Increase in Demand for Infant Formula Containing DHA Algae Oil Anticipated to Reach a Compound Annual Growth Rate (CAGR) of 6.6% by 2034
In the realm of infant nutrition, a significant shift is underway with the rise of DHA algae oil in baby formulas. This omega-3 fatty acid, critical for supporting brain and eye development, is gaining popularity due to its perceived benefits for brain, eye, and immune development, as well as its eco-friendly nature.
The global Infant Formula DHA Algae Oil Market is projected to grow from USD 335.5 million in 2024 to approximately USD 635.7 million by 2034, achieving a Compound Annual Growth Rate (CAGR) of 6.6% over the forecast period from 2025 to 2034. This growth is attributed to the rising demand for DHA algae oil, driven by parents who seek to support quick brain growth in newborns up to three years old.
The 0-3 years age group dominated the market in 2024, capturing a 68.3% share. The 30%-40% DHA content segment led the market, securing a 61.8% share. Companies such as DSM, Corbion, Kerry Group, and Martek Biosciences have made significant advancements in the production of DHA algae oil for infant nutrition in recent years.
Notable players in the market include Algarithm, with their high-potency DHA S50 algae oil, and Nordic Naturals, expanding their product line with a concentrated, high-DHA algal oil tailored for infant formula fortification. Cellana leverages its advanced ALDUO production technology to grow marine microalgae for its ReNew DHA oil, aiming to meet global demand.
The market expansion is facilitated by regulatory approvals from various global health agencies, enabling manufacturers to standardize formulations and pursue global product strategies with minimal regulatory hurdles. The U.S. Food and Drug Administration permits DHA-rich oils in formulations providing up to 3.0 grams per day of DHA and/or EPA.
Adding DHA algae oil to baby formulas helps build stronger defenses against germs and aids cell health. DHA from algae oil in formulas aids retina growth and sharp vision for tiny eyes. Premium pricing poses hurdles in budget spots, but rising awareness and green vibes push demand sky-high.
The global acceptance of DHA algae oil further fuels international market expansion. Goerlich Pharma enhances their product documentation and compliance dossiers to meet stringent global pharmacopoeia standards for pharmaceutical-grade infant nutrition products. Henry Lamotte OILS strengthens their supply chain for organic-certified microalgae oil in response to rising demand for organic infant formula options.
In conclusion, the market for DHA algae oil in infant formulas is on an upward trajectory, driven by parental demand for supporting their children's brain and eye development, and the eco-friendly nature of algae oil production. As advancements continue in production and regulatory approvals, we can expect to see this market continue to grow and evolve.
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