acid (EPA). It accounts for a market value of USD 462 million in 2021 and is expected to reach USD 767 million by 2030 at a CAGR of 6%.

Why is Aquaculture the Most Popular?

• Aquaculture

Presently, aquaculture is the largest application of fish oil. Fishmeal and fish oil are used as key ingredients for various aqua feed products mainly due to the highest percentage of eicosapentaenoic acids (EPA) and docosahexaenoic acids (DHA) present in them. It accounts for a market value of USD 245 million in 2021 and is expected to grow to USD 532 million by 2030 at a CAGR of 9%.  

Recent Developments

• In April 2022, FMC Corporation announced the 'Greater than Green Global Sustainability Platform' and renewed the long-term environmental metrics.
• In January 2022, the Triplenine group announced that it is going to produce mussel meals in the coming financial year to expand its business.
• In February 2022, FMC Corporation announced its partnership with NSPCA of South Africa to expand its business in the African region.