Why Has Fish Oil Got So Expensive?

If you've noticed that fish oil supplements have become more expensive, you're not imagining it. The global fish oil market is under considerable pressure, with a combination of poor anchovy catches, climate disruption, tighter supply and growing demand for omega-3 all contributing to rising prices.

And right at the centre of the story is Peru.

For those of us who take omega-3 supplements, it raises an obvious question: why has fish oil become so expensive, and are there other ways to source omega-3?

Let's take a closer look.

Why is Peru's anchovy supply the real problem?

Peru is one of the world's most important sources of fish oil. Its waters support large populations of anchovies, which are a key raw material for producing fishmeal and fish oil.

Tiny fish, very big consequences.

In 2026, however, Peru's anchovy fishery has faced reduced catches, lower oil yields and quality issues.

According to a NutraIngredients report, commercially usable human-grade 18:12 crude fish oil fell from approximately 85,000 metric tonnes to around 10,000 tonnes. That's roughly a 90% reduction in commercially usable supply for the supplement and pharmaceutical sectors.

Peru's first fishing season was also repeatedly suspended between late April and June because of the high proportion of juvenile anchovies.

That's not a minor wobble in the supply chain. It's more of a where-did-all-the-fish-oil-go? situation.

How is El Niño making things worse?

As if a dramatic reduction in anchovy supply wasn't enough, the marine environment is also being affected by a developing El Niño event.

El Niño alters ocean temperatures and currents, disrupting marine ecosystems and influencing where anchovies are found and how successfully they reproduce.

When the ocean temperature rises, plankton doesn't thrive, so fish are forced to feed in deeper waters. The extra exertion keeps them lean and there tends to be a high level of juvenile fish that can prevent normal fishing practice. Fish may also migrate to cooler zones that are not designated fishing areas.

The result? Yet more uncertainty in a market that was already feeling the squeeze.

By early June 2026, cumulative fish oil production across several major producing regions — including Peru, Chile, Iceland/Faroes/UK and Denmark/Norway — was reportedly 31% below 2025 levels year to date, according to data cited by NutraIngredients from the International Fishmeal and Fish Oil Organisation (IFFO).

And this isn't the first time El Niño has caused trouble for the omega-3 industry. The 2023–2024 El Niño contributed to fish oil prices reaching unprecedented levels compared with previous cycles.

So, unfortunately, this isn't simply a case of the ocean having a bad year.

Who's actually buying most of the world's fish oil?

You might assume that supplement companies are the main reason demand for fish oil is so high.

They aren't.

Aquaculture is the heavyweight buyer.

Fish oil is widely used in aquaculture feeds, particularly for farmed species such as salmon. As a result, the supplement industry is competing for a share of a much larger market.

NutraIngredients reports that aquaculture accounts for around 80% of global fish oil consumption.

When supplies are plentiful, there is enough fish oil to go around. When catches fall, however, competition becomes considerably more intense.

And large-scale aquaculture producers can have significant purchasing power.

So, when supplies tighten, your fish oil capsule isn't necessarily at the front of the queue.

Demand isn't exactly slowing down

At the same time that supply is being squeezed, demand for omega-3 ingredients continues to grow.

Fish oil is used across dietary supplements, pharmaceuticals, functional foods, pet nutrition and aquaculture. Interest in omega-3 is also being supported by growing awareness of healthy ageing and nutrition.

Which leaves us with the most straightforward economic equation of the day:

Less supply + more demand = higher prices.

Add climate uncertainty and competition between industries into the mix, and the pressure becomes even greater.

Why does this affect the price of your supplement?

Fish oil doesn't magically transform from an anchovy into a capsule.

Before it reaches your kitchen cupboard, the oil has to be processed, purified, concentrated, tested, transported, packaged and manufactured. Every stage comes with a cost.

When the cost of the raw material rises, supplement manufacturers have to make some difficult choices. They can absorb the increase, accept lower margins or pass some of the additional cost on to consumers.

For a while, companies may be able to absorb higher costs. But if raw-material prices remain elevated, eventually the maths has to add up.

That's when you start seeing the difference on the shelf.

What this means for your Nature's Best order

We won't pretend this hasn't reached us too. Where raw material costs have risen sharply, as they have with fish oil, some of our omega-3 products will be seeing modest price adjustments this year.

We've absorbed as much of the increase as we responsibly can, and we'll keep doing so for as long as the maths allows it. If you're weighing up your options, our expert Nutrition Advisors are always happy to talk through what makes sense for you — fish oil, algae oil, or otherwise.

Is there another source of omega-3?

This is where algae oil becomes interesting — not necessarily because it is cheaper, but because it provides another way of sourcing omega-3.

It may seem slightly odd to turn to algae when we're talking about fish oil. But there is a good reason.

Marine algae are an original source of the long-chain omega-3 fatty acids found further up the marine food chain. Certain microalgae can produce omega-3s such as DHA and EPA, which means these fatty acids can be obtained directly from algae rather than from fish.

At Nature's Best, our vegan omega-3 products use oil derived from the microalgae Schizochytrium sp.

Rather than depending on wild fisheries, these microalgae are grown through a controlled fermentation process. This means production can take place in a controlled environment, rather than being directly dependent on the success of a particular fishing season.

That's an important distinction.

Find out more about Nature's Best algae-based omega-3s by visiting Nutrition Buzz.

Algae oil isn't a magic solution to today's fish oil price increases — and it isn't necessarily less expensive. Its appeal lies elsewhere: it offers a different, plant-based source of omega-3 that doesn't require wild-caught fish.

How is algae oil different from fish oil?

The sustainability conversation around omega-3 is becoming increasingly important.

Traditional fish oil relies on marine resources, so the health of fish populations and the wider marine ecosystem naturally matter. Factors such as fishing pressure, changing ocean conditions and climate variability can all affect supply.

Algae oil takes a different approach.

By cultivating microalgae in controlled conditions, the production of omega-3 doesn't rely on catching fish from the ocean. Nature's Best algal oil is a sustainable source of omega-3 because it can be produced without putting additional fishing pressure on wild fish populations.

There is also an interesting quirk of marine biology here: the fish aren't necessarily the original source of the omega-3 in the first place.

Algae are at the beginning of the marine food chain. Fish obtain omega-3 by consuming organisms further down that chain, directly or indirectly.

So, algae oil essentially takes a step closer to the original source.

Algae oil can provide EPA and DHA

Another important point is that algae oil isn't simply a source of the plant-based omega-3 fatty acid ALA found in foods such as flaxseed and walnuts.

Certain microalgae provide the long-chain omega-3s EPA and DHA.

Nature's Best's Vegan Omega 3 with DHA and EPA, for example, provides 150mg of EPA and 300mg of DHA per capsule, from microalgae oil.

Our Vegan Omega 3 Oil provides 100mg of EPA and 500mg of DHA per 5ml teaspoon, again from microalgae.

DHA and EPA are the long-chain omega-3 fatty acids found in marine sources. DHA contributes to the maintenance of normal brain function and vision, while DHA and EPA contribute to the normal function of the heart.

A plant-based option

There is another obvious benefit to algae oil: it's suitable for people who don't want to take fish oil.

Because algae-derived omega-3 is vegan, it can provide an option for people following vegetarian or vegan diets, as well as those looking for a source of EPA and DHA that doesn't come from fish.

And because the oil comes directly from microalgae rather than fish, it offers a way of getting long-chain omega-3 without relying on wild-caught fish as the original source.

So, is algae oil the answer to rising fish oil prices?

Not necessarily.

It's important not to oversimplify the situation. Algae oil is not automatically cheaper than fish oil, and the current price pressures affecting fish oil don't disappear simply because another source of omega-3 exists.

Instead, algae oil represents an alternative source.

At a time when traditional fish oil supply is being affected by fishing conditions, climate variability and growing competition for marine resources, having different ways to source EPA and DHA could become increasingly valuable.

For consumers, it also provides another choice: omega-3 from a cultivated, plant-based source rather than from fish.

So, why is fish oil so expensive?

In short, there simply isn't enough fish oil to comfortably satisfy everyone right now.

Peru's anchovy supply has been severely disrupted. Production across major fish oil-producing regions is down. El Niño is adding another layer of uncertainty. Aquaculture accounts for the vast majority of global fish oil consumption. And demand for omega-3 continues to grow.

Put all those factors together and you've got a market under serious pressure.

But the current situation also highlights a bigger question for the omega-3 industry: how should we source these valuable nutrients in a world where both demand and environmental uncertainty are increasing?

Fish oil will undoubtedly remain an important source of omega-3. But algae oil offers another route — one that doesn't depend on wild-caught fish and can provide EPA and DHA from a cultivated, vegan source.

It isn't necessarily cheaper.

It isn't intended to replace fish oil overnight.

But it is an interesting alternative — and one that could have an increasingly important role to play in the future of omega-3.

So, the next time you notice the price of your fish oil has gone up, spare a thought for the humble anchovy.

It turns out a very small fish can have a very large impact on your shopping bill.

And perhaps the future of omega-3 won't have to depend on quite so many of them.

Need advice? If you would like more information on our omega-3 products, or how this price increase affects your supplement regime, contact our expert Nutrition Advisors.

Reference

NutraIngredients.com. (2026). The omega-3 reset: What it means for supplement brands. [online] Available at: https://www.nutraingredients.com/News/Promotional-features/el-nino-drives-unprecedented-global-fish-oil-supply-disruption/ [Accessed 20 Aug. 2026].