Omega-3 fatty acid use is growing rapidly

Fattening up

02 November 2009 15:39  [Source: ICB]

The use of omega-3 fatty acids in food fortification and supplements continues to expand

OMEGA-3 FATTY acids are becoming the alpha dog in health foods as they strengthen their presence worldwide in food and beverage products, as well as dietary supplements.

Rex Features/Chris Eyles

Netherlands-based producer DSM estimates the global value of the fish oil and algae-based omega-3 ingredient market at €800m-€1bn ($1.2bn-$1.5bn). Current growth is put at 10-13%/year, says Amanda Ruess, director, nutritional lipids at DSM.

She notes the dynamic growth of the market in the past two to three years.

"The science relating to the health benefits of omega-3 gets stronger and stronger," Ruess says. "Suppliers have overcome a lot of the technical hurdles for handling omega-3 oils and have progressed in producing various forms, which can be used successfully in a wide range of end-products in foods, beverages, supplements and infant formulas."

The volume of the market is hard to estimate, she adds, because of the many forms and concentrations of omega-3 being offered in various end markets.

A recent report by global consulting firm Frost & Sullivan estimates global consumption of marine and algal omega-3 ingredients last year at 71,452 tonnes, says Lori Covert, vice president of marketing and communications, Ocean Nutrition Canada (ONC). North America is the largest consumer, of 26,948 tonnes, followed by Asia-Pacific at 21,145 tonnes, the EU (13,596 tonnes) and the rest of the world (5,762 tonnes) of omega-3 ingredients.

"The growth rate has averaged 30-40% annually during the last few years. We still expect significant growth in the next several years," she adds .

UK-based Croda, estimates the global refined oils and concentrated omega-3 ingredients market to be worth $1.3bn (€882m), and the market for raw material crude oil at $180m. It estimates the global market for consumer goods at $13bn.

"The ingredients market has been growing at 25% over the last six to seven years," says David Shannon, Croda's sales director, health care. "Even with the current economic climate, it continues to be the fastest-growing category within the vitamins, minerals and supplements sector, showing solid growth over the last two to three years."

Shannon notes that the supplement industry has held up pretty well in the recession, as people tend to self-diagnose more to avoid health care and prescription payments.

"People are trying supplements to treat some medical complaints and thereby avoid costly medical bills if the supplement helps to alleviate their conditions," Shannon says.

HEALTH IS WEALTH
Sharrann Simmons, senior marketing manager at Germany's Cognis Nutrition and Health, agrees that people are trying to self-treat to protect their health because they don't have health insurance, are worried about losing their insurance, or their medical bills are too high.

Growing consumer awareness of the health benefits of omega-3 has become the No. 1 driver for its growth, she says.

Scientific studies report that omega-3 fatty acids are beneficial to heart, joint and brain health, and for cognitive functioning and developments, especially for infants and children. Recent studies tentatively support the use of omega-3 fatty acids in treating depression, therapeutic management of autism, preventing age-related blindness and decreasing the risk of prostate cancer.

Recent market research indicates that consumer awareness of the benefits of omega-3 fatty acids in the US is around 75-90%, says Simmons. "This is by far the highest consumer awareness of any other functional ingredient that would be added to food and beverage," she says. "Everyone understands that it's a great ingredient, they need it, and that they are not getting enough of it in their normal daily diet."

Commercially important omega-3 fatty acids include the short-chain alpha-linolenic acid (ALA), which is found mainly in plant sources such as nuts and seeds; and the long chain eicopentaenoic acid (EPA) and decosahexaenoic acid (DHA), which are found in marine oils and algae. EPA and DHA are said to be the main health benefit contributors associated with omega-3.

A study from the US-based Harvard School of Public Health found that diets deficient in omega-3 cause up to 96,000 deaths a year in the US, notes Covert. Such deficiency, according to the study, ranked sixth-highest among killers of Americans, beating even high trans fat intake.

"The numbers are shocking, given that these deaths are preventable with omega-3 EPA/DHA supplementation," says Covert. "This new study validates that omega-3 EPA/DHA is more than just part of a health diet. It's a matter of life and death."

Such studies, she adds, are becoming more important to policy makers in developing and implementing public health policies and legislation to help prevent deaths associated with certain risk factors.

Global onsulting firm Euromonitor reports the increasingly favorable regulatory environment towards omega-3s, especially in the US and Australia. "It is expected that recommended daily intake levels for long-chain omega-3s will soon be established by official and government institutions," says Euromonitor industry ingredient manager John Madden. "Next to probiotics, omega-3 is the hottest functional ingredient right now and it is successful in both dietary supplements and fortified/functional products."

Omega-3 has already made its way into staples such as bread, milk, juice, yogurt, spreadable oils and fats, as well as infant formula, he notes. "It is about to conquer more territory, such as the all-important breakfast cereals sector."

Except for juice, omega-3 fortification of the soft drinks sector remains unexploited, because of the difficulty of integrating oils and clear liquids. Technological barriers, however, are expected to be overcome within the next two to five years, opening major opportunities not only in soft drinks but also in high-growth sectors, such as functional water and sports drinks, says Madden.

"With so many sectors still underdeveloped and completely untapped, we predict the market size could double to $3bn over the next five years. The industry agrees that the currently comparatively small area of food and beverages provides the best growth opportunities," he adds.

The number of players in the omega-3 ingredients market has also increased over the past few years. Ruess estimates the current number of players to be more than 30. "Suppliers start to look at alternative sources to fish oil, and technology is advancing fast. There have been a number of joint ventures and alliances announced over the past few years as companies reposition themselves in the value chain," she says.

Certain suppliers, says Ruess, focus specifically on forms, while others show their strengths in sourcing and basic refining. DSM says it has focused on the development of high-quality oils and forms specific for targeted applications in food, dietary supplements and infant formula.

"People are trying supplements to treat some medical complaints" David Shannon, sales director, Croda Health Care

Croda focuses on the manufacture of high-purity omega-3 concentrates for the supplement and pharmaceutical industries. Shannon notes that there are a lot of brokers and distributors offering bulk omega-3 oils, but in reality there are only a handful of manufacturers around the world.

"There is a steep learning curve for omega-3, and market entry is timely and expensive," he says. "Omega-3 oils are very unstable to oxidation due to their degree of unsaturation, so great care and attention is required in handling them."

Cognis itself entered the market fairly recently with the acquisition of Norwegian fish oil concentrate producer Napro Pharma three years ago. Simmons says Cognis's vast knowledge and expertise in lipid technology will put it ahead in the game.

"Being oil-based, we understand how omega-3 is sourced, how to analyze, purify, and deodorize it, and how to provide its stability," says Simmons. "There is a large number of competitors out there, but we expect a lot of consolidation in the next couple of years to take place."

Cognis says it has already won several awards for incorporating omega-3 in a wide variety of food and beverage products without affecting their sensory characteristics.

Read Doris de Guzman's Green Chemicals blog

By: Doris de Guzman
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