Fish Oil Omega-3 Market - Growth, Trends, and Forecasts (2023 - 2028)

The global fish oil omega-3 market is projected to record a CAGR of 9.1% over the next five years.

Key Highlights

• The growing consumer demand drives the fish oil omega-3 market due to the increased awareness of the health benefits of fish products and dietary supplements. For instance, it can increase HDL (good) cholesterol levels and may also lower LDL (bad) cholesterol levels. Even in small doses, it helps reduce blood pressure in people with elevated levels. Health experts worldwide have substantially increased the recommended daily dietary intake of omega-3 fatty acids, increasing fish oil consumption.
• With this increased demand, manufacturers focus on adding fish oil to different products. Additionally, the fish oil omega-3 market's growth is being supported by the research and development efforts channeled toward improving procurement practices, enhancing the extraction process of omega-3 fatty acids, and sustainably streamlining the entire value chain of the industry.
• Moreover, by moving to fish oil alternatives, baby milk manufacturers are seizing the chance to advocate sustainability at the front of the pack. Brands are also eager to take advantage of its safety, naturalness, and purity qualities as value-added ingredients. Animals, like humans, require their recommended daily amount of long-chain polyunsaturated fatty acids to guarantee proper development. Nearly all the fatty acids supplied to aquaculture feed now come from marine sources, like fish oil and fishmeal.
• Simultaneously, manufacturers are merging and partnering with biotechnological companies to research and innovate their products, thus capturing the growing demand for such animal feed products. For instance, in July 2021, a United Kingdom-based animal nutrition company (Devenish) joined forces with a Canadian biotechnology company (Mara Renewables Corporation) to naturally enrich animal feed with a sustainable omega-3 DHA solution.
• Such innovations happening in the industry are expected to boost the market's growth during the forecast period. However, the high price of products can potentially hamper the market's growth. Here manufacturers have a great opportunity to launch affordable products, thus catering to a large group of consumers.

Fish Oil Omega-3 Market Trends

Growth in the Aquaculture Sector

• The growth in the aquaculture sector is strongly related to the development of the fish oil omega-3 market. Through aquaculture, fish are cultivated for various commercial purposes. Now aquaculture is evolving into a carbon-efficient and resource-efficient sector using fish meals made from algae and food waste.
• The growing need to increase the fish oil production is also a major factor in the growth of aquaculture worldwide. For instance, according to OECD, the volume of fish oil produced in the European Union in 2022 amounted to 128.41 tons which increased from 120.74 tons in 2021.
• Moreover, the growing demand for fish oil and, most importantly, fish oil omega-3 has encouraged the overall technical and financial support extended to the aquaculture industry. Thus, the increase in aquaculture production has resulted in an increase in the use of both fish oil and the meal derived as a by-product from seafood production and processing.
• For instance, according to the latest data from International Fishmeal and Fish Oil Organisation (IFFO), the marine ingredients organization, cumulative fish meal production for 2021 has increased by 5%, while cumulative fish oil production is up by 8% compared to 2020.
• Furthermore, in terms of fishmeal, Peru, Chile, and India continue to be the only countries to report a higher cumulative production in 2021 concerning the same period in 2020. Hence, the continuous developments in the aquaculture sector are driving the growth of the fish oil omega-3 market, as the high production capacity of the former supports the high demand for the latter.

Asia-Pacific Dominates the Global Market

• Asia-Pacific dominates the global market for fish oil omega-3 due to its high fishery rate through aquaculture and manual fishing. The increasing aging population, coupled with rising health trends and awareness among general consumers, has increased the consumption of dietary supplements in the region, significantly boosting the fish oil omega-3 market.
• Fish oil is claimed to be one of the most extensively researched supplements and is being used for its efficacy in reducing the risk of heart disease and musculoskeletal degeneration and treating inflammatory and neuropathic pain. With the growing aged population across the region, people are increasingly keen on consuming omega-3 supplements that prevent heart diseases to an extent.
• For instance, according to the Population Reference Bureau, in 2022, Monaco was the country with the highest percentage of the total population over 65. Monaco has the world's oldest population, with 36% of Japanese over 65.
• China is one of the world's largest producers of fishmeal and oil owing to its increased fish production. For instance, according to the National Bureau of Statistics of China, in 2021, the fishery production value in Shandong province amounted to about USD 23.80 billion. Guangdong and Shandong accounted for the 2nd and 3rd positions in fishery production value amounting to about USD 25.16 and 23.79 billion, respectively. However, the country primarily focuses on producing high-quality pharma-grade fish oil to increase its applications in the pharmaceutical sector.
• Also, in Japan, the consumption of nutritional and pharmaceutical-grade fish oil has significantly increased due to rising health concerns among the country's senior population. Alongside, South Korea and Southeast Asian countries hold significant shares in the Rest of the Asia-Pacific fish oil market.

Fish Oil Omega-3 Industry Overview

The global fish oil omega-3 market is fragmented and highly competitive. Croda International PLC, Omega Protein Corporation, BASF SE, and Pelagia AS constitute a few of the key players in the market. Companies operating in the fish oil omega-3 market engage in diversified business models, with the most common being a company with its own fishery vessel for the procurement of fish, followed by integration into fish and fish products.

For instance, Olevea Group is a family-owned company that experiences vertical integration with sustainable sources and fully refined fish oils, thus, providing unique solutions for its clients and final consumers. Moreover, the companies have integrated themselves into research and development activities to create new products suiting customer demand.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

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