Nutraceutical Ingredients Market

Nutraceutical Ingredients Market Size, Share (2023-2028)

Nutraceutical Ingredients Market size was valued at USD 175.2 billion in 2023 to reach USD 281.57 billion by 2028 with a CAGR of 7.40%.

Nutraceutical Ingredients 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.

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.

Nutraceutical Ingredients Market Report Coverage:

Recent Developments in Nutraceutical Ingredients Market:

1. Kerry Group invested around $ 125 million to expand its manufacturing site in Georgia, USA.

2. Tate & Lyle launched its latest variety of starch to expand its existing portfolio of functional ingredients.

3. Chr. Hansen completed the purchase of HSO Health Care GmbH to reinforce its probiotics business.

4. ADM acquired Yerbalatina Phytoactives, a manufacturer of natural herbal extracts and ingredients to strengthen its position in the health and wellness market.

5. Kyowa Hakko expanded its global reach by adding its Setria Glutathione product, which is a multipurpose supplement, to its product portfolio in Indonesia.

6. 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.

Nutraceutical Ingredients Market Drivers and Restraints:

The global nutraceutical ingredients market is foreseen to record a significant growth rate because of the growing consumer demand for products like probiotics, prebiotics, and vitamins. Nutraceutical Ingredients Market is extracted from animals, plants, microbes and helps provide additional nutritional value to food products.

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.

Nutraceutical Ingredients Market Segmentation:

Nutraceutical Ingredients Market is segmented on the basis of

• Type

• Health Benefit

• Form

• Application

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

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.

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.

Nutraceutical Ingredients Market Regional Analysis: 

• North America

•  Europe

• Middle East, and Africa

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

Impact of covid-19 on Nutraceutical Ingredients Market:

COVID-19 is likely to continue its impact on the food industry and its associated business for some time in the future. Meeting short-term demands shouldn't be a major threat for several food companies, but industry experts have expressed a lack of clarity about the scope and extent of this impact. As a result of this, the F&B sector experienced product supply delays. However, the nutraceuticals market is supposed to experience significant growth in this time as these products are known to boost the immune system functioning, which is the need of this hour. The growing consumer preference for health supplements is likely to boost the demand for nutraceutical ingredients going ahead.

Nutraceutical Ingredients Market Key Players:

1. NutraMarks, Inc.,

2. Danisco A/S,

3. Cargill Inc.,

4. Ingredion Incorporated,

5. Associated British Foods plc.,

6. Koninklijke DSM N.V.,

7. Ajinomoto Co., Inc.,

8. Archer Daniels Midland Company,

9. BASF SE,

10. Tate and Lyle Inc.,

11. E.I. du Pont de Nemours and Company.