Omega-3 in Animal Feed Market to Hit USD 987 Million by 2035 Backed by Clean-Label Feed Trend and Nutritional Innovation

Omega-3 in Animal Feed Market

Omega-3 in Animal Feed Market Growth Soars with Demand for Sustainable Ingredients and Better Livestock Productivity

NEWARK, DE, UNITED STATES, August 8, 2025 /EINPresswire.com/ -- A new market analysis projects the omega-3 in animal feed market will grow from USD 678.2 million in 2025 to USD 987.2 million by 2035. This steady growth, with a compound annual growth rate (CAGR) of 3.7%, reflects a significant shift in the animal nutrition industry toward functional ingredients that address core challenges for manufacturers and support future growth. The findings highlight a clear path for manufacturers to boost productivity, improve animal health, and meet rising consumer demands for sustainable practices.

Driving Growth and Solving Challenges for Manufacturers

The report reveals a market driven by increasing awareness of the nutritional benefits of omega-3s, which are essential for livestock, poultry, and aquaculture. Omega-3s are linked to improved immunity, enhanced fertility, and better overall productivity, offering a direct solution to some of the most critical challenges facing feed manufacturers today. This is especially true for manufacturers navigating the complexities of feed conversion, animal welfare, and the transfer of quality from feed to food.

The market's growth is largely supported by its role within the larger global animal feed additives market, where it accounts for 3.5-4.5% of a sector valued at over $45 billion. The aquaculture industry is a key driver, with omega-3-rich formulations making up more than 15% of nutritional input costs due to the critical role of DHA and EPA in fish development. Beyond aquaculture, pet nutrition brands are also increasing omega-3 content to address inflammation, cognition, and coat health, creating new opportunities for specialized feeds.

Key Segments and Strategic Opportunities

The analysis identifies several top investment segments for manufacturers, offering strategic insights for future growth:

Fish Oil Leads the Way: Fish oil remains the primary source for omega-3s, holding a 38.7% market share in 2025. Its high EPA and DHA content makes it indispensable for high-performance animal nutrition. Manufacturers are leveraging consistent supply chains from places like Peru and Norway, and sustainability certifications are boosting its adoption in premium feeds.

Aquaculture Drives Demand: Aquaculture is projected to hold a 29.4% share by 2025, solidifying its position as a dominant end-user. Omega-3 enrichment in feeds for species like salmon, shrimp, and trout is essential for meeting global seafood demand. The report notes that growth is fueled by rising exports from key players like Norway and Chile and by regulations in the Asia-Pacific and Europe that mandate high-quality feed. Consistent omega-3 supplementation has been shown to significantly improve feed conversions, a crucial metric for manufacturers.

Oil Formulations Remain Preferred: Oil-based omega-3 formulations dominate with a 41.2% share in 2025. Feed producers favor oils for their superior nutrient retention and palatability. Innovations in cold-pressed and microencapsulated fish oils are improving oxidation stability, a key concern for manufacturers seeking to ensure product shelf life and quality.

Growth Promotion as a Core Application: Growth promotion applications represent 24% of the market in 2025. Omega-3s play a vital role in metabolic efficiency and weight gain, helping manufacturers in emerging economies improve feed conversion ratios and achieve a higher return on investment.

Feed Integrators as Strategic Partners: Feed integrators are forecasted to command 32% of sales by 2025. Their vertical integration provides manufacturers with consistent sourcing and dosage accuracy. Partnerships with marine oil suppliers are reshaping the competitive landscape, especially for top integrators in India, China, and Europe who are expanding their omega-3 offerings.

A Shift Toward Sustainable Sourcing

The report also highlights a significant trend toward sustainable sourcing. As traditional fish oil prices climb, alternative sources like algae and flaxseed are gaining ground. In 2025, algal DHA inclusion in poultry feed rose by 44%, driven by demand for omega-3-enriched eggs and better flock health. The use of algal omega-3s in broiler feed has also shown a 17% reduction in feed conversion ratios.

This shift is a direct response to both market dynamics and a growing focus on sustainability. Shelf-stable powdered formats are reducing oxidation losses, and multi-year contracts between algae suppliers and producers in the EU and APAC signal a long-term change in sourcing strategies. Omega-3 fortification in aquafeed, which grew 39% in 2025, also benefits from plant-based sources, which now contribute up to 45% of total inclusion in certain diets, improving pellet stability and reducing waste.

Regional Insights and Key Industry Players

Geographically, the market’s growth is driven by a mix of mature and emerging economies. Germany is a standout, with a projected 4.9% CAGR due to strong regulatory support for functional additives and investments in feed innovation. Its market is also benefiting from the consumer push for nutrient-dense animal products, with algal oil and flaxseed formulations replacing marine sources.

The United States and Australia are also contributing to growth, with a 3.3% CAGR each, fueled by market penetration in the poultry and aquaculture segments. Japan, while growing at a more moderate 2.3% CAGR, is adapting to aquaculture needs by integrating higher EPA/DHA content to meet export quality standards.

The market is led by a concentrated group of players who are actively shaping the industry. DSM-Firmenich leads with a 27.4% share, thanks to its proprietary algal-based omega-3 oils. Cargill holds a 22.1% share, focusing on fishmeal alternatives and EPA-DHA rich blends. ADM Animal Nutrition (18.6%), Alltech (14.9%), and BASF (11.2%) also maintain significant market positions, leveraging their expertise in vertically integrated formulations, flaxseed-derived omega-3s, and specialty nutrition solutions. A recent example of this innovation is DSM-Firmenich's launch of new algae-based omega-3 solutions for the pet market, further reinforcing its leadership in sustainable, non-fish-derived options.

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For more on their methodology and market coverage, visit https://www.futuremarketinsights.com/about-us.

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Editor’s Note:

The market for omega-3 in animal feed is forecasted to grow steadily, presenting new opportunities for manufacturers to invest in functional, sustainable feed solutions that address key industry challenges.

Rahul Singh
Future Market Insights Inc.
+1 347-918-3531
email us here

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