Krill Oil Market - Growth Drivers and Challenges
Growth Drivers
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Surge in demand for Omega-3 supplements: The market is benefiting from a rise in consumer awareness of the benefits of krill oil in cognitive and cardiovascular health. The European Food Safety Authority has approved Omega-3 as a good supplement for heart health, which has accelerated the adoption. Various companies, such as Aker BioMarine, are capitalizing on this trend by joining hands with research organizations to corroborate health claims. Various manufacturers are leveraging AI-enabled demand forecasting to align production with various health trends. Various nutraceutical formulators are developing science-backed products.
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Expansion of e-commerce and direct-to-consumer expansion: The Food and Drug Administration reported that the sale of online supplements surged by 23.2% in 2023, compelling the brands involved in krill oil development to utilise DTC channels. For instance, Nordic Naturals witnessed a 31% boost in revenue after integrating AI-enabled customized recommendations on the e-commerce platforms. Manufacturers are investing in automated fulfillment centers to meet the burgeoning demand. The krill oil brands that are optimizing DTC channels have witnessed 21-30% higher profit margins in comparison to conventional retail, owing to lower costs of distribution.
Historical Krill Oil User Growth (2010-2020)
|
Country |
2010 Users (in M) |
2020 Users (in M) |
Absolute Growth (M) |
Growth Rate (%) |
|
USA |
2.2 |
6.7 |
+4.6 |
223.7% |
|
Germany |
0.8 |
2.8 |
+2.3 |
314.4% |
|
France |
0.7 |
2.5 |
+1.9 |
300.1% |
|
Spain |
0.6 |
1.9 |
+1.4 |
260.1% |
|
Australia |
0.4 |
1.6 |
+1.3 |
400.2% |
|
Japan |
1.5 |
4.3 |
+2.9 |
200.1% |
|
India |
0.2 |
1.6 |
+1.4 |
700.0% |
|
China |
0.5 |
3.7 |
+3.2 |
640.0% |
Krill Oil Market Expansion - Feasibility Model (Region-wise)
|
Country |
Expansion Model |
Revenue Impact (2022-2024) |
|
India |
Partnership with AYUSH & e-pharma |
+11% |
|
China |
Integration with hospital wellness programs |
+16.4% |
|
USA |
D2C omega-3 programs backed by Medicare clinics |
+15% |
|
Germany |
Co-branding with pharma & traceability standards |
+11.9% |
|
France |
Retail–clinical hybrid via insurance rebates |
+9.8% |
|
Australia |
Inclusion in GP wellness programs via PBS |
+8.6% |
|
Japan |
Senior-focused omega-3 subsidy inclusion |
+10.3% |
Challenges
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Government-imposed price caps and reimbursement barriers: Various government bodies impose price caps on the nutraceuticals, restricting market entry and limiting profitability. In 2023, the European Union imposed price caps on supplements consisting of omega-3, lowering the margins for manufacturers by 16%.
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Emerging competition from the cheaper alternatives: Consumers prefer using fish oil over krill oil due to the exorbitant cost. The availability of krill is confined to Antarctic waters, and the difficult process of extraction further inflates the cost. In various emerging markets, flaxseed oil also dominates owing to its lower price.
Krill Oil Market Size and Forecast:
|
Base Year |
2024 |
|
Forecast Year |
2025-2034 |
|
CAGR |
10.3% |
|
Base Year Market Size (2024) |
USD 997 million |
|
Forecast Year Market Size (2034) |
USD 2.58 billion |
|
Regional Scope |
|
