Fishing for Opportunities in the
Omega-3 Market
Chandrasekhar S, Research Analyst
Food & Beverage Ingredients
December 11, 2008
We Accelerate Growth

Focus Points
Key Highlights
Product Segmentation
Global Omega-3 Market Snapshot
Challenges
Key Trends
Major Industry Participants
Last Word
Related Frost & Sullivan Research
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Key Highlights
The U.S. Omega-3 PUFA ingredients market was valued in excess of $500.0 million in 2007
witnessing a robust annual growth of around 20%. Experiencing healthy demand across
the established sectors, namely dietary supplements and functional foods
Largely spurred by enormous scientific evidence and heightened media attention,
which has translated into rising consumer recognition and awareness regarding
functional benefits
The market is also anticipated to witness growth in newly established health markets like
cognitive and immune health
Highly competitive and relatively concentrated market
Market participants include Ocean Nutrition Canada, EPAX, Croda, DSM, Cognis, Martek
Biosciences, Lonza, Pizzeys Milling, Bioriginal and Omega Nutrition
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Product Segmentation
Omega-3 Ingredients
Marine Oil Flaxseed Oil Algal Oil
Application: Infant
Product Types: Cod, formula, supplements,
18:12 / 30%, Concentrates Application: Feed, Functional foods, feed
supplements,
Application: Feed, Functional foods Growth: ++
supplements,
Functional foods, medical Growth: + Competition:
foods, pharma Dominated by Martek
Competition: Medium Biosciences
Growth: +++
Competition: High
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Global Omega-3 Market Snapshot
$287.0 Million
Growth Rate – Robust
About $500.0 Million
Growth Rate – Strong
$419.0 Million
Growth Rate – Moderate
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Challenges
U.S. – FDA’s Proposed Rulemaking
EU – Health claim legislation, Hygiene law
Rising Technology not
Raw Material Cost Supporting Application
Penetration
Low
Medium
High
Fluctuating
Very High
Growing Threat From Competing Ingredients
Raw Material Quality
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Key Trends
Economic
Product
Trends
Trends
Competitive
Trends
Application
Trends
Consumer
Trends
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Global Economic Upheaval
Economic Slow Down
Economic Slow Down
Increased Demand for value –
Consumer willingness to Mass Market Health Products
spend on premium products
affected
Opportunities
Mass Market Ingredients Like
18:12 or flaxseed
Demand for cost-effective
ingredients
Less affected markets like APAC,
Developed economies
LATAM, BRIC
affected
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Products and Sources
Trends
Intense internal Substitution EPA and DHA have robust
scientific evidence
Opportunities
Products with approved scientific
Growing Condition-specific
claim
market
- Total US Functional Foods
market $27 billion (8-10%)
Widening Fortification
- Ingredients with superior
delivery technology
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Application Trends
Pharma
Opportunities
Medical Foods Higher
Value
Functional Food
Dietary Supplements
Animal feed
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Consumer Trends
General Health Condition
Nutrigenomics
Well-being Ingredients Specific
ONC, DSM,
EPAX, ONC,
GC Reiber,
ONC, DSM,
Croda, Opportunity
LYSI, Cargill,
GC Reiber,
Solutex, DSM,
Denomega,
LYSI, Merck,
Martek,
Martek,
Bioriginal
Cognis
Merck, Pizzeys
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Competitive Trends
Consolidation, manufacturers
with better economies of scale at
advantage
Increased price competition
Opportunities
Vertical Integration (Increased
need for integrated supply chain
Pressure on Margins to have control over supplies and
quality)
Attractive growth rates
and scope for penetration Growth prospects for new
entrants, particularly in the
vegetarian Omega-3 sector
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Key Market Participants
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Last Word
High level of consumer
awareness
Cha
lleng
Mounting focus on preventive es
Healthcare
Opp
ortu
n ities
Widening Application Profile
Technological advances
Firm scientific platform
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On-Going Global Omega-3 & Omega-6 Research
Recent Studies
Strategic Analysis of the European Omega-3 and Omega-6 PUFA Ingredients Market
Omega-3 Nutrients: An Emerging Product Additive among U.S. General Consumers
(Consumer Research Study)
Flax-Based Omega-3 Alpha Linolenic Acid – Whitepaper
Strategic Analysis of the Asia Pacific Omega-3 and Omega-6 PUFA Ingredients Market
Upcoming Studies
Impact of the Economy on Key Functional Ingredients
Strategic Analysis of the US Omega-3 and Omega-6 PUFA Ingredients Market
European Heart Health Ingredients Market
U.S. Heart Health Ingredients Market
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