Nannochloropsis-derived Lipids (Fatty Acids) Market (2021-2028)

This report is executed in collaboration with the European Algae Biomass Association (EABA). Combining Meticulous Research®’ market intelligence services with EABA’s broad expertise in the development of research, technology and industrial capacities in the field of algae, the two organizations have leveraged their research capabilities to come up with the most reliable and accurate market assessments in this field.

Growing awareness about the health benefits of omega-3 Polyunsaturated fatty acids (PUFAs), rising demand for functional food products, and growing prevalence of diabetes and obesity are the key factors driving the growth of the Nannochloropsis-derived lipids (fatty acids) market.

Moreover, the growing demand for algae oil-based biofuel and increasing demand for omega-3 from the pharmaceutical industry creates lucrative growth opportunities for Nannochloropsis-derived lipid (fatty acids) manufacturers. However, the complex production process of Nannochloropsis-derived lipids (fatty acids) hinders market growth to some extent.

The COVID-19 pandemic adversely hit many economies around the world. Government measures to combat the COVID-19 pandemic, such as nationwide lockdowns and quarantines, negatively impacted many industries. Most manufacturers of food products in the F&B sector have felt the brunt of the pandemic. Social distancing, self-isolation, and city-wide lockdowns forced the closures of many establishments in countries worldwide.

In the algae industry, a major slowdown in overall microalgae production and sales was witnessed in the first quarter of 2020 due to disruptions in logistics and transportation. The market also witnessed interruptions in the entire value chain from raw materials supply for culture media to production, packaging, and biomass distribution.

In China, factory closures, microalgae processing facilities operating at reduced capacities, and restrictions on importing and exporting algae biomass strongly impacted the Nannochloropsis-derived lipids (fatty acids) market. Moreover, the pandemic adversely impacted this market in many countries globally, including the U.S., India, Australia, Brazil, and the EU-5 countries. Due to the countrywide lockdown in India, many commercial microalgae production and processing facilities were shut down or operated at reduced capacities, leading to substantial losses in overall domestic microalgal production.

Therefore, a complete halt on the transportation and logistics industry and reduced overall production of microalgae in many countries due to lockdowns in many countries worldwide adversely affected the global Nannochloropsis-derived lipids (fatty acids) market in terms of volume sales in 2020 and 2021.

In recent years, the rise of functional foods and dietary supplements has played a key role in healthy habits due to growing consumer concerns about health and the perception that diet directly affects health. The global demand for functional food is mainly driven by increasing consumer awareness regarding micronutrient deficiencies, growing health concerns, increasing disease occurrences, and increasing disposable income. Also, the rise in chronic diseases across the globe is contributing to the increasing consumer interest in nutritional food.

According to the NIH-funded study, a healthy eating diet is directly proportional to overall health improvement and reduces heart disease, stroke, and type 2 diabetes. A healthy eating trend is gaining traction and evoking interest, significantly driving healthful food formulation. The demand for functional food incorporated with omega-3 fatty acids is increasing over the years due to their added health benefits, such as reducing the risk of cardiovascular diseases, type II diabetes, ocular diseases, arthritis, etc.

Further, in response to the COVID-19 pandemic, consumers are increasingly demanding products that offer immunity-boosting benefits as a preventive measure. The functional food industry sees a rapid surge in demand for products containing immune-boosting natural ingredients. For instance, according to the International Food Information Council (IFIC) 2020 Food and Health Survey, in 2020, 43% of people followed a specific diet, with an increase of 38% from 2019, followed by a 7% low-carb diet. The motivation for teaching new diets is losing weight (47%), enhancing physical health (39%), preventing future health concerns (37%), and preventing weight gain (36%).

In 2004, the Food and Drug Administration (FDA) approved a health claim for reduced risk of CHD (coronary heart disease) for foods containing omega-3 PUFAs, mainly EPA and DHA. Thus, rising demand for functional food products is expected to boost the growth of the Nannochloropsis-derived lipids (fatty acids) market.