Despite Regulatory Uncertainty, Growing Awareness of Omega-3's Health Benefits to Drive Market Expansion in Asia

23/11/06 Increasing media coverage of omega-3's multiple health benefits will boost its consumption levels. However, an uncertain regulatory environment across Asia (with the exception of Australia and New Zealand and Japan) will require omega-3 PUFA ingredient manufacturers to push for more favourable regulatory regimes that will support market expansion.

Frost & Sullivan (http://www.food.frost.com) finds that the Asia Pacific Omega-3 PUFA Market earned revenues of US$279.6 million in 2005 and estimates this to reach US$596.6 million in 2012.

"Wider media coverage of omega-3 - highlighting its numerous health benefits - together with supporting scientific evidence is increasing overall consumer awareness of the ingredient," says Frost & Sullivan Research Analyst Vignesh Raja. "Mainstream media such as the television, radio, print and the Internet have repeatedly underlined the importance of including omega-3 in diets."

With the World Health Organization (WHO) estimating that by 2010, cardiovascular disease (CVD) will be the leading cause of death in developing countries, the case for consuming omega-3, which improves cardiac health, is growing stronger in Asia.

However, unclear or inadequate legislation relating to omega-3 in most major Asian markets as well as the lack of consumer understanding of the nature and action of 'good fats' is restraining market growth.

"Australia, New Zealand and Japan have established a recommended dietary intake (RDI) level of eicosapentaenoic acid (EPA) and DHA at levels between 0.3 and 0.5 grams per day," says Mr. Raja. "For example, nutritional authorities in Australia have advised women to consume at least 430mg and men to consume at least 610mg of omega-3 fatty acids to reduce the risk of chronic disease."

However, barring Australia, New Zealand and Japan, there is no legislation or RDI guideline for omega-3 PUFA consumption in other Asian countries. Moreover, consumer awareness of 'omega-3' products and their benefits is higher in these three countries, in comparison to other Asian countries.

In a positive sign, consumer awareness is now increasing in China and other Southeast Asian countries. However, awareness levels remain low in countries like India, the Philippines and Thailand.

"Market participants need to educate consumers and opinion leaders about the importance of Omega- 3," advises Mr. Raja. "In addition, they need to identify other avenues for growth such as focusing on niche segments, making acquisitions or entering into strategic tie-ups and alliances."