Global Nutraceutical Ingredients Market, By Type (Prebiotics, Amino acids & Proteins, Omega-3 fatty acids, Vitamins, Minerals, Carotenoids, Plant extracts & Phytochemicals, Specialty carbohydrate & Fibers and Others); By Form (Liquid, Powder, and others); By Application (Functional Foods & Beverages, Animal Nutrition, Dietary Supplements, Personal Care, and Others); By Region (North America, Europe, the Asia-Pacific, the Middle-East & Africa, and Latin America) Trend Analysis, Competitive Market Share & Forecast, 2017-2027

Published:
May 2021
Report Code:
BWC20360
Available Format:
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Pages:
141

nutraceutical ingredients market report

The Global Nutraceutical Ingredients Market - Industry Trends & Forecast Report 2027

The global nutraceutical ingredients market was worth USD 154.1 billion in the year 2020. It is projected to grow at the CAGR of 4.5% during 2021-2027 (forecast period), earning revenue of around USD 208.2 billion by the end of 2027. The increased demand for healthy alternatives in consumables is likely to fuel the demand for nutraceutical ingredients. This is attributable to consumers' growing health consciousness towards healthy diets. Furthermore, because nutraceutical components provide immense health benefits, they are increasingly being used in the manufacturing of functional foods and beverages. Delay in aging, prevention of chronic diseases, enhanced immunity, increased body and mind function, and basic nourishment are only a few of the health benefits offered by nutraceutical ingredients. These are the factors contributing to the growth of the global nutraceutical ingredients market.

Source: BlueWeave Consulting

 

Global Nutraceutical Ingredients Market Overview

Nutraceutical components, derived from animal, plant, and microbial sources,  enhance the nutritional content of food items. Sterols, polyphenols, probiotics, and fatty acids are some of the popular nutraceutical components. that are considered healthy alternatives to conventional items because they are gluten-free and do not include synthetic flavors and colors. According to a survey undertaken by the United Nations Department of Economic and Social Affairs, there has been a shift in eating patterns as a result of the increasing prevalence of chronic diseases and the growing geriatric population. As a result, consumers are now more concerned with their diet's nutritional content. Thus, the growing demand for healthy alternatives of consumables is contributing to the growth of the nutraceutical ingredients market globally.

Global Nutraceutical Ingredients Market Trends

Growth Drivers

Demand for Healthy Alternatives Driving the Market Growth

 The global nutraceutical ingredients market has grown in response to the growing demand for functional and fortified food items with added nutritional advantages.  Nutraceuticals are being preferred due to their health benefits such as prevention of blood clotting, reducing inflammation, prolonging life, reducing the risk of heart disease, and protecting against chronic diseases. For example, Ojamin, a sugar-free tonic made from fruits and herbs, was created utilizing cutting-edge scientific processes to aid diabetes patients. The search for healthier choices extends to personal care items as well. Nutraceutical ingredients such as antioxidants and natural herbs have the properties to protect skin from infections and several dermatological diseases. This also has led to the fortification of nutraceutical ingredients in the personal care market.

Increase in Research & Development Driving the Global Nutraceutical Ingredients Market

Consumers' increasing preference for personalized products has resulted in more prospects for the nutraceutical ingredients market. Many manufacturers are utilizing technologies to formulate better end products that are customized to their consumers’ needs. This has been aided by data collection to analyze consumer purchasing behavior, health requirements, nutritional needs, and other relevant factors. Some of the important initiatives in the global nutraceutical ingredients sector, therefore, include growing investment in research and development initiatives to discover new concepts, validating health claims of the ingredients, and doing market research.

 

Global Nutraceutical Ingredients Restraints

Consumer Skepticism Over Nutraceutical Ingredients Preventing Growth

Consumers' skepticism about the methods involved in the inclusion of nutraceutical ingredients into finished products has stifled the global nutraceutical ingredients market. This has occurred as a result of unsubstantiated health claims which play a major role in the nutraceutical ingredients market as they act as a marketing and selling factor. Consumers are equally skeptical about the origin of the sourcing of nutraceutical ingredients. These concerns, combined with a lack of awareness and promotion of nutraceutical ingredients, have further stifled the growth of the global nutraceutical ingredients market.

 

Impact of COVID-19 on Global Nutraceutical Ingredients Market

The sudden emergence of the pandemic has increased the emphasis on preventive healthcare measures. The benefits of nutraceuticals have gained traction as a result of a shift in people's lifestyles to consume a healthy diet and growing medical awareness as more and more individuals are currently taking necessary precautions to protect themselves and their families from the deadly coronavirus.

Immunity boosting is currently a hot topic and nutraceutical ingredients are well-known for their immunity-boosting capabilities. Thus, a majority of the population nowadays choose nutraceutical ingredients, which include foods, medications, and other consumables. They also play an active role in maintaining health and wellness. Since the pandemic period, probiotics have been in high demand due to their ability to improve the remission rate of patients infected with the coronavirus. These factors are driving the growth of the nutraceutical ingredients market during pandemic times.  

 

Nutraceuticals Ingredients Market: By Type

Based on type, the nutraceuticals ingredients market can be segmented into probiotics, vitamins, minerals, amino acids & protein, OMEGA-3 fatty acids, phytochemicals & plant extracts, carotenoids, fibers & specialty carbohydrates, and others. The fibers and specialized carbohydrates segment held the greatest market share in 2020, as they are extensively consumed due to obesity and gastrointestinal issues. The probiotic segment is also expected to grow majorly during the forecast period because of the numerous health benefits it offers, such as prevention of diarrhea, reduction in the severity of eczemas, and improvement in heart health. As a result, several varieties of probiotic-based functional foods and supplements are being launched in the market.

 

Nutraceuticals Ingredients Market: By Application

Based on application, the nutraceuticals ingredients market can be segmented into functional food & beverages, personal care, animal nutrition, dietary supplements, and others. Among these, the functional beverages segment accounted for the largest share in the market. With the availability of a range of enhanced water and nutritional beverages, the demand for functional beverages has increased. For example, in May 2021, PepsiCo, the world's top food and beverage company, launched Soulboost, a sparkling water beverage with a dash of real juice and functional ingredients. Available in two varieties, Soulboost  encapsulates the joy of a fruity beverage in the form of a sparkling water refresher. Additionally, nutraceutical ingredients are also widely being used in animal feed products for improving the gut health and immunity of animals.

 

Nutraceuticals Ingredients Market: Regional Insights

Based on region, the nutraceutical ingredients market is categorized into North America, Europe, the Asia-Pacific, Latin America, and the Middle East & Africa. Among these, North America accounted for the largest share in the market. The concern over the prevalence of chronic and infectious diseases is driving North American consumers to switch to healthier alternatives. The rising demand for nutraceutical ingredient-composed medications in this region due to benefits such as anti-aging is also driving the growth of this market. The growth can be attributed to an increase in demand for nutraceutical products among the elderly, who prefer them to conventional ones.

The Asia-Pacific region is also expected to grow at the fastest rate during the forecast period. Consumer willingness to purchase fortified products with additional nutritional benefits is driving the market's growth in this region. Changes in dietary preferences, focus on preventive healthcare, and an increase in disposable income households are influencing the growth of the market in APAC countries. What’s more, India is the region's largest contributor to the nutraceutical ingredients market. According to the International Trade Association, the Indian market now imports USD 2.7 billion in nutraceutical ingredients.


Source: BlueWeave Consulting

 

Global Nutraceutical Ingredients Market Competitive Landscape

The global nutraceutical ingredients market is competitive with the presence of several renowned players. The key players that dominate the market are Archer-Daniels-Midland Company, E. I. Du Pont De Nemours and Company, Associated British Foods PLC, Cargill Incorporated, Ajinomoto Co, Arla Foods, Tate & Lyle PLC, Ingredion Incorporated, BASF SE, Koninklijke, DSM N.V., Royal DSM, Danone S.A, General Mills, Pepsico, Procter & Gamble, Nestle, Amway, Abbott, Aker Biomarine, and other prominent players. Recently, the demand for customized products has made these key players invest in technologies and applications to track consumer behavior and improve their products to remain competitive in the market. Additionally, to maintain growth and competition in the market, the players are constantly coming up with innovations for enhancing the nutritional value and flavors of their products.

 

Recent Developments in Global Nutraceutical Ingredients Market

·         In February 2021, Kappa Bioscience entered into a new agreement with Canisius Wilhelmina Hospital, Netherlands to fund the first-ever human clinical trial aimed at exploring the benefits of Vitamin K2 supplements in Covid-19 patients.

·         In March 2020, Kerry Group invested USD 125 million to expands its Georgia plant facility. This is the company's largest capital investment, to double production capacity to meet the demand for comprehensive food solutions.

Scope of the Report

 

Attribute

Details

Years Considered

Historical data – 2017-2020

Base Year – 2020

Forecast – 2021 – 2027

Facts Covered

Revenue in USD Billion

Market Coverage

U.S, Canada, Germany, UK, France, Italy, Spain, Brazil, Mexico, Argentina, Japan, South Korea, China, India, Australia, UAE, South Africa, Saudi Arabia, Turkey

Product/Service Segmentation

By Type, By Form, By Application, and By Region

Key Players

Key players in the market include Archer-Daniels-Midland Company, E. I. Du Pont De Nemours and Company, Associated British Foods PLC, Cargill Incorporated, Ajinomoto Co, Arla Foods, Tate & Lyle PLC, Ingredion Incorporated, BASF SE, Koninklijke, DSM N.V., Royal DSM, Danone S.A, General Mills, Pepsico, Procter & Gamble, Nestle, Amway, Abbott, Aker Biomarine, and other prominent players.

 

By type 

  • Prebiotic
  • Proteins and amino acids
  • Omega-3 fatty acids
  • Vitamins
  • Minerals
  • Carotenoids
  • Phytochemical & plant extracts
  • Fibers & specialty carbohydrates
  • Others

By Application

  • Food & Beverages
  • Animal nutrition
  • Dietary supplements
  • Personal care
  • Others

By Form

  • Powder
  • Liquid
  • Others

By Region

  • North America
  • Europe
  • The Asia-Pacific
  • Latin America
  • The Middle-East & Africa

 

FAQs:

  1. What is the current size of the global nutraceutical ingredients market?

Answer: The global nutraceutical ingredients market reached USD 154.1 billion in 2020.

  1. What are the major factors driving the growth of the global nutraceutical ingredients market?

Answer: Increasing demand and utilization of nutraceutical in the pharmaceuticals and food & beverages industries, and a rise in health awareness leading to fortified consumables are driving the growth of the global nutraceutical ingredients market.

  1. Who are the key players in the global nutraceutical ingredients market?

Answer: The key players in the global nutraceutical ingredients market are Archer-Daniels-Midland Company, E. I. Du Pont De Nemours and Company, Associated British Foods PLC, Cargill Incorporated, Ajinomoto Co, Arla Foods, Tate & Lyle PLC, Ingredion Incorporated, BASF SE, Koninklijke, DSM N.V., Royal DSM, Danone S.A, General Mills, Pepsico, Procter & Gamble, Nestle, Amway, Abbott, Aker Biomarine, and other prominent players.

4.    Which segment accounted for the largest share in the global nutraceutical ingredients market?

Answer: Probiotics segment accounted for the largest share in the global nutraceutical ingredients market.

5.    Which region is growing at a higher rate in the global nutraceutical ingredients market?

Answer: The Asia-Pacific region is growing at a higher rate in the global nutraceutical ingredients market.

COVID-19

We've been tracking the direct impact of COVID-19 on this market, and wherever required we will be considering covid19 footprints for a better analysis of markets and industries. Contact our sales team for more details at

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