Global Microencapsulated Omega-3 Powders Market - 2023-2030

Overview:

Global Microencapsulated Omega-3 Powders Market reached US$ 16.6 billion in 2022 and is expected to reach US$ 30.5 billion by 2030, growing with a CAGR of 7.9% during the forecast period 2023-2030.

Omega-3 fatty acids have garnered substantial attention due to their potential in supporting cardiovascular health, notably by mitigating the risk of heart diseases. They are also associated with cognitive health enhancements, including memory improvement and mood regulation. In an era where consumers actively seek products that contribute to their overall well-being, microencapsulated omega-3 powders offer a convenient and effective avenue.

Additionally, the market's expansion is bolstered by the shift towards plant-based diets and lifestyles, fostering a growing demand for plant-derived omega-3 sources, particularly microencapsulated powders derived from algae. This aligns seamlessly with ethical, environmental, and health considerations, thereby propelling the market's growth trajectory.

As consumers continue to prioritize proactive health measures and seek practical dietary solutions, the microencapsulated omega-3 powders market stands poised for sustained expansion, making a valuable contribution to the broader dietary supplement industry. The fortified food and beverages application of microencapsulated omega-3 powders account for over 30% of the market share.

Similarly, North America dominates the microencapsulated omega-3 powders market, capturing the largest market share of over 1/3rd. As Americans increasingly prioritize their health and proactively manage their well-being, the demand for supplements like microencapsulated omega-3 powders, which deliver these essential nutrients, continues to soar.

Dynamics:

Health and Wellness Awareness

People are paying more attention to their own health and wellness all across the world, especially when making everyday food product decisions. The Singapore Accreditation Council report states that sales of health-related products in the U.S. have increased (31% growth from 2020-2021), including over-the-counter medications and nutritional/healthier food and beverages.

The upsurge can be due to the 48% of global consumers who actively choose to maintain their wellness as they go about their daily activities. Customers also anticipate businesses (such food producers and retailers) and governmental organizations to take proactive steps to advance the health and wellbeing of the planet. In fact, the majority of surveyed international consumers (72%) thought that businesses had a big part to play in making sure that everyone could access healthy food at an accessible price.

The increased global healthcare expenditures (8.8% to 9.9% in 2020), sugar regulations (50 nations imposed sugar tariffs), and label laws (4 OECD countries enforce nutritional labelling) are just a few trends that have led to increased consumer demand towards healthy lifestyles, which in turn, there is a demand for microencapsulated omega-3 powders.

Enhanced Stability and Shelf Life

Improved stability and prolonged shelf life constitute a distinctive and influential force behind the microencapsulated omega-3 powders market. Omega-3 fatty acids, renowned for their health-enhancing properties, have historically faced issues related to susceptibility to degradation and oxidation. These challenges often result in rancid and less effective omega-3 supplements and fortified foods.

Key players in the market are innovatively expanding their portfolios. In September 2022, three microencapsulated long-chain polyunsaturated fatty acids (LCPUFA), two DHA components and one ARA ingredient, have been introduced by FrieslandCampina components for use in newborn milk formulas. The DHA ingredients come from algal oil, while the ARA ingredients come from fungus oil. Both products are part of the Vana-Sana line.

With the assurance of omega-3 stability, manufacturers can diversify their product offerings. Microencapsulated powders can be incorporated into a broader spectrum of food and beverage products, including those with extended shelf lives, such as cereals, snacks, and meal replacement shakes. Microencapsulated omega-3 powders open doors to fortify everyday foods with essential fatty acids without compromising product quality. This transformation turns conventional foods into functional, health-oriented options.

Limited Consumer Awareness

Microencapsulated omega-3 powders represent a relatively recent addition to the dietary supplement arena when compared to more established forms like fish oil capsules or liquid supplements. Consequently, many consumers may not be acquainted with the existence and benefits of microencapsulated powders. The absence of familiarity with this product form can pose a significant challenge, as consumers tend to gravitate toward options they are comfortable with and have prior knowledge.

Conveying the advantages of microencapsulated omega-3 powders can be intricate. While these powders offer distinctive benefits such as heightened stability, diminished odor and taste concerns, and improved bioavailability of omega-3 fatty acids, articulating these advantages to consumers in a straightforward and concise manner can be demanding. This complexity can hinder consumers' ability to make informed decisions and may lead them to opt for more familiar supplement forms.

Cost Complexity

A primary aspect of the challenge lies in the complexity of the microencapsulation process itself. This process entails advanced methodologies to encase omega-3 oils within protective layers, enhancing stability and bioavailability. These methodologies necessitate specialized equipment and a skilled workforce, thereby escalating production expenses. Furthermore, the raw materials utilized in the encapsulation procedure, such as wall materials and stabilizers, can be costly.

Manufacturers are required to make substantial investments in research and development to refine encapsulation technologies, maintain rigorous quality standards, and assure product efficacy. Consequently, the expense associated with manufacturing microencapsulated omega-3 powders tends to surpass that of traditional omega-3 supplements like fish oil capsules or liquid forms.

The pricing challenge arises when manufacturers endeavor to strike an equilibrium between delivering high-quality microencapsulated omega-3 powders and offering competitive pricing. Elevated production costs often translate into higher product prices, which might limit the market's attractiveness to cost-conscious consumers. This becomes a pertinent issue in markets where consumers are keen on economizing and may opt for more budget-friendly omega-3 supplement alternatives.

Segment Analysis:

The global microencapsulated omega-3 powders market is segmented based on type, distribution channel, application, end-user and region.

Fortified Food and Beverages Applications Fuel Surge in Microencapsulated Omega-3 Powders Market

The fortified food and beverages segment held 36.5% in the global market share. Fortified food and beverage choices provide a hassle-free means for individuals to meet their daily nutritional requirements. In today's fast-paced world, many people find it challenging to allocate time or inclination to consume separate dietary supplements. Fortified products like breakfast cereals, dairy alternatives, and functional beverages offer consumers an effortless way to seamlessly integrate crucial nutrients such as omega-3s into their diets.

Consumers are increasingly scrutinizing product labels and seeking out clean, transparent ingredient lists. Microencapsulation facilitates the utilization of natural ingredients and reduces reliance on synthetic preservatives, aligning well with the clean label trend. This aligns with health-conscious consumers who desire clarity about what they are consuming.

For manufacturers, fortifying foods and beverages with microencapsulated omega-3 powders presents prospects for innovation and setting their products apart. In a competitive landscape, offering fortified choices can distinguish brands and attract health-focused consumers, potentially leading to increased market share and brand loyalty.

In March 2021, Netherlands company Lus Health Ingredients (also known as LUS), which creates sustainable and plant-based ingredients, increased the selection of fat powders that are rich in omega 3, 6, and 9. The company claims that a rising number of consumers do not want to ingest dairy, glucose syrups, maltodextrin, or other components that are typically found in fat powders, which are most frequently used by those who follow a ketogenic diet.

Geographical Penetration:

Adoption of Healthy Supplements in the U.S.

The North America microencapsulated omega-3 powders market held the largest market share of 40.3% in 2022 in the microencapsulated omega-3 powders market analysis. A significant contributor to the rise in interest in microencapsulated omega-3 powders is the growing focus on health and wellbeing in the U.S. End users in this region are actively looking for products that provide a range of health benefits as they become more health conscious.

The mental health advantages of these essential fatty acids are also well documented, particularly aiding in cognitive function and possibly mood enhancement. North America's demographic landscape includes a significant aging population, with older individuals placing a premium on health and wellness. Omega-3s, with their associations with cognitive preservation and joint health, hold particular appeal for seniors.

People in the U.S. are prone to various chronic diseases. Data from TechTarget, Inc.'s Xtelligent Healthcare studies show that 133 million Americans, or 43% of the population, suffer from one or more chronic conditions. Patients with chronic illnesses and the people they care about suffer from a heavy load. Hence, consumers are opting for fortified food and beverages.

Competitive Landscape

The major global players in the market include ADM, FrieslandCampina, BASF SE, KD Pharma Group, Novotech Nutraceuticals Inc., WINCOBEL, Aker BioMarine, Croda International Plc, DSM and Ecovatec Solutions Inc.

COVID-19 Impact Analysis

The microencapsulated omega-3 powders market felt the consequences of the COVID-19 pandemic, experiencing both immediate disruptions and lasting alterations in consumer behavior and industry operations. Initially, the pandemic triggered supply chain hiccups as global trade restrictions and factory closures hampered the procurement of essential raw materials and the production of these powders. This led to bottlenecks in manufacturing and short-term price hikes as production costs increased.

Concurrently, a surge in demand for omega-3 powders driven by health-conscious consumers responding to the health crisis resulted in some suppliers struggling to meet the sudden upswing in orders. Nonetheless, as the pandemic evolved, the market adapted. Manufacturers expanded their production capacities, streamlined supply chains, and invested in innovative encapsulation technologies to meet surging demand.

Russia-Ukraine War Impact Analysis

The Russia-Ukraine conflict has introduced complex challenges to the microencapsulated omega-3 powders market, primarily by disrupting the global supply chain. Ukraine, a key player in the production of sunflower oil, a significant source of omega-3 fatty acids, has experienced agricultural disruptions and trade uncertainties. These disruptions have the potential to create shortages and price fluctuations for crucial raw materials required for the microencapsulation process.

Beyond the immediate supply chain disruptions, the Russia-Ukraine conflict has catalyzed changes in consumer behavior and prompted strategic responses from businesses in the microencapsulated omega-3 powders market. During times of geopolitical uncertainty, consumers often gravitate toward products perceived as stable and trustworthy. This trend may potentially boost demand for omega-3 powders, given their recognized health benefits.

By Type

• Alpha-linolenic Acid
• Eicosapentaenoic Acid
• Docosahexaenoic Acid

By Distribution channel

• Supermarkets/Hypermarkets
• Convenience Stores
• Specialty Stores
• E-Commerce
• Others

By Application

• Dietary Supplements
• Fortified foods and beverages
• Infant Formula
• Pharmaceuticals
• Sports Nutrition
• Cosmetics and Personal Care Products
• Others

By End-User

• Children
• Adults
• Seniors

By Region

• North America
  • U.S.
  • Canada
  • Mexico

• Europe
  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Rest of Europe

• South America
  • Brazil
  • Argentina
  • Rest of South America

• Asia-Pacific
  • China
  • India
  • Japan
  • Australia
  • Rest of Asia-Pacific

• Middle East and Africa

Key Developments

• In September 2022, Three microencapsulated long-chain polyunsaturated fatty acids (LCPUFA), two DHA components and one ARA ingredient, have been launched by FrieslandCampina components for use in newborn milk formulas. The DHA ingredients come from algal oil, while the ARA ingredients come from fungus oil. Both products are part of the Vana-Sana line.
• In April 2020, DSM introduced two new, premium lipid powders for newborn nourishment called DHASCO®-B and ARASCO® powders, each of which offers a minimum of 110 mg/g of either DHA (docosahexaenoic acid) or ARA (arachidonic acid). These powders, which can be added to infant and subsequent formulae as well as growing-up milk products, contain safe and acceptable sources of vegetarian DHA omega-3 and ARA omega-6.
• In September 2020, Evonik has announced the extension of its AvailOm® platform of high-load omega-3 powders to support the development of superior algal or fish-oil-based dietary supplement formulations by nutraceutical firms. Every one of the three grades is designed to meet the special application needs for good ageing, pregnancy, and motherhood, as well as the lifestyle requirements of consumer groups including vegans and vegetarians.

Why Purchase the Report?

• To visualize the global microencapsulated omega-3 powders market segmentation based on type, distribution channel, application, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of microencapsulated omega-3 powders market-level with all segments.
• The PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.

The global Microencapsulated Omega-3 Powders Market Report would provide approximately 69 tables, 73 figures and 212 Pages.

Target Audience 2023

• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies