Natural Products Insider

MAR-APR 2018

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8 INSIDER March/April 2018 In the News The market for omega-3 ingredients, which has been nearly stagnant in recent years, if not in decline, may be poised for growth in 2018 and beyond. In 2014, the global market for omega-3 ingredients saw a decline in both volume and value, followed by a nearly 10 percent decrease in value and a 0.9 percent growth in volume in 2015. The following year—2016—welcomed an improved market climate, with growth in volume of 2.5 percent and in value of 2.4 percent, achieving total sales of US$1.189 billion. This information was presented by Aldo Bernasconi, director of information and research, the Global Organization for Eicosapentaenoic Acid and Docosahexaenoic Acid Omega-3s (GOED), at the GOED Exchange 2018 in Seattle. Bernasconi suggested if the current trends continue, the market could see improved growth, achieving 4.4 percent volume growth by 2019 and amounting to volume sales of 100,778 metric tons, compared to 86,361 metric tons in 2015. The United States and Europe remain the largest markets, followed by China. The gap in volume sales of omega-3 ingredients between China and Europe remains signifi cant—12,094 metric tons compared to 19,574 metric tons, respectively. China's market value ($210.3 million), however, falls just slightly behind that of Europe ($224.7 million)—due to higher priced ingredients used in infant formula. Several developments could impact growth of the market, including movement by supplement users in large markets, such as Europe and the United States, away from standard, refi ned oils and into concentrates. Both Europe and the United States saw decreases in volume sales of standard oils in 2015, by 2.6 percent and 1.5 percent, respectively, and growth in volume sales of concentrates. Interestingly, volume demand for omega-3 ingredients, which is expected to grow by 5.7 percent by 2019, will be outpaced by demand for eicosapentaenoic acid (EPA) and docosahexaenoic acid (DHA), which is predicted to grow by 9.1 percent by 2019, according to Bernasconi's predictions. Among market considerations is growth of omega-3 pharmaceuticals in the United States. Current volume growth of omega-3 pharmaceuticals is estimated at 3 percent, but is expected to reach 7 percent in 2018. Another critical consideration is the publication of two large, upcoming interventional trials focused on omega-3 usage. The REDUCE-IT trial is a secondary prevention trial to determine whether Vascepa—an omega-3 pharmaceutical Omega-3 Ingredients Market Anticipates Uptick by Rachel Adams RT Specialty offers the exclusive RT NUTRA PROGRAM The RT Nutra Program is the leading insurance solution for the Nutraceutical/Natural Products Industry. Our program offers coverage for General Liability including Products Liability & Excess Liability and is underwritten by an "A XV" rated carrier. The RT Nutra program offers Primary Limit Capacity of up to $10M per occurrence and $20M aggregate. Excess limits up to $50M readily available. We also offer a wide range of deductibles and coverage enhancements with limited ingredient exclusions. Coverage can be tailored to fit your needs. Contact Denise Pepin, Senior VP 312.379.8230 | dpepin@rtspecialty.com R-T Specialty, LLC (RT), a subsidiary of Ryan Specialty Group, LLC, provides wholesale brokerage and other services to agents and brokers. RT is a Delaware limited liability company based in Illinois. As a wholesale broker, RT does not solicit insurance from the public. Some products may only be available in certain states, and some products may only be available from surplus lines insurers. In California: R-T Specialty Insurance Services, LLC License #0G97516. ©2018 Ryan Specialty Group, LLC

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