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.
The Nannochloropsis-derived Lipids (Fatty Acids) Market is expected to reach $4.2 million by 2028, at a CAGR of 8.5% during the forecast period 2021 to 2028. 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 Impact of COVID-19 on the Nannochloropsis-derived Lipids (Fatty Acids) Market
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.
Click here to: Get Free Request Sample Copy of this report
Rising Demand for Functional Food Products Fuels the Growth of the Nannochloropsis-Derived Lipids (Fatty Acids) Market
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.
Key Findings in the Global Nannochloropsis-Derived Lipids (Fatty Acids) Market Study:
In 2021, the Human Nutrition Segment to Dominate the Nannochloropsis-Derived Lipids (Fatty Acids) Market
Based on application, the Nannochloropsis derived lipids (fatty acids) market is mainly segmented into human nutrition, animal nutrition, and other applications. In 2021, the human nutrition segment is estimated to account for the largest share of the global Nannochloropsis derived lipids (fatty acids) market. This growth can be attributed to the increasing demand for algae oil from nutraceuticals, dietary supplements, infant formula, and F&B industries. Rising consumption of packaged baby nutrition products owing to an increasing working population is further expected to drive the growth of the Nannochloropsis derived lipids (fatty acids) market for human nutrition, as algae omega-3 DHA possesses an important role in the development of an infant's nervous system, vision, brain, and overall growth. Moreover, the rising demand for immunity-boosting products is expected to create lucrative opportunities for the stakeholders in the Nannochloropsis- derived lipids (fatty acids) market for human nutrition.
In 2021, the Health Supplements & Nutraceuticals Segment to Dominate the Nannochloropsis-Derived Lipids (Fatty Acids) Market for Human Nutrition
Based on type (human nutrition-related applications), the Nannochloropsis derived lipids (fatty acids) market is mainly segmented into health supplements and nutraceuticals, pharmaceuticals, and other human nutrition applications. In 2021, the health supplements & nutraceuticals segment is estimated to account for the largest share of the global Nannochloropsis derived lipids (fatty acids) market for human nutrition, owing to the growing health supplements and nutraceutical industry and rising use of algae oil instead of fish oil in the health supplements and nutraceutical industry.
In 2021, Europe is Expected to Dominate the Overall Nannochloropsis-Derived Lipids (Fatty Acids) Market
Based on geography, the global Nannochloropsis derived lipids (fatty acids) market is divided into North America, Europe, Asia-Pacific, Latin America, and the Middle East & Africa. Europe is estimated to account for the largest share of the global Nannochloropsis derived lipids (fatty acids) market in 2021, followed by North America and Asia-Pacific, owing to the huge consumption of health and wellness products and growing prevalence of heart diseases. Also, the easy availability of raw materials due to the presence of key Nannochloropsis biomass suppliers for lipid extraction further drives the growth of this market in the region. Moreover, the growing nutraceuticals and dietary supplements industry and rising popularity of omega 3 fortified/functional food and beverages among the aging population are expected to create lucrative opportunities for the stakeholders in the Nannochloropsis derived lipids (fatty acids) market in the region.
The report includes a competitive landscape based on an extensive assessment of the key strategic developments adopted by leading market participants in the industry over the past 4-5 years. The key players profiled in the global Nannochloropsis derived lipids (fatty acids) market research report are Arizona Algae Products, LLC (U.S.), Lyxia Corporation (China), Shaivaa Algaetech LLP (India), and iwi Life (U.S.), among others.
Scope of the Report:
Nannochloropsis-derived Lipids (Fatty Acids) Market, by Application
- Human Nutrition
- Health Supplements & Nutraceuticals
- Other Human Nutritional Applications
- Animal Nutrition
- Other Applications
Nannochloropsis-derived Lipids (Fatty Acids) Market, by Geography
- North America
- Rest of Europe (RoE)
- Asia-Pacific (APAC)
- Rest of APAC (RoAPAC)
- Latin America
- Rest of Latin America (RoLATAM)
- Middle East
Key Questions Answered in the Report-