• Login
    • Join
  • FOLLOW:
  • Subscribe Free
    • Magazine
    • eNewsletter
    Checkout
    • Magazine
    • News
    • Exclusives
    • Nutraceuticals
    • Markets
    • Health
    • Jobs
    • Events
    • Buyers' Guide
    • Showcases
    • More
  • Magazine
  • News
  • Exclusives
  • Nutraceuticals
  • Markets
  • Health
  • Jobs
  • Events
  • Buyers' Guide
  • Showcases
  • Current & Past Issues
    Features
    Columns
    Editorials
    Digital Edition
    Subscribe Now
    Advertise Now
    eNewsletter
    Editorial Guidelines
    Top Features
    Health Products Association - China Executive Director Reflects on Market Dynamics, Challenges

    Blood Sugar Management: Personalized Testing Drives Home The Need for Early Intervention

    New and Evolving Formulation Options Must Be Mindful of Blood Sugar Maintenance

    Tapping Functional Beverages to Meet Modern Wellness Needs

    Adaptogens: Where Ancient Remedies Meet Modern Wellness Products
    Breaking News
    Certifications, Approvals and Patents
    Exclusives
    Industry & Market News
    People
    Products
    Regulatory
    Research
    Supplier News
    Supplier Insights
    Live From Shows
    Top News
    Pharmavite Expands in Ohio with $200 Million Investment

    Nestlé Health Science Expands in New Zealand with Deal to Buy The Better Health Company

    Younger Consumers Drive Growing Demand for Ingestible Beauty and Skin Care Products

    NOW Identifies Misleading Certificate of Analysis for Supplements Sold on Amazon

    Kensing Acquires Vitae Naturals
    Exclusives
    Blogs & Guest Articles
    Health E-Insights
    Area Code 420
    eBook
    Antioxidants
    Dairy-Based Ingredients
    Enzymes
    Fatty Acids
    Fiber & Carbohydrates
    Green Foods
    Herbs & Botanicals
    Marine Nutraceuticals
    Minerals
    Omega 3s
    Probiotics & Prebiotics
    Proteins, Peptides, Amino Acids
    Sweeteners
    Vitamins

    Kensing Acquires Vitae Naturals

    Lynside® Forte B offers full range of B-vitamin benefits with nutritional yeast

    CoQ10 and Royal Jelly Supplementation May Improve High Intensity Exercise

    Shiitake Mushroom Extract Appears Helpful in HPV Infections

    United Plant Savers Launches First Film Festival
    Consumer Trends
    Contract Manufacturing
    Cosmeceuticals / Nutricosmetics
    Delivery & Dosage Technologies
    Dietary Supplements
    Flavors & Colors
    Functional Foods & Beverages
    Healthcare Trends
    Medical Nutrition
    Mergers & Acquisitions
    Natural/Organic
    Nutrition Bars
    Packaging
    Pet Nutraceuticals
    Quality & Safety
    Regulations
    Research
    Testing
    World Markets

    Pharmavite Expands in Ohio with $200 Million Investment

    Nestlé Health Science Expands in New Zealand with Deal to Buy The Better Health Company

    Younger Consumers Drive Growing Demand for Ingestible Beauty and Skin Care Products

    NOW Identifies Misleading Certificate of Analysis for Supplements Sold on Amazon

    Kensing Acquires Vitae Naturals
    Bone & Joint Health
    Cancer Risk
    Cardiovascular Health
    Cognitive Function
    Diabetes & Blood Sugar Management
    Digestive Health
    Energy
    Eye Health
    Healthy Aging
    Immune Function
    Infant & Children's Health
    Inflammation
    Men's Health
    Mood Health & Sleep
    Oral Health
    Sexual & Reproductive Health
    Skin Health
    Sports Nutrition
    Weight Management/Weight Loss
    Women's Health

    Younger Consumers Drive Growing Demand for Ingestible Beauty and Skin Care Products

    Lynside® Forte B offers full range of B-vitamin benefits with nutritional yeast

    CoQ10 and Royal Jelly Supplementation May Improve High Intensity Exercise

    Shiitake Mushroom Extract Appears Helpful in HPV Infections

    Upcycled Coffeeberry® Cascara Offers Versatility in Functional Beverage Development
    Industry Events
    Live From Show Events
    Webinars
    All Companies
    Categories
    Trade Associations
    Company Capabilities
    International Buyers Guide Companies
    Aiya America, Inc. (Aiya Matcha)

    Verdure Sciences

    Botanic Healthcare LLC

    Ecuadorian Rainforest

    KLK OLEO
    Companies
    Product Releases
    News Releases
    Literature / Brochures
    White Papers
    Jobs
    VIdeos
    Services
    Add New Company
    International Buyers Guide Companies
    Aiya America, Inc. (Aiya Matcha)

    Verdure Sciences

    Botanic Healthcare LLC

    Ecuadorian Rainforest

    KLK OLEO
    • Magazine
      • Current / Back Issue
      • Features
      • Editorial
      • Columns
      • Digital Edition
      • eNewsletter Archive
      • Editorial Guidelines
      • Subscribe Now
      • Advertise Now
    • Breaking News
    • Buyers' Guide
      • All Companies
      • Categories
      • Trade Associations
      • Company Capabilities
    • Nutraceuticals
      • Antioxidants
      • Dairy-Based Ingredients
      • Enzymes
      • Fatty Acids
      • Fiber & Carbohydrates
      • Green Foods
      • Herbs & Botanicals
      • Marine Nutraceuticals
      • Minerals
      • Omega 3s
      • Probiotics & Prebiotics
      • Proteins, Peptides, Amino Acids
      • Sweeteners
      • Vitamins
    • Markets
      • Consumer Trends
      • Contract Manufacturing
      • Cosmeceuticals / Nutricosmetics
      • Delivery & Dosage Technologies
      • Dietary Supplements
      • Flavors & Colors
      • Functional Foods & Beverages
      • Healthcare Trends
      • Medical Nutrition
      • Mergers & Acquisitions
      • Natural/Organic
      • Nutrition Bars
      • Packaging
      • Pet Nutraceuticals
      • Quality & Safety
      • Regulations
      • Research
      • Testing
      • World Markets
    • Health
      • Bone & Joint Health
      • Cancer Risk
      • Cardiovascular Health
      • Cognitive Function
      • Diabetes & Blood Sugar Management
      • Digestive Health
      • Energy
      • Eye Health
      • Healthy Aging
      • Immune Function
      • Infant & Children's Health
      • Inflammation
      • Men's Health
      • Mood Health & Sleep
      • Oral Health
      • Sexual & Reproductive Health
      • Skin Health
      • Sports Nutrition
      • Weight Management/Weight Loss
      • Women's Health
    • Online Exclusives
    • Webinars
    • Slideshows
    • Blogs & Guest Articles
    • Health E-Insights
    • Videos
    • Podcasts
    • Infographics
    • eBook
    • Whitepapers
    • Research
      • TrendSense
      • Monograph Center
      • White Papers
      • Research News
    • Jobs
    • Events
      • Industry Events
      • Live From Show Events
      • Webinars
    • Supplier Showcases
      • Companies
      • Product Releases
      • News Releases
      • Literature / Brochures
      • White Papers
      • Jobs
      • VIdeos
      • Services
    • About Us
      • About Us
      • Contact Us
      • Advertise With Us
      • Privacy Policy
      • Terms of Use
    Columns

    Word From Wall Street: A ‘Wave’ of Consolidation in Omega 3s

    Will recent deals in this segment change the landscape for omega 3s?

    Related CONTENT
    • New IADSA Chair Lauds Explorations of Supplementation in Healthcare Policy
    • DSM and Firmenich to Merge to Create Nutrition, Beauty, and Wellness Brand
    • Vitafoods Europe 2022 Attendance Returns to 2019 Level
    • Personalized Nutrition Company, OK Capsule, Raises $9.5 Million in Early Funding
    • DSM Gains New Dietary Ingredient Status for Two Probiotic Strains in U.S.
    Adam Ismail, Executive director of the Global Organization for EPA and DHA Omega-3s 07.01.12
    This column usually focuses on high level issues in the financial markets affecting nutraceuticals companies, but it has generally avoided diving too deep into any one category. However, DSM Nutritional Products’ recent acquisitions in omega 3s—Martek and most recently Ocean Nutrition—are notable and worth exploring further.

    Given these purchases, DSM now controls about one-third of the global volume of EPA and DHA oils being sold.

    These deals are significant because there has been a slow wave of consolidation in the omega 3 space, and the strong position DSM now has will likely lead to further consolidation. So who will be the targets? One would think companies with well-established businesses are good targets, but the reality is technology and supply have been more important drivers of consolidation than growing businesses via acquisitions.
     
    There are two major trends driving this. First is investment in the pharmaceutical market for EPA and DHA omega 3-based drugs. There are currently only two such pharmaceuticals marketed in the world, but there are at least 13 more in the pipeline and they will have unique technology requirements that need to be filled. The second trend relates to concerns surrounding adequate supplies of fish oil going forward because there are finite resources and there is high demand for the fish with the greatest omega 3 content. There are other sources available, including algae and genetically modified (GM) plants, but they also require new technologies and are thus in demand.

    The attractive properties will likely either be companies with top-tier production capacity available, but which is not being fully utilized, particularly if they have pharmaceutical manufacturing licenses. In addition, companies that either have access to traditional sources of crude fish oil supply, or access to novel sources of fish oils, will also be in high demand. The next-generation algal and GM plant sources will likely be tied up in strategic partnerships while those markets develop, but this too could lead to acquisitions in a few years.

    What About the Competition?

    While DSM will control a third of the long-chain omega 3 market after the Ocean Nutrition Canada acquisition closes, the question on many omega 3 companies’ minds is how this will affect the intensity of competition in the market. DSM only had a small fish oil business two years ago and admitted at a recent conference that it knew it would have to acquire companies in order to be a leader in omega 3s. This led to the acquisition of Martek Biosciences, which at the time was the leader in algal omega 3 oils due to its intellectual property and dominant position in supplying infant formula companies with DHA. However, while Martek’s business was valuable, it was relatively low volume in the overall omega 3 business because algal oils are a high-cost, low-volume business.
     
    In actuality, the level of competition between fish and algal oils is relatively low due to the vast differences in price, which is why DSM needed a more significant fish oil business to be a leader in omega 3s. This is what led to the Ocean Nutrition Canada acquisition, the largest fish oil ingredient business in the world by volume.

    At the end of the day, the consolidation in the fish oil business is relatively small, and the algal space is unchanged. The DSM fish oil business combined with the Ocean Nutrition business is only slightly larger than Ocean Nutrition’s core business anyway. On the algae side, there is still only one dominant supplier, so competition for algal omega 3s will not be affected until the next-generation technologies make their way to market.

    As for the buyers in this next wave of consolidation, they will probably include companies that are already in the omega 3 space.
     
    While the level of competition will likely be unaffected for companies already making omega 3s, the DSM acquisition will make it much harder for an outsider to enter the space if they can only acquire companies with lower scales. This would generally rule out the large multinational food, agricultural and chemical companies that would typically be interested in ingredient companies. That is not to say that there will not be a time when they can enter omega 3s with a significant acquisition, but it probably won’t be until the next-generation sources of omega 3s have been developed and the level of competition has already evolved yet again.                     

    Disclosure: As the executive director of the Global Organization for EPA and DHA Omega 3-s (GOED), Mr. Ismail maintains regular communications and relationships with these companies.

    Adam Ismail is the executive director of the Global Organization for EPA and DHA Omega-3s (GOED), Salt Lake City, UT. He previously worked in business development, mergers and acquisitions, and business strategy at Cargill Health & Food Technologies, Health Strategy Consulting and Health Business Partners. He can be reached at adam@goedomega3.com.
    Related Searches
    • Omega-3s
    • Nutraceuticals
    • Omega 3s
    • Fish Oil
    Related Knowledge Center
    • Omega-3s
    Suggested For You
    New IADSA Chair Lauds Explorations of Supplementation in Healthcare Policy New IADSA Chair Lauds Explorations of Supplementation in Healthcare Policy
    DSM and Firmenich to Merge to Create Nutrition, Beauty, and Wellness Brand DSM and Firmenich to Merge to Create Nutrition, Beauty, and Wellness Brand
    Vitafoods Europe 2022 Attendance Returns to 2019 Level Vitafoods Europe 2022 Attendance Returns to 2019 Level
    Personalized Nutrition Company, OK Capsule, Raises $9.5 Million in Early Funding Personalized Nutrition Company, OK Capsule, Raises $9.5 Million in Early Funding
    DSM Gains New Dietary Ingredient Status for Two Probiotic Strains in U.S. DSM Gains New Dietary Ingredient Status for Two Probiotic Strains in U.S.
    Probiotics May Improve Digestive Issues, Quality of Life in Pregnant Women Probiotics May Improve Digestive Issues, Quality of Life in Pregnant Women
    Ethan Leonard Joins PanTheryx as Senior Vice President of Early Life Nutrition Ethan Leonard Joins PanTheryx as Senior Vice President of Early Life Nutrition
    Probiotic Supplementation May Help Improve GI Symptoms During Pregnancy Probiotic Supplementation May Help Improve GI Symptoms During Pregnancy
    Omega-3 Supplement Market Influenced by Research, Sourcing, Pandemic Trends Omega-3 Supplement Market Influenced by Research, Sourcing, Pandemic Trends
    DSM Announces Commitments for Social and Environmental Sustainability DSM Announces Commitments for Social and Environmental Sustainability
    Beauty Ingredient Formulation Directory Fall 2021 Beauty Ingredient Formulation Directory Fall 2021
    DSM Reaches CBD Partnership with Mile High Labs DSM Reaches CBD Partnership with Mile High Labs
    Hologram Sciences Debuts in Market with Immune Support Brand D.velop Hologram Sciences Debuts in Market with Immune Support Brand D.velop
    Podcast: Personalized Nutrition & DSM’s Revamped Brand Strategy Podcast: Personalized Nutrition & DSM’s Revamped Brand Strategy
    Pectin Association Launches Information Center Pectin Association Launches Information Center

    Related Breaking News

    • Breaking News | Dietary Supplements | Industry & Market News | Regulations | World Markets
      New IADSA Chair Lauds Explorations of Supplementation in Healthcare Policy

      New IADSA Chair Lauds Explorations of Supplementation in Healthcare Policy

      Gerhard Gans, elected to IADSA on June 22, noted positive developments taking place in Europe.
      06.23.22

    • Breaking News | Dietary Supplements | Functional Foods & Beverages | Industry & Market News | Mergers & Acquisitions | World Markets
      DSM and Firmenich to Merge to Create Nutrition, Beauty, and Wellness Brand

      DSM and Firmenich to Merge to Create Nutrition, Beauty, and Wellness Brand

      The combined company’s global footprint will provide customers with both of the partners’ network of R&D, creation, and application capabilities.
      05.31.22

    • Breaking News | Consumer Trends | Healthcare Trends | Industry & Market News | World Markets
      Vitafoods Europe 2022 Attendance Returns to 2019 Level

      Vitafoods Europe 2022 Attendance Returns to 2019 Level

      This year's installation of the event brought in over 15,000 participants from 130 countries.
      05.23.22


    • Breaking News | Dietary Supplements | Industry & Market News
      Personalized Nutrition Company, OK Capsule, Raises $9.5 Million in Early Funding

      Personalized Nutrition Company, OK Capsule, Raises $9.5 Million in Early Funding

      Doctor-founded personalized supplement enterprise company secures initial investment round.
      03.29.22

    • Breaking News | Digestive Health | Probiotics & Prebiotics | Regulations | Regulatory News | Supplier News
      DSM Gains New Dietary Ingredient Status for Two Probiotic Strains in U.S.

      DSM Gains New Dietary Ingredient Status for Two Probiotic Strains in U.S.

      Identified through a selective screening program, the strains have been shown to improve digestive comfort and reduce diarrhea.
      02.17.22

    Loading, Please Wait..
    Trending
    • Three Grams Of Omega-3s May Be Optimal Dose For Reducing Blood Pressure
    • High Blood DHA Levels Linked To 49% Reduced Risk Of Alzheimer’s
    • CoQ10 And Royal Jelly Supplementation May Improve High Intensity Exercise
    • First Day Life Shuts Down Children's Behavioral, Cognitive Health Claims Following Challenge
    • Olive/Pomegranate Extract May Improve Dyslipidemia
    Breaking News
    • Pharmavite Expands in Ohio with $200 Million Investment
    • Nestlé Health Science Expands in New Zealand with Deal to Buy The Better Health Company
    • Younger Consumers Drive Growing Demand for Ingestible Beauty and Skin Care Products
    • NOW Identifies Misleading Certificate of Analysis for Supplements Sold on Amazon
    • Kensing Acquires Vitae Naturals
    View Breaking News >
    CURRENT ISSUE

    June 2022

    • Tapping Functional Beverages to Meet Modern Wellness Needs
    • Adaptogens: Where Ancient Remedies Meet Modern Wellness Products
    • New and Evolving Formulation Options Must Be Mindful of Blood Sugar Maintenance
    • Health Products Association - China Executive Director Reflects on Market Dynamics, Challenges
    • Blood Sugar Management: Personalized Testing Drives Home The Need for Early Intervention
    • View More >

    Cookies help us to provide you with an excellent service. By using our website, you declare yourself in agreement with our use of cookies.
    You can obtain detailed information about the use of cookies on our website by clicking on "More information”.

    • About Us
    • Privacy Policy
    • Terms And Conditions
    • Contact Us

    follow us

    Subscribe
    Nutraceuticals World

    Latest Breaking News From Nutraceuticals World

    Pharmavite Expands in Ohio with $200 Million Investment
    Nestlé Health Science Expands in New Zealand with Deal to Buy The Better Health Company
    Younger Consumers Drive Growing Demand for Ingestible Beauty and Skin Care Products
    Coatings World

    Latest Breaking News From Coatings World

    Rhino Shield Updates Formula
    Azelis Acquires Chemical Partners, Strengthens Leadership in Africa and Middle East
    Emmanuelle Bromet Named Arkema Sustainable Development VP
    Medical Product Outsourcing

    Latest Breaking News From Medical Product Outsourcing

    MPO's Most-Read Stories This Week—July 2
    OmniGuide Awarded FDA Clearance for RevoLix Hybrid Thulium Laser
    Pancryos Forges License Agreement for Microencapsulation Device
    Contract Pharma

    Latest Breaking News From Contract Pharma

    Bayer Opens New Research and Innovation Center at Kendall Square
    Lonza Names Maria Soler Nunez as Head, Group Operations
    Eurofins DiscoverX Opens Shanghai Office
    Beauty Packaging

    Latest Breaking News From Beauty Packaging

    Dexlevo Introduces Beauty Treatment technique, ‘GOURI’
    Revision Skincare Exec Wins Ernst & Young Entrepreneur of the Year
    Latest Updates About Cosmoprof North America
    Happi

    Latest Breaking News From Happi

    Professional Salon Brand Rusk Introduces New Hair Color Products
    Nails Inc. Rolls Out Made in Mykonos Nail Polish Quad for Summer 2022 Online at Sephora
    JLo Beauty Expands with Overnight Hustle AHA + BHA Resurfacer
    Ink World

    Latest Breaking News From Ink World

    Epson Now Shipping SureColor T7770D 44-Inch Technical, CAD and Graphics Printer
    Smurfit Kappa Invests €11.5 Million in Zülpich Paper Mill Project
    Weekly Recap: Flint OPS, Xerox and MNYPIA Top This Week’s News
    Label & Narrow Web

    Latest Breaking News From Label & Narrow Web

    UPM Raflatac boosts operations in US, All4Labels returns to HP and more
    Fedrigoni Self-Adhesives to exhibit at Labelexpo Americas for first time
    CELAB Europe wins Paper Recycling award
    Nonwovens Industry

    Latest Breaking News From Nonwovens Industry

    Weekly Recap: Lifetime Technical Achievement Award Presented to Richard Knowlson, Alkegen Completes Luyang Acquisition & More
    Glatfelter, Blue Ocean Closures Partner with Absolut
    What You’re Reading on Nonwovens-Industry.com
    Orthopedic Design & Technology

    Latest Breaking News From Orthopedic Design & Technology

    ODT's Most-Read Stories This Week—July 2
    NuVasive Inc. Opens Singapore Experience Center
    Pedicle Screw Systems Market to Top $3B in 2027
    Printed Electronics Now

    Latest Breaking News From Printed Electronics Now

    Confidex’s Carrier Dual Delivers Shared RAIN RFID and NFC Memory
    Weekly Recap: eMagin, Identiv, and Japan Display Top This Week’s Stories
    Epishine is Building a New Solar Cell Factory in Linköping, Sweden

    Copyright © 2022 Rodman Media. All rights reserved. Use of this constitutes acceptance of our privacy policy The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Rodman Media.

    AD BLOCKER DETECTED

    Our website is made possible by displaying online advertisements to our visitors.
    Please consider supporting us by disabling your ad blocker.


    FREE SUBSCRIPTION Already a subscriber? Login