Section]
Omega-3 - US - January 2008 - Market Size [Report Section]
Omega-3 - US - January 2008 - Insights and Innovation

There are no publicly available data on the aggregate amounts of omega-3 being
sold to food and beverage manufacturers, but one can get an idea of how fast the
market is growing by looking at the sales of Martek Biosciences, one of the major
suppliers of omega-3 in the U.S. Conversations with the industry lead us to suggest
that total retail sales of food and beverages with omega-3 added were between $600
million and $800 million in 2007.

Sales at
current
prices

Sales at
constant
2007
prices*

Martek\u2019s sales of DHA as a food and beverage ingredient have grown by
nearly 17 times from 2005-07, tripling in each of the last two years, thanks to an
explosion of new products that use omega-3 as a selling point over the competition.
Future sales growth will depend on the continued popularity of omega-3 as a health
trend as consumers become more aware of the product and are persuaded of its
long-term benefits.

Consistent with a health trend that has affected the food, beverage, and restaurant
industries, omega-3 has gained momentum both as a dietary supplement and, more
recently, as a food additive. The U.S. market for food products fortified with EPA and
DHA omega-3 has grown from very small in the 1990s to a broadly estimated $600-
800 million in 2007 (precise data not available). As one example, revenues from
sales of DHA as a food and beverage additive have roughly tripled in both 2006 and
2007 at Martek Biosciences, one of the major omega-3 providers.

Omega-3 sold as supplements derived from fish and animal oils reached $489 million
in 2006, while supplements derived from plant oils reached $228 million, as
measured by Nutrition Business Journal. Fish and animal oil supplements grew at 30-
40% annually during 2002-06, while plant oil supplements (mainly flaxseed) grew at
about half that pace. Both forms of omega-3 have been the fastest-growing
supplements since 2000, outpacing glucosamine, probiotics, and CoQ10, among
others.

An aging demographic favors a continued trend toward omega-3 as more consumers worry about heart disease and begin taking supplements to reduce their health risks. The additive is believed to offer health benefits not only for older consumers but also for consumers of all ages, including babies, all of which can be realized as sales gain upon further scientific confirmation and consistent educational marketing.

Omega-3 is taken by roughly as many consumers as some vitamins, minerals, and
supplements that have been on the market far longer, such as Vitamin B-12, B-
complex, Vitamin D, garlic, iron, and flaxseed oil. Mintel\u2019s research for this report
shows that30% of all consumers say that they \u201cspecifically buy food, drink or
supplements that contain omega-3 fatty acids (which are also sometimes identified
as DHA or EPA).\u201d Almost exactly the same information came from Mintel\u2019sVi tam ins

Yet, as a measure of potential future growth, nearly half of all respondents who do not purchase omega-3 products say they just haven\u2019t thought about buying them, and 28% say they don\u2019t know enough about them.

Consumption of omega-3 is claimed to reduce the risk or improve conditions of seven
of the leading 11 health concerns: heart disease; cancer; eye health; arthritis;
hypertension; lack of mental sharpness; and depression.