The global nutraceutical ingredients market was valued at US$ 161.2 billion in 2019 and expected to reach US$ 225.7 billion by 2027, with at a compound annual growth rate (CAGR) of 7.3% during the forecast period 2020 to 2027.
Market growth is driven by factors such as the growth in demand for fortified foods due to a rising knowledge of health among consumers. Growing incidences of chronic diseases globally and mandates for food fortification by government organisations are key drivers for the growth of the industry. Different producers of nutraceutical ingredients are increasingly embracing personalised healthcare innovations to formulate better-suited and tailored end products for customers. Increasingly, consumer product businesses are now gathering data to allow a proper analysis of buying habits and lifestyle and provide customers with personalised choices in line with their buying trends. Many customers, rather than one particular health issue, are concerned with general health conditions arising from nutrient insufficiency. At least 6 in 10 consumers figured they would get enough to satisfy their needs for almost all the nutrients or food components surveyed. The exception is omega-3 fatty acids, as only 50 percent of customers felt they were having enough omega-3s to suit their needs.
Probiotics, proteins and amino acids, phytochemical & plant extracts, fibre & specialty carbohydrates, omega 3 fatty acids, vitamins, prebiotics, carotenoids, minerals and others have been segmented into the global market by form. During the forecast period, the probiotic segment is expected to be the largest segment. Probiotic ingredients have had beneficial effects on overall human health and are becoming one of the primary ingredients for different applications of health & nutrition. There is a broad variety of probiotic-based applications in the segment of functional food, functional beverages, dietary supplements, and animal nutrition.
The demand for nutraceutical ingredients has been segmented into food , drinks, personal care, animal nutrition and dietary supplements by application. During the forecast period, by application, the dietary supplement segment is projected to be the fastest-growing. Dietary supplements have general health benefits such as improved gut microflora equilibrium, improved intestinal functions such as bulking and regularity, increased absorption of calcium, and improved bone density growth, improved immune function, decreased release of toxins that can contribute to fatty liver and other diseases, decreased risk of cardiovascular disease, blood sugar regulation, potential reduction of the risk of obesity and metabolic syndrome, and improved stomach pain, bloating, and constipation.
The market is segmented into dry and liquid on the basis of shape. Vitamins, amino acids, prebiotic & probiotic premixes, vitamins, and certain minerals such as zinc and folic acid are a variety of nutraceutical ingredients used in the dry form. Such ingredients are derived from many sources in dry form. For example, from the acerola plant, protein powder, and hemp plant fibre and amino acid , vitamin C is extracted. As the market for dietary supplements and functional foods in dry form is growing, manufacturing companies are selling products in dry form, either in capsule form or compressed into tablets.
Owing to rise in anti-aging properties, the rising demand for nutraceutical products has led North America to become a prominent region in the industry. Due to the involvement of major pharmaceuticals and food & beverage producers, the Asia Pacific has seen substantial growth in the past few years. Growing consumer spending on health and wellness goods is likely to be a key factor driving the growth of industry in economies such as the Middle East & Africa and Asia Pacific due to changing lifestyles and increasing disposable income.
Key Companies & Market Share Insights
The global Nutraceutical Ingredients market seeks intense competition among the market players owing to rapid changing consumer preference. Further, the industry participants are prominently adopting growth strategies that include partnership, collaboration, merger & acquisition, and many others to maintain their competitive edge in the global market. Apart from this, they invest prominently in the R&D activity for new product development & advancements. India, which accounted for almost 31.5 percent of the market share in 2019, totally drives the Asia Pacific market for nutraceutical ingredients. Due to evolving lifestyles and dietary habits and rising knowledge of nutritious ingredients, the country is also projected to be the fastest-growing country in the region.
Some of the prominent players in the Nutraceutical Ingredients market include:
Segments Covered in the Report
This research study comprises complete assessment of the market by means of far-reaching qualitative and quantitative perceptions, and predictions regarding the market. This report delivers classification of marketplace into impending and niche sectors. Further, this research study calculates market size and its development drift at global, regional, and country from 2016 to 2027. This report contains market breakdown and its revenue estimation by classifying it on the basis of material, application, and region:
By Health Benefits
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