Porter's Five Forces Analysis for the DHA Market:

1. Competitive Rivalry:
• The DHA (Docosahexaenoic Acid) market is highly competitive, with several companies offering DHA products and supplements.
• The competition is intense, as companies strive to gain market share and differentiate their products.
Factors influencing competitive rivalry include the number of competitors, industry growth, similarities in products, exit barriers, and fixed costs.
2. Threat of New Entrants:
• The threat of new entrants in the DHA market is relatively low.
• Existing companies have established brands, customer loyalty, and strong distribution channels, making it difficult for new entrants to gain market share.
• Factors affecting the threat of new entrants include economies of scale, product differentiation, capital requirements, access to distribution channels, regulations, and switching costs.
3. Supplier Power:
• Suppliers in the DHA market have moderate power.
• The key suppliers in this market are the manufacturers of DHA, which is primarily derived from marine sources.
• Factors influencing supplier power include the number of suppliers, uniqueness of the product, switching costs, forward integration, and industry importance.
4. Customer Power:
• Customers in the DHA market have moderate power.
• They have the ability to choose from various DHA products and supplements available in the market.
• Factors affecting customer power include the number of buyers and their bargaining power, which can influence product pricing and quality.
5. Threat of Substitutes:
• The threat of substitutes in the DHA market is relatively low.
• DHA is a unique omega-3 fatty acid with specific health benefits, and there are limited substitutes available.
• However, other omega-3 fatty acids, such as EPA (eicosapentaenoic acid), ALA, can be considered as substitutes to some extent.

SWOT Analysis for the DHA Market:

Strengths:

• DHA has proven health benefits, including brain development, cognitive function, and cardiovascular health.
• DHA is widely recognized and recommended by healthcare professionals.
• Established companies in the DHA market have strong brand recognition and customer loyalty.

Weaknesses:

• The DHA market faces competition from other omega-3 fatty acids and alternative sources of nutrition.
• Limited consumer awareness and understanding of the benefits of DHA.
• Potential challenges in sourcing high-quality DHA from sustainable and traceable sources.

Opportunities:

• Growing consumer interest in health and wellness, leading to increased demand for nutritional supplements.
• Expansion into new markets and product segments, such as infant formula, functional foods, and dietary supplements.
• Research and development of innovative DHA products with enhanced bioavailability and targeted health benefits.

Threats:

• Intense competition from existing and new players in the market.
• Regulatory challenges and changing government policies regarding health claims and labeling requirements.
• Potential negative publicity or controversies surrounding the safety or efficacy of DHA products.

Overall Outlook

In summary, the DHA market is poised for growth driven by increasing health awareness, technological advancements in extraction methods, and expanding applications across various sectors. By capitalizing on these strengths and opportunities while addressing competitive challenges, stakeholders can look forward to a thriving market landscape.

The Business Model Canvas is a powerful strategic tool that provides a visual framework for entrepreneurs to systematically analyze and design our business models. By breaking down key components such as value propositions, customer segments, revenue streams, and cost structures, it enables entrepreneurs to identify strengths, weaknesses, and opportunities for innovation in our projects.

Figure 1. The Business Model Canvas (can put summary of our components into the graph)

Consumer Segments:

2C:

1. Health-conscious consumers: This segment includes individuals who prioritize their health and wellness and actively seek products that offer nutritional benefits ^[1].
2. Fitness enthusiasts: This segment includes individuals who are engaged in regular physical activity and may be interested in DHA products for their potential benefits in supporting brain health and reducing inflammation.
3. Individuals with specific dietary needs: This segment includes individuals who follow specific dietary patterns such as vegan or gluten-free. DHA supplements derived from algae oil can be suitable for individuals with dietary restrictions.

2B:

TAM (Total Addressable Market):

All companies involved in biofuel and bio lipid production are potential customers for the DHA Express project. This includes industries focused on various lipid applications, not just omega-3 fatty acids.

SAM (Serviceable Available Market):

The SAM includes companies specifically targeting omega-3 fatty acid production and those needing high-lipid yeast systems for biolipid applications. This market consists of health supplement manufacturers, food industry players looking for omega-3 sources (including DHA, EPA, ALA. etc.).

SOM (Serviceable Obtainable Market):

The SOM represents the specific segment of the SAM that the team can realistically capture within the first few years. This includes Asia Pacific health supplement companies that aims to produce DHA supplements. By establishing partnerships and demonstrating successful pilot projects, our team aims to secure a percentage of these markets

Valuation

Total Addressable Market (TAM)

The global biofuel market is projected to reach approximately $4.25 billion by 2030 [5] Assuming a steady growth rate, we can estimate the TAM for 2024 to be around $3.5 billion.

Serviceable Available Market (SAM)

The omega-3 fatty acids market is expected to grow from $1.62 billion in 2021 to $2.24 billion by 2028 [3]. To estimate the SAM for 2024, we use a linear growth model:

• Estimated SAM for 2024: Approximately $1.9 billion.

Serviceable Obtainable Market (SOM)

Focusing on the Asia Pacific region, where the DHA market is expanding, we can estimate the SOM based on the SAM. If our team aims to capture about 40% of the SAM in the first few years, the SOM can be calculated as follows:

• Estimated SOM for 2024:
• At 5% of SAM: $95 million
• At 10% of SAM: $190 million

Summary of Valuation for 2024:

• TAM: Approximately $3.5 billion
• SAM: Approximately $1.9 billion
• SOM: Between $95 million and $190 million

Figure 2. TAM SAM SOM Market Valuation for our project

Value Proposition

"Empower your business with our sustainable yeast technology for high-yield DHA synthesis, bridging the gap between rising demand and declining supply for better global nutrition."

Channels:

Direct Channels

• Direct Sales: Outreach to DHA production companies.
• Consulting Services: Integration support for clients.

Partnerships

• Partnerships and Alliances: Collaborations with established companies.
• Demonstration Projects: Pilot projects to showcase technology.

Marketing and Promotion

• Industry Conferences and Trade Shows: Networking and showcasing at events.
• Online Marketing: Website and social media promotion.
• Webinars and Workshops: Educational sessions for potential customers.
• Industry Publications: Articles and case studies in relevant journals.

Support

• Technical Support and Training: Ongoing assistance for implementation.
• Networking and Industry Associations: Building relationships within the sector.

Customer Relationships

Personalized Support

• Personalized Support: Providing tailored assistance to help clients integrate the DHA production technology effectively.
• Account Management: Assigning dedicated account managers to maintain regular communication and ensure customer satisfaction.

Technical Support

• Technical Assistance: Offering ongoing technical support to resolve issues and optimize production processes.
• Training and Workshops: Conducting training sessions to educate clients on best practices and maximize the use of the technology.

Feedback and Improvement

• Feedback Mechanisms: Establishing channels for client feedback to continuously improve the product and service offerings.

Partnership Development

• Building long-term relationships through collaborations and strategic partnerships.

Community Engagement

• Creating a community of users for knowledge sharing and networking opportunities.

Revenue Streams

1. Licensing and Royalties: Companies in the DHA market may generate revenue through licensing agreements and royalties. This can involve granting other companies the right to use their DHA-related patents, technologies, or formulations in exchange for licensing fees or royalties based on sales.
2. Contract Manufacturing: Some companies in the DHA market may offer contract manufacturing services to other businesses. This involves manufacturing DHA products on behalf of other companies, which can generate revenue through manufacturing fees or profit-sharing arrangements.
3. Research and Development (R&D) Collaborations: Companies in the DHA market may engage in research and development collaborations with academic institutions, research organizations, or other companies. These collaborations can lead to joint R&D projects, funding partnerships, or licensing agreements, which can generate revenue for the company.
4. Contract Research and Testing Services: Some companies in the DHA market may offer contract research and testing services to other businesses. This can involve conducting research studies, clinical trials, or quality testing related to DHA products, which can generate revenue through service fees.
5. Consulting and Advisory Services: Companies with expertise in the DHA market may offer consulting and advisory services to other businesses. This can involve providing strategic guidance, market analysis, regulatory compliance support, or formulation advice, which can generate revenue through consulting fees.

Key Resources

1. Manufacturing Facilities: Companies in the DHA market require manufacturing facilities to produce Dihydroxyacetone. These facilities should have the necessary equipment and infrastructure to ensure efficient and high-quality production.
2. Raw Materials: The availability of raw materials is vital for the production of Dihydroxyacetone. Key raw materials include carbohydrates and other chemical compounds used in the synthesis of DHA ^[4]
3. Research and Development Capabilities: Companies need strong research and development capabilities to innovate and improve their DHA products. This includes conducting research on new formulations, product enhancements, and process optimization.
4. Quality Control and Testing: Ensuring the quality and safety of DHA products is crucial. Companies need resources for quality control and testing, including laboratories and equipment to perform tests and analysis.
5. Distribution and Logistics: Efficient distribution and logistics networks are essential for reaching customers and delivering DHA products to various markets. This includes transportation, warehousing, and inventory management.
6. Marketing and Sales: Companies need resources for marketing and sales activities to promote their DHA products and reach potential customers. This includes branding, advertising, sales teams, and marketing campaigns.
7. Regulatory Compliance: Compliance with regulatory requirements and standards is critical in the DHA market. Companies need resources to ensure compliance with relevant regulations, such as safety, labelling, and product registration.

Key Activities

1. Research and Development (R&D): Companies in the DHA market need to invest in R&D to develop new and innovative products, improve production processes, and enhance the quality and purity of DHA. This includes conducting clinical trials, testing the efficacy and safety of DHA, and exploring new applications and formulations.
2. Sourcing and Procurement: Companies must establish reliable and sustainable sources of DHA, which can be derived from marine sources such as algae and fish oil. This involves identifying and partnering with suppliers, negotiating contracts, and ensuring the traceability and sustainability of the raw materials.
3. Production and Manufacturing: The production of DHA involves extraction, purification, and concentration processes. Companies need to invest in manufacturing facilities, equipment, and technologies to ensure efficient and high-quality production. This includes adhering to Good Manufacturing Practices (GMP) and quality control standards.
4. Marketing and Sales: Effective marketing and sales strategies are crucial to promote DHA products and reach target customers. This includes market research, branding, advertising, and distribution channel management. Companies need to educate consumers about the benefits of DHA and differentiate their products from competitors.
5. Regulatory Compliance: The DHA market is subject to various regulations and standards related to safety, labelling, and claims. Companies must ensure compliance with these regulations and obtain necessary certifications and approvals. This includes working closely with regulatory authorities and staying updated on any changes in regulations.
6. Customer Support and Service: Providing excellent customer support and service is essential for building customer loyalty and satisfaction. This includes addressing customer inquiries, providing product information, and handling any issues or complaints promptly and effectively.

Key Partnerships

1. DSM Nutritional Products: DSM is a global leader in the production of nutritional and health products, including DHA. The company's value is around $22 billion, and its main product is life science and material science products. In 2020, DSM reported revenue of €8.1 billion.
2. Lonza Group: Lonza is a Swiss-based company that produces a wide range of chemicals and biotechnology products, including DHA. The company's value is around $17 billion, and its main product is specialty chemicals. In 2020, Lonza reported revenue of CHF 4.5 billion.
3. ADM (Archer Daniels Midland Company): ADM is a global food processing and commodities trading corporation that produces a wide range of products, including DHA for use in food and nutrition applications. The company's value is around 64.3 billion.
4. Croda International: Croda is a UK-based specialty chemical company that produces a wide range of products, including DHA for use in personal care and nutrition applications. The company's value is around $12 billion, and its main product is specialty chemicals. In 2020, Croda reported revenue of £1.39 billion.
5. AlgaeCytes: AlgaeCytes is a UK-based biotechnology company specializing in the production of omega-3 fatty acids, including DHA, from algae. The company's value is not publicly available, but its main product is omega-3 oils derived from algae. AlgaeCytes focuses on sustainable production methods and harnessing biotechnology for health and nutrition applications.
6. Polaris: Polaris is a French-based company specializing in the production of high-quality lipid nutrition products, including DHA. The company's value is not publicly available, but its main product is omega-3 oils derived from fish and algae. Polaris is committed to providing innovative and sustainable solutions for health and nutrition industries.

References:

[1] Business Research Insights. (2023). *Docosahexaenoic acid (DHA) market size, share, growth, and industry analysis, by type (fish oil DHA, algae DHA and other), by application (breastfeeding mother, infants and young children, pregnant mother and adults need to improve memory), regional insights, and forecast to 2032*. Retrieved from https://www.businessresearchinsights.com/market-reports/docosahexaenoic-acid-dha-market-110648
[2] Cognitive Market Research. (2024). *Docosahexaenoic acid (DHA) market size, growth report, 2031*. Retrieved from https://www.cognitivemarketresearch.com/docosahexaenoic-acid-dha-market-report
[3] Fortune Business Insights. (2024). *EPA & DHA market size, share, analysis, 2032*. Retrieved from
[4] Mordor Intelligence. (2024). *EPA and DHA market - outlook, forecast, companies & size*. Retrieved from
[5] SkyQuest Technology Consulting. (2023). *DHA algae oil for infant formula market size, share, growth analysis - industry forecast 2023-2030*. Retrieved from
[6] Polaris Market Research. (2024). *Omega 3 market share, size, trends, industry analysis report, 2024 - 2032*. Retrieved from

Introduction

To estimate the total cost of the project and provide support for our profitability, the following cost analysis was performed. We break down the cost structure by the upfront fixed capital investment (FCI) and the production cost, with the following results.

Fix Capital Investment

The FCI was calculated based on the work of Karamerou et al. (2021), with the input prices adjusted to the price level of the year 2024 based on the PPI of equipment provided by FRED ^[2]

Table 1. Fix Capital Investment for a typical bioreactor microbial oil production factory

Raw Materials:

To estimate raw material cost, we estimate the recipes for bioreactors based on the lab protocols. Since we are implementing a two-stage growth approach, we have two recipes where Table 2 is the recipe for growth stage and Table 3 is that of lipid production stage. From dry lab results we assume that every liter of YNB recipe outputs 3 grams of DHA, and we assume the factory outputs 50 tons of DHA per year. Adjusting the recipe for industrial production, we summarize the raw material cost in Table 4.

Table 2. Lab recipe for yeast growth

Table 3. Lab recipe for lipid production

Table 4. Annual Raw Material Cost Estimation

Utilities:

Cost of utilities are also estimated based on the work of Karamerou et al. (2021), with input prices adjusted to 2024 dollars ^[3][4].

Table 5. Annual Utilities Cost Estimation

Operating Labor:

We estimated the operating labors in a bioreactor factory and their annual salaries. The salaries are found on glassdor.com and are based on the labor price of Mainland China ^[5].

Table. 6 Annual Cost for Operating Labor and Overhead for a Typical Bioreactor Microbial Oil Production Factory

Summary:

The following production costs were calculated based on the aforementioned items, summarized in Table 7.

Table 7. Estimated Annual Cost Breakdown.

References:

[1] Karamerou, E. E., Parsons, S., McManus, M. C., & Chuck, C. J. (2021). Using techno-economic modelling to determine the minimum cost possible for a microbial palm oil substitute. Biotechnology for Biofuels, 14(1), 57. https://doi.org/10.1186/s13068-021-01911-3
[2] U.S. Bureau of Labor Statistics. (n.d.). Producer price index by commodity: Machinery and equipment: Construction machinery and equipment (WPS112). FRED, Federal Reserve Bank of St. Louis. Retrieved from https://fred.stlouisfed.org/series/WPS112
[3] U.S. Bureau of Labor Statistics. (n.d.). Producer price index by industry: Electric power distribution (PCU221122221122). FRED, Federal Reserve Bank of St. Louis. Retrieved from https://fred.stlouisfed.org/series/PCU221122221122
[4] U.S. Bureau of Labor Statistics. (n.d.). Producer price index by industry: Chemical manufacturing (PCU325325). FRED, Federal Reserve Bank of St. Louis. Retrieved from
[5] Glassdoor. (n.d.). Glassdoor. Retrieved from http://glassdoor.com/

Factory Setup (2024-2025)

2024:

• Identify and secure a suitable location for the manufacturing facility.
• Acquire necessary permits and regulatory approvals for construction.
• Finalize factory design and layout for optimized production efficiency.

2025:

• Construct the manufacturing facility.
• Install machinery and equipment for yeast fermentation and oil extraction.
• Hire and train staff for operational roles.

Patent Application (2024-2025)

2024:

• Conduct a comprehensive prior art search to identify patentable innovations.
• Prepare and file patent applications for key technologies related to yeast engineering and DHA production.

2025:

• Follow up on patent applications, addressing any feedback from patent offices (OKT).

Advertising and Promotion (2024-2030)

2024:

• Develop branding and marketing stractegies to highlight the unique value proposition of the DHA products.

2025-2030:

• Launch targeted online marketing campaigns, including social media and search engine advertising.
• Participate in industry conferences and trade shows to showcase technology and products.
• Publish articles and case studies in industry journals to build credibility.
• Organize webinars and workshops to educate potential customers about DHA benefits.

Partnership Development (2024-2030)

2024:

• Identify potential partners in the DHA market, including companies in health supplements and biofuels.

2025-2030:

• Establish partnerships through licensing agreements, joint ventures, or strategic alliances.
• Collaborate on pilot projects to demonstrate the technology's effectiveness.

Regulatory Compliance Specific to Food Safety and GMO Safety (2024-2034)

2024:

• Conduct regulatory research to identify applicable food safety regulations (e.g., FDA, EFSA) and GMO guidelines (e.g., USDA, EPA).
• Establish a compliance team focused on food safety and GMO safety.

2025:

• Conduct safety assessments of DHA products, including toxicological studies and allergenicity evaluations.
• Perform a GMO risk assessment for any genetically modified organisms used in production.

2026:

• Compile necessary documentation for regulatory submissions, including safety data sheets and production protocols.
• Pursue relevant certifications (e.g., ISO 22000, HACCP).

2027:

• Submit regulatory applications for food safety approvals and GMO notifications.

2028:

• Implement monitoring systems for ongoing compliance with food safety regulations.
• Conduct internal audits to ensure adherence to safety protocols.

2029-2030:

• Launch products while ensuring compliance with labelling and safety regulations.
• Monitor product performance and safety in the market, collecting feedback.

2031-2034:

• Regularly review and update compliance protocols to adapt to regulatory changes.
• Engage with regulatory authorities and provide ongoing training for staff on compliance.

Customer Acquisition (2025-2034)

2025:

• Conduct market research to identify target customer segments and prioritize outreach.

2026-2034:

• Implement a comprehensive sales strategy, including direct outreach and account management.
• Provide personalized support to assist clients in integrating DHA technology into their products.
• Establish feedback mechanisms to continuously improve offerings based on customer input.

Research and Development (2024-2034)

2024:

• Allocate resources for R&D to innovate and enhance DHA production processes.

2025-2034:

• Conduct ongoing research to improve product quality and explore new applications.
• Engage in clinical trials to validate the efficacy and safety of DHA products.

Based on the Cost Breakdown, we propose the following assumptions to project the project revenue.

Assumptions for DHA Project Analysis

1. Sales Volume: The project will produce and sell a total of 75 tons of DHA per year in full production, with no discounts applied to sales.
2. Working Capital: The working capital requirement for the project is assumed to be 10% of the Fixed Capital Investment (FCI). Changes in Net Working Capital (NWC) will occur in Year 0 (initial investment) and Year 15 (final year of the project).
3. Tax Rate: A corporate tax rate of 16.5% will be applied to the project's taxable income.
4. Pricing: The price of DHA is set at $0.50 per gram, resulting in projected annual sales revenue of $25,000,000.
5. Financing Structure: The project will finance 60% of its FCI through debt, which will be structured as a 10-year loan with an annual percentage rate (APR) of 8%.
6. Discount Rate: A discount rate of 10% will be used for all future cash flow projections.
7. Production Scale: Production capacity will start at 40% in Year 1 and will increase linearly each subsequent year until full capacity is reached.

Results

With that, we forecast the pro forma statement of cash flows for the next decade.

Table 1. pro forma statement of cash flows

Figure 1. Net Cash Flow Projection in USD

Figure 2. EBIT Projection in USD

Figure 3. Groff Profit Projection in USD

Conclusion

In conclusion, our financial outlook is highly promising due to our innovative approach to producing DHA through a unique pathway that significantly reduces production costs. By leveraging sustainable technologies and efficient processes, we are well-positioned to meet the growing demand for DHA in the health and wellness market, ultimately enhancing our competitive advantage and driving profitability.

To help our team transform scientific discovery into business values, we first conducted market research to gain a better understanding of the omega-3 supplement market.

Major findings:

• The global EPA and DHA omega-3 finished product market size reached US$52.4 billion in 2023. This market is projected to grow at an annual rate of 3.3% through 2025 ^[1]
• The global omega-3 market size was valued at USD 2.62 billion in 2023 and is expected to grow at a compound annual growth rate (CAGR) of 7.9% from 2024 to 2030 ^[2].
• Docosahexaenoic acid (DHA) dominated the omega-3 market with a revenue share of more than 56% in 2023. This is attributed to the growing utilization of DHA in infant formulas and its benefits for brain and eye health ^[3].
• The omega-3 market is expected to reach USD 7.4 billion in 2029, growing at a CAGR of 13.5% from 2024 to 2029. Key drivers include increasing health awareness, rising demand for nutritional supplements, and expansion of food fortification with omega-3 ^[3].

References:

[1] GOED. (2023). GOED | EPA+DHA omega-3 finished product report. Retrieved from https://goedomega3.com/purchase-data-and-reports/fpr
[2] Grand View Research. (2023). Omega-3 market size, share & trends analysis report by product (EPA, DHA), by application (dietary supplements, food & beverages, pharmaceuticals), by region, and segment forecasts, 2024 - 2030. Retrieved from https://www.grandviewresearch.com/industry-analysis/omega-3-market
[3] Markets and Markets. (2024). Omega-3 market - growth, trends, COVID-19 impact, and forecasts (2024 - 2029). Retrieved from https://www.marketsandmarkets.com/ResearchInsight/size-and-share-of-omega-3-market.asp

Market Segmentation

Market By Type:

• DHA Powder
• DHA Oil

Market By Application:

• Infant Formula
• Nutritional Supplements
• Food & Beverage
• Others

Market By Geography:

Figure1. Omega-3 geographical market distribution

• North America
• Europe
• China
• Japan
• Southeast Asia
• India
• Others

Key Companies in the market

Nutritional Companies:

• DSM Nutritional Products: DSM is a global leader in the production of nutritional and health products, including DHA. The company's value is around $22 billion, and its main product is life science and material science products. In 2020, DSM reported revenue of €8.1 billion.
• Lonza Group: Lonza is a Swiss-based company that produces a wide range of chemicals and biotechnology products, including DHA. The company's value is around $17 billion, and its main product is specialty chemicals. In 2020, Lonza reported revenue of CHF 4.5 billion.
• ADM (Archer Daniels Midland Company): ADM is a global food processing and commodities trading corporation that produces a wide range of products, including DHA for use in food and nutrition applications. The company's value is around 64.3 billion.
• Croda International: Croda is a UK-based specialty chemical company that produces a wide range of products, including DHA for use in personal care and nutrition applications. The company's value is around $12 billion, and its main product is specialty chemicals. In 2020, Croda reported revenue of £1.39 billion.
• AlgaeCytes: AlgaeCytes is a UK-based biotechnology company specializing in the production of omega-3 fatty acids, including DHA, from algae. The company's value is not publicly available, but its main product is omega-3 oils derived from algae. AlgaeCytes focuses on sustainable production methods and harnessing biotechnology for health and nutrition applications.
• Polaris: Polaris is a French-based company specializing in the production of high-quality lipid nutrition products, including DHA. The company's value is not publicly available, but its main product is omega-3 oils derived from fish and algae. Polaris is committed to providing innovative and sustainable solutions for health and nutrition industries.

Companies with Algae:

• Corbion: Corbion is a leading supplier of sustainable ingredient solutions. They produce algal DHA that is suitable for various applications, including food, dietary supplements, and infant nutrition. Contact via form: https://www.corbion.com/About-Us/Contact-us
• Algarithm: Algarithm is a company that specializes in producing plant-based omega-3 ingredients, including algal DHA. They use sustainable and traceable algae sources to create their products. Contact: info@algarithm.ca
• AlgiSys: AlgiSys has developed a commercial algal EPA production process and intends to play a major role in meeting the growing demand for EPA and high protein biomass products. While their focus is on EPA, they also produce DHA through fermentation of microalgae. Contact: info@algisys.com
• Progress biotech: Progress Biotech is a dynamic biotechnology company at the forefront of innovation in the field. With a strong focus on research and development, Progress Biotech is dedicated to advancing breakthrough solutions that address important challenges in healthcare, agriculture, and environmental sustainability. Leveraging cutting-edge technologies and a multidisciplinary approach, the company aims to develop and commercialize novel products and therapies that have the potential to transform industries and improve lives. Through strategic collaborations and partnerships, Progress Biotech is committed to driving positive change and making a meaningful impact in the global biotech landscape. Contact: info@progressbiotech.com

Companies with Fish:

• Kingdomway Nutrition, Inc.: Kingdomway Group Company is engaged in the manufacturing and sale of nutrition and health resources, including DHA, in China and internationally. Contact: http://kdw-usa.com/contact.htm
• Jiangsu Auqi Marine Biotechnology Co., Ltd.: Jiangsu Aoqi Marine Biological Engineering Co., Ltd. specializes in the research, development, production, and sales of functional unsaturated fatty acids such as marine fish oil, including DHA. Contact: info@china-auqi.cn richardz@china-auqi.cn
• Maruha Nichiro: Maruha Nichiro is a seafood company based in Tokyo, Japan, that has developed various products promoting DHA, including fish sausages and ready-to-eat fish sausage sticks made from sardines. Contact: info@maruha-nichiro.co.jp
• Nissui: Nissui is another major seafood company in Japan that produces and supplies EPA and DHA in the form of pharmaceutical raw materials. They import sardine oil, process it to a high purity, and remove any pollutants before supplying it as an active pharmaceutical ingredient. Contact: For inquiries regarding our company information, IR information or other matters

Market Trends

• Emerging applications of EPA and DHA in food, dietary supplements, and clinical nutrition
• Microalgae gaining popularity as a sustainable source of food and fuel
• Dietary supplements dominate the market due to constant support from health ministries and regulatory bodies
• FDA approved health claims for EPA and DHA omega-3 consumption in 2019
• DHA segment driven by rising demand in infant formulae and nutritional products targeting children's health
• North America leads the EPA & DHA market due to innovations in products and technologies
• Global EPA and DHA market moderately concentrated with key players such as BASF SE, Croda International PLC, and Koninklijke DSM NV
• Companies focusing on investment in research and development, acquisitions, mergers, and partnerships

Demand Analysis

Increase in market demand due to the following reasons:

1. Increasing awareness

a. Growing Awareness of Health Benefits (to gain extra health benefits)

Research has consistently highlighted the health benefits of omega-3 fatty acids, particularly DHA and eicosapentaenoic acid (EPA). These benefits include:

• Heart Health: Omega-3s are known to lower triglyceride levels, reduce blood pressure, and prevent blood clots, making them essential for cardiovascular health.
• Brain and Eye Health: DHA is crucial for brain development and function. It plays a significant role in cognitive health and is linked to a lower risk of neurodegenerative diseases.
• Inflammation and Chronic Disease: Omega-3s have anti-inflammatory properties and are being studied for their potential benefits in conditions like arthritis, depression, and certain cancers ^[1][2][4].

b. Increasing Health Consciousness (to prevent certain diseases)

A growing trend towards health and wellness has led to more consumers actively seeking dietary supplements to enhance their health. This trend is particularly strong among populations concerned with chronic diseases, mental health, and overall wellness. The rise in lifestyle-related health issues, such as obesity and cardiovascular diseases, has further fueled interest in omega-3 supplementation as a preventive measure ^[4][5].

c. Dietary Guidelines from Health Authorities (further increases public’s awareness to take in DHA)

Health organizations globally recommend higher intakes of omega-3s. For instance, the recommended daily intake ranges from 250 to 1000 mg for adults, yet many individuals do not meet these guidelines. A significant portion of the population, approximately three billion people, consume less than 100 mg per day, highlighting a substantial gap between recommended and actual intake. This gap has prompted consumers to seek supplements to fulfill their dietary needs ^[2][3].

2. Sports and Aesthetic Use (new trends&findings)

The use of omega-3 supplements is also expanding into sports nutrition and aesthetic markets. Athletes and fitness enthusiasts are increasingly using omega-3s to improve recovery, reduce inflammation, and enhance overall performance. Additionally, omega-3s are marketed for skin health and beauty, appealing to consumers interested in aesthetic benefits^[4][5][6][7].

Market Projection

Based on the research results, we conduct the following numerical analysis to project market size in the next decade.

The projections are based on the following assumptions:

• The global market for DHA is currently growing at a rate of 9% per year. ^[9]
• The amount of DHA available from marine organisms is projected to decrease by 58% of current levels by the year 2100. This equates to an annual decrease of approximately 1.07%. ^[8]
• The current global market size for DHA is $3,821.4 million. ^[9]
• The DHA market is segmented, with 20% coming from algae sources and 80% coming from fish sources.
• The growth rate for the algae-based DHA segment is assumed to be 7% per year. ^[8]

Table 1. DHA market Valuation Projection

FIgure 2. DHA market Valuation Projection series

FIgure 3. DHA market valuation comparison between 2022 and 2032

References:

[1] Spotlight on omega-3s: Industry calls for new sources to keep up with demand. (2024, May 2). Nutrition Insight. Retrieved from https://www.nutritioninsight.com/news/spotlight-on-omega-3s-industry-calls-for-new-sources-to-keep-up-with-demand.html
[3] Omega-3 long-chain polyunsaturated fatty acids, EPA and DHA: Bridging the gap between supply and demand. (2024). Nutrition Insight. Retrieved from https://www.nutritioninsight.com/news/spotlight-on-omega-3s-industry-calls-for-new-sources-to-keep-up-with-demand.html
[4] Evaluating the rising demand & the market potential of the omega-3 products. (2024). Polaris Market Research. Retrieved from https://www.polarismarketresearch.com/industry-analysis/omega-3-market
[5] Omega-3 market size USD 3.86 billion by 2030. (2024). Yahoo Finance. Retrieved from https://finance.yahoo.com/news/omega-3-market-size-share-133000915.html
[6] Athletes can benefit from increased intake of EPA and DHA—Evaluating the evidence. (2024). PMC. Retrieved from https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3257669/
[7] Dihydroxyacetone: An updated insight into an important bioproduct. (2024). PMC. Retrieved from https://www.ncbi.nlm.nih.gov/pmc/articles/PMC3257669/
[8] Colombo, S. M., Rodgers, T. F., Diamond, M. L., Bazinet, R. P., & Arts, M. T. (2020). Projected declines in global DHA availability for human consumption as a result of global warming. Ambio, 49(4), 865-880. https://doi.org/10.1007/s13280-019-01234-6
[9] DHA from algae market size is projected to surpass US$ 720.44 million by 2031, with increasing CAGR of 7.05%. (2024, January 4). Research Industry Network. https://www.linkedin.com/pulse/dha-from-algae-market-size-projected-x2pyf/