Arachidonic Acid Market
The global market for arachidonic acid was USD 176.48 million in 2016 and is expected to grow at a CAGR of 6.8% during the forecasted period (2018 - 2023). Arachidonic acid is the poly unsaturated omega-6 fatty acid which is present abundantly in animal tissue and liver and in microorganisms. It is also formed by the dietary synthesis of linoleic acid and is a precursor of number of biologically active eicosanoids. The industrial production of Arachidonic acid is from microorganism by various extraction techniques.
Arachidonic acid is widely used by food industries in various product applications such as infant nutrition products, women nutrition products and also by the pharmaceutical industries. The major applications are in the infant formula products and as a dietary supplements. Arachidonic acid is conditionally essential acid and is required by the body if it is not synthesized by the linoleic acid. It is important for the growth and development of brain and especially required by infant and premature baby; thus, it is commercially used in infant food products. US is the major market for arachidonic acid application in infant foods.
The major drivers for the market are increased demand in infant food applications of arachidonic acid, increase fortification in food products, and the regulatory approval for the ARA in infant foods. The GRAS status for addition of ARA in the infant nutrition up to a certain level by the government regulation has triggered the ARA market in infant nutrition products. Also, it is authorized as a novel food ingredient in some regions. The high capital investment, high cost of technology, costly industrial production of ARA due to high raw material and processing cost is the restraint for the market. Less consumer awareness, mainly consumer poor understanding of nutritional benefit of PUFA and ARA is also affecting the ARA market.
Arachidonic acid market are distributed in different segment on the application type, and by geography. In the application type, the market for ARA is further sub segmented into food and pharmaceuticals. The food application market is divided into infant nutrition and dietary supplement product of which infant nutrition covers the major share in the market. This is due to the need of omega 6 fatty acids in infants as they cannot synthesize the required amount. Hence, the essential fatty acids are provided by the additional supplement of ARA in infant food. ARA as dietary supplements are mainly used for human nutrition products.
The market is further segmented on the region basis into North America, Europe, Asia Pacific, Africa and South America. North America hold the largest share of the arachidonic acid market in food applications followed by Europe and Asia- pacific. The EU regulatory environment has supported the market growth in the region.
June 2016- Arcadia Biosciences, Inc. and DuPont Pioneer have announced a successful field trial safflower plants which can produce high levels of arachidonic acid (ARA) oil. This key milestone is a major step towards developing a new plant-based and cost-effective source of oil with high levels of ARA.
Increased advancement in biotechnology has grown the demand for arachidonic acid applications in several food and beverages segments creating a good opportunity for the market. The high investment in the production of Arachidonic acid is still a big challenge for the market growth. The major competitors prefers investment in new product development and marketing strategy due to volatility in commodity costs to maintain their position.
The key players in the arachidonic acid market includes Galactic, Cargill, Purac, ADM, Henan Jindam Arachidonic acid Co., Ltd. and Corbion, amongst others.
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1.1 Key Deliverables of the study
1.2 Study Assumptions
1.3 Market Definitions
2. Research Approach and Methodology
2.2 Research Design
2.3 Study timelines
2.4 Study Phases
2.4.1 Secondary Research
2.4.2 Discussion Guide
2.4.3 Market Engineering & Econometric Modelling
2.4.4 Expert Validation
3. Market Overview
3.2 Market Dynamics
188.8.131.52 Increased application in infant nutrition and sports nutrition
184.108.40.206 Inhanced fortification of ARA to meet the nutritional gap
220.127.116.11 Regulatory approval in infant nutrition products
18.104.22.168 High capital investment
22.214.171.124 High product cost
126.96.36.199 Poor consumer understanding of PUFA and ARA
188.8.131.52 Increased advancement in biotechnology
184.108.40.206 Availability of microalgae as a raw material
3.2.4 Porter's Five Forces Analysis
220.127.116.11 Bargaining Power of Suppliers
18.104.22.168 Bargaining Power of Buyers
22.214.171.124 Threat of New Entrants
126.96.36.199 Threat of Substitute Products and Services
188.8.131.52 Degree of Competition
4. Market Segmentation
4.1 By Technology
4.1.1 Solvent extraction
4.1.2 Solid phase extraction
4.2 Application Type
4.2.1 Food and Beverages
184.108.40.206 Infant formula
220.127.116.11 Dietary supplements
4.3 By Geography
4.3.1 North America
18.104.22.168 United States
4.3.3 Asia Pacific
4.3.4 South America
22.214.171.124 South Africa
4.4 Competitive Landscape
4.4.1 Mergers & Acquisitions
4.4.2 Joint Ventures
4.4.3 New Product Launches
4.4.4 Most active companies in the past five years
4.4.5 Market Share Analysis
4.5 Company Profiles
4.5.6 Cabio Bioengineering
4.5.7 Guangdong Runke
4.5.8 Cayman Chemicals
4.5.9 A&Z Food additives Co. Ltd