The nutraceutical ingredients market is a dynamic and growing sector. Nutraceuticals refer to food or food products that provide health benefits beyond basic nutrition. The market for nutraceutical ingredients includes a wide range of products, such as vitamins, minerals, amino acids, antioxidants, probiotics, prebiotics, herbal extracts, and other bioactive compounds.
The global nutraceutical ingredients market size is estimated to grow from USD 185.2 billion in 2022 to USD 261.7 billion by 2027. The compound annual growth rate is 7.2%. The increasing awareness of health & wellness among the consumers and tailored products according to the needs of the targeted audience are driving factors for the growth of the nutraceutical ingredients market. The rising cost of pharmaceutical and hospital expenses are considered as luxury among majority of the population, increase the demand for nutraceutical products as they can prevent health problems.
- Plant-Based and Natural Ingredients: Consumers were increasingly inclined towards plant-based and natural ingredients. Nutraceutical products derived from plants, herbs, and botanicals were gaining popularity due to their perceived health benefits and alignment with clean-label preferences.
- Personalized Nutrition: The trend of personalized nutrition was gaining momentum. Companies were exploring ways to offer customized nutraceutical solutions based on individual health needs, genetic factors, and lifestyle choices.
- Gut Health Focus: There was a growing emphasis on gut health, leading to increased demand for probiotics and prebiotics. Products promoting digestive health and supporting a healthy microbiome were gaining traction.
- Functional Beverages: The incorporation of nutraceutical ingredients into functional beverages was on the rise. Consumers were looking for beverages that not only quench their thirst but also provide functional benefits, such as energy enhancement, immunity support, or relaxation.
- CBD and Hemp-Derived Ingredients: The interest in cannabidiol (CBD) and hemp-derived ingredients was increasing. CBD was being explored for its potential therapeutic benefits, leading to the development of nutraceutical products containing these compounds.
- Immune System Support: The COVID-19 pandemic heightened awareness about the importance of immune health. Nutraceuticals offering immune system support, including vitamins, minerals, and antioxidants, saw increased demand.
The Food segments by application is projected to have the highest nutraceutical ingredient market share.
Research & development on nutraceutical product have been improving innovative products and developing customized products according to the consumer requirements. Products with customized requirement and trending food products would attract more customers. Various companies have understated their customers’ needs and have developed nutraceutical products like gummies, lozenges, hard candies, malt powders, nutrient bars, and more. These products are customized according to the health benefit, according to their diet, and more. Hence, their market is estimated to gain more market share in the nutraceutical ingredient market.
The dry ingredient, by form is projected to attain the fastest market growth in the global nutraceutical ingredients market throughout the forecasted period.
New emerging technologies like encapsulation methods, have helped various companies in making a liquid format ingredient to dry format. These encapsulated ingredients can preserve its liquid ingredient without degrading with other compounds in the product formulation and can also release the compound in desired rate to the product. such technology improvements have helped various formulator, as liquid form of ingredients is mostly unstable and can degrade.
The key players in this market include such Associated British Foods Plc (UK), Arla Foods Ingredients Group P/S (Denmark), DSM (Netherland), Ingredion (US), Tate & Lyle (UK), Ajinomoto Co., Inc. (Japan), CHR Hansen Holdings A/S. (Denmark), Kyowa Hakko Bio Co., Ltd. (Japan), Glanbia Plc (Ireland), Fonterra Co. Operative Group Limited (New Zealand), Cargill Incorporated (US), ADM (US), International Flavors & Fragrances, Inc. (US), BASF SE (Germany) and Kerry Groups (Ireland). Strategic partnerships were the dominant strategy adopted by the key players, followed by expansions and new product launches. These strategies have helped them to increase their presence in different regions and industrial segments.