Essential Fatty Acids Market

Essential Fatty Acids Market: Omega-3 Fatty Acid Product Type Segment Likely to Hold Maximum Revenue Share Throughout the Forecast Period: Global Industry Analysis and Opportunity Assessment, 2017-2027

  • 2017-06-07
  • REP-GB-4097
  • 404 pages
  • Format: PDF/PPT/Excel

An Incisive, In-depth Analysis on the Essential Fatty Acids Market

This study offers a comprehensive, 360 degree analysis on the Essential Fatty Acids market, bringing to fore insights that can help stakeholders identify the opportunities as well as challenges. It tracks the global Essential Fatty Acids market across key regions, and offers in-depth commentary and accurate quantitative insights. The study also includes incisive competitive landscape analysis, and provides key recommendations to market players on winning imperatives and successful strategies.

Omega-3 product type segment is expected to witness higher growth compared to other segments during the forecast period

The Omega-3 segment of the global essential fatty acids market is estimated to be valued at more than US$ 3,300 Mn by 2017 end and is expected to expand at a CAGR of 10.0% over the forecast period. By volume, the segment is anticipated to reach 417,518 Metric Tons by 2027 end from an estimated 160,021 Metric Tons in 2017. The Omega-3 segment has a higher growth as compared to other product types due to the fact that EPA and DHA concentrates are being produced and sold for a variety of applications. They are widely used in preventive medicine for chronic diseases and as a nutritional requirement for brain development in children. Among all essential fatty acid types, Omega-3 stands out with an incremental opportunity of a little more than US$ 5 Bn over the forecast period.

Increasing awareness and a revival in demand are boosting the growth of the Omega-3 segment

Excessive consumption of saturated fat increases the risk of coronary heart diseases, stroke or cardiovascular diseases. Essential fatty acids reduce the risk of developing heart diseases. Replacing saturated and trans fats in the regular diet with heart-healthy mono- and poly-unsaturated fats helps lower LDL cholesterol levels and decreases the risk of developing cognitive impairment among adults. Moreover, The American Heart Association and the World Health Organization recommend a diet high in Omega-3 essential fatty acids. These organisations also recommend the consumption of fish especially fatty fish twice a week. Such initiatives are boosting the demand for Omega-3.

With the upcoming new generation of drugs containing Omega-3 such as Vascepa and Epanova, there is a revival in demand among consumers – especially those who are allergic to other modes of consumption such as fish oils and fish products – for consuming Omega-3 essential fatty acids. Vascepa is a new prescription fish oils drug for tryglycerides, whose levels are linked with high risk of heart diseases and pancreatitis. As companies are willing to invest more in these new generation drugs, the earlier restricted consumption is bound to increase, thus fuelling more demand for Omega-3.

Essential fatty acids available in the market are free from any kind of metal impurities. Producers are further trying to improve the quality of Omega-3 essential fatty acids by using advanced technology for the automation of processes and the development of environment friendly processes. The purity of essential fatty acids has been a matter of key concern among the general population, and as Latin American manufacturers have significant control over fisheries, this comes in hand. Generating better trust among consumers regarding the quality and benefits of Omega-3 is driving market demand.

essential fatty acids market

Omega-3 is the most prominent product in the APEJ essential fatty acids market

Omega-3 essential fatty acids is a market leader estimated to hold more than 70% value share of the total Western Europe essential fatty acids market in 2017 and is further expected to gain more than 225 basis points to account for close to 80% market value share by 2027 end. This can be attributed to the multiple extraction technologies developed by many companies in the region. Companies such as Arctic Nutrition produce Omega-3 essential fatty acids and market them under the brand name Romega. Omega-3 is the most promising product type in the APEJ essential fatty acids market, estimated to account for more than 75% market value share by 2027 end.

According to the analysts of Future Market Insights who have come up with a new publication titled “Essential Fatty Acids Market: Global Industry Analysis and Opportunity Assessment, 2017-2027,” key players should focus on improving their horizontal integration to reduce uncertainties associated with a supply of consistent quality and quantity of raw materials. Furthermore, new players in the industry should specifically focus on incorporating more advanced processing technologies, which are not just economical but environment friendly as well. Also, our analysts have suggested that new players should venture into plant-sourced essential fatty acid manufacturing, as a large part of the world population is shifting towards vegetarian diets. Besides, consistency in quality and regular supply is the prime concern of most buyers, and companies should initially focus on entering into long-term sales contracts with prominent sustainable certified fisheries. Our team of experts have targeted various geographies and observed that Western Europe continues to be the global leader in terms of demand for essential fatty acids, and the region’s market is projected to represent remarkable incremental opportunity by the end of 2027. 

Further, companies located in Latin America, MEA and Japan have better access to good quality marine based raw materials, and companies are increasingly targeting this to gain better control over their supply chains. Asia Pacific Excluding Japan is the most potent market for essential fatty acids in the near future. The global essential fatty acid market is a forte of constantly rising demand, weak supply chains, and government support and regulations. North America is the global leader in essential fatty acid manufacturing; however, Western Europe dominates in terms of consumption of essential fatty acids.

Report Structure

The report is a detailed study of the global essential fatty acids market over a 10-year forecast period. It offers valuable insights into the current and future market scenario. Starting with an overview of the historic and current market size, growth rate, and a few other aspects, the report features critical factors associated with the market, which are likely to influence the market condition in a positive or negative manner. The report also throws light on a few market trends that would decide the market’s growth direction. Moreover, it also discusses the biggest opportunities that lie in the global essential fatty acids market over the aforementioned forecast period. Product-wise Weighted Average Selling Price (ASP) has been considered to deduce market values. Bottom-up approach has been used to counter validate the market estimations, while top-down approach has been used to assess market numbers for each product category.

Global Essential Fatty Acids Market: Source Analysis

The growing demand for omega-3 products has increased the demand for fish oil, which in turn has increased the demand for crude fish oil. The increase in extraction of fish from different sources has declined the fish stock globally. The increase in water pollution further affects fish population due to the decline in oxygen available for the species in water bodies. Thus, there is a decline in the availability of fish for the extraction of crude fish oil to fulfil the demand for omega 3 products. Although vegetables are a source of omega 3 in the form of ALA, the inability in the efficient conversion of ALA into EPA and DHA limits the usage of vegetables to fulfil the need for omega 3. Innovative omega 3 sources such as algae are emerging as new vegetarian friendly options. There are a few companies that are increasing their presence in the algae based omega 3 product market. Koninklijke Dsm is one of the key companies that makes algae based omega 3 products.

Market Segmentation

By Product

By Application

By Source

By Form

By Region

  • Omega-3 Fatty Acid

  • Omega-6 Fatty Acid

    • LA

    • ARA

  • Omega-7 Fatty Acid

  • Omega-9 Fatty Acid

  • Dietary Supplement

  • Infant Formula

  • Pharmaceutical

  • Food and Beverages

  • Animal Food and Feed

  • Cosmetics

  • Marine

    • Algal and Fungus Oil

    • Fish Oil

    • Krill Oil

  • Plant

    • Chia Seed Oil

    • Flax Seed Oil

    • Others

  • Dairy Products

  • Oil

  • Syrup

  • Powder

  • Others

  • North America

  • Latin America

  • Western Europe

  • Eastern Europe

  • APEJ

  • Japan

  • MEA

Research Methodology

Market volume is inferred through in-depth secondary research and validated from industry experts through primary interviews. Each interview is thoroughly analysed and average market volume is deduced and reconfirmed prior to incorporating in the report. The price of essential fatty acids is deduced on the basis of product type, where the average price of each product type is inferred across all the seven assessed regions. The market value of the global essential fatty acids market is thus calculated from the data deduced from the average selling price and market volume. For the 10-year forecast of the global essential fatty acids market, various macroeconomic factors and changing trends have been observed, giving an idea about the future of the market. Other important factors considered to arrive at market forecast are the size of the current market, inputs from the demand side and the supply side and other dynamics shaping the scenario of the market. In the compilation of the report, the forecast is conducted in terms of CAGR, while other important criteria such as year-on-year growth and absolute dollar opportunity have also been incorporated presenting the client with crystal clear insights and future opportunities likely to emerge in the global essential fatty acids market.

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