Algal DHA and ARA Market Report Overview
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The global algal DHA and ARA market size was USD 513.4 million in 2022 & the market is expected to reach USD 1034 million in 2031, exhibiting a CAGR of 8.1 % during the forecast period.
The global COVID-19 pandemic has been unprecedented and staggering, with the algal DHA and ARA market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden rise in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.
Algal DHA (docosahexaenoic acid) and ARA (arachidonic acid) are two types of omega-3 and omega-6 fatty acids, respectively, that are derived from algae. They are commonly used as nutritional supplements and additives in various products, including infant formula, food products, and dietary supplements.
Algal DHA and ARA are typically produced through a process called fermentation, where microalgae are grown in controlled environments and then harvested to extract the fatty acids. This method allows for a sustainable and vegetarian source of these essential nutrients, reducing the dependence on traditional marine sources such as fish oil.
The market is expected to grow with a substantial CAGR over the forecast period due to the increasing consumer awareness about the health benefits of omega-3 and omega-6 fatty acids, the growing preference for plant-based and vegan products, and the rising demand for infant nutrition. The sustainability aspect of algal-derived fatty acids is also a significant factor contributing to their market growth, as it provides a more environmentally friendly alternative to fish or animal-derived sources. Additionally, the market is bifurcated by type, by application, and by regional expansion of the market. Besides, DHA oil, DHA powder, ARA oil, and ARA Powder are being provided by key players. On the other hand, infant formula, food, and beverage, and nutritional supplements are the popular application segment to create the highest demand for the acid.
COVID-19 Impact: Pandemic Affected the Production and Distribution of Various Supplements
The COVID-19 pandemic disrupted global supply chains and economic uncertainties have affected production and consumer spending. However, as economies recover and the focus on health and sustainability persists, the market for algal DHA and ARA is expected to rebound and continue its growth trajectory.
Latest Trends
"Growing Expansion of Applications Expand the Market Outlook"
The market has been growing steadily in recent years due to occurring several trends and developments in the market. There is a growing interest in incorporating algal DHA and ARA into a wider range of products, including dairy alternatives, nutritional bars, functional beverages, and dietary supplements. As well as sustainability is a significant trend, with companies emphasizing the eco-friendly nature of algal-derived products and promoting the renewable sourcing of microalgae. On the other hand, consumer education and awareness about the nutritional benefits of these fatty acids are also increasing. Moreover, the market is witnessing expansion and increased competition, as more players enter the industry, expand production capacities, and enter new markets. Thereby, these trends and development are projected to support the algal DHA and ARA market growth in the coming years.
Algal DHA and ARA Market Segmentation
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- By Type Analysis
According to type, the market can be bifurcated into DHA oil, DHA powder, ARA oil, and ARA powder.
- By Application Analysis
Based on application, the market can be divided into infant formula, food and beverage, nutritional supplements, and others.
Driving Factors
"Increasing Awareness of Health Benefits Aid the Growth of the Market"
The market is witnessing a hike in demand for DHA and ARA due to a growing awareness among consumers about the health benefits of omega-3 and omega-6 fatty acids, which is a major driving factor. Research suggests that DHA and ARA play vital roles in brain development, cognitive function, cardiovascular health, and inflammation regulation. As consumers become more health-conscious, the demand for products containing these essential fatty acids increases which is going to serve the growth of the market as well.
"Rising Demand for Plant-Based and Vegan Alternatives Surge the Demand for Algal DHA & ARA"
The shift towards plant-based and vegan diets is also driving the demand for algal-derived DHA and ARA. As individuals seek alternatives to animal-based sources, algal-based fatty acids provide a sustainable and vegetarian/vegan-friendly option. Thus, this factor is like to contribute to a spike in the demand for the algal derived fatty acid.
Restraining Factors
"High Prices and Affordability Can Limit the Market Evolution "
The growth of the market can be hampered due to the high price of the acid. As algal-derived fatty acids can be more expensive compared to traditional marine-derived sources or synthetic alternatives. The higher production costs associated with cultivating microalgae and extracting the fatty acids can result in premium pricing, which may limit their accessibility to price-sensitive consumers.
Algal DHA and ARA Market Regional Insights
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"North America Dominates the Market due to a High Demand for Algal-Derived Fatty Acids "
As per market research, North America, particularly the U.S., has been a significant player in the market for algal DHA and ARA. The region has a well-established infant formula market, and the demand for algal-derived fatty acids in this sector has been substantial. Additionally, the increasing popularity of plant-based and vegan diets in North America has contributed to the growth of the market. Also, the region has acquired significant shares of the market due to extensive demand and supply in the region.
Key Industry Players
"Key Players Collaborate with Other Industry Stakeholders to Expand Their Market Reach"
With regard to key players, several key players lead the market for algal DHA and ARA, influencing market revenue through their production capacity, research and development efforts, market presence, distribution networks, partnerships, and marketing strategies. In addition, key companies collaborate with other industry stakeholders, including infant formula manufacturers, food and beverage companies, and dietary supplement producers. Prominent companies include DSM, Corbion, ADM, and Runke, among others. These companies have extensive resources, research capabilities, and established customer bases, enabling them to have a significant impact on market revenue. Furthermore, the top five key players are acknowledged for the highest algal DHA and ARA market shares globally. They invest in innovation, production capabilities, and marketing initiatives to meet growing demand, educate consumers, and expand market reach. Their influence is crucial in shaping the market landscape and driving revenue growth.
List of Market Players Profiled
- DSM
- Roquette
- ADM
- Corbion
- Lonza Group
- CABIO
- AlgiSys
- Fuxing
- Runke
- Cellana
- JC Biotech
- Yuexiang
- FEMICO
- Huison
- Qingdao Keyuan
- Yidie
- Kingdomway
- Shandong Yuexiang
Report Coverage
This report defines the algal DHA and ARA market. It emphasizes the market value, expected CAGR, and USD value over the forecast period, before and after the impact of the COVID-19 pandemic restrictions on the international market, and how the industry is going to turn the corner is also stated in the report. The report provides significant market data with its product type and product applications, end-use details, and an idea of the market growth in the future. This report also provides an understanding of the growing market trends and developments and their effects on the market growth, driving factors along with restraining factors that impact the market dynamics. Along with this, the leading region, key players of the market, and their tactics to beat the market competition, sustainable policies, their collaboration, mergers, companies’ profile, previous years’ revenue, profit & loss, and market position based on their share value in the market, are also explained in the report.
| REPORT COVERAGE | DETAILS |
|---|---|
Market Size Value In |
US$ 513.4 Million in 2022 |
Market Size Value By |
US$ 1034 Million by 2031 |
Growth Rate |
CAGR of 8.1% from 2022 to 2031 |
Forecast Period |
2022-2031 |
Base Year |
2023 |
Historical Data Available |
Yes |
Regional Scope |
Global |
Segments Covered |
Type and Application |
Frequently Asked Questions
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What value is the global algal DHA and ARA market expected to touch by 2031?
The global algal DHA and ARA market is expected to touch USD 1034 million in 2031.
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What CAGR is the algal DHA and ARA market expected to exhibit during 2022-2031?
The algal DHA and ARA market is expected to exhibit a CAGR of 8.1 % over 2022-2031.
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What are the key driving factors of the algal DHA and ARA market?
The key driving factors of the algal DHA and ARA market are increasing consumer awareness about the health benefits of omega fatty acids, growing preference for plant-based and vegan products, and the rising demand for infant nutrition.
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What are the key players in the algal DHA and ARA market?
DSM, Roquette, ADM, Corbion, Lonza Group, CABIO, AlgiSys, Fuxing, Runke, Cellana, JC Biotech, Yuexiang, FEMICO, Huison, Qingdao Keyuan, Yidie, Kingdomway, and Shandong Yuexiang are the top players in the algal DHA and ARA market.
