DHA Algae Oil for Infant Formula Market by Trends, Regional Analysis and Segments Analysis to 2026

The 30-40% DHA algae oil for infant formula market in the U.S. is projected to witness a CAGR of more than 2.5% through 2026. In addition to 30-40% concentration of DHA, the algae oil is also rich in numerous vitamins and minerals. It is nutritionally balanced with the presence of protein, carbohydrates, essential fats and promotes healthy physical development of infants.

According to the Centers for Disease Control & Prevention (CDC), only 25% of infants up to the age of 6 months were breastfed in the country in 2017. The CDC also reports that approximately 19% of infants were fed infant formula within two days of birth. Numerous concerns and misconception regarding breastfeeding is likely to promote the adoption of break milk substitutes. 

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The global DHA algae oil for infant formula market size will be worth over US$435 million by 2026, with growing access to high-quality infant health and nutrition products and increased consumer spending on these products.

Global DHA algae oil for infant formula market is increasingly gaining traction in the food and nutrition space. Safety, quality, and convenience are among the key factors influencing consumers’ decision while purchasing maternal and early life nutrition products. More and more consumers are opting for infant nutrition products made with trusted, science-backed ingredients.

In recent years, consumers have become increasingly aware regarding the health and nutritional requirements of new-borns. Most parents are willing to choose premium nutritional products packed with supplements such as DHA algae oil. Recent research and studies have shown that the ingredient can play an essential role in immunity, visual, and neural development of infants.

The DHA algae oil for infant formula market in Asia Pacific region was valued at US$170 million in 2019 and is projected to witness a healthy 9.5% CAGR through 2026. Asia Pacific countries have witnessed a notable uptick in the female workforce in recent years. In 2019, women constituted more than 20% of India’s entire workforce. Consequently, improved household income levels have resulted in increased consumer spending on high-quality infant health products.

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In May 2020, Royal DSM had launched DHA SF55-O200DS oil, a new, higher potency maternal and early life nutrition solution. The product contains nearly 550 mg/g of natural triglyceride DHA produced from Schizochytrium algae and serves as a sustainable, contamination-free, and plant-based alternative to fish oil. It also allows manufacturers to add equivalent dosage of DHA in smaller product formats.

In the near future, the product demand will likely be driven by consumer preference for vegan products over animal-based products. Recent studies have shown that organic ingredients have a better oxidation stability than animal-based ingredients such as DHA fish oil. In addition, ongoing research and technological development will positively influence the DHA algae oil for infant formula market trends.  

Parents in these countries have become highly aware regarding the health and nutritional needs of babies. A vast majority of parents are opting for infant formula with organic ingredients produced via sustainable farming methods that offer numerous nutritional benefits.

Archer Daniels Midland Company, Polaris, JC Biotech Pvt. Ltd., BioPlus Life Sciences, and Koninklijke DSM N.V. are among the leading producers of DHA oil-based infant formula products. These companies are constantly focusing on developing innovative new infant health and nutrition offerings.

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