Adam Ismail, executive director, GOED (Global Organization for EPA and DHA), discusses sourcing and new EU hygiene regulations that may significantly affect the omega 3 supply chain.

"Omega 3's represent one of the hottest categories in the industry today, both in the food and supplement spaces. The retail side gets a significant amount of coverage, but there are also several developments on the raw material side that will help shape the market in the coming years.

"A major concern right now is EU legislation that could result in a ban of omega 3 products from fish oil in the EU due to the inclusion of fish oils in the seafood hygiene regulations. The core problem is that most crude fish oil is a byproduct of the fishmeal industry, which serves the aquaculture and animal feed market. But under hygiene regulations only fish oils from fish for human consumption would be allowed into the EU. The legislation, while well intentioned, does not take into account the effects of refining on fish oils. The entire purpose of the refining step is literally to make fish oils palatable and acceptable for human consumption. The industry is working hard to demonstrate that there is no need to apply the hygiene regulations in this form to fish oils, while working to develop a compromise that ensures only high quality refined oils make it into the hands of the consumers. This is a case where industry can work hand-in-hand with government to ensure that consumers continue to have access to these vital nutrients-EPA and DHA-while still ensuring that there are rigorous food safety controls in place.

"In addition, you are starting to see much more customization in the market. The traditional raw material option was standard 18/12 oil, which was named for its 18% EPA and 12% DHA content. However, the market seems to be progressing into more unique solutions, whether in the food or supplement markets. On the food side, a buyer can now find encapsulations using two shells for extra protection, nanotechnology for ease of use, emulsions for specific applications, and even oils specifically designed for equipment in a specific production process. In the case of supplements, you can now find almost any mix of EPA and DHA you want-up to 90% of a single fatty acid-which allows marketers to develop products that can target specific health benefits or pack more omega 3's into a single capsule. In addition, the algal producers continue to show strong growth providing both a vegetarian option for long-chain omega 3's and a unique source of DHA only. The 18/12 oil still makes up the largest portion of the market volume globally, but now there are more options for companies to choose from, and likely many more new forms coming out soon.

"Another aspect of the market to consider is how important going to the source can be in obtaining the right oil for applications. You are now seeing companies trying to discover better ways to stay close to the source, whether it is building refineries in Peru, forming joint ventures with fisheries, or backwards integrating into fish farming. One thing is clear, the higher the quality of the crude oil into your refinery is, the higher the quality of refined oil coming out will be. Given the growth of the market, demand for the highest quality ingredients will remain tight and require companies to continue to be more innovative in how they get closer to the source of oil.

"In short, the raw material side of the omega 3 market is as dynamic as the finished product side, and with many of the developments in the pipeline, it promises to continue to be exciting for many years to come."

-Kelley Fitzpatrick, director of health and nutrition, Flax Canada, discusses challenges for flax suppliers.

"The positive effects of omega 3 fatty acids are well known and publicized. I am, however, concerned about confusing and sometimes misleading communications about the health effects of the specific omega 3's, in particular the physiological significance of plant-based alpha linolenic acid (ALA) 'versus' fish-based EPA and DHA. What many fail to overlook is the critical need for both plant and fish-based omega 3, especially considering the increasing predominance of omega 6 fatty acids in the diet.

"It is unfortunate that the omega 3 debate-and those that choose to downplay the importance of flax-based ALA in the diet-fail to emphasis the need to decrease the omega 6 fatty acids, while increasing intakes from all three omegas. The typical North American diet is 'deficient' in omega 3 fats and overly rich in omega 6 fats-the n-6/n-3 ratio may be as high as 17:1 in some Western diets. In the Women's Health Study, some women had diets with a ratio of 33:1!

"We all must recognize that it is not a situation of ALA versus EPA/DHA, but one of ALA AND EPA/DHA. Education and clear messages are required to ensure that consumers are presented with the most accurate information to ensure their health and wellness."

-Mary Ann Siciliano, national sales manager, Arista Industries, Inc., discusses price pressures.

"With the rise in consumer awareness of the health benefits of omega 3's, finished product launches are booming. Unfortunately, the supply of this 'hot' ingredient is currently a concern. Suppliers of the standard 18/12 omega 3 fish oil, which consists of 18% EPA and 12% DHA, are facing issues as the DHA content in the crude oil is coming up low. This is affecting worldwide demand and is pushing prices up dramatically on all types and potencies of omega 3 oils. Since the 18/12 oil will continue to be tight, to help alleviate the shortages, Arista Industries has developed an omega 3 product, which has an EPA/DHA of 7-25% each, with a total minimum of 30% omega 3. Based on the information we have received, we do not see this situation changing in the near future."

-Ian Lucas, executive vice president, Global Marketing, Ocean Nutrition Canada, discusses the rapid rise in consumer awareness and acceptance for omega 3's.

"The omega 3 category continues to grow exponentially, and we are seeing a major shift in consumer awareness in North America in particular. We purchased three separate consumer market research studies conducted this spring, and in all three studies awareness of the term omega 3 was over 90%. This is up from 59% two years ago. In addition, all three studies showed that over 85% of consumers associate the term omega 3 with the term fish oil. This is important because it means the term fish oil has become a positive one for consumers. So when a label of a food/beverage products says it contains fish oil, consumers will regard this is as a good thing."

-Mary Eckman, business development manager, Pizzey's Nutritionals (recently acquired by Glanbia Nutritionals), discusses ingredient stability.

"Many companies marketing fish oils face challenges in ensuring stability, especially in complex food systems, and simply mixing oils or emulsions into food products isn't enough. Common reasons for the failure of encapsulated products in food applications are pH, shear and presence of minerals. These challenges become less of an issue when using flax as a source of plant-based omega 3 fatty acids.

"Pizzey's recently introduced novel ingredients that offer the nutritional benefits of the whole flaxseed (omega 3, lignans, antioxidants and fiber), plus EPA and DHA from fish oils. MeadowPure Omega 3 Ultra is a granulated, free-flowing powder of milled flax in combination with either 2.2% or 8% fish oil. A powerful antioxidant system present naturally within flaxseed provides an increase in the stability and shelf-life of EPA and DHA as the omega 3's are encapsulated in the milled flaxseed.

"MeadowPure Omega 3 Ultra is the subject of a recent patent application that encompasses stabilized fatty acid compositions combined with specially selected and milled flaxseed. The innovation is based in part on a previous patent in which we describe the very active and stable antioxidant system present in flaxseed."

-David Hart, product manager, Functional Foods, Frutarom Ltd., discusses increasing competition, the rising interest in ALA and resolving formulation issues.

"As demand for omega 3 polyunsaturated fatty acids (PUFAs) continues to increase, more players have entered the market. This is especially true for fish oils, as the number of manufacturers has increased; this is also true for vegetable-based omega 3's such as ALA. Frutarom is part of this trend with Alina, a new, unique source of omega 3 PUFAs from clary sage (Salvia sclarea). Alina oil contains 50% omega 3 PUFAs, and due to its source in the sage family, has a milder flavor profile and is more stable than other ALA sources, making it perfect for use in functional foods.

"ALA is the only omega 3 that is an essential fatty acid, meaning that the body must ingest it from an external source. More omega 3 PUFAs are being incorporated into functional foods in the mass market, driving demand higher. On the other hand, the world's fisheries, and especially over-fishing, place natural limitations on the supply of fish oil. In addition, when the new EU regulations regarding hygiene standards go into effect, the quantity of fish oil available may be reduced drastically. The increasing demand for omega 3 PUFAs and the supply limitations of fish oil have turned manufacturers to plant-sourced omega 3 PUFAs like ALA.

"Frutarom is actively involved in supporting science that details the health benefits of ALA. The scientific background for omega 3 EPA/DHA is well-documented and the research foundation for EPA/DHA continues to grow. But new research focuses on the function and health benefits of ALA. Frutarom is partnering with the academic community to bring new research on Alina focused on the areas of neuroprotection, inflammation and skin health. We expect that initial research to be published in the coming months.

"For functional foods, taste is the most important factor. The undesirable taste and limited stability of fish oil and other omega 3 sources has limited the amount of functional foods fortified with omega 3 PUFAs. Technologies and new products such as Alina have started to answer the omega 3 taste and stability challenge. Having a strong base in the flavor and food industry, Frutarom can offer customers advanced technical support."

-Diane Hnat, senior marketing manager, New Business Development/Human Health & Nutrition, DSM Nutritional Products, Inc., discusses growth in the omega 3 business, trends and sustainability of supply.

"There is continuing double-digit growth of consumer intake in the area of supplements. Although standard fish body oils are still the least expensive and most common soft gel capsules (i.e., what has historically been called 18:12 EPA/DHA), there is further differentiation by marketers of both higher potencies and various ratios of EPA/DHA. DSM has prided itself on its organoleptic quality, even to the point of conducting a taste test, so to speak, whereby consumer reactions to ingestion of fish oil capsules (such as belching) were recorded. ROPUFA '75' n-3 EE is our premium ingredient for supplements-one benefit to marketers is that it is so clean-tasting that enteric coating and/or high levels of masking flavors are not necessary.

"The HealthFocus International 2007 Trend Survey Report noted even more consumer awareness and increased consumption of omega 3 fatty acids. Although there is still plenty of confusion in the consumer's mind about 'omega 3' as a category, we (on the supply side) are just starting to focus more on the education side. GOED (Global Organization for EPA and DHA) is a group with an objective to educate consumers about the bioactives EPA and DHA.

"There are some groups starting to talk about sustainability issues of certain fish, asking suppliers to undergo certain scrutiny and get 'certified.' There probably should be a more global approach to this, however. Otherwise, despite recent natural disasters affecting fisheries and refineries, we have ample supplies to deal with consumers' booming interest in EPA and DHA."

-Baldur Hjaltason, sales manager-North America, Japan and China, EPAX AS, discusses fish oil production issues, condition-specific product trends, and omega 3 concentrates.

"Although this year's fish oil production will most likely be less than last year's, only a small part of it goes toward human nutrition. In fact, it is estimated that more than 90% of the oil goes into aquaculture and animal feed. This means that processors of fish oil for human consumption can always pay a premium to get all the oil they need inthe coming years.

"So far this year, the composition of the crude oil coming from South America has been higher in EPA and lower in DHA. This means the processors have had problems delivering the classic 18:12 oil, which has increased the price and reduced the availability of this type of oil. If this coming fishing season in Peru offers similar results as earlier this year in EPA and DHA content, we might see marketing companies moving out of 18:12 oil into a product with a different amount of EPA and DHA.

"So far the industry has been able to supply the market with both low and high concentrates. There have been heavy investments to increase capacity of making concentrated omega 3 products, which means we will see that supply keeping up with demand in the coming year. Meanwhile, new players have announced they will enter the market for omega 3 concentrated products in 2008.

"We are also seeing the dietary supplement market for omega 3 concentrates become very condition-specific. There are new products coming out with high EPA or DHA content as well as total omega 3 content. There is no question that the success of the pharmaceutical omega 3 product Omacor in the U.S. market has generated strong interest from healthcare professionals, as well as marketing companies involved in cardiovascular disease prevention.

"There has also been a structural change in the low concentration omega 3 market, or the 18:12 oil market. The success of powdered fish oil in food applications has replaced, to some extent, the 18:12 dietary supplement market for well-being. When consumers can get their omega 3 needs through consumption of omega 3-fortified bread, pizza or orange juice they do not really need their 18:12 capsules for well-being.

"Omega 3 producers are continuously improving the quality of their products with better processing technology, as well as better antioxidant systems. The higher the total omega 3 content of the product, the more prone they are to oxidation. There is also a strong indication that the market in the U.S. is going from ethyl ester (EE) into triglyceride (TG) product, becoming more like the European market where there are very little sales of EE product. Some EU countries don't even allow EE ingredients to be sold in dietary supplements.

"EPAX itself came under new ownership in the beginning of the year. The new owner is the Norwegian company Austervoll Seafood, which is involved in fishing, fish processing, fish farming and production of fish meal and fish oil on a global basis. They operate six fishmeal and oil plants in Peru through Astral, producing more than 50,000 tons of crude fish oil annually. This gives EPAX excellent access to high quality raw material and secures constant supply in the future.

"EPAX has set new, stricter limits of unhealthy oxidative byproducts that can occur during the manufacturing process. The company has invested in technology and expertise that gives it the possibility to purify and gently concentrate omega 3 fatty acids, and therefore minimize the formation of byproducts.

"Lastly, on the research front, strong science continues to support the omega 3 category. The good news is more studies are being conducted on humans instead of animals. Also critical, we are seeing more countries setting their recommended daily intakes of omega 3 fatty acids, including Japan, New Zealand and Australia.

-Robert Gaffney, president, Omega Nutrition, discusses the importance of all omega 3 fatty acids.

"All omega 3 fatty acids are beneficial to health. It does both the ALA and EPA/DHA categories a disservice when one camp slams the other about one thing or another. The truth is, if you want to make fish oil work better and offer more health benefits, then you need to take it with flax oil. The debate surrounding ALA and EPA/DHA is serving only to confuse consumers. The industry should really be educating consumers about the importance of ALA and EPA/DHA as tools for good health."

-Manny Sabares, global marketing director, Bioriginal, discusses consumer demographics and trends, as well as formulation developments and new products.

"Increasingly, demographics appear to be playing a more important role in the supplement choices consumers are making. The Baby Boomers generally believe they are nutrient deficient in fiber, omega 3's and whole grains, so they are more likely to choose products that are fortified with one or all of these nutrients. When choosing products for children, however, parents may be interested in omega 3's for a different reason-they show great promise for mental health and development. These trends are likely to fuel opportunities for food manufacturers interested in producing products enriched with omega 3's.

"The past few years have seen great advances in the world of omega 3's, both from a quality standpoint and in terms of our understanding of the role these important nutrients play in our body. With regard to the functional food trend in particular, the industry has been working hard to produce ingredients that will enable manufacturers to harbor the appeal of these fatty acids in a wider range of food and beverage products. Advances in microencapsulation, along with increasingly sophisticated processing techniques that are designed to combat taste and odor issues, have made an important contribution.

"Although significant progress has been made, the taste battle isn't completely over. It is still an issue, particularly for fish-based oils. The shelf-life of omega 3-enriched foods also remains a key technical challenge, particularly with ambient stable products. For this reason, the majority of products currently on the market have a short shelf-life, i.e., chilled products, such as yogurt and dairy spreads.

"Due to the technical challenges associated with using fish oil products, plant-based omega 3's are becoming an increasingly popular alternative for functional food products. The great health benefits associated with flaxseed oil, in particular, are becoming more widely publicized, and its mild taste makes it more suitable for incorporation in food and beverages.

"The dietary supplement market will continue to drive the growing functional food trend, as manufacturers strive to offer consumers convenient options for increasing their daily omega 3 intake. Omega 3 fortified foods will co-exist alongside food supplements to help consumers lead a healthier lifestyle. Going forward, the key to success will be to educate consumers on how to use these products to improve their diets. While functional foods provide many health benefits, it is important to recognize that the dosage levels available in functional foods do not match those of supplements.

"At Bioriginal this year, product launches have re­volved around multi-ingredient supplements for heart, eye, skin, women's and men's health, among others. These supplements combine a selection of high quality essential fatty acids with other well-known, health enhancing ingredients, such as lycopene, lutein and coenzyme Q10 (CoQ10). Our exclusively sourced fish oil, BioPureDHA, features strongly within our product range, and has been an important advancement for Bioriginal. Another important development for Bioriginal is our flavored chewable soft gels. These soft gels form part of a wider range of great tasting EFA oils, and include condition-specific options, such as borage oil for skin health, flaxseed oil for heart health and BioPureDHA for brain health. Eliminating the unpleasant odor and taste traditionally associated with fish oils, these products offer an appealing, convenient format for children and adults alike to increase their essential fatty acid intake."

-Jackie Khayat, BSc, DtP, key account manager, Neptune Technologies & Bioressources Inc., discusses a different source of marine omega 3's.

"During the last decade, we have all come to appreciate the benefits of a balanced diet rich in polyunsaturated fatty acids, phospholipids and antioxidants. Fatty acids have become synonymous with flaxseed and fish oil for omega 3, lecithin and phosphatidylserine have become the stand-outs in phospholipids, and retinol, vitamin E, lycopene and CoQ10 have become some of the best known antioxidants. While all of the above are excellent representatives of their class of nutrients, they do not support life's most crucial element-the synergy (homeostasis) required for optimum health.

"The mission of Neptune Technologies & Bioressources Inc. is to develop innovative processes in biotechnology, exploit the added value of marine biomasses, and develop and bring innovative products to market under the OPA3 brand. OPA3 products are characterized by their content of functionalized omega 3's on phospholipids bound to potent antioxidants. The first OPA3 product to be marketed by Neptune Technologies & Bioressources is Neptune Krill Oil (NKO), which is extracted from krill, a tiny zooplankton found in the cold Antarctic waters. The krill species named Euphasia superba is the only species exploited by Neptune Technologies & Bioressources Inc.

"During the last few years, fish oil has become a chief source of omega 3's. One of the distinguishing features of Neptune Krill Oil from fish oil is the carrier of omega 3-it is carried as a triglyceride, which is further metabolized in the human body and broken down into diglycerides and then to monoglycerides, resulting in a final release of free fatty acids. Of these, 61-64% are attached to phospholipids and transferred through the cell membrane, where they will become active. The remaining 37-39% remain in a pro-oxidant (oxidation promoting) free fatty acid form.

"Neptune Krill Oil carries EPA and DHA, the most active omega 3 fatty acids, in the form of phospholipids. This significantly increases its bioavailability and bioeffectiveness. Not only are there no free radicals released, but Neptune Krill Oil's naturally occurring antioxidants also provide excellent protection. In fact, independent testing has shown that Neptune Krill Oil can block free radicals and provide antioxidant protection 48 times stronger than fish oil and 34 times stronger than CoQ10."

-Cecilia McCollum, executive vice president, Blue California discusses a new omega 3 ingredient suitable for supplements, foods and beverages.

"Blue California has been developing new ingredients using proprietary microencapsulation technology. One of these unique products is VitaDHA derived from fish. VitaDHA is different than other products on the market because it's completely deodorized and water-soluble, making it an ideal product for dietary supplements, functional foods and liquid formulas.

"DHA is an essential nutrient for cognitive function, brain development in children, and proper brain function and mood health in adults as they age. Since VitaDHA is a more palatable form of this important nutrient, it offers more flexibility for formulators (chewable tablets, liquid formulas, nutritional bars, etc.). The characteristic 'fishy' taste of DHA has been a challenge for the industry and VitaDHA takes care of that while offering a 15% concentration of DHA. The ideal diet must include sufficient intake of DHA from fish or other sources. When the diet is deficient, supplementation with DHA is necessary for children and adults alike.

"The benefits of DHA are supported by 50 years of irrefutable science and clinical data. Further, the potential for this market is significant because it is relevant to all stages of life."NW