Fatty acids impart a wide range of medicinal benefits. However, consumers worldwide were less aware of the health benefits of omega-3 fatty acids. The dietary supplements industry is thriving rapidly and one of the fastest growing sectors of it, is fatty acid supplements. The global fatty acid supplements market registered the revenues worth US$ 1.91 Bn in 2013, which are expected to boost up to US$ 4.47 Bn by the end of 2020. The market will expand at a robust CAGR of 13.1% over the forecast period, 2014-2020.
Key Market Dynamics
The acidic contents of omega-3 fatty acids play a key role in regular metabolic activities, in addition to regulating the level of cholesterol in a body. Increasing awareness about the benefits of a healthy lifestyle and growing consumer preference for healthier diet regimen will remain the primary driver to the growth of the global market for fatty acid supplements. The past few years have seen the applications of omega series fatty acids in the treatment of hair, heart, and eyes. Researchers are constantly discovering more new applications, which is likely to provide an impetus to the market during the forecast period. The technological advancement has resulted in increased consumption by the processed food industry. Growing need for the regulation of oxidation in omega-3, omega-6, and omega-9 fatty acids in order to maintain the original smell, taste, and quality of food products, will also fuel the market through to 2020. The geriatric population is growing worldwide, especially in developing countries, which is expected to foster the demand for fatty acid supplements.
Infant formula is a growing trend in the market, propelling the demand for omega-3 fatty acids. Manufacturers have already started to capitalize on this trend, which is predicted to remain a fast growing trend over the next few years. Moreover, the market has been witnessing a new trend of the development of functional beverages containing omega-3 fatty acids. This further highlights a major opportunity that lies in the market over 2014-2020.
However, developing markets still face the issue of lower awareness about the health benefits of omega-3 fatty acids. This may hamper the market condition throughout the forecast period. Moreover, a large population in emerging economies does not prefer to spend on dietary supplements. This is identified to be another factor that may hold a major negative influence on the market growth. The situation is however changing since the past few years.
The fatty acids supplements market is bifurcated on the basis of source into marine oils, algal oils, and others such as flaxseed oils, and by application into dietary supplements, functional food and beverages, and others such as infant formula and pharmaceuticals. Based on the source of fatty acids, the marine oils segment is expected to maintain a dominating segment expanding at a CAGR of 12.7% during 2014-2020. Based on application, the dietary supplements segments will be the largest of all, attributed to growing consumer awareness level and rising adoption rate of dietary supplements.
By geographical analysis, the global fatty acid supplements market is segmented into four key regions viz. North America, Europe, Asia Pacific, and rest of the world. North America represented the largest market share in 2013 and is expected to continue dominance over the forecast period. Europe is also a major market, and the growth in this region is attributed to rising awareness among consumers about the benefits of omega-3 fatty acids. Asia Pacific is the emerging, yet fastest growing market for fatty acid supplements, especially omega-3. Being one of the vital ingredients in infant formula, omega-3 is expected to gain traction in the regions with the highest birth rates i.e. India and China.
Key Market Players
The global fatty acid supplements market is highly consolidated. The top five players collectively account for over 75% share of the entire market. While DSM is the topmost company in the global fatty acid supplements market, Epax AS and Croda Health Care are among the top five in the marketplace. Other notable players include Arista Industries and Dean Foods. Most of the leading players are concentrating more on developing markets with the highest potential.
Dietary supplements is a flourishing market. With rising awareness about the health benefits of omega-3 fatty acids, the market for fatty acid supplements is growing at a rapid pace. Persistence Market Research recently published a report on the global fatty acid supplements market. The report is a detailed study of the global fatty acids supplements market over a six-year forecast period, 2014-2020. It offers valuable insights into the current and forecast 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.
In the drivers section, the report examines key factors that are expected positively impact the market growth. The next section comprises key factors that may restrain the market growth during the forecast period. 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 market over the aforementioned forecast period.
To help the understanding of the exact consumption pattern on a global level, the report categorizes the global fatty acid supplements market report in two key segments based on the source of fatty acid and application. Each segment and sub-segment is analyzed in detail, followed by the opportunities in each of them. The next section segments the market report on the basis of geography. The regional analysis segment elaborates four key regional markets for fatty acid supplements and provides in-depth data on each of them. Company profiles, included in the key market reports section at the end of the report, cover company overview, products and segments, financial performance, and recent developments of various companies.
To deduce the global fatty acid supplements market size, the report considers various aspects based on secondary research. Furthermore, key data points such as region-wise split and market split by product type, vehicle type, and distribution channel; and qualitative inputs from primary respondents have been incorporated to arrive at appropriate market estimates. The forecast presented in the report assesses the total revenue generated and expected revenue contribution in the global fatty acid supplements market.
The report begins with sizing the market in terms of value and volume for the base year, which forms the basis for forecasting how the market is anticipated to take shape in the near future. Given the characteristics of the market, gathered data is triangulated via different analysis based on supply side and demand side drivers and other key dynamics of the global fatty acid supplements market. To develop the market forecast, Persistence Market Research has also conducted a factor analysis to understand the impact of various forces/factors on the target market. The report provides forecasts not only in terms of CAGR but also presents a detailed analysis based on key parameters such as Year-on-Year (Y-o-Y) growth to understand market predictability and to identify the right opportunities.
Another key feature of this report is an analysis of the global fatty acid supplements market and the corresponding revenue forecast in terms of absolute dollar opportunity, usually overlooked while forecasting the market. However, absolute dollar opportunity is critical in assessing the level of opportunity that a provider can look to achieve, as well as to identify potential resources from a sales perspective in the global fatty acid supplements market. Further, to understand key segments in terms of their growth and overall global fatty acid supplements market performance, Persistence Market Research has developed a market attractiveness index to help providers identify existing market opportunities in the global fatty acid supplements market.
Chapter Company Profiles: