Food Business News - September 27, 2011 - 31

Ingredient Innovations

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DSM’s acquisition of Martek may boost research and geographic reach
uture sales growth looks promising for foods and beverages with omega-3 fatty acid ingredients, according to reports issued this year by both Packaged Facts and Leatherhead Food Research. DSM’s recent acquisition of Martek Biosciences Corp, a leader in the supply of omega-3 fatty acid ingredients sourced from algae, further brightens the outlook in the areas of product innovation and geographic reach. U.S. retail sales of foods and beverage products with a “high omega-3” or “high DHA” claim grew 11% in 2010 and approached $4.4 billion, according to “Omega-3 foods and beverages in the U.S., third edition” released by Packaged Facts in June. Packaged Facts predicted the omega-3 fatty acid ingredient market will grow 40% from 2010-15 and U.S. retail sales of “high omega-3” or “high DHA” foods and beverages (excluding ﬁsh) will approach $7 billion by 2015. The global market for omega-3 fatty acid ingredients increased by 60% from 2006-10 and was worth an estimated

slow
$1.56 billion in 2010, according to “The global food additives market” report released Sept. 14 by Leatherhead Food Research, Surrey, United Kingdom. “Much of this growth has been driven by increasing consumer awareness of the health beneﬁts of omega-3, as well as improvements in production technologies allowing omega-3 oils to be added to a greater variety of foods, drinks, supplements and infant formulas,” the report said. “Furthermore, manufacturers have been increasingly successful in removing the unpleasant tastes and/or smells typically associated with ﬁsh oils and

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Global

omega-3 fatty acid
ingredients market by value
Value (millions) 2010 2009 2008 2007 2006 $1,560 $1,430 $1,300 $1,150 $975 % change 9% 10% 13% 18% —

Source: Leatherhead Food Research

powders, which has further stimulated demand.” According to the report, supplements account for between 55% to 60% of global use of omega-3 fatty acid ingredients with the remainder of the use made up of food, drinks and infant formula fortiﬁed with additional levels of omega-3 fatty acids. “This sector has experienced fairly robust growth over the last few years, with omega-3 now featuring in a greater variety of end-user products,” the Leatherhead Food Research report said. Royal DSM n.v. looks to offer more of the ingredients after completing its acquisition of Martek Biosciences Corp. in February. “Martek Biosciences had been the market leader in its native U.S., having acquired the OmegaTech business almost a decade previously,” the Leatherhead Food Research report said. “The deal added Martek’s strength in the algal oils sector with DSM’s expertise in the supply of omega-3 oils derived from marine and vegetable sources and formed part of the latter’s strategy of expanding its presence within the food ingredients industry.” DSM Nutritional Products, Basel, Switzerland, on Sept. 12 announced it had formed a Nutritional Lipids unit in Columbia, Md., the city where

Martek Biosciences was based. Nutritional Lipids combines omega-3 fatty acid products and omega-6 fatty acid products from Martek Biosciences and polyunsaturated fatty acids from DSM Nutritional Products. The business will leverage Martek’s technology and market position in the United States and DSM Nutritional Products’ global asset footprint, marketing and sales, and premix network. DSM will keep the life’s DHA brand, said Doug Brown, global marketing manager, dairy segment/fat-soluble vitamins for DSM Nutritional Products. The brand, made up of docosahexaenoic acid (DHA) from algae, is found in more than 500 foods and beverages. “It’s a very valuable brand recognized by consumers, and not just in North America,” Mr. Brown said. While Martek Biosciences had a strong presence in North America, DSM has more of a footprint on other continents, Mr. Brown said. DSM thus may increase awareness of omega-3 fatty acids in other geographical markets. For example, since life’s DHA, sourced from algae, may be used in vegetarian products, it may ﬁnd increasing use in India, where vegetarianism is widespread, he said. DSM also will focus on combining DHA with other

September 27, 2011

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