OPPORTUNITIES FOR OMEGA-3 PRODUCTS

Transcription

1 OPPORTUNITIES FOR OMEGA-3 PRODUCTS Prepared by: CPL Business Consultants The Manor House, Howbery Park, Wallingford, Oxfordshire, OX10 8BA Tel: , Dr Robert Harwood Dr Steve Lisansky Dr Esther Hunter Dr Michael Lee Ms Megha Chugh Ms Karen Kolodziej April 2009

2 Omega-3 contents - i TABLE OF CONTENTS VOLUME 1 OBJECTIVE AND BACKGROUND... 1 METHOD... 1 CLIENT S QUESTIONS... 2 DEVELOPING A MARKET ENTRY STRATEGY... 2 PRODUCT PRICING AND THE MARKETING APPROACH... 3 KEY SUCCESS FACTORS... 5 BARRIERS TO ENTRY... 5 POTENTIAL PARTNERS... 5 PLANT CAPACITY... 7 PRINCIPAL FINDINGS AND CONCLUSIONS... 9 MARKETS... 9 COMPETITION DIETARY SUPPLEMENTS Introduction Omega-3 supplements FUNCTIONAL FOODS PHARMACEUTICALS Introduction Raw materials Omega-3 pharmaceuticals Future prospects ALTERNATIVE PRODUCTS REGULATORY RECOMMENDATIONS MARKETS MARKET ESTIMATES RAPID MARKET GROWTH MARKET DATA SOURCES MARKET DRIVERS Growth promoters Growth inhibitors VALUES VOLUMES PRICES Prices obtained from contacts Prices by product type OVERVIEW OF CONTACTS OPINIONS MARKETS Market Growth Market Drivers and Constraints Market Trends New Formats PLAYERS AND PRODUCTS Omega-3 Companies Distributors End users Supplements Pharmaceuticals Regulations... 66

3 Omega-3 contents - ii BARRIERS TO ENTRY KEY FACTORS FOR SUCCESS General Key Factors for Success in Food STRATEGY Partnerships Marketing Capacity CLIENT'S CLAIMS Traceability Reflux Amines Hygiene Purity Halal/Kosher COMPETITION COMPLETE MANUFACTURERS PRODUCT LISTING COMPANY SUMMARIES MAJOR GLOBAL FISH OIL REFINERS companies MANUFACTURERS B2B MARKETING CLAIMS Claims about product qualities and processing skills Claims about accreditation, certification, health and safety PRODUCTION FACILITIES DIETARY SUPPLEMENTS DIETARY SUPPLEMENTS - OVERVIEW Product Categories Product and Brand Differentiation Market Drivers Success Factors Barriers to Entry Overview of the Global Omega-3 Dietary Supplements Market Benefits of Omega-3 Supplements Origin of Fish Oils The supplements supply chain US OMEGA-3 SUPPLEMENTS products EUROPE AND ROW OMEGA-3 SUPPLEMENTS products CURRENT PRODUCT CLAIMS & CLIENT'S PRODUCTS Product claims compared to Client's product properties VOLUME 2 FUNCTIONAL FOODS FUNCTIONAL FOODS - OVERVIEW Consumer Need for Omega-3 Food Products Omega-3 Functional Food Categories Benefits of Omega-3 Functional Foods Success Factors Market Presence FUNCTIONAL FOOD PRODUCT LAUNCHES EXAMPLES OF FUNCTIONAL FOOD RETAIL PRODUCTS products PHARMACEUTICALS PHARMACEUTICAL INDUSTRY OVERVIEW OMEGA FATTY ACIDS Market

4 Omega-3 contents - iii Players & Products IP & Clinical Trials COMPANIES WITH AN INTEREST IN O3S AS DRUGS companies COMPANIES CONSIDERING GENERIC VERSIONS OF OMEGA-3 DRUGS companies O3S AS PRENATAL DRUGS company NON-PRESCRIPTION, HIGH END DIETARY SUPPLEMENTS companies PHARMACEUTICAL PATENTS CLINICAL TRIALS FOR EPA AND DHA NEWS, SCIENTIFIC PAPERS AND PRESENTATIONS articles OVERVIEW OF THE GLOBAL PHARMACEUTICAL INDUSTRY MARKET MARKET TRENDS THE DRUG DEVELOPMENT PROCESS Cost of developing a new medicine Drug development and the conduct of medical research Clinical trials Success rates in Drug Development The promotion of drugs Market Penetration for New Drugs INTELLECTUAL PROPERTY PROTECTION Procedures for Drug Approval PLAYERS companies THE PHARMACEUTICAL INDUSTRY BY REGION The US Pharmaceutical Industry The European Pharmaceutical Industry US vs. Europe - Competitive Comparison The Pharmaceutical Industry in the ROW ALTERNATIVE COMPETING PRODUCTS ALGAE OMEGA-3 PRODUCT MANUFACTURERS companies TWO ENHANCED FLAX OIL PRODUCERS companies KRILL OIL Key trends and developments Competitive Factors companies REGULATORY - NUTRITION CLAIMS, HYGIENE SUMMARY UK REGULATIONS Food Standards Agency Novel foods Nutrition and health claims Nutrition claims Health claims Labelling Food law enforcement REGULATIONS (EC) NO 1924/2006 ON NUTRITION AND HEALTH CLAIMS MADE ON FOODS Article 13 Nutrition and health claims Article 13 overview of deadlines Criteria for screening of Article 13 health claims Article 14 Disease risk claims Health claims deadline will not be met 10 March REVIEW OF ARTICLE 14 CLAIMS I omega kids /Pufan 3 kids and calming

5 Omega-3 contents - iv SI omega kids /Pufan 3 kids and serenity I omega kids /Pufan 3 kids and vision I omega kids /Pufan 3 kids and concentration I omega kids /Pufan 3 kids and mental development ARTICLE 14 INFANT HEALTH CLAIMS EFSA on omega-3 claims: yes to eye health, no to brain EFSA opinion on DHA and ARA and visual development EFSA opinion on Enfamil Premium and brain development OPINION ON NUTRITION CLAIMS FOR OMEGA-3 FATTY ACIDS Summary Omega-3 fatty acids claims Monounsaturated fat claim Polyunsaturated fat claim Unsaturated fat claim HYGIENE REGULATIONS 2004 ANNEX III - FISHERY PRODUCTS Chapter I: Official Controls of Production and Placing on the Market Chapter II: Official Controls of Fishery Products Chapter III: Decisions after Controls Postponement of hygiene regulations to 30 April EU WORKING GROUP ON FISHERIES AND AQUACULTURE US DIETARY SUPPLEMENT REGULATIONS ONC REGULATORY APPROVALS United States Fish Oils and Capsules in Canada European Union, Asia, Australia, South America VOLUME 3 CONTACT REPORTS PRIMARY PRODUCERS (CRUDE OIL EXTRACTORS) Company X SECONDARY PROCESSORS (REFINED OIL PRODUCERS) companies TERTIARY PROCESSORS (ENCAPSULATORS AND MICROENCAPSULATORS) companies DISTRIBUTORS / RESELLERS companies TRADERS companies FOOD COMPANY END USERS companies SUPPLEMENT COMPANY (BRAND HOLDER) END USERS companies PHARMACEUTICAL COMPANY END USERS companies FOOD PRODUCT DEVELOPMENT SERVICES companies EQUIPMENT MANUFACTURERS Company Y OTHERS companies ADDITIONAL CONTACTS FOR REFERENCE MANUFACTURERS companies END USERS companies NEWS OVERVIEW

6 Omega-3 contents - v Health Benefits Markets and Products Competition Labelling, Safety and Regulations RECENT NEWS ARTICLES articles APPENDICES ON THE ACCOMPANYING DISK COMPANY INFORMATION 18 companies FOOD PRODUCT DEVELOPMENT SERVICES Leatherhead Food RA Leatherhead Food RA Shelf Life Services Reading Scientifc Services March 2009 Sensory Dimensions MINTEL FOOD PRODUCTS FROM 1999 Fish2 Omega-3 April Marine Omega-3 April Omega-3 with claim April OTHER PRESENTATIONS GOED Molecular Distillation of Oil Refining REGULATION Article 13 Claims Derogation of hygiene regulations to April 2009 European Pharmacopoeia Fish Oil European Pharmacopoeia Fish Oil Test method Hygiene Regulations Labelling Guidelines May 2007 USA 2008 Regulation of Dietary Supplements TABLES TABLE 1 CPL ESTIMATE OF EXPECTED AND RAPID WORLD INGREDIENT SALES VALUE ($M), VOLUME AND % GROWTH RATES... 9 TABLE 2 CPL PRODUCT PRICES SUMMARY TABLE 3 CPL ESTIMATE OF EXPECTED AND RAPID WORLD INGREDIENT SALES VALUE ($M), VOLUME AND % GROWTH RATES TABLE 4 PUFA MARKET DRIVERS (F&S) TABLE 5 MARINE OIL MARKET DRIVERS (F&S) TABLE 6 PUFA MARKET CHALLENGES (F&S) TABLE 7 MARINE OIL MARKET CHALLENGES (F&S) TABLE 8 CPL ESTIMATE OF INGREDIENT SALES VALUE ($M) AND % GROWTH RATES TABLE 9 CPL ESTIMATE OF INGREDIENT SALES VOLUME (KT) AND % GROWTH RATES TABLE 10 WORLD INGREDIENT SALES VALUE ($M) AND % GROWTH RATES TABLE 11 EUROPEAN INGREDIENT SALES VALUE ($M) AND % GROWTH RATES TABLE 12 OTHER INGREDIENT SALES VALUES OBTAINED ($M) TABLE 13 US INGREDIENT SALES VALUE ($M) AND % GROWTH RATES TABLE 14 CONCENTRATES SALES VALUE ($M) AND % GROWTH RATES TABLE 15 INGREDIENT SALES VOLUME (KT) AND % GROWTH RATES TABLE 16 CONCENTRATE SALES VOLUME (KT) AND % GROWTH RATES TABLE 17 WORLD FISH OIL VOLUME (KT) USED FOR HUMANS TABLE 18 CPL PRODUCT PRICES SUMMARY TABLE 19 PRICE COMPARISON OF MARTEK S PRODUCTS TABLE 20 PRICES BY PRODUCT TYPE TABLE 21 MANUFACTURERS PRODUCTS LISTING TABLE 22 COMPANY X S KEY PRODUCT RANGES TABLE 23 COMPANY X S PRODUCTS TABLE 24 COMPARISON OF COMPANY Y S PRODUCT WITH SPECIFICATIONS OF THE SOURCE MATERIAL TABLE 25 OMEGA PROTEIN STORAGE FACILITIES TABLE 26 OMEGA PROTEIN HARVESTING AND PRODUCTION

7 Omega-3 contents - vi TABLE 27 OMEGA PROTEIN REVENUES BY PRODUCT TABLE 28 OMEGA PROTEIN INVENTORY TABLE 29 COMPANY Z - PROFILE TABLE 30 ONC DIETARY SUPPLEMENT PRODUCTS AND BRANDING IN CANADA TABLE 31 ONC DIETARY SUPPLEMENT PRODUCTS AND BRANDING IN THE US TABLE 32 ONC OTHER DIETARY SUPPLEMENT PRODUCTS AND BRANDING TABLE 33 ONC FOOD INGREDIENT PRODUCTS AND BRANDING IN CANADA TABLE 34 ONC FOOD INGREDIENT PRODUCTS AND BRANDING IN THE US TABLE 35 ONC OTHER FOOD INGREDIENT PRODUCTS AND BRANDING TABLE 36 COMPANY A S DISTRIBUTION AGREEMENTS WORLDWIDE TABLE 37 MANUFACTURERS CITING PRODUCT QUALITIES AND PROCESSING CLAIMS IN B2B MARKETING TABLE 38 MANUFACTURER S CITING ACCREDITATION, CERTIFICATION, HEALTH AND SAFETY IN B2B MARKETING TABLE 39 LOCATION, TYPE AND SIZE OF FACILITIES TABLE 40 US OMEGA-3 FISH OIL SUPPLEMENT MANUFACTURERS TABLE 41 PRODUCT CLAIMS ABOUT THE FISH OILS IN DIETARY SUPPLEMENTS TABLE 42 PRODUCT CLAIMS ABOUT THE FISH OIL INGREDIENTS IN FOOD PRODUCTS TABLE 43 FOOD PRODUCTS WITH FISH OIL / OMEGA-3 CLAIM TABLE 44 PHARMACEUTICAL PATENTS MENTIONING OMEGA TABLE 45 GLOBAL PHARMACEUTICAL MARKET, $B ( ) TABLE 46 MARKET CONSOLIDATION IN THE GLOBAL PHARMACEUTICAL INDUSTRY TABLE 47 THE EU PHARMACEUTICAL INDUSTRY IN FIGURES (2004) TABLE 48 RESEARCH AND DEVELOPMENT IN THE EU PHARMACEUTICAL INDUSTRY (2004) TABLE 49 THE PHARMACEUTICAL MARKET IN EUROPE, B (2003) TABLE 50 THE GERMAN PHARMACEUTICAL BASIC SUBSTANCES MARKET, B (2004) TABLE 51 MARKET SIZE OF THE ITALIAN PHARMACEUTICAL MARKET $M (2004) TABLE 52 ITALIAN IMPORT AND EXPORT OF PHARMACEUTICALS (2004) TABLE 53 MARKET SIZE FOR THE BRAZILIAN PHARMACEUTICAL INDUSTRY, $M ( ) TABLE 54 MARKET SIZE FOR THE CHILEAN PHARMACEUTICAL INDUSTRY, $M ( ) TABLE 55 MAJOR GLOBAL FISH OIL REFINERS TABLE 56 EUROPEAN OMEGA-3 FISH OIL MARKET VOLUME, VALUE AND UNIT COST TABLE 57 % EUROPEAN MARKET VALUE AND VOLUME BY FISH OIL TYPE TABLE 58 US OMEGA-3 FISH OIL MARKET VOLUME, VALUE AND UNIT COST TABLE 59 % US MARKET VALUE AND VOLUME BY FISH OIL TYPE TABLE 60 TOTAL US AND EUROPEAN FISH OIL MARKET VOLUME, VALUE AND UNIT COST TABLE 61 % TOTAL US AND EUROPE MARKET VALUE AND VOLUME BY FISH OIL TYPE TABLE 62 RETAIL VALUE OF O3 PRODUCTS BY COUNTRY AND SECTOR (2007) TABLE 63 % RETAIL VALUE OF O-3 PRODUCTS BY COUNTRY AND SECTOR (2007) TABLE 64 SPECIFICATIONS OF 18:12 OIL REQUIRED BY COMPANY Y TABLE 65 SOURCE & TECHNOLOGY FOR NUTRITIONAL OILS TABLE 66 MARKET FOR NUTRITIONAL OILS TABLE EPA/DHA OMEGA-3 RETAIL AND INGREDIENT SALES (US$M) TABLE 68 GLOBAL OMEGA-3 MARINE OIL MARKET 2008: VOLUME, VALUE AND GROWTH TABLE 69 GLOBAL OMEGA-3 MARINE OIL MARKET VOLUMES: FIGURES FIGURE 1 PRODUCT FORMS AND FORMATS FIGURE 2 DISTRIBUTION OF PRODUCTS BY PERCENTAGE OF OMEGA FIGURE 3 FREQUENCY OF MANUFACTURERS CITING PRODUCT QUALITIES IN THEIR ADVERTISING FIGURE 4 FREQUENCY OF MANUFACTURERS CITING PROCESS CLAIMS IN THEIR ADVERTISING FIGURE 5 FREQUENCY OF MANUFACTURERS CITING ACCREDITATIONS IN THEIR ADVERTISING FIGURE 6 SUPPLEMENTS SUPPLY CHAIN FIGURE 7 MINTEL GRAPH OF OMEGA-3 PRODUCT LAUNCHES WORLDWIDE FIGURE 8 MINTEL GRAPH OF OMEGA-3 PRODUCT LAUNCHES IN EUROPE FIGURE 9 MINTEL GRAPH OF OMEGA-3 PRODUCT LIFE CYCLE FIGURE 10 PRODUCTION OF THE API FOR OMEGA 3 PHARMACEUTICAL PRODUCT FIGURE 11 COST OF DEVELOPING A NEW MEDICINE ( ) FIGURE 12 DEVELOPMENT OF A DRUG FROM TARGET IDENTIFICATION TO POST-LAUNCH PRODUCT REVIEW FIGURE 13 NEW MOLECULAR ENTITIES APPROVED IN THE US,

8 Omega-3 contents - vii FIGURE 14 SUCCESS RATES IN DRUG DEVELOPMENT FIGURE 15 PERCENTAGE MARKET SHARE FOR PRODUCTS LAUNCHED IN THE LAST FIVE YEARS (2003) FIGURE 16 PHARMACEUTICAL INDUSTRY EXPENDITURE IN R&D IN EUROPE (2002) FIGURE 17 SPLIT OF EUROPEAN PHARMACEUTICAL MARKET (2004) FIGURE 18 FUNDING OF HEALTH-RELATED R&D IN THE UK FIGURE 19 COMPARISON OF SHARE OF GLOBAL PHARMACEUTICAL R&D INVESTMENT