The global arachidonic acid market size was valued at USD 180.4 million in 2017 and is projected to register a CAGR of 5.8% during the forecast period. ARA is a long chain fatty acid, which along with Docosahexaenoic acid (DHA), supports the development of the infant’s brain. Increasing awareness regarding baby care products is among the primary factors driving the industry growth. The product manufacturing requires a skilled workforce and special material handling equipment resulting in higher production costs.
Thus, to reduce the production costs, leading manufacturers are focusing on R & D and in-house manufacturing techniques as it improves the product quality, thereby enhancing the brand value. The industry is characterized by a diversified value chain, which consists of raw material suppliers, upstream manufacturers, distributors, and end-users. Raw material suppliers emerged as an essential element across the value chain of the ARA industry. Increasing importance of suppliers is a key driver to influence the strategies of the major industry participants.
End users are opting for cheaper bulk quantities of the product. Prominent raw materials used in product manufacturing include yeast, soy, corn, and glucose. Key manufacturers are involved in product synthesis by modifying mortierella alpine (M.alpine), which is considered an efficient mean of production. Mass production is one of the most implemented strategies adopted by key players to reduce the cost of the final product.
Producers are more inclined toward manufacturing the product in the vicinity to end-users to reduce transportation costs, minimize currency fluctuation exposure, and benefit from local incentives. In the Middle Eastern countries, infant formula-producing companies are trying to increase the consumer awareness through educational campaigns. Low product penetration is attracting the global companies to expand their operations in this region.
Solvents emerged as the dominant form segment in 2017 and is likely to witness significant growth in future on account of increasing product application scope. The product is primarily used in infant formula and supplements, which are gaining popularity across the globe. Key companies are focusing on developing advanced solvent-based product portfolio owing to the higher profit margins involved. Solid form segment is expected to register the fastest CAGR over the forecast period.
Increasing application in sports supplements drives the product demand in this segment. Growing consumer preference towards supplements consisting ARA will induce a positive impact over the coming years. High spending on sports nutrition will boost product demand further. Manufacturers are focusing on developing the nutritional products to comply with the international standards, which will also support the market development.
Infant formula segment leads the overall Arachidonic Acid (ARA) market accounting. Polyunsaturated fatty acids are known to improve the baby’s eyesight and memory, which is a major driving factor for the market. Furthermore, increasing regulatory acceptance for oil-based products in infant nutrition is positively impacting this growth. Increasing awareness regarding the product benefits in baby nutrition emerged as a primary reason behind escalating demand in infant formula application.
Potential applications in health supplement will support the market growth from 2018 to 2025. Prominent companies are investing more in R & D to develop newer applications, such as in sports drinks and bodybuilding supplements. Increasing demand for health supplements across various regions is projected to create new avenues for the segment.
North America was the dominant regional market in 2017 with a volume share of over 40%. This growth was attributed to the presence of prominent companies in North America. The region is projected to expand further during the forecast years on account of developed sports and infant nutrition industry, particularly in U.S., and high spending capacity of consumers.
Europe also holds a notable share of the global market. Early adoption of ARA in the supplement and infant formula is the primary reason behind this growth. Factors, such as high standards of living and well-developed sports nutrition market, are also driving the regional industry.
Asia Pacific region is also expected to register a strong CAGR due to rapid urbanization, emerging middle-class population, and projected growth in the number of infants across the region. Presence of emerging economies, such as India and China, and availability of low-cost raw materials and labor are attracting global manufacturers to expand their operations in APAC. This will also drive the industry in APAC region.
Some of the prominent companies in the market include Suntory Beverage & Food Limited; Cayman Chemical Company; Cargill, Inc.; and BASF SE. The market is characterized by a diversified value chain, which consists of raw material suppliers, upstream manufacturers, distributors, and end users. Outsourcing of manufacturing capabilities is expected to be the dominant trend in the market.
Other strategies undertaken by manufacturers include M & A and joint ventures. The companies grant rights for the intellectual properties to each other and work together for better business opportunities. Mead Johnson, Nestlé S.A., and Abbott Nutrition, leading producers of dietary supplements and infant formula, are among the major end-users of the product.
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Attribute |
Details |
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Base year for estimation |
2017 |
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Actual estimates/Historical data |
2014 - 2016 |
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Forecast period |
2018 - 2025 |
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Market representation |
Volume in Tons, Revenue in USD Million, and CAGR from 2018 to 2025 |
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Regional scope |
North America, Europe, Asia Pacific, CSA, MEA |
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Report coverage |
Revenue forecast, company share, competitive landscape, growth factors and trends |
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Country Scope |
U.S., Canada, Mexico, Germany, U.K., France, Italy, Spain, China, Japan, India, Brazil, and Saudi Arabia |
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15% free customization scope (equivalent to 5 analyst working days) |
If you need specific information, which is not currently within the scope of the report, we will provide it to you as a part of customization |
This report forecasts revenue and volume growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global arachidonic acid (ARA) market report on the basis of form, application, and region:
Form Outlook (Volume, Tons; Revenue, USD Million, 2014 - 2025)
Solid
Solvent
Application Outlook (Volume, Tons; Revenue, USD Million, 2014 - 2025)
Infant Formula
Supplement
Regional Outlook (Volume, Tons; Revenue, USD Million, 2014 - 2025)
North America
U.S.
Canada
Mexico
Europe
Germany
U.K.
France
Italy
Spain
Asia Pacific
China
Japan
India
CSA
Brazil
Middle East & Africa
Saudi Arabia
b. The global arachidonic acid market size was estimated at USD 201.9 million in 2019 and is expected to reach USD 214.0 million in 2020.
b. The global arachidonic acid market is expected to grow at a compound annual growth rate of 5.8% from 2019 to 2025 to reach USD 281.0 million by 2025.
b. North America dominated the arachidonic acid market with a share of 36.9% in 2019. This is attributable to the presence of prominent companies in the region, developed sports and infant nutrition industry, particularly in the U.S., and high spending capacity of consumers.
b. Some key players operating in the arachidonic acid market include Suntory Beverage & Food Limited; Cayman Chemical Company; Cargill, Inc.; and BASF SE.
b. Key factors that are driving the market growth include the fact that ARA is a long-chain fatty acid, which along with Docosahexaenoic acid (DHA), supports the development of the infant’s brain. Increasing awareness regarding baby care products is among the primary factors driving industry growth.
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