Global Fish Oil Market - 2021-2028
Fish oil is the oil extracted from the tissues of oily fish. Fish oils consist of the omega-3 fatty acids eicosapentaenoic acid (EPA) and docosahexaenoic acid (DHA), precursors of certain eicosanoids that are known to decrease inflammation in the body and enhance hypertriglyceridemia. There is also promising evidence that supports the supplementation of fish oil for the prevention of cardiac death. Fish oil is frequently marketed and sold for consumption as part of the diet or in dietary supplements in various countries. Fish oil is also applied in external use, as emollients, or as general ointments as well as in body art, or for insulation against cold temperatures. At present, the most generally available dietary source of EPA and DHA is cold-water oily fish, for example, salmon, herring, mackerel, anchovies, and sardines. Oils extracted from these fish have an amount of around seven times as much omega-3 oils compared to other fishes. Even if, fish is one of the main dietary sources of omega-3 oils, fish do not synthesize them; they get them from the algae or plankton in their diets. The global fish oil market valued USD XX million in 2020 and is estimated to reach USD XX million by 2028, growing at a CAGR of XX%
Market Dynamics: Growing health awareness and increasing geriatric population is driving the fish oil market
The growing use of fish oil as animal feed in aquaculture production is driving the growth of the fish oil market. The growth in aquaculture production has led to an increase in the use of both the fish oil and the meal derived as a consequence of seafood production and processing. Fish oil is used widely in aquaculture diets for all species because its specific fatty acids are not available in other fats and oils. It is similarly a general ingredient in companion animal diets, mainly for the feline species. Furthermore, advancement in technology development has guaranteed that aquaculture remains sustainable and has negligible environmental impacts. Additionally, developments of various systems such as on-land recirculating aquaculture systems, aquaponic systems, offshore systems and the use of IoT and big data have boosted the aquaculture industry globally. All these factors have increased the production of fish drastically, increasing the demand for fish oil significantly.
Growing awareness of the positive effect of fish oil consumption, increasing prevalence of chronic diseases & geriatric population and effective product introduction is driving the growth of the fish oil market. Krill oil is considered a more effective health supplement compared to other fish oil when taken in capsule form or used to improve certain food nutrient capability, as it binds itself to phospholipids when consumed and is therefore easily absorbed by human cells. Additionally, medical experts agree that the common diet in most countries does not provide enough EPA and DHA to ensure good health. And according to GOED (The Global Organization for EPA and DHA Omega-3s), the human body requires omega-3s to function properly, not to mention optimally, in every stage of life, starting long before conception. This requirement of Omega-3, basically among the geriatric population in Japan as well as Western European countries is driving the growth of the market.
But, the high rate of counterfeit products and over-dependence on raw materials is hindering the fish oil market growth.
Market Segmentation: Anchovy market is the dominating source segment, due to growing use in various sectors
In terms of sources, the global fish oil market is dominated by the anchovy segment with market share of XX% in 2020. Anchovy species has some of the highest concentrations of EPA and DHA polyunsaturated fatty acids among any fish species. Even if consumed as whole fish, they are also processed into fish oil for animal feed and capsules purposes, as well as used in aquaculture as fish feed. The various advantages of anchovies such as a good source of omega-3 fatty acids, protein, and important vitamins and minerals in each serving, low mercury concentrations among all fish types etc. make them a safe and nutritious option in terms of health supplementation.
On the basis of application, the global fish oil market is dominated by supplements & functional food with market share of XX% in 2020 due to various health benefits of omega 3, rising R&D initiatives, and increasing healthcare costs. The growing use of dietary health supplements for good health and nutrient adequacy among adults is expected to increase the consumption of omega 3 in dietary supplement products, which in turn increases the growth of the fish oil market.
Geographical Penetration: Asia-Pacific is the largest market in fish oil market.
Asia-Pacific is the largest market for fish oil, with nearly XX% of the global sales revenue in 2020, due to growing demand for health supplements, increasing geriatric population, increasing demand for fish-related food and fish production. The increasing aging population mainly in Japan, along with rising health awareness among the general consumers has increased the consumption of dietary supplements within the region which is driving the market growth. For instance, at present, over 25.9% of the Japanese population is aged more than 65, for which fish oil is widely consumed in Japan as a supplement to avoid cardiovascular diseases. Additionally, China is one of the world's largest producers of fishmeal and oil; however, it is mainly focusing on increasing its application in the pharmaceutical industry. North America is expected to have a high CAGR of XX% from 2021 to 2028, due to the growing popularity of fish oil as a supplement among consumers, increasing entry of manufacturers and easy availability of fish oil products through online platforms.
Competitive Landscape: Marketing and promotion is making the market more competitive
The global fish oil market is fragmented and competitive in terms of marketing in online platforms and through merger & acquisition. The leading market players of global fish oil market are Austevoll Seafood ASA, Pesquera Diamante S.A, United Marine Products, Orizon SA, Eskja, Camanchaca, Pesquera Exalmar, COPEINCA, China Fishery Group, OLVEA Fish Oils and others. Companies are focusing towards development of high concentration oils that offer high levels of DHA per unit weight of fish oil
COVID-19 Impact: Pandemic had a negative impact on global fish oil market
The Covid-19 pandemic has negatively impacted the market of fish oil due to severe supply chain disruption from fisheries to production and supplying to the aquaculture firms. In aquaculture, there is an estimated conclusion that unsold production has resulted in increasing levels of live fish stocks, creating higher costs for feeding as well as risks of fish mortalities. Even if this seems like a positive effect, but due to lockdown restrictions demand for fish oil could not be fulfilled adequately. Additionally, consumer demand for packaged and frozen products increased from the second quarter of 2020 as households looked to pile up on non-perishable food. Also high-value fresh fish and aquatic food demand has decreased as restaurants and hotels have closed, or partially closed, due to COVID-19 which has affected the production of fish oil.