According to a research report “Nutraceutical Ingredients Market by Type (Probiotics, Proteins, Amino Acids, Phytochemicals & Plant Extracts, Fibers & Specialty Carbohydrates), Application (Food, Beverages, Animal Nutrition, Dietary Supplements), Form & Region – Global Forecast to 2027″ published by MarketsandMarkets, the market for nutraceutical ingredients is estimated at USD 185.2 billion in 2022; it is projected to grow at a CAGR of 7.2% to reach USD 261.7 billion by 2027.
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.
The Food segments by application is projected to have the highest market share in the global nutraceutical ingredient market.
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.
APAC is projected to account for the highest market share in the nutraceutical ingredients market during the forecast period.
The increased economic growth of the countries in the region and the rise in convenience food consumption due to busy lifestyles have fueled the demand for enriched nutritional food and beverage products in this region. Additionally, rising consumer expenditure on health and wellness products as a result of changing lifestyles and rising disposable income is likely to be major factor contributing to market growth in the Middle East & Africa and the Asia Pacific.
Key Market Players
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.
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The probiotics nutraceutical product by type is projected to have the highest market share in terms of value in nutraceutical ingredient market throughout the forecast period.
Probiotics products provide several health benefits, which makes them one of the popular nutraceutical ingredients. Opportunity for innovations of new product with functional and nutritional benefits have raised the growth of probiotics nutraceutical ingredients market. Hence, their market is estimated to observe growth in nutraceutical ingredient market in the near future.