Omega 3 Market Size, Share & Trends Analysis Report By Type (EPA, DHA), By Source (Marine, Plant), By Application (Supplements & Functional Foods, Infant Formula), By Region (APAC, CSA), And Segment Forecasts, 2020 - 2028

Report Overview

The global omega 3 market size was valued at USD 2.10 billion in 2020 and is expected to grow at a compound annual growth rate (CAGR) of 7.8% from 2020 to 2028. Major factors responsible for increased product consumption include rising occurrences of Cardiovascular Diseases (CVDs) and changing dietary habits. The rising importance of immunity development post-COVID-19 pandemic has further strengthened the driving force for the market. The rising inclusion of omega 3 ingredients in the diet to support heart and brain health is expected to boost product demand. A sedentary lifestyle, work-from-home trend, and lack of physical activity, particularly between the age group of 30 and 40 years are expected to result in rising product demand. In addition, increasing consumer investment in healthcare and wellbeing is likely to fuel the growth of the market.

Rising cases of obesity and heart-related issues in the U.S. are expected to increase the demand for DHA. As per the American Medical Association, heart disease was the leading cause of death in the U.S. in 2020, accounting for 690,882 deaths. The U.S. FDA has approved omega-3 supplements for the treatment of adults for diseases such as severe hypertriglyceridemia. Epanova and Omtryg containing DHA/EPA that are considered as adjuncts to diet are also approved by the U.S. FDA.

An increasing number of omega 3-based pharmaceutical product launches by market players, due to the rising product application scope in medicines, is expected to augment market growth. For instance, in November 2019, BASF Nutrition and Health along with Ideogen developed an omega 3 product that addresses Non-Alcoholic Fatty Liver Disease (NAFLD), a chronic condition.

Manufacturers are actively adopting advanced manufacturing technologies. Manufacturers are focusing on the efficient removal of environmental pollutants from fish oil, minimizing oxidation in its manufacturing process, and concentrating the omega 3 content in the final product to assure optimal delivery of the healthy parameters of fish oil. For instance, Smartfish has introduced manufacturing techniques that prevent the oxidation of oil and provide high-temperature resistance.

Krill oil is one of the potential sources of omega 3 and is being increasingly used owing to its superior properties, such as higher solubility in water and rapid absorption in the human body after consumption compared to traditional fish oil. Players are focusing on sourcing from krill oil using efficient techniques. For instance, Enzymotec manufactures K•REAL krill oil through Multi-Stage Oil (MSO) extraction technology, wherein K•REAL is clinically proven to be more efficient than fish oil that increases omega 3 levels in human blood.

One of the major challenges faced by conventional omega 3 ingredient manufacturers is to offer products at a competitive price range. This is more relevant for the companies that offer omega 3 ingredients from alternative sources, such as algae and krill oils.

Type Insights

Docosahexaenoic Acid (DHA) dominated the market with a revenue share of more than 62% in 2020. DHA aids in reducing bad cholesterol and improving health conditions in individuals facing blood pressure-related concerns. The rising prevalence of coronary heart diseases globally is expected to fuel demand for DHA omega 3.

Eicosapentaenoic Acid (EPA) is expected to be the fastest-growing segment owing to its growing demand for immunity-boosting dietary supplements. EPA exhibits anti-inflammatory properties and thus improves the body’s immune response. The European Food Safety Authority (EFSA) has recommended a daily dose of DHA/EPA for the development of infant brains and nervous systems in pregnant women and reducing the risk of heart diseases in adults.

Plant oils, such as flaxseed, walnuts, soy, leafy vegetables, clary sage seed, and hemp oils, are major sources of Alpha-Linolenic (ALA). ALA reduces clots in the blood and promotes a smooth blood pumping mechanism by reducing the plaque in arteries serving the heart. The rising adoption of ALA is expected to propel the growth of the segment.

Source Insights

The marine source segment held the largest revenue share of over 82.8% in 2020. Fish oil is the major marine source, which is mainly derived from anchovy fish. Prices of omega 3 are dependent on the extraction and processing cost of fish oil and vary accordingly depending on the availability of anchovy fish. Growing mercury and other contaminant levels in fish are expected to negatively affect the prices for fish oil over the forecast period.

Omega 3 is also derived from plant sources including pumpkin seeds, flaxseed oil, walnuts, soybean oil, and canola oil. The cold pressing method is used for manufacturing omega 3 oil from plant sources. Players are focusing on plant sources as potential alternatives for fish oil. For instance, in October 2018, Cargill launched ‘Latitude’, a plant-based sustainable alternative source of Omega 3 for fish feed application.

Application Insights

The supplement and functional foods segment dominated the market with a revenue share of 52.1% in 2020.  The rising popularity of DHA supplements among pregnant ladies as well as lactating mothers is projected to propel the product demand over the next few years. Growing awareness regarding nutritional food intake among gym professionals and athletes is likely to promote the use of omega 3 in sports supplements and functional foods.

Pharmaceuticals are among the significantly growing application segments in the market. Omega 3 is used for improving the health of heart patients as well as in the dermatology sector owing to its scalp nourishment properties. Omega 3 intake helps in maintaining the collagen levels of the skin, which further aids in supporting the skin structure, thereby reducing the appearance of fine lines and wrinkles.

The infant formula segment is expected to grow at the fastest CAGR over the forecast period, supported by the rising consumption of packaged baby nutrition products owing to an increasing working population. Omega 3 DHA aids in the development of an infant's nervous system, vision, brain, and overall growth.

The inability of animals to naturally produce some of the essential fatty acids has led to an increase in the demand for omega 3 fatty acids in animal feed. Rising demand for pet food on account of increasing pet ownership and pet humanization is likely to support the growth of the segment.

Regional Insights

In 2020, North America was the largest regional market with a revenue share of 37.3%. Various market players in the region, such as Omega Protein Corp., Martek Biosciences Corp., and BioProcess Algae, are focusing on R&D activities to develop pharma-grade omega 3, which is fueling the regional market growth.

The market expansion in Europe can be attributed to the rising demand for omega 3 supplements as a result of the increasing aging population and rising cases of various health ailments, particularly in economies, such as Germany, France, the Netherlands, and the U.K.

Asia Pacific is likely to register the fastest CAGR over the forecast period. Rising awareness about following a healthy diet and overall well-being, coupled with increasing disposable income, is expected to boost the product demand in the region. The high birth rate and rising population of young mothers in Asia Pacific are projected to augment the demand for infant nutrition, thereby increasing product consumption.

The product demand in Central & South America is primarily driven by Brazil with rising demand for health supplements. Increasing investments in manufacturing facilities and R&D activities by market players in the region are likely to support the market growth. For instance, in March 2020, Wiley Company formulated its first Omega-3 concentrate powder in CSA, which has been developed without its fishy taste or odor.

Key Companies & Market Share Insights

The presence of a large number of regional and global companies is projected to increase market competition. Players are focusing on offering well-differentiated products to gain market share. For instance, Aker BioMarine is one of the market differentiators on account of its product portfolio and ingredient selection. The company offers a new platform called The Omega-3 Index Project to raise awareness regarding sufficient intake of omega 3 EPA/DHA.

Manufacturers are focusing on non-fish sources for extracting omega 3 owing to a rising trend of veganism. Algal sources have been increasingly explored by companies as omega 3 derived from algae does not possess a fishy taste or odor, making it a suitable option for the vegan population. In June 2021, Polaris launched Omegavie DHA 800 oil derived from microalgae Schizochytrium sp. The oil offers about a high concentration of 800 mg/g of DHA that can be used for the formulation of vegan DHA capsules or tablets.

Companies are further focusing on partnerships and expansion strategies to strengthen their foothold in the global market. For instance, in March 2020, GC Reiber Oils partnered with Barrington Nutritionals to distribute omega 3 concentrates to the Mexican and United States marketplaces. Some prominent players in the global omega 3 market include:

• Aker Biomarine Antarctic AS

• Orkla Health

• BASF SE

• Omega Protein Corp.

• GC Reiber Oils

• Lonza

• Croda International Plc

• EPAX

• BioProcess Algae, LLC

• Koninklijke DSM N.V.

Omega 3 Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2017 to 2028. For the purpose of this study, Grand View Research has segmented the global omega 3 market report on the basis of type, source, application, and region:

• Type Outlook (Volume, Tons; Revenue, USD Million, 2017 - 2028)

  • Docosahexaenoic acid (DHA)

  • Eicosapentaenoic acid (EPA)

  • Alpha-linolenic acid (ALA)

• Source Outlook (Volume, Tons; Revenue, USD Million, 2017 - 2028)

  • Marine Source

  • Plant Source

• Application Outlook (Volume, Tons; Revenue, USD Million, 2017 - 2028)

  • Supplements & Functional Foods

  • Pharmaceuticals

  • Infant Formula

  • Animal Feed & Pet Food

  • Others

• Regional Outlook (Volume, Tons; Revenue, USD Million, 2017 - 2028)

  • North America

    • U.S.

    • Canada

    • Mexico

  • Europe

    • U.K.

    • Germany

    • France

    • Italy

    • Spain

    • The Netherlands

    • Norway

  • Asia Pacific

    • China

    • Japan

    • India

    • Australia

    • New Zealand

  • Central & South America (CSA)

    • Brazil

    • Argentina

  • Middle East & Africa (MEA)

    • UAE