The algae omega-3 demand is growing in the health supplement segment, as it provides the same benefit as that of fish oil, but with no off-odor or taste. Algae Omega-3 is considered to be more bioavailable and sustainable. The algae omega-3 ingredient market is driven by the demand for dietary supplement products. The use of premium-grade omega-3 for infant formula is another factor driving the market, as algae omega-3 has proved to be of superior quality.

By application, the dietary supplement holds the major share followed by pharmaceutical, food & beverages, Animal Nutrition, and Clinical Nutrition. North American consumers are becoming less tolerant of unsustainable practices. The algae technologies allow for the production of a variety of environmentally sustainable biological products like algae omega-3 ingredients. The algal-based supplements of omega-3 oil, are the most sustainable innovative products, available in North America. Consumers are concerned about the need for omega-3 products in their diet.

The United States is the largest market for omega-3 in North America, followed by Canada and Mexico. In the United States, docosahexaenoic acid (DHA) is a major ingredient that is being used in infant nutrition. Almost all the brands offering infant nutrition formula in the country uses DHA as an ingredient that adds to the cost of formula, which is augmenting the growth of algae omega-3 ingredients market in the country. Increasing awareness about the long-term benefits of omega-3 consumption, fortified product availability, and growing market acceptance for such products is driving the market. The US food processors are launching many products with enhanced algae omega-3 functional food, owing to the rise in per capita spending and inclination of consumers toward health and wellness products.