17 June 2008 - In recent times, omega-3 fatty acids have emerged as the most talked about ingredients in the functional ingredients arena. The ever increasing scientific validation of their functionality has long kept them in the spotlight of media resulting in its transformation to become the "hottest industry trend".
Favoured by escalating demand due to consumer interest and technology breakthroughs that has greatly enhanced penetration, omega-3 fatty acids have truly emerged as a star in the functional ingredients market. The omega-3 fatty acids have undoubtedly created a wave in the food and beverage industry due to a swathe of scientifically proven health benefits. Presently, omega-3 fatty acids are obtained from three major sources that include fish oils, flaxseed oil and algal oil.
With such significant market potential, this promising ingredient has indeed created a highly attractive market place attracting the attention of many manufacturers. Presently, the omega-3 ingredients market is in a dynamic phase witnessing an influx of novel ingredients and products fortified with these ingredients. Not only is the demand side but also the supply side of the market is dynamic with manufacturers exploring more exotic sources of omega-3 fatty acids. Krill is one such emerging and potential source of marine omega-3 fatty acid.
Krill - Opportunities Unexplored!
Krill are tiny marine crustaceans that are eaten by fish and whales. These are typically found in the Antarctic and North Pacific oceans. Krill represents the most abundant biomass of any living organism available in the world accounting for about 500 million tonnes. Krill oil confers a unique combination of other functional ingredients in addition to omega-3 fatty acids. It has a combination of phospholipids, astaxanthin and omega-3 fats, which has enabled its positioning as a premium source of omega-3 fatty acid in the market place. With the natural combination of antioxidant (astaxanthin) and omega-3 fats, krill oil has an edge over traditional marine oils owing to its superior stability.
As the market for omega-3 ingredients is getting more and more crowded, food manufacturers are in the look out for premium sources that provides a competitive edge to their products in the market. Krill oil being a premium source of omega-3 fats best fits the needs of food ingredient manufacturers. Furthermore, similar to the traditional marine oils market the krill oil sector is highly research driven. Currently, the market is highly concentrated and participants such as Neptune Technologies, Aker Biomarine and Enzymotec are observed to be involved in a wide array of research and development activities aimed at substantiating the health benefits of krill and developing innovative ingredients.
Besides R&D activities, astute marketing by the market participants further propels the growth of the market. Market participants such as Neptune Technologies, Aker Biomarine and Enzymotec are involved in effective branding and marketing activities that has greatly enhanced the awareness and visibility of krill oil products in the market place. For example, Neptune Technologies markets its products under the brand name NKO ® (Neptune Krill Oil). Aker Biomarine, another leading producer of krill oil sells its products under the brand name SuperbaTM. The manufacturers are also involved in active co-branding with food manufacturers leveraging their brand equity
The Krill oil market is presently in the stage of emergence and is poised for significant growth. Currently, the krill oil market is witnessing substantial growth of over 25.0-30.0 per cent annually. Yet to be explored to its fullest potential, the krill oil market bestows the manufacturers with tremendous growth prospects. The market will continue to benefit from the strong growth platform established by the market participant through robust R&D and marketing activities.
Krill oil - Evolving Applications
Krill oil is currently used in several applications such as aquaculture, human nutrition and cosmeceuticals. As a source of omega-3 fatty acids, krill oil is used both in dietary supplements and in functional foods. Presently, krill oil is largely positioned as a heart health ingredient due to its omega-3 and antioxidant content.
Strong R&D pipeline, strategic innovations and new product launches reiterate that manufacturers are geared up to explore the opportunities in this market. In 2008, Aker Biomarine launched krill oil dietary supplement under the brand name SuperbaTM in the U.S. market. Furthermore, Neptune Technologies and Croda Health Care have jointly developed krill-fish oil combination ingredient targeting the dietary supplements industry in 2008.
Although, the current market activities are limited to the dietary supplements and functional foods application, krill oil is likely to venture into other potential application sectors such as pharmaceuticals. Several manufacturers are working towards launching krill oil products for aforementioned applications in the next 3 to 4 years. Consequently, krill oil is already in the process of moving towards higher value end-user segments such as pharmaceuticals.
In addition to horizontal markets, the vertical market penetration of krill oil is also evolving. For example, although currently it is largely positioned as a heart health ingredient in the market, the application scope of krill oil is expanding to other sectors such as joint health, brain health, metabolic diseases and anti-aging. It is likely that the krill oil market will soon witness products that are targeted towards addressing a wide range of health concerns.
Conclusion
The krill oil market has undoubtedly reaped the benefits of the well established status of omega-3 fatty acids. The enduring success of the market largely relies on the science oriented suppliers and forward-looking technologies that enhance application capabilities. With the growing consumer interest and demand for krill oil, the market place is likely to get highly competitive. Access to the critical raw material, high degree of vertical integration, strong technical competencies and compelling brand proposition are some of the vital factors that would determine success in this emerging market. The potential of these tiny crustaceans being barely explored, the growth in the krill oil market has just begun. The market has just begun to gear up with sound clinical back up and R&D activities to truly experience the new wave in the omega-3 fatty acids market.