Algae Omega-3 Market to Reach $1.47 Bn by 2032, Driven by Infant Nutrition and Plant-Based Demand

HYDERABAD, India, Aug. 26, 2025 /PRNewswire/ -- According to DataM Intelligence, "The Algae Omega-3 Ingredients Market Size was US$850.5 million in 2024 and is expected to reach US$1,471.3 million in 2032, growing at a CAGR of 7.4% during the forecast period (2025-2032)."

The growing demand for algae omega-3 ingredients in infant formulations has also been a major driver in the algae omega-3 market. DHA (Docosahexaenoic Acid) is vital for the brain, eye and nervous system development in infants and as parents and healthcare professionals increasingly recognize its importance for early childhood development, the demand for DHA-rich, algae-derived infant formulas has surged. This trend has led to considerable growth in the algae omega-3 market.

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Rising Demand for Algae Omega-3 Ingredients in Infant Formulations

Omega-3 fatty acids, particularly DHA (Docosahexaenoic Acid), are crucial for the development of the brain, eyes and nervous system in infants. As parents and healthcare providers increasingly recognize the importance of these nutrients in early childhood development, the demand for DHA-rich infant formulas, derived from algae, is surging. It has led to substantial growth in the algae omega-3 market, especially in the infant nutrition sector. For instance, according to the Boston Congress of Public Health Review Journal, 2023, plant-based omega-3 has been shown to promote balanced ratios of omega-3 and omega-6 fatty acids, which is supported by scientific research.

Moreover, plant-based omega-3 plays a distinct role in supporting brain development in children and has antioxidant properties that provide neuroprotective effects. Several studies have suggested that adequate intake of omega-3 has a beneficial effect on cognitive function and overall brain health in children.

Additionally, baby milk companies are shifting their attention to plant-based milk to meet parents' demand for "clean", allergen-free infant formulas. Such products can be an option for toddlers with a cow's milk allergy. They can also target parents who want to give their toddlers plant-based nutrition.

Untapped potential in emerging markets

Emerging markets, particularly in Asia-Pacific, Latin America and Africa, offer vast growth opportunities for algae-based omega-3 ingredients due to increasing health awareness, urbanization and rising disposable incomes. As consumers in these regions become more aware of the health benefits of omega-3, the demand for plant-based, sustainable and toxin-free alternatives to fish oil is steadily increasing.

For instance, in India, the wellness industry is rapidly growing, driven by consumers seeking supplements for heart and brain health. The rise in vegan and vegetarian lifestyles further strengthens the appeal of algae-based omega-3 products. India ranks 7th in the global wellness economy, with a market size of USD 132.5 billion in 2022, showing strong recovery and growth after the pandemic with a 16.5% increase.

Similarly, in Brazil, the functional foods and dietary supplements market is thriving. Algae-derived DHA and EPA are gaining popularity as clean-label and sustainable solutions that resonate with health-conscious consumers.

In Africa, where malnutrition and dietary deficiencies are major concerns, algae omega-3 offers a viable solution. The trends highlight the untapped potential in these regions, making them key targets for market expansion.

North America Algae Omega-3 Ingredients Market: Growth Drivers, Trends, and Regional Outlook

North America's Algae Omega-3 Ingredients market is estimated to reach US$ 646.4 million by 2032, growing at a CAGR of 7.1% during the forecast period from 2025-2032.

US accounts for the largest share of North America's algal omega 3 ingredient market. It is due to increasing Omega 3 supplementation, food consumption and public awareness of the substance's health advantages. In addition, the big businesses' domestic expansion and regular product releases with enhanced formulas help to increase the regional market.

Algae-derived Omega-3, as opposed to fish oil, removes worries about marine pollutants and provides a moral substitute for vegan and vegetarian communities. The benefits of these products for cognitive, cardiovascular and general health are becoming more widely acknowledged.

A greater percentage of health-conscious consumers in North America who prioritize fortified foods and nutritional supplements has increased. About 10% of American adults were Omega-3 deficient in 2023, according to the USDA, highlighting the urgent need for supplements. The need for Omega-3 components is further fueled by the development in chronic illnesses like heart problems and cognitive impairment. The CDC's studies also highlight how Omega-3 can lower inflammation and enhance cardiovascular health.

In October 2023, Ingredient supplier dsm-firmenich announced the launch of a new algal omega-3 ingredient, life'sOMEGA 03020, in North America. The single-source omega-3 ingredient is the first on the market to have the same ratio of EPA and DHA as fish oil, the company reported.

Plant-based diets have becoming more popular in North America; according to data from Veganuary USA, about 10 million Americans identified as vegan in 2024. For people who are avoiding conventional fish oil products, algae Omega-3 components provide a non-animal-derived substitute. This is in line with movements that support ethical consumption and environmental sustainability.

Market Share Dynamics and Key Players in the Algae Omega-3 Ingredients Market

The global algae omega-3 ingredients market is fragmented, with several key players competing to capture market share, reflecting a dynamic and competitive landscape. In 2024, DSM-Firmenich holds the largest share at 15.3%, followed by Polaris France with 12.5%.

Collectively, Algarithm, KD Pharma Group SA, and Solutex account for 27.4% of the market. The remaining producers, categorized as Others, represent 45.0% of the market. This structure underscores both the dominance of a few leading companies and the continued presence of numerous smaller or regional players, driven by the rising demand for plant-based and sustainable omega-3 sources.

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Why Choose This Algae Omega-3 Ingredients Market Report?

• Latest Data & Forecasts: Comprehensive, up-to-date market insights and projections through 2032, covering value, volume, and CAGR trends.
• Regulatory Intelligence: Actionable analysis of key policies and standards such as FDA approvals for infant formula, EFSA guidelines in Europe, and sustainability initiatives promoting plant-based nutrition.
• Competitive Benchmarking: Assess strategies of leading players including DSM-Firmenich, Polaris France, Algarithm, KD Pharma Group, Solutex, and emerging regional producers.
• Emerging Market Coverage: Special focus on high-growth regions including North America, Europe, Asia-Pacific (China, India, Japan, South Korea), and other developing markets.
• Actionable Strategies: Identify growth opportunities in dietary supplements, infant nutrition, fortified foods, and pharmaceuticals while addressing production cost challenges and consumer education barriers.
• Pricing Analysis: Detailed assessment of historical and current algae omega-3 pricing trends by ingredient type (DHA, EPA, ARA), application, and region, with insights into cost drivers and value chain optimization.
• Expert Analysis: Insights from industry specialists with proven expertise in nutraceuticals, sustainable food systems, algae cultivation technologies, and plant-based market dynamics.

Related Reports:

1. Omega-3 Market Size to Reach $4.85 Billion by 2032, Growing at 7.92% CAGR | DHA Segment and Algae-Based Sources Drive Global Expansion.
2. Omega-3 Supplements Market Size to Reach $17.08 Billion by 2032, Growing at 9.59% CAGR | Rising Health & Wellness Demand
3. Omega-3 Fatty Acid for Aquaculture Market Size to Reach US$ 1,575.3 Million by 2032 Driven by Nutrient-Rich Seafood Demand

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