Algal Docosahexaenoic Acid (DHA) Market Size, Share, Opportunities, And Trends By Application (Pharmaceuticals, Food And Beverage, Others), By Form (Oil, Powder, Softgel), By End-user (Individuals, Industrial), And By Geography - Forecasts From 2023 To 2028

The Algal Docosahexaenoic acid (DHA) market is projected to show steady growth during the forecast period.

Algal Docosahexaenoic acid (DHA), a vital omega-3 fatty acid, holds utmost importance, particularly for brain growth and function. Traditionally sourced from various seafood, DHA has gained widespread recognition as a sustainable and vegetarian alternative to fish oil-derived DHA. This innovative approach aligns with the growing demand for sustainable and plant-based alternatives. This shift addresses concerns related to overfishing and environmental impact, as algal oil production offers a more environmentally friendly solution.

Algal oil, derived from algae, serves as a suitable option for individuals adhering to vegetarian or vegan diets, ensuring they receive essential omega-3s without relying on fish sources. Given that the human body cannot produce significant amounts of DHA on its own, obtaining it through diet or supplements is crucial.

The DHA (Docosahexaenoic Acid) market is segmented by application, with a focus on pharmaceuticals, food and beverage, and other sectors. Additionally, the market is categorized by form, including oil, powder, and soft gel. The end-user segmentation covers both individual and industrial applications, reflecting the diverse utilization of DHA across various sectors.

Market Drivers

• Growth from nutraceutical and pharmaceutical-

The escalating growth of the nutraceutical and pharmaceutical industries is witnessing a surge in demand for dietary supplements, thereby fostering a resilient market for high-quality Algal DHA as a pivotal ingredient. As economies in the Asia Pacific and Africa undergo significant expansion, the demand for pharmaceuticals and nutraceuticals is poised for a notable upswing. The pharmaceutical industry in India, presently valued at $50 billion, reflects this surge in demand.

A notable trend in 2021 revealed a substantial portion of overall healthcare expenditure in OECD countries is being directed towards retail pharmaceuticals. This expenditure category secured its position as the third-largest component within the health expenditure landscape in these countries. Notably, governments and compulsory insurance schemes emerged as the predominant payers for retail pharmaceuticals, jointly contributing to 58% of the total spending in 2021.

This upward trajectory encompasses key ingredients such as Algal DHA, underscoring the vital role of these components in meeting the evolving healthcare needs of these dynamic regions. These factors collectively underscore the expanding influence of Algal DHA within the global pharmaceutical and nutraceutical landscape.

• Growing awareness of the significance of Algal DHA-

The surging wave of health consciousness is driving an increased understanding of the pivotal role of Omega-3 fatty acids, particularly DHA, in promoting brain health, heart health, and overall well-being. This heightened awareness is fueling a growing demand for DHA supplements, with algal oil emerging as a popular choice. Notably, algal oil is being utilized for various purposes, including preventing preterm birth and addressing conditions such as autism, ADHD, depression, and more. Research has underscored the potential benefits of Algal Oil rich in Docosahexaenoic Acid (DHA), revealing its efficacy in alleviating intestinal inflammation induced by antibiotics. The modulation of the gut microbiome and metabolome contributes to this positive impact.

Recognizing the crucial importance of DHA for infants and toddlers, Progress Biotech achieved a significant milestone in April 2021 with the EU approval of its high DHA algal oil for use in Infant Formula. This approval followed a rigorous and comprehensive novel food approval process conducted by EFSA, further validating the suitability of Progress Biotech's DHA Algal oil for Infant Formula applications. The increasing awareness surrounding the benefits of DHA, coupled with regulatory approvals, is a key driver propelling the demand for algal oil in various applications, especially in the context of infant nutrition.

Market Challenges

• Competitive Pricing-

Algal DHA, despite its numerous advantages as a sustainable and vegetarian source of essential Omega-3 fatty acids, faces challenges due to the potentially higher production costs associated with its cultivation and extraction. The intricacies of the cultivation process, which requires controlled environments and specialized techniques, contribute to increased expenses. However, as demand for algal DHA grows and technological advancements continue, there is potential for these production costs to decrease, making algal DHA a more economically attractive option for consumers, particularly those seeking sustainable and plant-based alternatives to fish oil-derived DHA.

DHA (docosahexaenoic acid) market is segmented by application into pharmaceuticals, food and beverage, others-

The DHA (docosahexaenoic acid) market is segmented based on its applications. In the pharmaceutical sector, DHA plays a crucial role, being utilized in infant formula, pregnancy supplements, and medications for conditions such as Alzheimer's disease, ADHD, and cardiovascular diseases. In food and beverage, DHA finds its way into a myriad of products. It is added to fortified foods like milk, yogurt, eggs, and bread, enhancing their nutritional profile.

DHA extends its reach into various other applications. This includes playing a vital role in animal nutrition through its incorporation into animal feed. In aquaculture, DHA contributes to the development of healthier aquatic organisms. DHA also finds its place in cosmetics, where its beneficial properties are harnessed for skincare formulations.

Europe is anticipated to hold a significant share of the Algal DHA market.

Europe is supposed to hold a significant share of the Algal DHA market, driven by the growing concerns of European consumers regarding sustainability and environmental impact. The rising public awareness of the crucial role of Omega-3 fatty acids in promoting brain health, heart health, and overall well-being further propels the demand for DHA supplements. The European market benefits from a well-established nutraceutical and pharmaceutical sector, providing a robust infrastructure for the distribution and marketing of algal DHA products. Notably, the region exhibited substantial spending on retail pharmaceuticals, averaging EUR 462 per person across the EU in 2020. This economic landscape contributes significantly to the increasing demand for Algal DHA in the European market.

Market Developments

• August 2023-  Aker BioMarine's brain health ingredient, LYSOVETA™, has successfully attained new dietary ingredient (NDI) status in the United States. This significant achievement authorizes Aker BioMarine to market LYSOVETA to the broader adult population. Representing a novel dietary supplement, LYSOVETA is designed for precise delivery of LPC-EPA/DHA derived from krill, contributing to brain health.
• May 2022- The board of GC Rieber VivoMega has unveiled a strategic 5-year investment plan amounting to USD 75 million for the construction of a new facility at the manufacturing campus in Kristiansund, Norway. Anticipated to commence operations in early 2024, this state-of-the-art facility is designed to facilitate a more than twofold increase in the production output of the high-end triglyceride form of omega-3s, specifically EPA and DHA. With this expansion, GC Rieber VivoMega aims to solidify its position as a global leader in omega-3 concentrates.

Company Products

• Corbion AlgaPrime™ DHA- Corbion offers AlgaPrime™ DHA, a vegetarian source of Omega-3 Docosahexaenoic Acid (DHA), serving for animal feed. The high omega-3 DHA oil is encapsulated within the algae cell, resulting in the creation of a free-flowing dry powder. Their products are crafted from a single-cell algae strain cultivated at a large scale in enclosed ponds, utilizing proprietary cultivation techniques. AlgaPrime™ DHA stands at the forefront of sustainable practices, offering a reliable and eco-friendly alternative in animal feed formulations.
• Jedwards International, Inc. Algae Oil- Jedwards International, Inc. offers, Algae Oil with a potent 40% DHA (docosahexaenoic acid) content. Extracted through a meticulous distillation process, the key ingredients in this formulation include Algal Oil and Tocopherol. Positioned as a plant-based supplement, it offers a viable option for obtaining essential omega-3 fatty acids crucial for human body health and overall well-being. This product caters to the growing demand for plant-based alternatives, providing a valuable source of DHA without the reliance on traditional marine-derived sources.
• Algal DHA 250- Algal DHA 250, offers an exceptionally concentrated source of Algal oil, delivering robust levels of the essential Omega-3 fatty acid, DHA. Developed by ProCaps Laboratories, LLC, Algal DHA 250 represents the culmination of an extensive quest for a non-GMO, sustainable, plant-based source. This product stands to the demand for sustainable and plant-based Omega-3 supplementation.

Algal Docosahexaenoic Acid (DHA) Market Scope:

Market Segmentation

• By Application
  • Pharmaceuticals
  • Food And Beverage
  • Others
• By Form
  • Oil
  • Powder
  • Softgel
• By End-user
  • Individuals
  • Industrial
• By Geography
  • North America
    • USA
    • Canada
    • Mexico
  • South America
    • Brazil
    • Argentina
    • Others
  • Europe
    • UK
    • Germany
    • France
    • Spain
    • Others
  • Middle East and Africa
    • Saudi Arabia
    • UAE
    • Others
  • Asia Pacific
    • Japan
    • China
    • India
    • South Korea
    • Indonesia
    • Thailand
    • Others