Global Nutraceutical Ingredients Market to Exhibit Prolific Growth in the Coming Years – Projected to Reach Worth USD 208.2 Billion in 2027
Published | 25 May 2021
A recent study conducted by the strategic consulting and market research firm; BlueWeave Consulting revealed that 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 market is expected to grow due to rising consumer demand for nutraceutical ingredients, which provide a variety of health benefits. Its demand is also boosted by its inclusion in fortified foods, preventative healthcare, and dietary supplements, all of which contribute to the growth of the global nutraceutical ingredients market.
However, due to the high cost of nutraceutical products due to expensive raw components, consumer uptake has been poor. Aside from the high price, a lack of knowledge about nutraceutical products, a supply-demand gap, and skepticism regarding the origin of nutraceutical ingredients have all contributed to a decrease in consumer base. Also, unsubstantiated claims made by companies about their products create a poor perception about nutraceutical products, limiting the growth of the global nutraceutical ingredients market.
Need for Preventive Healthcare Driving Nutraceutical Ingredients Market Growth
The alternative healthy solutions provided by nutraceutical ingredients have raised their market demand. With the rise in chronic and infectious diseases, there has been a shift toward choosing preventative healthcare options such as fortified products containing nutraceutical ingredients. The reason for this shift is because nutraceutical additives give additional nutrients, improve immune responses, and increase life span. Thus, nutraceuticals are being incorporated into functional food & beverages, supplements, animal nutrition, and personal care products to promote a healthy lifestyle. For instance, cases of pill fatigue have become quite common in kids and adults, which can be cured by the use of alternative nutraceutical products.
Increasing Demand for Customized Products Expanding the Nutraceutical Ingredients Market
The use of advanced technology by nutraceutical ingredient manufacturers to manufacture customized end products is impacting the growth of the global nutraceutical ingredients market. The manufacturers of nutraceutical ingredients are, therefore, investing in research and development to gather adequate data for accurately analyzing the purchasing behavior and lifestyle of consumers to provide them with customized solutions based on their preferences. For instance, Metabolaid, an app was launched to track the food consumption patterns of individuals and to provide them with customized weight loss solutions.
Dry Segment to Witness Growth in the Forecast Period
Based on the form, the global nutraceutical ingredients market is segmented into dry form and liquid form. The ingredients are extracted from natural sources in dry form. For instance, protein powder and fiber are extracted from the hemp plant. The demand for the dry form of nutraceutical product over its liquid form is attributed to its ease of handling, longer shelf-life, high stability, and manageable transportation process. As a result, manufacturing companies are offering wider nutraceutical products in dry form. Their availability in form of capsules and compressed tablets is expected to grow the demand of dry segment of nutraceutical ingredients globally.
Impact of COVID-19
COVID-19 has had a positive impact on the global nutraceutical ingredients market. The outbreak of the coronavirus pandemic led to people investing in immune-boosting food products composed of nutraceutical products, such as Immulina. A large number of doctors had also started prescribing nutraceutical products during the pandemic. This has led to the rise of the nutraceutical ingredients market during the pandemic period. Due to health concerns, consumers have been more medically informed during this time, and have been introduced to a variety of nutraceutical health benefits, such as the reduced risk of heart disease, improved gut flora, and nutritional supplements. These reasons have driven consumers to buy health/dietary supplements with nutraceuticals ingredients over conventional ones globally, which in turn, in sriving the growth of the global nutraceutical ingredients market.
North America Leads the Nutraceutical Ingredients Market
The global nutraceutical ingredients market is categorized into North America, Europe, the Asia-Pacific, Latin America, and the Middle East & Africa. Among these, the North American market accounted for the largest share in 2020. The growing demand for anti-aging products in this region enhances the use of nutraceutical components in personal care products, thereby propelling the nutraceutical ingredients market forward. Its increased use in pharmaceutical and food industries to manufacture probiotics, homeopathic medicines, and other products is also positively impacting the growth of the nutraceutical ingredients market in North America.
Also, the Asia-Pacific is expected to witness significant growth during the forecast period. The growth in this region can be attributed to the shift in dietary preferences of consumers and their awareness regarding the nutritional benefits of nutraceuticals. Moreover, consumer demand for fortified products containing nutraceutical components is growing year after year in the APAC countries, with India accounting for the greatest proportion of the regional market.
Global Nutraceutical Ingredients Market Competitive Landscape
The global nutraceutical ingredients market is relatively competitive with various established 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. The market players are consistently investing in R&Ds and engaging in manufacturing customized products to stay ahead of the pack. Other strategies adopted are mergers & acquisitions, joint ventures, product development, and advertising campaigns.
The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of the global nutraceutical ingredients market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in the global nutraceutical ingredients market along with industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyses the growth drivers, challenges, and competitive dynamics of the market.
Blue Weave Consulting provides all-inclusive Market Intelligence (MI) Solutions to businesses regarding various products and services online & offline. We offer comprehensive market research reports by analyzing both qualitative and quantitative data to boost up the performance of your business solution. BWC has built its reputation from the scratches by delivering quality inputs and nourishing long-lasting relationships with its clients. We are one of the promising digital MI solutions companies providing agile assistance to make your business endeavors successful.
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