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Market Insights
The South America arachidonic market was valued USD 28.16 million in 2016 and expected to reach 39.06 million USD by 2023 registering a CAGR of 5.5%, during the forecast period of 2018-2023. Brazil is expected fueling the market of archidonic acid as the consumer looking for the healthy dietary supplement. Advancement in biotechnology has shown a support for the market. The microbiological source of production is giving a new opportunity for the market, as ARA is present in high concentration in microalgae. In South America, the production of AR is low and market is mostly export dependent. China, Thailand and U.S are the largest exporters to the region.
Market Dynamics
The major driver for the ARA market has increased its application in infant formula products, sports nutrition, and dietary supplement products, and consumer move towards achieving nutritional benefits in diet. The imbalance and insufficient intake of ARA led to health disorder, and hence, nowadays consumers are more conscious to balance the nutritional gap in their diet, which is driving the ARA market in South America. However, the high production cost, and large capital investment is affecting the ARA market. Intake of fat is always found to be associated with increase in cholesterol and bad health effect, but PUFA and ARA are high potential fats and has less consumer awareness in the region, which is also a big restrain for the market. The poor consumer understanding of nutritional benefits of PUFA and ARA is adversely affecting the market growth.
Market Segmentation
South America ARA market is categorized on the basis of application type, technology type, and by food application. In the application type market ARA is further sub-segmented into food and pharmaceuticals. In the food application market is divided into infant nutrition and dietary supplement product, of which infant nutrition covers the major share in the market. ARA as a dietary supplements are mainly used for sports nutrition products. The market segmentation, according to technology, further includes the solvent extraction technology and the solid phase extraction technology. The technology is segmented on the basis of efficiency of production and cost.
Regional Analysis
Growing population, higher income, and changing psychographics in region drive the arachidonic market growth in South America. In 2016, Brazil dominated the market despite of raw material availability for the production and accounted for more than 40% of the total volume and value and is expected to witness significant growth during the forecast period.
Key Developments
- February 2018 - BASF, the world’s leading chemical company and a leading manufacturer of construction chemicals has been strongly investing in local production and has opened a production plant in Tanzania
Competitive Landscape
Major Players - A&Z Food additives Co. Ltd., BASF, Cabio Bioengineering, Cargill, Cayman Chemicals, DSM, Guangdong Runke, Martek Bioscience, Suntory, Xiamen Kingdomway Zhejiang Weiss (Wecan), among others.
Reasons to Purchase this Report
- Analyzing outlook of the market with the recent trends and Porter’s five forces analysis
- Market dynamics, which essentially consider the factors, which are impelling the present market scenario, along with growth opportunities of the market in the years to come
- Market segmentation analysis including qualitative and quantitative research incorporating the impact of economic and non-economic aspects
- Regional and country level analysis integrating the demand and supply forces that are influencing the growth of the market
- Competitive landscape involving the market share of major players, along with the key strategies adopted for development in the past five years
- Comprehensive company profiles covering the product offerings, key financial information, recent developments, SWOT analysis, and strategies employed by the major market players
- 3-month analyst support, along with the Market Estimate sheet in excel
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1. Introduction
1.1 Key Deliverables of the study
1.2 Study Assumptions
1.3 Market Definitions
2. Research Approach and Methodology
2.1 Introduction
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 Modeling
2.4.4 Expert Validation
3. Market Overview
3.1 Introduction
3.2 Market Dynamics
3.2.1 Drivers
3.2.1.1 Increased Application in Infant Nutrition and Sports Nutrition
3.2.1.2 Consumer Move towards Achieving Nutritional Benefits in Diet
3.2.2 Restraints
3.2.2.1 High Capital Investment
3.2.2.2 Low Consumer Awareness of ARA
3.2.2.3 High Energy Cost for Raw Material Production
3.2.3 Opportunities
3.2.3.1 Increased Advancement in Biotechnology
3.2.3.2 Availability of Microalgae as a Source of Production
3.2.4 Porter's Five Forces Analysis
3.2.4.1 Bargaining Power of Suppliers
3.2.4.2 Bargaining Power of Buyers
3.2.4.3 Threat of New Entrants
3.2.4.4 Threat of Substitute Products and Services
3.2.4.5 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 & Beverages
4.2.1.1 Infant formula
4.2.1.2 Dietary supplements
4.2.2 Pharmaceuticals
4.3 By Geography
4.3.1 South America
4.3.1.1 Brazil
4.3.1.2 Argentina
4.3.1.3 Rest of South America
5. Competitive Landscape
5.1 Market Share Analysis
5.2 Most active companies in the past five years
5.3 New Product Launches & Key Strategies
6. Company Profiles
6.1 DSM
6.2 BASF
6.3 Cargill
6.4 Suntory
6.5 Martek Bioscience
6.6 Cabio Bioengineering
6.7 Guangdong Runke
6.8 Cayman Chemicals
6.9 A&Z Food additives Co. Ltd.
6.10 Zhejiang Weiss (Wecan)
6.11 Xiamen Kingdomway
7. Appendix
7.1 Disclaimer
7.2 Sources
