FOOD TRENDS
Omega 3: case study
Figure 2
Claimed by many to be one of the most promising
Examples of Market Drivers
nutraceutical ingredients of the decade, Omega-3 Fatty
Global Omega-3 End-user Market (2006-2012)
acids have attracted a lot of interest not only from
Rank Driver 1-2 Years 3-4 Years 5-7 Years
consumers but the biotech industry and the investment
community, Figures 2 and 3 illustrate some of the major
1
Heightened Profile of Omega-3 Benefits in the Media
High High Medium
Increases Consumer Awareness and Demand
factors driving growth in the global Omega-3 Fatty acid
2
Inadequate Omega-3 Intake in the Diet Highlights the
High Medium Medium market (Frost & Sullivan, 2006). As illustrated in figure
Nutrition Gap
4, end-users need to consider a number of different
Move towards Achieving Optimum Nutritional Balance
3
High Medium Medium
in Diet attributes when selecting an Omega-3 Fatty Acid
Fight Against Major Diseases Increases Relevance of
4
High Medium Medium
product. While product format and concentration maybe
Omega PUFAs
application specific – others such as cost are driven by
5 Increasing Scientific Evidence Drives Growth High Medium Medium
consumer expectations.
6
Fortification Trend Helps Increase Acceptance of
“Well-Being” Ingredients in Foods
Medium Medium Medium
Technological Advances Improve Sensory Attributes
7
In terms of product formulation, from an end-users
and Widens the Scope for Fortification
Medium Medium Medium
perspective, cost is a major consideration. If given
Established Traditional Healthy Image of Marine Oil
8
improves Acceptability
Medium Low Low the choice, a lot of end-users will opt for the cheaper
Source: Frost & Sullivan
ingredients, especially when the ultimate user is
unable to distinguish the differences. Such a factor has
restrained growth of the long chain fatty acid Omega-3
Figure 3
Examples of Market Restraints
fatty acid market. Although the benefits of long chain
fatty acids vs short chain fatty acids are often discussed
Global Omega-3 End-user Market (2006-2012)
amongst suppliers, consumers often have no clue. Most
Rank Restraint 1-2 Years 3-4 Years 5-7 Years of the published research supports the long chain fatty
1
Misconceptions Regarding Fats delays Widespread
High High Medium
acids which are currently sourced mainly from algae
Consumer Acceptance
oil and marine oil. Some end-users may consider these
2 Poor Consumer Understanding of PUFA Benefits High High Low
ingredients too high in price. With legislation and health
3
Regulations in Some Markets are Ambiguous and Not
High Medium Medium
Well Defined
claims now being only being linked to long chain fatty
4 Absence of RDI restricts Marketing Effort High Medium Low acid Omega-3 ingredients in specific countries, the
5
Limited Success of Traditional Omega-3 PUFA short chain Omega-3 fatty acid market is not looking
Ingredients in Functional Food and Beverages
High Medium Low
as positive as it did five years ago. In line with end-
6 Increased Competition from Asian Manufacturers Medium Medium Medium
users demand for cheaper ingredients, there has been
7
Research Suggesting Supplements falling Short of
Medium Medium Low
Label Claims
increasing interest in the use of biotechnology in crops
8 Food Scares in Europe Low Medium Low
to produce long chain equivalents’ at a lower price.
9 Fluctuating Raw Materials Prices Low Low Low
Although it is early days, companies such as BASF for
example, have already realised the potential of the
Source: Frost & Sullivan
Omega-3 market and have invested in researching this
area further in the hope of future returns.
Figure 4
Product Selection
The potential use of GM Omega-3 fortified product is
not a new issue, but its success is dependent on the
Examples of Product Selection Criteria
end-users themselves. A recent study by Frost & Sullivan
researched this very issue. Only 29% of companies
surveyed stated that they would be interested in GM
Product Form: Concentration:
Omega-3 ingredient if it was cheaper than alternatives
Powder or Oil Low, Medium or High
currently available in the market. There are obvious
geographic differences, and responses differed according
to the application sector in question. Those application
Examples of
GM Source
sectors where the consumer was the ultimate decision
Product Selection
Fatty Acid Type:
Acceptance
Criteria
EE or TG maker rated lower than those that did not. The
development of GM Omega-3 source is not new. With
the obesity epidemic showing no signs of slowing down
Omega-3 Fatty Acid Source
there is huge potential for suppliers and distributors.
Marine vs Algae
Certainly, consumer acceptance will ultimately determine
success. With such powerful evidence supporting the
Source: Frost & Sullivan
benefits, such research and development investments are
bound to reap rewards in the long term.
12 May 2007 • www.agrowmag.com
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