Aker BioMarine eyes US and Asia markets for accelerated growth

01 Dec 2021 --- Aker BioMarine aims to double revenues by 2025, expecting growth in its US and Asia markets, as it spotlights its krill oil, supplements market and protein industry. 

In a presentation for its capital markets update, the company stressed it was poised for sales growth, with a targeted annual growth rate between 14% and 18%.

“China is a very important market for us, for many reasons. Krill products have been in the Chinese market for a very short time, and the market for omega 3 is huge. The US is our stronghold, and we expect that to continue. There are great opportunities to grow because of e-commerce on the back of COVID-19,” Matts Johansen, CEO of Aker BioMarine, tells NutritionInsight.

“That means that we are expecting growth in more Asian markets and in the US. Those are the geographical markets where we have the greatest ambitions in the years to come.”

Unexpected challenges
During the capital markets update, Johansen outlined that after years of growth, Aker BioMarine delivered unsatisfactory sales and profitability in 2021. 

There were two main reasons behind this “as we encountered two unexpected challenges in 2021,” Johansen notes.

“It was hard to find the krill in the Antarctic Ocean, so fishing was weak. This has nothing to do with the population of krill, which is increasing. But due to bad weather conditions and a lot of ice, we were not able to fish as much and as effectively as planned.”

Johansen outlines that after years of growth, Aker BioMarine delivered unsatisfactory sales and profitability in 2021.To tackle the issue, the company outlined it is investing in an unmanned surface vehicle, which will help find krill more efficiently. Additionally, the number of fishing days will also be increased.

The company aims to increase the production of krill meal from around 40,000 to 45,000 metric tons this year, to an average of 55,000 to 60,000 metric tons yearly in the future. 

“We are going to move sales volumes from aquaculture and over to segments with a higher price and a higher margin, that is pet food and nutrients for humans, for instance, our krill oil Superba. We are also going to innovate more, and find new products in the krill oil segment, to increase our competitiveness,” Johansen notes.

Regulatory issues
The second unexpected challenge the company faced was South Korea tightening krill oil regulation, impacting both the customers’ ability to market products as well as consumer trust.

“Due to this, we are set back at least one year when it comes to growth ambitions,” he adds. 

This left the company’s 2021 sales volume at approximately 25% lower than projected.

To this end, Aker BioMarine is focusing on its Superba turnaround action plan, which has identified a set of sales opportunities, including re-establishing in South Korea, unlocking potential in China, an accelerated growth plan in the US and revitalizing Australia.

“We are aiming to take the initial success we had in South Korea to other Asian markets,” Johansen highlights. 

Looking to the future
Currently, the company aims to take advantage of industry concern over the availability of omega 3, Johansen affirms. 

“It is not possible to get more omega 3 from fish or other known resources. Therefore, we must find new sources of omega 3. Aker BioMarine is well-positioned to benefit from one of the best and most sustainable sources of omega 3 in the world: Krill.”

“Krill is abundant, and global harvesting is very sustainable. Only about 0,6% of the population yearly. The omega 3 in krill is much more easily accessible for humans and animals, because of the way the fatty acids are put together,” he flags.Krill is abundant, and global harvesting is very sustainable, the company says.

In terms of sales, Johansen is confident the company is on its way to growth.

“In the first two months of the fourth quarter, sales were equal to the entire Q3. We are going to sell more of our own brands, such as Kori, which is a product with premium price and higher margins.”

Sustainability for the future
In its debut into protein and human nutrition, the company observed a healthy growth in the protein consumer product market. Growth is driven by increasingly informed and demanding consumers, who have an interest in overall protein health benefits as well as seeking sustainable, alternative protein sources. 

This reflects the Innova Market Insight Top Trend 2022 “Shared Planet” where consumers are more ethically and environmentally conscious. 

Aker BioMarine is also slated to launch the “world first” pilot plant for hydrolyzing krill protein in 2022, where the company will be expanding its production and developing functional marine ingredients.

Earlier this year, following a decision by the European Patent Office, Aker BioMarine can enforce its patent related to the production and composition of krill oil until 2028. The move puts the company on stronger footing across the EU, it says, with investments in partnerships slated to continue.

By Andria Kades