Latin America Omega 3 Market

Latin America Omega-3 Market Growth Analysis Report 2022 - 2027:

Latin America Omega-3 Market is anticipated to reach an extent of USD xx billion by 2026 at a reasonable growth rate throughout the estimated period (2022 - 2027).

Omega-3s are a family of fats important for health, which are divided into alpha-linolenic acid, eicosapentaenoic acid, and docosahexaenoic acid. A hectic lifestyle and poor diet have led to a number of chronic illnesses such as diabetes and cancer. Increased consumer awareness of the health benefits of consuming omega-3 supplements is a major factor in the growth of the omega-3 market. The increasing demand for functional foods and beverages in developing and developed countries, and the growing demand for omega-3s in the pharmaceutical industry for the treatment of coronary heart diseases such as stroke and heart attack are other factors that are expected to drive growth in the Latin American omega-3 market during the forecast period.

Recent Developments

1. In October 2019, KD Pharma introduced Kardio3, which is a blend of omega-3s, vitamin K2, and phytosterols.
2. In September 2019, Polaris brought to the marketplace its Omegavie DHA 700 algae Sensory QualitySilver that aids the company in expanding in the omega-3 algae.
3. In May 2019, KD Pharma completed the purchase of a manufacturing site in the United Kingdom to increase its omega-3 supplement manufacturing capacity.

Market Drivers and Restraints:

Increasing awareness of chronic diseases, expanding the reach of omega 3s, and regulations promoting the use of omega 3s in infant formula are contributing to the growth of the Latin American market. Following this trend, key companies are actively involved in obtaining product certifications to maximize their market reach. The main market players focus on expanding their product portfolio by adopting numerous strategies, mainly mergers and acquisitions. For example, in August 2017, Aker BioMarine acquired the inventory and intellectual property of krill oil from Neptune Technologies & Bioressources Inc. for $ 34 million. This strategic initiative was launched by Aker BioMarine to gain momentum in the krill sector. Supplements and functional foods have become the largest application segment in Latin America in terms of demand. This can be attributed to the fact that omega-3s are very effective in treating a variety of health conditions, including depression, bone loss, menstrual health, and mental health, which has led to their use increased in the application segment mentioned above.

However, one of the most common challenges manufacturers of classic omega-3 ingredients face is offering products with a competitive price range. These companies face challenges in selling products at competitive prices compared to DHA and EPA natural fish oil. Nonetheless, changes in consumer lifestyles and growing concerns about health problems, particularly coronary heart disease and developmental disorders, are expected to increase demand for products in the coming years. The proven benefits of Omega 3, especially for cardiovascular disease, associated with increasing cases of cardiovascular disease in all age groups worldwide, are expected to fuel demand for Omega 3 products over the calculated period. Anchovy is the main source of omega-3 and represents around 70% of the market.

End-users in some parts of the world avoid fish products due to taste, smell, and food preferences. The omega-3 market in the form of dietary supplements and fortified foods and beverages faces a significant restriction in the form of the absence of official recommended doses. Despite extensive scientific research, a standard dosage for omega-3 intake is in vague. This has had a negative impact on market growth due to increasing confusion among consumers. It is well known that omega-3s are an important dietary supplement that can help prevent heart attacks, improve brain function, and also help with other autoimmune diseases. Non-standard doses result in incorrect dosing, resulting in little or no health benefit. The situation is more critical in developing countries such as India, China, Brazil and Argentina, where consumer awareness is low and they do not have a solid infrastructure for primary health care.

Market Segmentation:

The Latin America Omega 3 market has been divided mainly on the basis of type, source, and application.

By application, the dietary supplements segment in the market is expected to be the largest, while infant formula is supposed to grow faster by 2025. Many European countries have adopted very restrictive Codex Alimentarius or Food Code standards for food supplements that eliminate the possibility for consumers to buy food supplements in therapeutic doses. Omega-3 products are finding more and more applications in new products such as cereals, baked goods, and juices.

By type, the docosahexaenoic acid (DHA) segment is foreseen to develop at the most substantial rate over the conjecture period because of the rising need for infant formula. It helps form a coating on the nerves that provides standard impulse transmission.

By source, the marine segment is expected to be the largest and fastest growing segment during the conjecture period. EPA and DHA are synthesized by single-celled marine organisms, such as algae and plankton. The main marine source of omega-3 acids is fish oil. According to the World Organization for EPA and omega-3 DHA (GOED), anchovies and sardines are rich in omega-3 fatty acids and dominated the market in 2014 with an 80% share, followed by tuna and cod, which represents a 10% stake.

Impact of covid-19 on Latin America Omega 3 Market

Radical global restrictions on public life have been in place for more than a month, leaving more than a third of the world's population in a containment zone with no end in sight. As food consumption changes from one household to another, the food and beverage industry is in shock. Although it is too early for affected food and beverage companies to report the full impact of COVID-19, we are seeing emerging trends in earnings calls and provider conference transcripts. We expect China's results to be significantly affected in the second quarter and the market gradually starts to recover.

Regional Analysis:

The market for Latin America Omega 3 has been categorized by geography into Mexico, Brazil, Peru, Chile, and the rest of the Latin America. It is also one of the key emerging regions, which will generate significant opportunities in the Omega 3 Market during the outlook period due to growing penetration of omega 3s in the Active Pharmaceutical Ingredients (API).

Leading Company

Cargill Inc. had the largest share of the Latin America Omega 3 Market in terms of sales and revenue in 2019.

Key Players

The Latin America Omega 3 Market is concentrated with well-established players. Key players in the Latin America Omega 3 Market include Polaris, Cargill, Pharma Marine AS, Luhua Biomarine (Shandong) Co., Ltd., GC Rieber Oils, Omega Protein Corporation, OLVEA Fish Oils, Royal DSM, Croda International Plc, FMC Corporation, and others.