Omega-3 - US

Omega-3 - US

This report is focused on the chemical omega-3. The last two years has seen omega-3 explode on the food and beverage scene as a highly desirable food additive. The health benefits associated with these fatty acids have the potential to reach a wider demographic than other additives.

Analysis and insights include:

• Who is buying omega-3 foods and beverages
  
  
• Which omega-3 products are most popular
  
  
• Which food categories are seeing the most omega-3 product introductions
  
  
• What other additives are on the market and how do they compare
  
  
• What are the perceived health benefits of omega-3
  
  
• In what ways are current marketing messages falling short

This report clearly identifies the principal factors driving or curtailing growth in the omega-3 market. Six years of specific sales data give you a factual and impartial presentation of the market. Exclusive consumer research shows the attitudes, needs and behavior of consumers, with results analyzed by demographic characteristics. Details on the major companies and brands update you on competitor products and strategies, while a five-year forecast reveals potential opportunities for growth and product development.  
 

Scopes and Themes

What you need to know

Definition

Survey methodology

Abbreviations and terms

Abbreviations

Terms

Executive Summary

Market for omega-3 as food additive (and as supplements) has exploded since 2001

Awareness and uptake is higher than other additives but still has room to grow

Many health benefits ascribed to omega-3s, but this is a cause for concern

Supply structure is nascent and leaves room for entry

Word spreads through commercials and packaging but messages must be more consistent

Household income determines awareness but age determines what form is bought

Separate marketing messages are needed for different demographics

The future holds much promise and just as many pitfalls

Longevity of omega-3 depends on regulation and validation through research

Potentially fatal controversy around labeling

Competing food additives

Supplements vs. fortified foods—a possible danger of too many products

Market Drivers

Healthy foods lead sales

Figure 1: Attitudes toward food and diet, by age, January-June 2007

Aging population boosts supplement use and health concerns

Figure 2: Growth of the U.S. population, by age, 2002-12

Kids’ food market to grow as well

Critical mass of omega-3-aware consumers already reached

Figure 3: Frequency each type of vitamin/mineral/supplement is taken, July 2007

Omega-3 offers many health benefits

Figure 4: Consumer health concerns of the total shopper population, 2004 and 2006

Figure 5: Expected health benefits of products that contain omega-3, December 2007

Risks associated with too much omega-3

Market Size

Omega-3 as a food and beverage ingredient

Figure 6: Sales of Martek Biosciences of omega-3 (DHA) for use in food and beverage products, at current and constant prices, fiscal 2005-07

Figure 7: Sales of Martek Biosciences of omega-3 (DHA) for use in food and beverage products and of nutritional oils for use in non-infant formula sales products, fiscal 2005-07

Omega-3 in supplement form

Figure 8: Sales of omega-3 supplements via fish and animal oils, 2000-06

Figure 9: Sales of omega-3 supplements via plant oils, 2000-06

Insights and Innovation

Omega-3 as a food additive—newest food products span more categories

Figure 10: New food products that contain “omega” in the product description, 2002-07

Eggs have the right stuff

Go to the source for maximum omega-3

Breakfast cereal and bread—not the right way to go

Omega-3 as a nutritional supplement

Figure 11: New non-food products that contain “omega” in the product description, 2002-07

Several of the most recent supplement products aimed at moms and kids

Supply Structure

Overview

Manufacturer profiles

Cargill

Martek Biosciences

Ocean Nutrition Canada (ONC)

Omega Protein Corporation, Inc.

Products containing omega-3

Dairy products

Other food and beverage

Nutrition bars, drinks, and supplements

Prenatal, infant, and baby products

Advertising and Promotion

Introduction

Mentions in food product marketing

Figure 12: TV ad: Gold Circle Eggs, June 2006

Figure 13: TV ad: Gerber Baby Food, June 2007

Figure 14: TV ad: Smart Balance, October 2007

Manufacturer websites

lifesdha.com

meg-3.com

Multiple nomenclatures

Omega-3 learning consortium

The Consumer: Purchase Habits

Summary

Penetration

Products purchased

Other food additives

Place of purchase

Penetration of omega-3

Figure 15: Penetration of omega-3, December 2007

Figure 16: Penetration of omega-3, by age, December 2007

Figure 17: Penetration of omega-3, by household income, December 2007

Omega-3 products purchased

Figure 18: Omega-3 products purchased, December 2007

Figure 19: Omega-3 products purchased, by gender, December 2007

Figure 20: Omega-3 products purchased, by age, December 2007

Other nutritional additives sought after

Figure 21: Other nutritional additives sought after, December 2007

Place of purchase

Figure 22: Places where omega-3 products are purchased, December 2007

Figure 23: Places where omega-3 products are purchased, by gender, December 2007

Figure 24: Places where omega-3 products are purchased, by age, December 2007

Figure 25: Places where omega-3 products are purchased, by household income, December 2007

Race/ethnicity

Figure 26: Penetration of omega-3, by race/ethnicity, December 2007

Figure 27: Omega-3 products purchased, by race/ethnicity, December 2007

Figure 28: Places where omega-3 products are purchased, by race/ethnicity, December 2007

The Consumer: Product Perception

Summary

Suggested marketing messages

Omega-3 is a naturally occurring health additive which is now available in fortified foods and beverages

Omega-3 improves mental and visual function at all ages and possibly assists in weight loss

Omega-3-fortified foods help you reach ideal dosage levels which are not likely to be obtained through regular diet

Reasons for buying omega-3

Figure 29: Reasons for buying omega-3, December 2007

Figure 30: Reasons for buying omega-3, by age, December 2007

Expected health benefits

Figure 31: Expected health benefits, December 2007

Figure 32: Expected health benefits, by age, December 2007

Sufficiency of consumption

Figure 33: Sufficiency of consumption, December 2007

Figure 34: Sufficiency of consumption, by gender, December 2007

Figure 35: Sufficiency of consumption, by household income, December 2007

Reasons for not buying omega-3

Figure 36: Reasons for not buying omega-3, December 2007

Figure 37: Reasons for not buying omega-3, by age, December 2007

Figure 38: Reasons for not buying omega-3, by household income, December 2007

Future and Forecast

Potentially fatal controversy around labeling

Competing food additives

Expanding list of health benefits

Supplements vs. fortified foods—a possible danger of too many products

Omega-3 applied to the face

Appendix: Trade Associations