25 July 2008 - Despite being restricted by a very tight supply in raw materials, the omega-3 market in Europe is expected to grow approximately 23.6% each year until 2014, argues Dr. S. Chandrasekhar, a research analyst at Frost & Sullivan.
The market, which is was valued at USD 296 million in 2007 and is expected to hit the USD 1.3 billion mark in 2014, should not be impacted by commodity pressures as the consumer increasingly buys health products.
Dr. Chandrasekhar said that raw material shortages have resulted in margin pressures for the manufacturers, who have, in general, increased the price of omega-3 by about 15% in the last two years. He added that currently 84% of the raw materials used in the production of omega-3 are marine oils.
The raw material issue should only be temporary, believes the researcher, adding that the market will be driven forward by the already well-known health benefits of omega-3 and the widening applications which are arising, which are echoed by heightening media and marketing efforts.
At the moment the dietary supplements are the leading application market with a 78% share. However, Dr. Chandrasekhar argues that functional foods and beverages is a fast-growing sector. Currently the category has a 13% market share for omega-3.
80% of omega-3 goes into cardiovascular health products. The remaining 20% is used in cognitive health products, infant nutritional products, bone health as well as immune health products.
However, it is expected that, by 2014, functional foods and beverages will be at the same level or maybe higher than dietary supplements.
Dr. Chandrasekhar believes that the human applications market has enormous potential as 97% of omega-3 produced in 2007 was used in animals.