Industry Insights
The global omega 3 supplement market size was valued at USD 34.83 billion in 2017. It is likely to reach USD 57.06 billion by 2025; thereby exhibiting a CAGR of more than 6.0% over the forecast period. Increasing awareness regarding healthy lifestyle coupled with prevalence of obesity is expected to fuel demand in the forthcoming years. In 2014, approximately 9.8 million men and 20 million women were obese in India. Rapid surge in obesity is expected to encourage the concerned population to adopt healthy lifestyle. This factor is expected to propel growth of the market in near future.
Global omega 3 supplement market revenue, by source, 2014 - 2025 (USD Billion)
Prominent presence of fish oil-based capsules along with availability of diversified product portfolio of manufacturers across price ranges is expected to drive global demand by 2025. Manufacturers are actively emphasizing on product enhancement by utilizing advanced technologies to remove environmental and anthropogenic pollutants from fish oil and minimizing oxidation through advanced manufacturing processes. They are focused on concentration of omega 3 content in the final product to ensure optimal delivery of all the health benefits of fish oil.
Rise of inactive lifestyle, especially among young adults has resulted into high prevalence of chronic diseases such as arthritis, coronary heart diseases and strokes, and cancer. This factor is expected to drive demand for dietary supplements like omega 3 to gain nutritional diet.
Omega 3 is scientifically proven to have medical benefits in treatment of high cholesterol, immunity loss, hypertension, arthritis, and heart diseases. In addition, omega 3 also proves beneficial in development of vision and nervous system of fetuses. Awareness regarding these benefits has resulted in increasing utilization of these supplements in pharmaceutical industry. This factor is anticipated to bode well for global market expansion in the forthcoming years.
Significant growth in working population within countries such as U.S., China, India, and Japan has resulted in busy lifestyle and lack of physical movement during log working hours. This factor has given rise to diseases like obesity and heart diseases, thereby driving demand for omega 3 supplements.
Segmentation by Source
• Fish Oil
• Anchovy
• Sardine
• Salmon
• Tuna
• Cod Liver
• Others
• Krill Oil
• Others
In terms of source, fish oil emerges dominant in the global omega 3 supplements market with a contribution of around 83.5% in 2016. Lucrative demand for fish oil over the past few years on account of its high nutritive value is expected to help this segment maintain its dominance over the forecast period. However, krill oil, flax seeds, and mung beans are expected to gain popularity in near future as effective fish oil substitutes. Abundant availability of natural sources of omega3 in these natural products is expected to hamper segment growth in the forthcoming years.
Krill oil is expected to emerge as a significant source of omega 3 over the forecast period. The segment is expected to expand at a CAGR of 11.0% by 2025. Use of advanced techniques for krill oil extraction are gaining popularity. For instance, in 2014, Tharos; a renowned krill utilization consultancy, completed their onboard trial of a novel process for krill oil extraction from fish in the South Antarctic ocean. This process is performed in the sea and is free of chemicals.
Within the fish oil segment, anchovy emerged dominant with a market share of 48.6% in 2016. It is expected to continue leading over the forecast period. Fish such as anchovy and sardine are available in large volumes compared to other fish. This factor is expected to provide a positive outlook to their utilization for extraction of omega 3 fatty acids. Recent consumer trend of utilizing omega 3 extracted from a single species is anticipated to augment global market in near future.
Segmentation by Application
• Infant Formula
• Food & Beverage
• Dietary Supplements
• Pharmaceuticals
• Pet & Animal Feed
• Clinical Nutrition
Infant formula held the dominant market share of more than 40% in 2016. The segment was valued at over USD 45 billion in 2016. It is expected to expand at a CAGR of approximately 9% by 2020 owing to rising number of working women in emerging economies. According to the World Bank, in 2012, women accounted for 39.21% of total global workforce. This number noticeably increased to reach 39.35% in 2016. Such surge in working population of women is expected to drive demand for infant formulas.
Growing R&D activities in infant nutrition owing to rising demand for breast milk substitutes closely resembling the composition and functionality of breast milk is expected to drive the market over the next few years. Ongoing advancements in medical science and food industry coupled with changing demographics and consumer demand are anticipated to further boost product demand.
Segmentation by Region
• North America
• U.S.
• Canada
• Europe
• Germany
• U.K.
• Spain
• Italy
• Asia Pacific
• China
• Japan
• India
• Central & South America
• Brazil
• Middle East & Africa
In terms of region, Asia Pacific dominated the global market for omega 3 supplements with 37% market share in 2016. It is expected to continue leading over the forecast period owing to increasing spending on dietary supplements in developing economies. Additionally, rapid uptake of sports nutrition from countries such as Japan, India, and China among other countries is expected to fuel product demand in the forthcoming years.
Additionally, rising awareness regarding importance of sports and overall fitness in Asian countries is expected to fuel market growth. For instance, various activities conducted by the Japan Sports Agency to cultivate interest in sports has resulted in a lucrative uptake of sports nutrition in the country. Additionally, upcoming sports events such as the 2020 Summer Olympics to be held in Tokyo are expected to boost demand for omega 3 supplements in the forthcoming years.
Competitive Landscape
The global omega 3 supplement market is marked by presence of various well-established and emerging players. Majority of businesses are integrated in nature from production to distribution networks. Companies such as Reckitt Benckiser Group plc, BrainMD Health, Glaxosmithkline PLC, and BASF operate their business through extensive expansion of production capacities spread across the globe. The distribution channels are designed to cater to evolving local demand patterns. Most companies are opting for capacity expansion to meet evolving consumer requirements.
Vertical integration is often observed within the market as it provides the companies with vast portfolio and sales opportunities in emerging markets. In addition, companies are involved in production of advanced omega 3 supplements for various health problems such as heart diseases, joint problems, and skin and hair care among others.
