Research Overview
End-user Perceptions Pose a Major Challenge
A key challenge facing the Omega-3 polyunsaturated fatty acids (PUFA) industry is the need to overcome end users negative perceptions about the use of traditional PUFA sources in functional food and beverage applications. These perceptions range from instability problems and fishy tastes or odors in end products to quality and safety issues. However, advances in technology and product innovations are helping change these perceptions. Integrating Omega PUFAs into the food matrix is no longer the impossible task it once was. In fact, there are some fish oils specifically manufactured for use in functional food and beverage applications that claim to be tasteless, and can be used as an ingredient without adversely affecting the functional and sensory properties of the final product.
This Frost & Sullivan research service provides an objective analysis of end users key purchasing criteria for Omega-3 PUFAs. This analysis identifies the key drivers for growth as perceived by end users, thereby helping companies understand whether their critical growth objectives are in line with the demands of their end users.
Uncertain Regulatory Environment Likely to Hamper Growth
The Omega-3 PUFA industry is governed by legislation that in some countries prevents food manufacturers from making any kind of health claim on the labels of end products. This obviously hinders marketing efforts, as companies are unable to communicate the benefits of PUFA ingredients to end users.
"However, the impact of this challenge is expected to decrease following the recent boost in consumer awareness about the potential benefits of Omega-3 fatty acid ingredients," notes the analyst of this research service. "In September 2004, the Food and Drug Administration (FDA) extended the qualified health claim linking docosahexaenoic acid (DHA) and eicosapentanoic acid (EPA) to reduced risk of coronary heart disease from dietary supplements to foods."
Threat of Substitution Looms Large
Competition for a share of the lucrative functional food market is increasing, not only from other nutritional ingredients but also within the Omega-3 category. A case in point is the substitution of fish oil sources with less expensive vegetable oil sources. Other external substitutes include: garlic, plant sterols, and grape seed extracts.
"There is very little legislation that exists to differentiate between short- and long-chain sources," says the analyst. "Companies need to consider adding value to their long-chain Omega-3 PUFA sources or offering blends that contain other vitamins or complementary ingredients to differentiate themselves from their competitors." Raising the profile of the brand and maintaining strong customer relationships are also important.
Frost & Sullivan Growth Partnership Service
Based on extensive and in-depth research, real-world consulting work, and new theories tested in hundreds of companies across many industries, Frost & Sullivan has evolved its Growth Partnership Services (GPS) program that provides established and emerging firms with powerful growth visions. Moving beyond token mission statements, GPS provides an actionable vision to growth consulting partners by illustrating how key intelligence and strategic research based on defined goals can guide day-to-day behavior and overall company direction. The foundation of Frost & Sullivans GPS includes:
- Assisting companies to reach their full potential in the core business
- Providing growth strategies to help companies expand into related businesses
- Preemptively redefining the core business during market turbulence
- Applying the Frost & Sullivan framework to identify and address common mistakes resulting from misaligned corporate strategies
- Recommending growth management strategies through continuous partnership
To maximize the potential for growth within a firms internal and external environment, Frost & Sullivan consultants can facilitate the creation of strategic programs that deliver improved market success. Frost & Sullivans strengths lie in combining strategic understanding with market expertise and applying these with absolute commitment to its clients growth.
Benefits of this Service
Helps Companies Position their Products Correctly
Based on key findings from interviewing a number of end users, this research service identifies the major factors that influence their decisions to purchase Omega-3 ingredients. It, therefore, helps companies in positioning their products by using the most appropriate information channels and service offerings.
Provides Strategic Analysis of Drivers and Restraints
The research service discusses the specific drivers and restraints that are likely to impact market growth. This can allow companies to re-focus their research efforts in the application sector that shows the greatest market potential.
Offers Specific Strategic Recommendations
The research service provides strategic recommendations that aptly address the various challenges and restraints faced by participants in the Omega-3 ingredients industry. These recommendations are based on certain key findings of the end-user analysis.
Provides Key Information to Help Improve Customer Service
This research service provides insights into the key trends present in the different end-user application sectors. This information can help companies adapt their market and sales strategy according to the application sector they are targeting.
Market Sectors
Expert Frost & Sullivan analysts thoroughly examine the following market sectors in this research service:
- Dietary supplements
- Pet food
- Beverages
- Bakery sector
- Enteral nutrition
- Pharmaceuticals
- Infant formula
Whats Included
- Introduction to the global omega-3 fatty acid ingredient market
- Insight into industry challenges, market drivers and restraints to the omega-3 fatty acid ingredient market followed by market forecasts and trends
- Omega-3 fatty acid ingredient end-user analysis
- Omega-3 fatty acid ingredient potential user analysis
- Strategic recommendations -- identification of growth opportunities and provision of marketing and business recommendations.
- Profiles of selected omega-3 fatty acid ingredient companies
Table Of Contents
1. Executive Summary
- 1. Introduction
- 1. Introduction
- 2. Executive Summary
- 1. Executive Summary
2. Research Scope and Methodology
- 1. Research Scope and Methodology
- 1. Research Scope and Methodology
- 2. Market Overview
- 1. Market Overview
- 3. Research Objectives
- 1. Research Objectives
3. Introduction to the Global Omega-3 Fatty Acid Ingredients Market
- 1. Market Overview
- 1. Market Overview
- 2. The Value Chain
- 1. The Value Chain
- 3. Omega-3 Fortified Product Examples
- 1. Omega-3 Fortified Product Examples
4. Factors Impacting the Development of the Global Omega-3 Fatty Acid Market
- 1. End-user Perceptions
- 1. End-user Perceptions
- 2. Key Industry Challenges
- 1. Key Industry Challenges
- 3. Factors Impacting Growth of the Market
- 1. Factors Impacting Growth of the Market
- 4. Examples of Market Drivers
- 1. Market Drivers
- 5. Examples of Market Restraints
- 1. Market Restraints
- 6. Trends by Geographic Region
- 1. Europe
- 2. U.S.
- 3. Asia
5. Omega-3 Fatty Acid Ingredients End-user Analysis
- 1. Survey Respondent Characteristics
- 1. By Application Sector
- 2. Years of Experience
- 2. Key Findings
- 1. End-user Considerations
- 2. Application Summary
- 3. Beverage Products
- 4. Dairy Products
- 5. Bakery Products
- 6. Dietary Supplements
- 7. Clinical Nutrition
- 8. Infant Formula
- 9. Pharmaceuticals
- 3. Product Selection
- 1. Product Form
- 2. Omega-3 Ingredient Source
- 3. Omega-3 PUFA Concentration
- 4. Fatty Acid Type - Triglycerides vs Ethyl Esters
- 5. Omega-3 Fatty Acid Acceptance
- 4. Supplier Selection
- 1. Relative Importance of Information Sources
- 2. Key Purchasing Criteria
- 3. Purchasing Criteria by Application
- 4. Developing a PUFA Fortified Product - Support Required
- 5. Supplier Recognition
- 1. Year - 2004
- 2. Year - 2005
- 6. Customer Satisfaction
- 1. Switching Suppliers
6. Omega-3 Fatty Acid Ingredient Non-user Analysis
- 1. Introduction
- 1. Potential Interest in Developing an Omega-3 Fortified Product
- 2. Developing an Omega-3 Product
- 1. Supply Support Expected
- 2. Perceived Challenges
- 3. Manufacturer Recognition
- 1. Manufacturers Recognition
- 4. Purchasing Decisions
- 1. Key Decision Maker
- 2. Information - Ingredient Source
- 3. Information - Ingredient Suppliers
7. Strategic Conclusions and Recommendations
- 1. End-user Analysis - Summary
- 1. Overview
- 2. Entering the Omega-3 Products Market
- 3. The Importance of Service
- 4. Key Conclusions
- 2. Opportunities and Threats
- 1. Opportunities
- 2. Threats
- 3. General Strategic Recommendations
- 1. Key Market Indicators
- 2. Examples of Recommendations for Research and Development
- 3. Examples of Recommendations for Marketing and Management
- 4. Nutraceuticals Market
- 1. Critical Success Factors
- 2. Case Study: Survival in the Functional Food and Beverage Market
- 5. Pharmaceuticals Market
- 1. Key Marketing Measurements
- 2. Research and Development
- 3. Major Challenges and Strategies
- 4. Market Outlook - Omega-3 PUFA Pharmaceutical Products
8. Profiles of Selected Omega-3 Fatty Acid Ingredient Suppliers
- 1. Introduction
- 1. Introduction
- 2. Examples of Suppliers of Omega-3 Ingredients
- 1. Examples of Suppliers of Omega-3 Ingredients
- 3. Company Overviews
- 1. Company Profiles
9. Frost & Sullivan Awards
- 1. Frost & Sullivan Awards
- 1. Introduction
- 2. Customer Service Leadership Award
- 3. Technology Innovation Award
- 4. Brand Development Leadership Strategy Award
- 5. Product Innovation Award
10. About Frost & Sullivan
- 1. Frost & Sullivan
- 1. Frost & Sullivan
- 2. Frost & Sullivan Food and Beverage Ingredients GPS
