Fish Oil Market Expected to Reach $5.7 Billion by 2035

According to a new report published by Allied Market Research, titled, “Fish Oil Market," The fish oil market size was valued at $2.7 billion in 2023, and is estimated to reach $5.7 billion by 2035, growing at a CAGR of 6.5% from 2023 to 2035.

The global fish oil market is experiencing steady growth, driven by rising demand in aquaculture, pharmaceuticals, and dietary supplements. As wild fish stocks decline due to overfishing and environmental pressures, aquaculture has emerged as a sustainable alternative, significantly increasing the consumption of fish oil for feed. Rich in omega-3 fatty acids, fish oil is also increasingly used in human health applications, supporting cardiovascular, cognitive, and joint health. Key producers include Peru, Chile, and Nordic countries, while Asia-Pacific remains the largest consumer, particularly China. However, challenges such as fluctuating raw material supply and sustainability concerns persist. Innovation in extraction technologies and growing awareness of health benefits are expected to drive further market expansion over the fish oil market forecast period.

Moreover, it is observed that the production of fish oil has significantly decreased in recent years, owing to shortage of raw fish. This production shortfall is creating a gap in the demand-supply gap of fish oil in end-user industries. Therefore, major end-users such as aquaculture industry have started investing in a suitable alternative of fish oil. In absence of whole fish, fish oil can be produced from by-product, such as heads, viscera and backbones as they are very a good source to produce fish oil. These by-products can be further processed into fishmeal and fish oil. Currently, almost 30% of fish oil and fishmeal is produced from by-products and fish waste. The increased usage of fish oil is expected to increase the fish oil production due to shortage of whole fish, which further providies the fish oil market opportunities for growth. However, the fish oil industry has to manage many permits from the Ministry of Production and from the Ministry of Environment.

Adverse climatic conditions largely restrain the fish oil market growth. El Nino is an adverse climatic phenomenon that develops in the central and east central parts of the Pacific and is characterized by the warming of ocean water and high air pressures. El Nino results in a major change of temperatures globally and causes high rainfall and fluctuations in air temperatures that badly affects agriculture and fishing activities along coastal areas in developing countries. El Nino reduces the upwelling of cold ocean water which causes food scarcity for fish and compels them to migrate to deeper waters, which subsequently hampers the global fish oil production in prime fishing areas such as Chile, Peru and also European countries that include Iceland, Denmark, and Norway. El- Nino also hampers the transport activities in these coastal areas, resulting in an increased cost of transportation

The governments of various countries have imposed stringent regulations and have set fishing quotas, which limit fishing and in turn, hampers fish oil production. The quota is primarily set to improve the sustainability of the fishing industry. The European Union has imposed nation/country wise TAC (Total Allowable Catches) and quotas to strictly regulate the volume and frequency of fishing activities in the region. As a result, the manufacturers do not get enough raw fish for oil extraction, which results in the production shortfall.

Fish oil helps in maintaining a healthy balance between omega-3 and omega-6 fatty acids, which helps in reducing the inflammatory processes in the human body. Moreover, it also helps in lowering the risks of coronary heart diseases as well as maintaining normal blood pressure and normal bold lipid values. Furthermore, fish oil is a beneficial supplement for pregnant women and kids as it is an important component in balanced nutrition. Thus, effective benefits of fish oil are one of the key factors owing to which it is used in pharmaceutical, which boosts the growth of the fish oil market.

The fish oil market segmentation is divided into species, application, and region. By species, the market is categorized into anchovy, mackerel, sardines, cod, herring, menhaden, and others. By application, it is classified into aquaculture, animal nutrition & pet food, pharmaceuticals, supplements & functional food, and others. Aquaculture is further segmented as sub-type into salmon and trout, marine fish, crustaceans, tilapias, eels, cyprinids, and others. By region, it is analyzed across North America (U.S., Canada, and Mexico), Europe (UK, Germany, Denmark, Norway, Belgium and rest of Europe), Asia-Pacific (China, Japan, India, Vietnam, Indonesia and rest of Asia-Pacific), and LAMEA (Latin America, Middle East, and Africa).

Players operating in the market have adopted various developmental strategies to expand their fish oil market share, increase profitability, and remain competitive in the market.The key players operating in the fish oil market include Omega Protein Corporation, FMC Corporation, Copeinca AS, Corpesca SA, Colpex International, TripleNine Group A/S, FF Skagen A/S, Pesquera Diamante S.A., Marvesa Holding N.V. and Pesquera Exalmar.

Key Takeaways

• According to fish oil market analysis, by species, the anchovy segment dominated the market in 2023.
• According to fish oil market trends by application, the aquaculture segment dominated the market in 2023.
• By region, Asia-Pacific dominated the market in terms of revenue in 2023. However, North America is anticipated to grow at the highest CAGR during the forecast period.