The global DHA algae oil for infant formula market is anticipated to record significant revenue growth supported by rapid expansion of local retail stores and online marketplaces. Consumers are becoming more aware about the importance of offering a nutrition rich diet to infants. As a result, the demand for premium nutritional products has witnessed a steady rise over recent years.
DHA algae oil in infant formula can offer numerous health benefits like visual, immune and neural development. Growing popularity of vegan products over animal-based items could play a crucial role in advancing product demand. This trend has inspired various industry players to tap into the vegan market with new product offerings.
Citing an instance, in April 2020, Novosana teamed up with Dutch company, Lus Health Ingredient to develop and commercialize sustainable omega 3 products across Europe. Both the companies intend to introduce a range of vegan DHA products in Europe. Meanwhile, better oxidation stability of DHA algae oil than its counterpart, DHA fish oil, might accentuate product appeal over a broader range of audience.
According to Global Market Insights, Inc., thecould touch USD 435 million by the end of 2026. From a regional point of view, Asia Pacific is considered to be an ideal market for DHA algae oil manufacturers. Earlier in 2019, the regional market had garnered more than USD 170 million and is anticipated to maintain a growth rate of 9.5% over the predicted period. The emergence of an affluent middle-class population and the rise in the female workforce has propelled the per capita disposable income of consumers who buy baby food products. Back in 2019, women covered more than 20% of the entire Indian workforce.
Consumers across Asia pacific are steadily getting aware about the numerous health benefits of eco-friendly farming techniques and organic products. Rising parental concerns over their baby’s nutrition could drive the adoption of DHA algae oils. DHA helps in mimicking the breast milk composition as it is rich in fatty acids just like ARA and DHA. These factors could massively benefit the APAC DHA algae oil for infant formula market in the long run. Meanwhile, the U.S. market from 30% to 40% DHA algae oil could attain a growth rate of more than 2.5% during the analysis period.
Established industry participants like Archer Daniels Midland Company, Koninklijke DSM N.V., Polaris, BioPlus Life Sciences, and JC Biotech Pvt. Ltd. are focusing on a slew of strategic initiatives such as mergers, acquisitions, and new product launches to advance their product portfolio. Taking May 2020 for instance, Royal DSM announced the release of new, high-quality microbial ARASCO and DHASCO-B powders for infant nutrition.
Global Market Insights, Inc.
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