Nutraceutical Ingredients Market

Global Nutraceutical Ingredients Market Size (2024 to 2032)

The Global Nutraceutical Ingredients Market size was valued at USD 175.20 billion in 2023, and the global market size is expected to reach USD 333.09 billion by 2032 from USD 188.16 in 2024. The market’s predicted CAGR for the predicted period is 7.4%.

MARKET OVERVIEW

Nutraceuticals are defined as the type of food or drink which, through the addition of certain active ingredients, can provide health benefits in addition to the basic nutritional values other foods offer. In addition to reducing the risk of chronic diseases, it also provides health benefits that could be physiological or mental, promoting growth, and enhancing the performance of the body and mind. The term "nutraceutical ingredients" was coined in the late 1980s to define food products with medicinal benefits. This fast-growing sector includes functional foods, sports drinks, nutritional supplements, and medically formulated foods. Nutraceutical ingredients, functional food ingredients, and nutritional supplements are important for balanced health and reduced risk of disease. While many bioactive products are known to produce the expected beneficial effects, the mechanisms involved are varied and can work separately or together to produce the effects. Functional foods are almost similar to our daily foods but have improved physiological advantages.

However, nutraceutical ingredients are products extracted from food but used in the curative form of drugs, tablets, or solutions and again purify the demonstrated physiological benefits. Nutraceutical ingredients must play a central role in preventive health care. They cover a wide range of products, from sports drinks available on supermarket shelves to prescription drugs for patients with serious health problems. They are the essential ingredients in food and beverage products and are in increasing demand in all food and medicinal industries. The nutraceutical Ingredients Market is driven by the increased demand for nutraceutical ingredients due to the increasing awareness among consumers regarding healthy diets including nutraceutical ingredients. An increase in the incidences of chronic diseases and a rise in the geriatric population is the key factor boosting the demand for nutraceutical ingredients. There has been a significant increase in the usage of nutraceutical ingredients in pharmaceutical drugs because their properties such as anti-aging also aid the growth of the nutraceutical Ingredients Market.

MARKET DRIVERS

They are gluten-free and contain no artificial colors or flavors, making them a healthy alternative to conventional products. The demand for natural nutraceutical ingredients like cranberry, garlic, ginkgo biloba, and ginseng extracts; glucosamine; and chondroitin has increased with the growing popularity of homeopathic remedies, preventive drugs, and self-treatment. In addition to traditional ingredients like vitamins, minerals, and proteins, companies have started to include new ingredients in nutraceuticals like plant sterols, polyphenols, probiotics, and fatty acids. Demand for these products is likely to increase as they can help cure baldness, aging, obesity, and diabetes. Functional foods are used in homes and restaurants directly or indirectly on a daily basis. For example, in restaurants, the use of cranberry pearls in desserts or cocktails in the spherification process is only possible with the help of nutraceutical ingredients. Working-class people also lack nutritional benefits due to their busy lifestyles, which can be treated with nutraceuticals. They are easy to transport and can be consumed on the go, providing a suitable fit for the demands of the working class. Nutraceutical companies use online retail stores as a mode of distribution due to the convenience factor. The ease of product availability through online retail platforms is supposed to drive demand for nutraceuticals, which will have a positive impact on the growth of the nutraceutical ingredients market. Manufacturers are continually committed to innovation to offer nutraceutical products that have different flavors, providing greater nutritional value to their target customers.

MARKET RESTRAINTS

However, the high cost involved in R&D activities is restraining the growth of the Nutraceutical Ingredients Market. Furthermore, growing consumption of nutraceutical ingredients is hindered by the rising trend toward natural products (plant- or animal-based concentrates rich in certain ingredients) rather than industrially manufactured food and beverages or dietary supplements.

REPORT COVERAGE

SEGMENTAL ANALYSIS

Global Nutraceutical Ingredients Market By Form

On the basis of form, it is segmented into Dry and Liquid. Nutraceutical ingredients in dry form accounted for the largest share in this segment of the market. The process of formulating dry ingredients is relatively easier, especially while manufacturing high volumes. In addition, the dry form helps in preserving the flavor and color of the food products and also provides benefits in terms of easy handling and storage, which is difficult with liquid ingredients.

Global Nutraceutical Ingredients Market By Type

On the basis of Type, it is segmented into Pre and Probiotic, Protein, Mineral, Vitamin, Carotenoid, Fiber, and Phytochemical. The fibers and specialty carbohydrates dominated this market segment due to the increase in the concerns over obesity and gastrointestinal disorders and rise in the consumption of food and beverage products with a high level of nutritional benefits and fibers such as breakfast cereals, fortified juices, and bread.

Global Nutraceutical Ingredients Market By Application

On the basis of Application, it is segmented into Food, Dietary supplements, and Animal Nutrition. The dietary supplements segment is estimated to be the largest market for this segment of nutraceutical ingredients. An increase in the demand for sports and nutritional products and rising protein intake by athletes and fitness enthusiasts have boosted the market growth.

Global Nutraceutical Ingredients Market By Health Benefit 

On the basis of Health benefits, it is segmented into Gut Health, Heart Health, Bone Health, Immunity, Nutrition, Weight Management.

REGIONAL ANALYSIS

The market here is driven by increased consumer awareness and the rising incidence of chronic diseases. Japan is considered as the rapidly emerging nation in the Asia-Pacific area, owing to its growing elderly population. The Asia Pacific and Europe nutraceutical ingredients market will remain to hold a larger share of the global market

KEY PLAYERS IN THE GLOBAL NUTRACEUTICAL INGREDIENTS MARKET

NutraMarks, Inc., Danisco A/S, Cargill Inc., Ingredion Incorporated, Associated British Foods plc., Koninklijke DSM N.V., Ajinomoto Co., Inc., Archer Daniels Midland Company, BASF SE, Tate and Lyle Inc., E.I. du Pont de Nemours and Company.

RECENT HAPPENINGS IN THE MARKET

• Kerry Group invested around $ 125 million to expand its manufacturing site in Georgia, USA.
• Tate & Lyle launched its latest variety of starch to expand its existing portfolio of functional ingredients.
• Chr. Hansen completed the purchase of HSO Health Care GmbH to reinforce its probiotics business.
• ADM acquired Yerbalatina Phytoactives, a manufacturer of natural herbal extracts and ingredients to strengthen its position in the health and wellness market.
• Kyowa Hakko expanded its global reach by adding its Setria Glutathione product, which is a multipurpose supplement, to its product portfolio in Indonesia.
• Ingredion invested $ 140 million to drive growth in the vegetable protein market. This investment has contributed to increasing production and expanding the portfolio of legume flours, concentrates and isolates.

DETAILED SEGMENTATION OF THE GLOBAL NUTRACEUTICAL INGREDIENTS MARKET INCLUDED IN THIS REPORT

This research report on the global nutraceutical ingredients market has been segmented and sub-segmented based on form, type, application, health benefit, and region.

By Form

• Dry Form
• Liquid Form

By Type

• Pre and Probiotic
• Protein 
• Mineral 
• Vitamin
• Carotenoid
• Fiber
• Phytochemical

By Application

• Food
• Dietary Supplement
• Animal Nutrition
• Disease Risk Assessment  
• Other Applications

By Health Benefit

• Gut Health
• Heart Health
•  Bone Health 
• Immunity 
• Nutrition
• Weight Management