For decades, fish oil has been the backbone of the global omega-3 category, powering dietary supplements, pharmaceuticals, functional foods, pet nutrition and aquaculture feeds.
While periodic supply fluctuations have always been part of the market, the industry is now facing more structural and long-term challenges. Today, we are presented with an entirely different situation. Unlike previous supply disruptions, these challenges are expected to have lasting consequences, including reduced ingredient availability, higher sourcing costs, margin pressure, reformulation challenges, and product shortages that are already affecting the broader omega-3 market.
Peru anchovy shortfall and developing El Niño drive unprecedented global fish oil supply disruption
Peru’s anchovy fishery sits at the center of the global omega-3 supply chain, and 2026 production has already been significantly impacted by reduced catches, lower oil yields and quality constraints.
Available human-grade 18:12 crude fish oil fell from approximately 85,000 MT to roughly 10,000 MT, representing a 90% reduction in commercially usable supply for the supplement and pharmaceutical sectors.1 Repeated suspensions of Peru’s first fishing season from late April through June 2026, driven by high juvenile anchovy abundance, have further limited recovery prospects.
These factors have sharply reduced the availability of fish oil for human nutrition, and now a developing El Niño event is amplifying these existing supply pressures by further disrupting anchovy populations and tightening global supply.
By early June 2026, National Oceanic and Atmospheric Administration (NOAA) and other climate authorities were issuing alerts about the 2026 to 2027 El Niño season. The International Fishmeal and Fish Oil Organization (IFFO) had tracked that cumulative fish oil supply was already 31% below 2025 year-to-date across key producing nations (Peru, Chile, Iceland/Faroes/UK, Denmark/Norway).
As seen during the 2023 El Niño, such upstream disruptions can lead to significant retail price increases for fish oil products. Historically, El Niño events have consistently pushed crude fish oil prices to progressively higher peaks over time. The 2023 to 2024 El Niño event drove prices to unprecedented levels compared with prior cycles, and prices have since risen even further to new record highs.2
The aquaculture trap and what it means for dietary supplements
For the stakeholders in the industry, El Niño is more than a sourcing difficulty. It represents a serious risk to supply reliability, profitability and ongoing operations, contributing to ingredient shortages, increasing costs, reduced margins and disruptions across the supply chain.
Yet, another layer to this challenge is that the dietary supplement industry is not the largest user of fish oil. The majority of global fish oil production is consumed by the aquaculture sector, where species such as salmon rely on eicosapentaenoic acid (EPA) and docosahexaenoic acid (DHA) to support healthy development, disease resistance and overall performance. To that end, human nutrition products compete for supply with a much larger industrial market, intensifying pressure on an already limited resource base.
Fish oil supply dynamics are increasingly influenced by aquaculture demand rather than consumer interest alone. When production falls short, aquaculture operators are often better positioned to secure available volumes, as their scale, financial resources, low inclusion rates and ability of some of the producers and famers to absorb higher raw material costs provide a significant competitive advantage during periods of market stress.
Demand drivers reshaping the EPA and DHA market
As supply remains constrained, the global demand for omega-3 ingredients continues to expand across multiple areas:
- Aquaculture growth: Aquaculture remains the largest purchaser of fish oil globally, accounting for roughly 80% of total production, and is expected to grow over the next decade.3
- Pet nutrition growth: Pet health remains one of the fastest-growing segments within nutritional supplementation, targeting mobility, skin and coat health, as well as healthy ageing.
- Pharmaceutical and GLP-1 adjacencies: Companion products to help combat GLP-1 side effects are increasingly popular and omega-3 supplementation is well positioned in this area. As new opportunities for complementary nutritional products continue to grow, the prescription omega-3 market is also expanding globally.
- Ageing global populations: The global population (age 65 and over) is expected to double by 2050.4This demographic growth is aligned with demand for ingredients associated with cardiovascular, cognitive, joint and eye health, categories in which EPA and DHA remain among the most researched nutritional ingredients.
- Asia Pacific consumer expansion: Alongside the growth of older demographics, dietary supplement adoption across middle-class populations in China and Southeast Asia is accelerating, particularly as consumers increasingly seek krill- and algae-derived omega-3s and innovative delivery formats.5
Strengthening supply resilience: A competitive advantage for omega-3 brands
Given the global market situation today, the brands best positioned for long-term success will proactively build diversified omega-3 supply strategies before shortages emerge, versus reacting to disruptions after they occur. A resilient omega-3 sourcing strategy should aim to:
- Reduce dependence on a single raw material source
- Improve supply chain stability and predictability
- Enhance traceability and sustainability credentials
- Protect margins against fish oil price volatility
- Create formulation flexibility across product portfolios
- Align with evolving consumer preferences for alternative omega-3 sources
As supply pressures continue to evolve, diversification is becoming less of a marketing opportunity and more of a risk-management strategy.
The role of krill oil and algae omega-3s in supply diversification
For supplement brands, contract manufacturers and formulators, securing long-term access to omega-3 ingredients will require a more diversified and resilient sourcing strategy than ever before. As companies evaluate alternatives that can reduce dependence on traditional fish oil supply chains, consumer acceptance of other omega-3 sources becomes an increasingly important consideration.
Approximately 30% of global fish oil consumers say they would consider switching to krill oil, with interest rising to 44% among US consumers and 45% among Chinese consumers (Potloc/Advancy survey across China, Japan, Korea, the US and Europe). Importantly, once consumers adopt krill oil, loyalty tends to be high: roughly 80% rate it as the best omega-3 source they have tried and continue using it.
As demand for omega-3 sources grows and supply chain pressures increase, diversifying with krill and algae oils can help strengthen resilience, reduce reliance on a single raw material and better meet varying consumer preferences for sustainable nutrition solutions.
Superba Krill®, Aker BioMarine’s flagship ingredient, is a natural multi-nutrient, sourced from Antarctic, and harvested under the highly regulated Commission for the Conservation of Antarctic Marine Living Resources (CCAMLR). Less than 1% of biomass is harvested annually, and the fishery has been Marine Stewardship Council (MSC) certified since 2010, ranking it among the top 5% globally. With full traceability and a controlled supply chain, it provides a stable omega-3 source not affected by El Niño events.
Superba Krill oil is a leading, well-researched krill ingredient delivering concentrated phospholipid-bound omega-3s (EPA/DHA), choline and astaxanthin in one format. Supported by over 50 clinical trials and over 135 studies, it has strong evidence across cardiovascular, cognitive, eye, joint, sports and immune health.
Revervia® is a premium microalgae-derived DHA ingredient with naturally high DHA potency, enabling brands to deliver high-strength, vegan omega-3 products with up to 250mg DHA in a small capsule. Ideal for brain, prenatal and eye health applications, it offers excellent formulation flexibility as a standalone DHA solution or as part of combination products.
Produced through low-impact fermentation, Revervia provides a reliable, sustainable complement to traditional marine omega-3s. It is GMO-free, allergen-free, and solvent-free, delivering consistent quality through a controlled production process while ensuring a secure supply independent of fisheries, seasonal fluctuations and wild-catch variability.
Future opportunities for the omega-3 industry
There is no question that the omega-3 industry is entering into a different era, one defined not only by cyclical supply fluctuations and more by sustained competition for constrained marine resources, climate-driven volatility and expanding cross-sector demand. For supplement brands, it’s clear that reliance on a single source of EPA and DHA is no longer a viable long-term strategy.
The next phase of category leadership will belong to companies that proactively diversify their omega-3 portfolios, integrate more resilient and traceable inputs and align formulation decisions with both supply realities and evolving consumer expectations. In this environment, supply security becomes a core differentiator, not just for protecting margins, but for preserving continuity, credibility and growth in a rapidly changing global market.
NutraIngredients is partnering with Aker Biomarine in an upcoming Spotlight On ‘Omega-3 Diversification: Future-Proofing Your Supply’ on 30 July. In the broadcast, industry experts will discuss the current state of the omega-3 market, including the latest developments in the Peruvian anchovy fishery and their impact on fish oil availability, pricing, and sourcing strategies.
The session will explore supply and demand dynamics, supply chain resilience, and the growing role of krill oil and algae-based omega-3s in a more diversified supply portfolio, offering valuable insights for professionals across procurement, product development, innovation, and commercial strategy.
Register to watch ‘Omega-3 Diversification: Future-Proofing Your Supply’ here.
References
- IFFO. Marine ingredients market trends: All eyes on Peru, while China’s domestic production of marine ingredients remains constrained.
- IFFO. Understanding the value of omega-3 oils...
- OECD. OECD‑FAO Agricultural Outlook 2025‑2034.
- World Health Organization. Ageing and health.
- Market Analysis Report. Asia Pacific Dietary Supplements Market Summary.
