Research Reports And Consulting #Nutraceutical Ingredients Market

Nutraceutical ingredients are bioactive compounds found in foods, beverages, and dietary supplements that are believed to have potential health benefits beyond basic nutrition. The term "nutraceutical" is a combination of "nutrition" and "pharmaceutical," suggesting that these ingredients have properties that bridge the gap between nutrition and medicine. Nutraceuticals are often promoted for their ability to prevent or manage various health conditions.

Nutraceutical ingredients market is estimated at USD 185.2 billion in 2022; it is projected to grow at a CAGR of 7.2% to reach USD 261.7 billion by 2027.

The probiotics nutraceutical product by type is projected to have the highest market share in terms of value in nutraceutical ingredient market throughout the forecast period.

Probiotics products provide several health benefits, which makes them one of the popular nutraceutical ingredients. Opportunity for innovations of new product with functional and nutritional benefits have raised the growth of probiotics nutraceutical ingredients market. Hence, their market is estimated to observe growth in nutraceutical ingredient market in the near future.

The Food segments by application is projected to have the highest market share in the global nutraceutical ingredient market.

Research & development on nutraceutical product have been improving innovative products and developing customized products according to the consumer requirements. Products with customized requirement and trending food products would attract more customers. Various companies have understated their customers’ needs and have developed nutraceutical products like gummies, lozenges, hard candies, malt powders, nutrient bars, and more. These products are customized according to the health benefit, according to their diet, and more. Hence, their market is estimated to gain more market share in the nutraceutical ingredient market.

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Examples of nutraceutical ingredients include:

• Vitamins and Minerals: Essential nutrients like vitamins (e.g., vitamin C, vitamin D) and minerals (e.g., calcium, magnesium) play crucial roles in maintaining various bodily functions and promoting overall health.
• Omega-3 Fatty Acids: Found in fatty fish like salmon, omega-3 fatty acids are known for their potential cardiovascular benefits, including reducing inflammation and improving heart health.
• Antioxidants: These compounds, such as vitamin E, vitamin C, and selenium, help protect cells from damage caused by free radicals, which are unstable molecules that can contribute to chronic diseases and aging.
• Probiotics and Prebiotics: Probiotics are live beneficial bacteria that support gut health and digestion, while prebiotics are fibers that nourish these bacteria. They are often consumed to promote a healthy gut microbiome.
• Herbal Extracts: Various plant-derived compounds are believed to have health benefits. For instance, turmeric contains curcumin, which has anti-inflammatory properties, and green tea contains catechins that are believed to have antioxidant effects.
• Fiber: Dietary fiber is important for digestive health, and certain types of fiber, such as soluble fiber, can also help lower cholesterol levels.
• Amino Acids: These are the building blocks of proteins. Some amino acids, like branched-chain amino acids (BCAAs), are used by athletes and bodybuilders to support muscle growth and recovery.

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APAC is projected to account for the highest market share in the nutraceutical ingredients market during the forecast period.

The increased economic growth of the countries in the region and the rise in convenience food consumption due to busy lifestyles have fueled the demand for enriched nutritional food and beverage products in this region. Additionally, rising consumer expenditure on health and wellness products as a result of changing lifestyles and rising disposable income is likely to be major factor contributing to market growth in the Middle East & Africa and the Asia Pacific. 

The global nutraceutical ingredients market was expected to grow from USD 185.2 billion in 2022 to USD 261.7 billion by 2027, at a compound annual growth rate of 7.2% during the forecast period. Nutraceutical businesses can use AI to select ingredients quickly by comparing millions of data points from nutritional studies. The nutraceutical industry is an innovative, dynamic sector that gives new chances to combine scientific advancement with rising consumer interest in foods that promote good health. In order to lower the expensive treatment, nutraceutical products are gaining popularity as nutraceuticals are more of preventive method than cure. 

Consumer demand is a major driver of the nutraceutical industry's explosive expansion. In order to prevent diseases like diabetes, high blood pressure, and obesity, consumers are striving to lead healthy lifestyles and eat optimally. Since, healthcare is luxurious for most of the population, they are opting for alternative cure or taking preventive methods to avoid health problems. 

The Food segments by application is projected to have the highest market share in the global nutraceutical ingredient market. 

Research & development on nutraceutical product have been improving innovative products and developing customized products according to the consumer requirements. Products with customized requirement and trending food products would attract more customers. Various companies have understated their customers’ needs and have developed nutraceutical products like gummies, lozenges, hard candies, malt powders, nutrient bars, and more. These products are customized according to the health benefit, according to their diet, and more. Hence, their market is estimated to gain more market share in the nutraceutical ingredient market. 

The dry ingredient, by form is projected to attain the fastest market growth in the nutraceutical ingredients market throughout the forecasted period. 

New emerging technologies like encapsulation methods, have helped various companies in making a liquid format ingredient to dry format. These encapsulated ingredients can preserve its liquid ingredient without degrading with other compounds in the product formulation and can also release the compound in desired rate to the product. such technology improvements have helped various formulator, as liquid form of ingredients is mostly unstable and can degrade. APAC is projected to account for the highest market share in the nutraceutical ingredients market during the forecast period. The increased economic growth of the countries in the region and the rise in convenience food consumption due to busy lifestyles have fueled the demand for enriched nutritional food and beverage products in this region. Additionally, rising consumer expenditure on health and wellness products as a result of changing lifestyles and rising disposable income is likely to be major factor contributing to market growth in the Middle East & Africa and the Asia Pacific. 

Key Market Players 

The key players in this market include such Associated British Foods Plc (UK), Arla Foods Ingredients Group P/S (Denmark), DSM (Netherland), Ingredion (US), Tate & Lyle (UK), Ajinomoto Co., Inc. (Japan), CHR Hansen Holdings A/S. (Denmark), Kyowa Hakko Bio Co., Ltd. (Japan), Glanbia Plc (Ireland), Fonterra Co. Operative Group Limited (New Zealand), Cargill Incorporated (US), ADM (US), International Flavors & Fragrances, Inc. (US), BASF SE (Germany) and Kerry Groups (Ireland). Strategic partnerships were the dominant strategy adopted by the key players, followed by expansions and new product launches. These strategies have helped them to increase their presence in different regions and industrial segments.

Nutraceutical Ingredients Market is estimated at USD 185.2 billion in 2022; it is projected to grow at a CAGR of 7.2% to reach USD 261.7 billion by 2027 according to a new report by MarketsandMarkets™. The increasing awareness of health & wellness among the consumers and tailored products according to the needs of the targeted audience are driving factors for the growth of the Nutraceutical Ingredients Market. The rising cost of pharmaceutical and hospital expenses are considered as luxury among the majority of the population, increasing the demand for nutraceutical products as they can prevent health problems. 

The Food segment by application is projected to have the highest market share in the global nutraceutical ingredient market. 

Research & development on nutraceutical products have been improving innovative products and developing customized products according to the consumer requirements. Products with customized requirements and trending food products would attract more customers. Various companies have understated their customers' needs and have developed nutraceutical products like gummies, lozenges, hard candies, malt powders, nutrient bars, and more. These products are customized according to the health benefit, according to their diet, and more. Hence, their market is estimated to gain more market share in the nutraceutical ingredient market. 

APAC is projected to account for the highest market share in the Nutraceutical Ingredients Market during the forecast period.

 The increased economic growth of the countries in the region and the rise in convenience food consumption due to busy lifestyles have fueled the demand for enriched nutritional food and beverage products in this region. Additionally, rising consumer expenditure on health and wellness products as a result of changing lifestyles and rising disposable income is likely to be a major factor contributing to market growth in the Middle East & Africa and the Asia Pacific. 

What are the ingredients in nutraceuticals? 

The key players in Nutraceutical Ingredients Market include Associated British Foods Plc (UK), Arla Foods Ingredients Group P/S (Denmark), DSM (Netherland), Ingredion (US), Tate & Lyle (UK), Ajinomoto Co., Inc. (Japan), CHR Hansen Holdings A/S. (Denmark), Kyowa Hakko Bio Co., Ltd. (Japan), Glanbia Plc (Ireland), Fonterra Co. Operative Group Limited (New Zealand), Cargill Incorporated (US), ADM (US), International Flavors & Fragrances, Inc. (US), BASF SE (Germany) and Kerry Groups (Ireland). Strategic partnerships were the dominant strategy adopted by the key players, followed by expansions and new product launches. These strategies have helped them to increase their presence in different regions and industrial segments. The probiotics nutraceutical product by type is projected to have the highest market share in terms of value in the nutraceutical ingredient market throughout the forecast period. Probiotics products provide several health benefits, which makes them one of the popular nutraceutical ingredients. Opportunities for innovations of new products with functional and nutritional benefits have raised the growth of probiotics Nutraceutical Ingredients Market. Hence, their market is estimated to observe growth in the nutraceutical ingredient market in the near future.

The nutraceutical ingredients market is estimated to be valued at USD 162.1 billion in 2020 and is projected to reach USD 227.5 billion by 2025, at a CAGR of 7.0% from 2020 to 2025. The growth of the nutraceutical ingredients market is driven by factors such as growth in the demand for fortified food owing to the increasing health consciousness amongst consumers. Key drivers for the market’s growth include increasing incidences of chronic diseases worldwide and mandates on food fortification by government organizations.On the basis of application, the dietary supplements segment is projected to be one of the fastest growing segments for the nutraceutical ingredients market. Dietary supplements offer general health benefits such as improvement in the balance of the gut microflora, improvement of intestinal functions such as bulking and regularity, increased calcium absorption & improvement in bone density, enhancement of immune function, reduction in the release of toxins that can lead to fatty liver and other diseases, reduced risk of cardiovascular diseases, control of blood sugar, possible reduction of risk of obesity & metabolic syndrome, and improvement in abdominal pain, bloating, and constipation.

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On the basis of form, dry segment is considered to be one of the fastest-growing segment in the nutraceutical ingredients market. A number of nutraceutical ingredients that are used in the dry form are vitamins, amino acids, prebiotic & probiotic premixes, proteins, and some minerals such as zinc and folic acid. These ingredients are extracted in dry form from several sources. For instance, vitamin C is extracted from acerola plant, protein powder, and fiber and amino acid from the hemp plant.

 As a result of the increasing demand for dietary supplements and functional foods in dry form, manufacturing companies are offering products in dry form; these are either available in the form of capsules or compressed into tablets.Asia Pacific is the fastest-growing market for nutraceutical ingredients and is projected to record the highest CAGR during the forecast period. The Asia Pacific market is completely driven by India, which accounted for nearly 31.5% of the market share in 2019. The country is also projected to be the fastest-growing country in the region for nutraceutical ingredients due to changing lifestyles and dietary patterns and growing awareness about nutrition. Further, rising hospitalization cost is also driving the consumer demands for supplements and other nutrients such as vitamins and minerals, to maintain their health. Consumers in the country are now willing to spend an additional amount for fortified products, which has increasingly helped manufacturers of nutraceutical ingredients to find a substantial market opportunity.

The key players in the nutraceutical ingredients market include Associated British Foods (Uk), Arla Foods (Denmark), DSM (Netherlands), Ingredion Incorporated (US), Tate & Lyle PLC (UK), Ajinomoto Co., Inc. (Japan), Tate & Lyle (Ireland), Chr. Hansen (Denmark), Kyowa Hakko Kirin Group (Japan), Glanbia plc (Ireland), Fonterra Co-operative Group Ltd. (New Zealand), Cargill (US), ADM (US), DuPont (US), BASF (Germany) are the players that hold a significant share in the nutraceutical ingredients market.

Associated British Foods (UK) is a major player in the nutraceutical ingredients market. Associated British Foods was previously known as Food Investments Ltd. and changed its name in 1982. The company is engaged in the processing and manufacturing of food, ingredients, and retailing. It operates through five business segments, namely, sugar, agriculture, retail, grocery, and ingredients. The ingredients segment manufactures bakers’ yeast, bakery ingredients, and yeast extracts. The company offers nutraceutical ingredients through the ingredients segment.

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The organization operates through its subsidiaries, such as AB Agri (UK), AB Mauri (UK), ABF Vista (UK), ABF Ingredients (UK), ABITEC Corporation (US), SPI Pharma (US), and Ohly (Germany). Among all subsidiaries of the company, ABF Ingredients (UK), ABITEC Corporation, and Ohly (Germany) holds significant market positions in the Americas, Europe, and Asia. SPI Pharma (US), is one of the prominent suppliers to the pharmaceutical, nutraceutical, and animal health products worldwide.DSM is a global science-based company operating in the health, nutrition, and materials business. The company operates through five segments—nutrition, materials, innovation center, corporate activities, and partnerships. Its nutrition segment includes DSM Nutritional Products and DSM Food Specialties. The nutrition and food specialty segment of the company caters to different end-use application industries, such as food, feed, nutraceutical, infant nutrition, personal care, and pharmaceutical.
The company offers nutritional supplements, such as vitamins, carotenoids, nutritional lipids, omega acids, premixes, and astaxanthin for both human and animal nutrition. These products are developed under its DSM Nutritional Products business. The company offers its nutraceutical ingredient products for the dietary supplements and food & beverage industry.

The report "Nutraceutical Ingredients Market by Type (Probiotics, Proteins, Amino Acids, Phytochemicals & Plant Extracts, Fibers & Specialty Carbohydrates), Application (Food, Beverages, Animal Nutrition, Dietary Supplements), Form, and Region - Global Forecast to 2025" is estimated to be valued at USD 162.1 billion in 2020 and is projected to reach USD 227.5 billion by 2025, at a CAGR of 7.0%. The growth of the nutraceutical ingredients market is driven by the growth in the demand for fortified food owing to the increasing health consciousness amongst consumers.

The dietary segment is projected to be the fastest-growing segment during the forecast period

The dietary supplemet segment is projected to be the fastest-growing, by application, during the forecast period. Dietary supplements offer general health benefits such as improvement in the balance of the gut microflora, improvement of intestinal functions such as bulking and regularity, increased calcium absorption & improvement in bone density, enhancement of immune function, reduction in the release of toxins that can lead to fatty liver and other diseases, reduced risk of cardiovascular diseases, control of blood sugar, possible reduction of risk of obesity & metabolic syndrome, and improvement in abdominal pain, bloating, and constipation.

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The prebiotic segment is estimated to be the largest in 2020

The nutraceutical ingredients market, by type, is estimated to be dominated by the prebiotic segment. Prebiotic ingredients are also exploited as low-calorie fat replacer as they can help reduce obesity and diabetes. The rising health awareness among the global population has a major influence on the demand for prebiotic ingredients. Prebiotics witness a wide range of applications such as fortification in food and beverage products. In feed application, prebiotics are used to protect livestock health and increase the efficiency of nutrient utilization as they are also a key alternative to antimicrobials in feed.

Market Dynamics

DRIVER: Growth in the demand for fortified food owing to the increasing health consciousness amongst consumers
According to a survey conducted by the International Food Information Council (IFIC), in 2009, 87% and in 2011, 89% of the consumers in the US agreed that certain foods have health benefits beyond their basic nutrition. This shows the consumers’ increasing interest in learning more about functional and fortified food products. In 2013, according to the Business Development Bank of Canada, “health concerns are rising, and health awareness is growing among Canadian consumers and will continue to accelerate as the population ages, with 25% of the population over the age of 65 by 2031.” According to a study conducted by the United Nations Department of Economic and Social Affairs, in 2013, the rise in the aging population, coupled with increasing incidences of chronic diseases, has led to changes in eating patterns. Consumers’ concerns regarding nutrient inadequacy tend to be general in nature, rather than concern on a specific health condition or nutrient/component in their diet. Among the consumers who are concerned with nutrient inadequacy in food products, only 16% were concerned with the inadequacy of one or more specific nutrients without regard to general nutrient inadequacy. Most consumers are concerned about general health issues resulting from nutrient insufficiency, rather than one specific health problem.

RESTRAINT: Higher costs of fortified products dissuading large-scale usage and adoption
Nutraceutical ingredients find a wide variety of applications, such as functional food & beverages, animal nutrition, pharmaceuticals, and personal care products. However, the inclusion of nutraceutical ingredients in food & beverage products, feed products, pharmaceuticals, and personal care products results in an increase in the prices of these end products. This, in turn, leads to lower adoption of such products, thereby stunting market growth. Over the past few years, there has been an increase in the demand for healthy alternatives of consumables as consumers have become increasingly conscious about the correct diet. Nutraceutical ingredients, when added to any kind of food & beverage product, result in the formation of functional food & beverages, which, in some way, impart a health benefit.

OPPORTUNITY: Product-based and technological innovations in the nutraceutical ingredients industry
Personalized healthcare technologies are being rapidly adopted by various nutraceutical ingredient manufacturers to formulate better-suited and customized end products for consumers. Consumer product companies are now increasingly collecting data to enable a proper analysis of purchasing behavior and lifestyle to provide consumers with tailored options in accordance with their purchasing patterns. For instance, in 2013, Tesco announced its intention to use its Clubcard information to be able to track various chronic illnesses that consumers pay heed to, for the provision of tailored solutions to promote healthier eating habits. This information not only aids consumer companies to come up with personalized dietary advice but also establish significant partnerships with different pharmaceutical companies to help personalize over-the-counter supplements. Apart from the study of consumer purchasing patterns, the personalization of nutraceutical products is also amplified by genomics by enabling treatments that are closely linked to an individual’s genetic profile. Epigenetics and nutrigenomics have identified that every individual has different nutritional requirements, and they respond to food in different ways.

CHALLENGE: Consumer skepticism associated with nutraceutical products
Along with a growing consumer awareness about better dietary choices and increasing health awareness, there also remains an underlying consumer skepticism associated with the adoption of nutraceutical products. While this skepticism stems from multiple factors, the two major reasons hindering consumer adoption of nutraceutical products are their unsubstantiated health claims and synthetic sourcing. Health claims act as a major marketing and selling points for most nutraceutical ingredient manufacturers; however, when such claims do not result in successful fruition, consumer skepticism toward these products increases. For instance, in 2010, Danone withdrew claims that Actimel and Activia boost the immune system and aid digestive health after doubts were raised regarding the same, by the European Food Safety Authority (EFSA) and the UK Advertising Standards Authority. As a result, manufacturers of such nutraceutical products remain highly stunted in the manner in which they are able to reach consumers, thereby hindering product adoption.

The key players in the nutraceutical ingredients market include Associated British Foods (Uk), Arla Foods (Denmark), DSM (Netherlands), Ingredion Incorporated (US), Tate & Lyle PLC (UK), Ajinomoto Co., Inc. (Japan), Tate & Lyle (Ireland), Chr. Hansen (Denmark), Kyowa Hakko Kirin Group (Japan), Glanbia plc (Ireland), Fonterra Co-operative Group Ltd. (New Zealand), Cargill (US), ADM (US), DuPont (US), BASF (Germany) are the players that hold a significant share in the nutraceutical ingredients market.

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Asia Pacific is projected to be the fastest growing market for the forecast period

The Asia Pacific nutraceutical ingredients market is completely driven by India, which accounted for nearly 31.5% of the market share in 2019. The country is also projected to be the fastest-growing country in the region for nutraceutical ingredients due to changing lifestyles and dietary patterns and growing awareness about nutrition. Further, rising hospitalization cost is also driving the consumer demands for supplements and other nutrients such as vitamins and minerals, to maintain their health. Consumers in the country are now willing to spend an additional amount for fortified products, which has increasingly helped manufacturers of nutraceutical ingredients to find a substantial market opportunity.

The nutraceutical ingredients market is estimated to be valued at USD 162.1 billion in 2020 and is projected to reach USD 227.5 billion by 2025, at a CAGR of 7.0% from 2020 to 2025. The growth of the nutraceutical ingredients market is driven by factors such as growth in the demand for fortified food owing to the increasing health consciousness amongst consumers. 

Key drivers for the market’s growth include increasing incidences of chronic diseases worldwide and mandates on food fortification by government organizations.On the basis of application, the dietary supplements segment is projected to be one of the fastest growing segments for the nutraceutical ingredients market. Dietary supplements offer general health benefits such as improvement in the balance of the gut microflora, improvement of intestinal functions such as bulking and regularity, increased calcium absorption & improvement in bone density, enhancement of immune function, reduction in the release of toxins that can lead to fatty liver and other diseases, reduced risk of cardiovascular diseases, control of blood sugar, possible reduction of risk of obesity & metabolic syndrome, and improvement in abdominal pain, bloating, and constipation.

Download PDF Brochure:
https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=1319

On the basis of form, dry segment is considered to be one of the fastest-growing segment in the nutraceutical ingredients market. A number of nutraceutical ingredients that are used in the dry form are vitamins, amino acids, prebiotic & probiotic premixes, proteins, and some minerals such as zinc and folic acid. These ingredients are extracted in dry form from several sources. For instance, vitamin C is extracted from acerola plant, protein powder, and fiber and amino acid from the hemp plant.

 As a result of the increasing demand for dietary supplements and functional foods in dry form, manufacturing companies are offering products in dry form; these are either available in the form of capsules or compressed into tablets.

Asia Pacific is the fastest-growing market for nutraceutical ingredients and is projected to record the highest CAGR during the forecast period. The Asia Pacific market is completely driven by India, which accounted for nearly 31.5% of the market share in 2019. The country is also projected to be the fastest-growing country in the region for nutraceutical ingredients due to changing lifestyles and dietary patterns and growing awareness about nutrition. Further, rising hospitalization cost is also driving the consumer demands for supplements and other nutrients such as vitamins and minerals, to maintain their health. Consumers in the country are now willing to spend an additional amount for fortified products, which has increasingly helped manufacturers of nutraceutical ingredients to find a substantial market opportunity.

The key players in the nutraceutical ingredients market include Associated British Foods (Uk), Arla Foods (Denmark), DSM (Netherlands), Ingredion Incorporated (US), Tate & Lyle PLC (UK), Ajinomoto Co., Inc. (Japan), Tate & Lyle (Ireland), Chr. Hansen (Denmark), Kyowa Hakko Kirin Group (Japan), Glanbia plc (Ireland), Fonterra Co-operative Group Ltd. (New Zealand), Cargill (US), ADM (US), DuPont (US), BASF (Germany) are the players that hold a significant share in the nutraceutical ingredients market.

Associated British Foods (UK) is a major player in the nutraceutical ingredients market. Associated British Foods was previously known as Food Investments Ltd. and changed its name in 1982. The company is engaged in the processing and manufacturing of food, ingredients, and retailing. It operates through five business segments, namely, sugar, agriculture, retail, grocery, and ingredients. The ingredients segment manufactures bakers’ yeast, bakery ingredients, and yeast extracts. The company offers nutraceutical ingredients through the ingredients segment.

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https://www.marketsandmarkets.com/speaktoanalystNew.asp?id=1319

The organization operates through its subsidiaries, such as AB Agri (UK), AB Mauri (UK), ABF Vista (UK), ABF Ingredients (UK), ABITEC Corporation (US), SPI Pharma (US), and Ohly (Germany). Among all subsidiaries of the company, ABF Ingredients (UK), ABITEC Corporation, and Ohly (Germany) holds significant market positions in the Americas, Europe, and Asia. SPI Pharma (US), is one of the prominent suppliers to the pharmaceutical, nutraceutical, and animal health products worldwide.DSM is a global science-based company operating in the health, nutrition, and materials business. The company operates through five segments—nutrition, materials, innovation center, corporate activities, and partnerships. Its nutrition segment includes DSM Nutritional Products and DSM Food Specialties. The nutrition and food specialty segment of the company caters to different end-use application industries, such as food, feed, nutraceutical, infant nutrition, personal care, and pharmaceutical.
The company offers nutritional supplements, such as vitamins, carotenoids, nutritional lipids, omega acids, premixes, and astaxanthin for both human and animal nutrition. These products are developed under its DSM Nutritional Products business. The company offers its nutraceutical ingredient products for the dietary supplements and food & beverage industry.

The nutraceutical ingredients market is estimated to be valued at USD 162.1 billion in 2020 and is projected to reach USD 227.5 billion by 2025, at a CAGR of 7.0% from 2020 to 2025. The growth of the market is driven by factors such as growth in the demand for fortified food owing to the increasing health consciousness amongst consumers. Key drivers for the market’s growth include increasing incidences of chronic diseases worldwide and mandates on food fortification by government organizations.

Market Dynamics

DRIVER: Growth in the demand for fortified food owing to the increasing health consciousness amongst consumers

According to a survey conducted by the International Food Information Council (IFIC), in 2009, 87% and in 2011, 89% of the consumers in the US agreed that certain foods have health benefits beyond their basic nutrition. This shows the consumers’ increasing interest in learning more about functional and fortified food products. In 2013, according to the Business Development Bank of Canada, “health concerns are rising, and health awareness is growing among Canadian consumers and will continue to accelerate as the population ages, with 25% of the population over the age of 65 by 2031.” According to a study conducted by the United Nations Department of Economic and Social Affairs, in 2013, the rise in the aging population, coupled with increasing incidences of chronic diseases, has led to changes in eating patterns.

Download PDF Brochure:
https://www.marketsandmarkets.com/pdfdownloadNew.asp?id=1319

Consumers’ concerns regarding nutrient inadequacy tend to be general in nature, rather than concern on a specific health condition or nutrient/component in their diet. Among the consumers who are concerned with nutrient inadequacy in food products, only 16% were concerned with the inadequacy of one or more specific nutrients without regard to general nutrient inadequacy. Most consumers are concerned about general health issues resulting from nutrient insufficiency, rather than one specific health problem. For nearly all the nutrients or food components surveyed, at least 6 in 10 consumers believed they get enough to meet their needs. Omega-3 fatty acids are the exception, as only 50% of consumers believed they get enough omega-3s to meet their needs

RESTRAINT: Higher costs of fortified products dissuading large-scale usage and adoption

Nutraceutical ingredients find a wide variety of applications, such as functional food & beverages, animal nutrition, pharmaceuticals, and personal care products. However, the inclusion of nutraceutical ingredients in food & beverage products, feed products, pharmaceuticals, and personal care products results in an increase in the prices of these end products. This, in turn, leads to lower adoption of such products, thereby stunting market growth. Over the past few years, there has been an increase in the demand for healthy alternatives of consumables as consumers have become increasingly conscious about the correct diet. Nutraceutical ingredients, when added to any kind of food & beverage product, result in the formation of functional food & beverages, which, in some way, impart a health benefit.

OPPORTUNITY: Product-based and technological innovations in the nutraceutical ingredients industry

Personalized healthcare technologies are being rapidly adopted by various nutraceutical ingredient manufacturers to formulate better-suited and customized end products for consumers. Consumer product companies are now increasingly collecting data to enable a proper analysis of purchasing behavior and lifestyle to provide consumers with tailored options in accordance with their purchasing patterns. For instance, in 2013, Tesco announced its intention to use its Clubcard information to be able to track various chronic illnesses that consumers pay heed to, for the provision of tailored solutions to promote healthier eating habits. This information not only aids consumer companies to come up with personalized dietary advice but also establish significant partnerships with different pharmaceutical companies to help personalize over-the-counter supplements. Apart from the study of consumer purchasing patterns, the personalization of nutraceutical products is also amplified by genomics by enabling treatments that are closely linked to an individual’s genetic profile. Epigenetics and nutrigenomics have identified that every individual has different nutritional requirements, and they respond to food in different ways. This provides a huge market opportunity for nutraceutical end-product manufacturers, whereby, linking a diet to a genome not only results in boosting health, but also reduces the chance of developing adverse health conditions, such as cardiovascular diseases, obesity, diabetes, or inflammatory bowel diseases. Such corroborated usage of technology with a dietary design is further expected to present unforeseen market growth opportunities for nutraceutical ingredient manufacturers.

CHALLENGE: Consumer skepticism associated with nutraceutical products

Along with a growing consumer awareness about better dietary choices and increasing health awareness, there also remains an underlying consumer skepticism associated with the adoption of nutraceutical products. While this skepticism stems from multiple factors, the two major reasons hindering consumer adoption of nutraceutical products are their unsubstantiated health claims and synthetic sourcing. Health claims act as a major marketing and selling points for most nutraceutical ingredient manufacturers; however, when such claims do not result in successful fruition, consumer skepticism toward these products increases. For instance, in 2010, Danone withdrew claims that Actimel and Activia boost the immune system and aid digestive health after doubts were raised regarding the same, by the European Food Safety Authority (EFSA) and the UK Advertising Standards Authority. As a result, manufacturers of such nutraceutical products remain highly stunted in the manner in which they are able to reach consumers, thereby hindering product adoption

The key players in the nutraceutical ingredients market include Associated British Foods (Uk), Arla Foods (Denmark), DSM (Netherlands), Ingredion Incorporated (US), Tate & Lyle PLC (UK), Ajinomoto Co., Inc. (Japan), Tate & Lyle (Ireland), Chr. Hansen (Denmark), Kyowa Hakko Kirin Group (Japan), Glanbia plc (Ireland), Fonterra Co-operative Group Ltd. (New Zealand), Cargill (US), ADM (US), DuPont (US), BASF (Germany) are the players that hold a significant share in the nutraceutical ingredients market.

Associated British Foods (UK) is a major player in the nutraceutical ingredients market. Associated British Foods was previously known as Food Investments Ltd. and changed its name in 1982. The company is engaged in the processing and manufacturing of food, ingredients, and retailing. It operates through five business segments, namely, sugar, agriculture, retail, grocery, and ingredients. The ingredients segment manufactures bakers’ yeast, bakery ingredients, and yeast extracts. The company offers nutraceutical ingredients through the ingredients segment.

The organization operates through its subsidiaries, such as AB Agri (UK), AB Mauri (UK), ABF Vista (UK), ABF Ingredients (UK), ABITEC Corporation (US), SPI Pharma (US), and Ohly (Germany). Among all subsidiaries of the company, ABF Ingredients (UK), ABITEC Corporation, and Ohly (Germany) holds significant market positions in the Americas, Europe, and Asia. SPI Pharma (US), is one of the prominent suppliers to the pharmaceutical, nutraceutical, and animal health products worldwide.

DSM is a global science-based company operating in the health, nutrition, and materials business. The company operates through five segments—nutrition, materials, innovation center, corporate activities, and partnerships. Its nutrition segment includes DSM Nutritional Products and DSM Food Specialties. The nutrition and food specialty segment of the company caters to different end-use application industries, such as food, feed, nutraceutical, infant nutrition, personal care, and pharmaceutical.

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The company offers nutritional supplements, such as vitamins, carotenoids, nutritional lipids, omega acids, premixes, and astaxanthin for both human and animal nutrition. These products are developed under its DSM Nutritional Products business. The company offers its nutraceutical ingredient products for the dietary supplements and food & beverage industry.

DSM offers feed additives through its animal nutrition & health division, which falls under the DSM Nutrition Products business. It offers a wide range of products that include carotenoids, eubiotics, vitamins, and feed enzymes for various animal species, such as aquaculture, poultry, ruminants, swine, and companion animals. The company operates in more than 40 countries with over 100 commercial production facilities.

The report "Nutraceutical Ingredients Market by Type (Probiotics, Proteins, Amino Acids, Phytochemicals & Plant Extracts, Fibers & Specialty Carbohydrates), Application (Food, Beverages, Animal Nutrition, Dietary Supplements), Form, and Region - Global Forecast to 2025" is estimated to be valued at USD 162.1 billion in 2020 and is projected to reach USD 227.5 billion by 2025, at a CAGR of 7.0%. The growth of the nutraceutical ingredients market is driven by the growth in the demand for fortified food owing to the increasing health consciousness amongst consumers.

The dietary segment is projected to be the fastest-growing segment during the forecast period

The dietary supplemet segment is projected to be the fastest-growing, by application, during the forecast period. Dietary supplements offer general health benefits such as improvement in the balance of the gut microflora, improvement of intestinal functions such as bulking and regularity, increased calcium absorption & improvement in bone density, enhancement of immune function, reduction in the release of toxins that can lead to fatty liver and other diseases, reduced risk of cardiovascular diseases, control of blood sugar, possible reduction of risk of obesity & metabolic syndrome, and improvement in abdominal pain, bloating, and constipation.

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The prebiotic segment is estimated to be the largest in 2020

The nutraceutical ingredients market, by type, is estimated to be dominated by the prebiotic segment. Prebiotic ingredients are also exploited as low-calorie fat replacer as they can help reduce obesity and diabetes. The rising health awareness among the global population has a major influence on the demand for prebiotic ingredients. Prebiotics witness a wide range of applications such as fortification in food and beverage products. In feed application, prebiotics are used to protect livestock health and increase the efficiency of nutrient utilization as they are also a key alternative to antimicrobials in feed.

Market Dynamics

DRIVER: Growth in the demand for fortified food owing to the increasing health consciousness amongst consumers
According to a survey conducted by the International Food Information Council (IFIC), in 2009, 87% and in 2011, 89% of the consumers in the US agreed that certain foods have health benefits beyond their basic nutrition. This shows the consumers’ increasing interest in learning more about functional and fortified food products. In 2013, according to the Business Development Bank of Canada, “health concerns are rising, and health awareness is growing among Canadian consumers and will continue to accelerate as the population ages, with 25% of the population over the age of 65 by 2031.” According to a study conducted by the United Nations Department of Economic and Social Affairs, in 2013, the rise in the aging population, coupled with increasing incidences of chronic diseases, has led to changes in eating patterns. Consumers’ concerns regarding nutrient inadequacy tend to be general in nature, rather than concern on a specific health condition or nutrient/component in their diet. Among the consumers who are concerned with nutrient inadequacy in food products, only 16% were concerned with the inadequacy of one or more specific nutrients without regard to general nutrient inadequacy. Most consumers are concerned about general health issues resulting from nutrient insufficiency, rather than one specific health problem.

RESTRAINT: Higher costs of fortified products dissuading large-scale usage and adoption
Nutraceutical ingredients find a wide variety of applications, such as functional food & beverages, animal nutrition, pharmaceuticals, and personal care products. However, the inclusion of nutraceutical ingredients in food & beverage products, feed products, pharmaceuticals, and personal care products results in an increase in the prices of these end products. This, in turn, leads to lower adoption of such products, thereby stunting market growth. Over the past few years, there has been an increase in the demand for healthy alternatives of consumables as consumers have become increasingly conscious about the correct diet. Nutraceutical ingredients, when added to any kind of food & beverage product, result in the formation of functional food & beverages, which, in some way, impart a health benefit.

OPPORTUNITY: Product-based and technological innovations in the nutraceutical ingredients industry
Personalized healthcare technologies are being rapidly adopted by various nutraceutical ingredient manufacturers to formulate better-suited and customized end products for consumers. Consumer product companies are now increasingly collecting data to enable a proper analysis of purchasing behavior and lifestyle to provide consumers with tailored options in accordance with their purchasing patterns. For instance, in 2013, Tesco announced its intention to use its Clubcard information to be able to track various chronic illnesses that consumers pay heed to, for the provision of tailored solutions to promote healthier eating habits. This information not only aids consumer companies to come up with personalized dietary advice but also establish significant partnerships with different pharmaceutical companies to help personalize over-the-counter supplements. Apart from the study of consumer purchasing patterns, the personalization of nutraceutical products is also amplified by genomics by enabling treatments that are closely linked to an individual’s genetic profile. Epigenetics and nutrigenomics have identified that every individual has different nutritional requirements, and they respond to food in different ways.

CHALLENGE: Consumer skepticism associated with nutraceutical products
Along with a growing consumer awareness about better dietary choices and increasing health awareness, there also remains an underlying consumer skepticism associated with the adoption of nutraceutical products. While this skepticism stems from multiple factors, the two major reasons hindering consumer adoption of nutraceutical products are their unsubstantiated health claims and synthetic sourcing. Health claims act as a major marketing and selling points for most nutraceutical ingredient manufacturers; however, when such claims do not result in successful fruition, consumer skepticism toward these products increases. For instance, in 2010, Danone withdrew claims that Actimel and Activia boost the immune system and aid digestive health after doubts were raised regarding the same, by the European Food Safety Authority (EFSA) and the UK Advertising Standards Authority. As a result, manufacturers of such nutraceutical products remain highly stunted in the manner in which they are able to reach consumers, thereby hindering product adoption.

The key players in the nutraceutical ingredients market include Associated British Foods (Uk), Arla Foods (Denmark), DSM (Netherlands), Ingredion Incorporated (US), Tate & Lyle PLC (UK), Ajinomoto Co., Inc. (Japan), Tate & Lyle (Ireland), Chr. Hansen (Denmark), Kyowa Hakko Kirin Group (Japan), Glanbia plc (Ireland), Fonterra Co-operative Group Ltd. (New Zealand), Cargill (US), ADM (US), DuPont (US), BASF (Germany) are the players that hold a significant share in the nutraceutical ingredients market.

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Asia Pacific is projected to be the fastest growing market for the forecast period

The Asia Pacific nutraceutical ingredients market is completely driven by India, which accounted for nearly 31.5% of the market share in 2019. The country is also projected to be the fastest-growing country in the region for nutraceutical ingredients due to changing lifestyles and dietary patterns and growing awareness about nutrition. Further, rising hospitalization cost is also driving the consumer demands for supplements and other nutrients such as vitamins and minerals, to maintain their health. Consumers in the country are now willing to spend an additional amount for fortified products, which has increasingly helped manufacturers of nutraceutical ingredients to find a substantial market opportunity.

The nutraceutical ingredients market is estimated to be valued at USD 162.1 billion in 2020 and is projected to reach USD 227.5 billion by 2025, at a CAGR of 7.0% from 2020 to 2025. The growth of the nutraceutical ingredient market is driven by factors such as rising awareness regarding health & wellness among consumers and increasing demand for fortified food products. Key drivers for the market’s growth include increasing incidences of chronic diseases worldwide and mandates on food fortification by government organizations.

Nutraceutical Ingredients Market Dynamics
Driver: Increasing incidences of chronic diseases

The burden of chronic diseases is rapidly increasing worldwide. According to the WHO, by 2020, chronic diseases will account for almost three-quarters of all deaths worldwide, and that 71% of deaths due to ischemic heart disease (IHD), 75% of deaths due to stroke, and 70% of deaths due to diabetes will occur in developing countries. The number of people in the developing world with diabetes will increase by more than 2.5-fold, from 84 million in 1995 to 228 million by 2025. On a global basis, 60% of the burden of chronic diseases will occur in developing countries. Globally, there is a significant rise in the population suffering from chronic ailments, such as obesity, diabetes, blood pressure, and cardiovascular diseases. This has led to people becoming more conscious of their eating patterns. The link between diet and health is significant, and people are opting for healthier food. Consumers are also looking for options that provide the right combination of nutrition and taste. Fortified food ingredients cater to this pressing need by providing food formulators with ingredients offering specific functionalities and healthier alternatives. Hence, the entire health and wellness movement strengthens the demand for nutraceutical ingredients.

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Restraints: Higher costs of fortified products dissuading large-scale usage and adoption

Nutraceutical ingredients find a wide variety of applications, such as functional food & beverages, animal nutrition, pharmaceuticals, and personal care products. However, the inclusion of nutraceutical ingredients in food & beverage products, feed products, pharmaceuticals, and personal care products results in an increase in the prices of these end products. This, in turn, leads to lower adoption of such products, thereby stunting market growth. For instance, in comparison to traditional bottled water products, probiotic-infused bottled water products cost more. Despite these probiotic-infused bottled water products offering essential health benefits, such as better digestive and immune health, most consumers still remain unlikely to entirely adopt the product or replace their traditional bottled water consumption entirely. Therefore, the premium pricing of fortified products highly hinders market growth for nutraceutical ingredients during the forecast period.

Opportunities : Product-based and technological innovations in the nutraceutical ingredients industry

Personalized healthcare technologies are being rapidly adopted by various nutraceutical ingredient manufacturers to formulate better suited and customized end products for consumers. Consumer product companies are now increasingly collecting data to enable a proper analysis of purchasing behavior and lifestyle to provide consumers with tailored options in accordance with their purchasing patterns. For instance, in 2013, Tesco announced its intention to use its Clubcard information to be able to track various chronic illnesses that consumers pay heed to, for the provision of tailored solutions to promote healthier eating habits. This information not only aids consumer companies to come up with personalized dietary advice but also establish significant partnerships with different pharmaceutical companies to help personalize over-the-counter supplements. Apart from the study of consumer purchasing patterns, the personalization of nutraceutical products is also amplified by genomics by enabling treatments that are closely linked to an individual’s genetic profile. This provides a huge market opportunity for nutraceutical end-product manufacturers, whereby, linking a diet to a genome not only results in boosting health, but also reduces the chance of developing adverse health conditions, such as cardiovascular diseases, obesity, diabetes, or inflammatory bowel diseases. Such corroborated usage of technology with a dietary design is further expected to present unforeseen market growth opportunities for nutraceutical ingredient manufacturers.

Challenges: Consumer skepticism associated with nutraceutical products

Along with a growing consumer awareness about better dietary choices and increasing health awareness, there also remains an underlying consumer skepticism associated with the adoption of nutraceutical products. Although there are multiple factors, but the two major reasons that are hindering the consumer adoption of nutraceutical products are synthetic sourcing and unsubstantiated health claims. Health claims act as a major marketing and selling points for most nutraceutical ingredient manufacturers; however, when such claims do not result in successful fruition, consumer skepticism toward these products increases. Another factor hindering market growth for nutraceutical products is their formulation or synthetic sourcing. Most consumers do not prefer products that have been genetically modified to impart beneficial product characteristics. These factors act as major deterrents to market growth for various nutraceutical ingredient manufacturers.

By type, the probiotic segment is projected to account for the largest share to the nutraceutical ingredients market during the forecast period

The nutraceutical ingredients market, by type, has been segmented into probiotic, proteins and amino acids, phytochemical & plant extracts, fibers & specialty carbohydrates, omega 3 fatty acids, vitamins, prebiotics, carotenoids, minerals and others. The probiotic segment is projected to be the largest segment during the forecast period. Probiotic ingredients are becoming one of the essential ingredients for various health & nutritional applications as they have positive effects on overall human health. Owing to this, probiotic ingredient is widely used across various applications such as functional food, beverages, dietary supplements, and animal nutritional industries.

By application, the market for dietary supplement is projected to account for the fastest growing in the nutraceutical ingredients market during the forecast period

The global market, by application, has been segmented into food, beverages, personal care, animal nutrition and dietary supplement. The dietary supplement segment is projected to be the fastest-growing, by application, during the forecast period. The segment is growing because dietary supplements offer various health benefits such as improvement in the balance of the gut microflora, improvement of intestinal functions such as bulking and regularity, increased calcium absorption & improvement in bone density, enhancement of immune function, reduction in the release of toxins that can lead to fatty liver and other diseases, reduced risk of cardiovascular diseases, control of blood sugar, possible reduction of risk of obesity & metabolic syndrome, and improvement in abdominal pain, bloating, and constipation.

By form, the dry segment is projected to dominate the nutraceutical ingredients market during the forecast period

On the basis of form, the market is segmented into dry and liquid. A number of nutraceutical ingredients that are used in the dry form are vitamins, amino acids, prebiotic & probiotic premixes, proteins, and some minerals such as zinc and folic acid. These ingredients are extracted in dry form from several sources. For instance, vitamin C is extracted from acerola plant, protein powder, and fiber and amino acid from the hemp plant. The dry form preserves the flavor & color of food & beverage products and also provides benefits in terms of easy handling and storage, which is difficult with liquid ingredients. The dry form of nutraceuticals is available either in a tablet or capsule form in dietary supplements.

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Asia Pacific is projected to be the fastest growing market for the forecast period

The Asia Pacific nutraceutical ingredients market is completely driven by India, which accounted for nearly 31.5% of the market share in 2019. Factors such as changing lifestyles, changing dietary patterns, and growing awareness about nutrition are expected to drive the demand for nutraceutical ingredients in the country even more. Apart from this, rising hospitalization costs is forcing consumers to consume supplements and other nutrients such vitamins and minerals, in order to maintain their health. Consumers in the country are now willing to spend an additional amount for fortified products, which has increasingly helped manufacturers of nutraceutical ingredients to find a substantial market opportunity.

The report “Nutraceutical Ingredients Market by Type (Probiotics, Proteins, Amino Acids, Phytochemicals & Plant Extracts, Fibers & Specialty Carbohydrates), Application (Food, Beverages, Animal Nutrition, Dietary Supplements), Form, and Region – Global Forecast to 2025″ is estimated to be valued at USD 162.1 billion in 2020 and is projected to reach USD 227.5 billion by 2025, at a CAGR of 7.0%. 

The growth of the nutraceutical ingredients market is driven by the growth in the demand for fortified food owing to the increasing health consciousness amongst consumers.The dietary segment is projected to be the fastest-growing segment during the forecast period

The dietary supplement segment is projected to be the fastest-growing, by application, during the forecast period. Dietary supplements offer general health benefits such as improvement in the balance of the gut microflora, improvement of intestinal functions such as bulking and regularity, increased calcium absorption & improvement in bone density, enhancement of immune function, reduction in the release of toxins that can lead to fatty liver and other diseases, reduced risk of cardiovascular diseases, control of blood sugar, possible reduction of risk of obesity & metabolic syndrome, and improvement in abdominal pain, bloating, and constipation.

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The prebiotic segment is estimated to be the largest in 2020The nutraceutical ingredients market, by type, is estimated to be dominated by the prebiotic segment. Prebiotic ingredients are also exploited as low-calorie fat replacer as they can help reduce obesity and diabetes. The rising health awareness among the global population has a major influence on the demand for prebiotic ingredients. Prebiotics witness a wide range of applications such as fortification in food and beverage products. In feed application, prebiotics are used to protect livestock health and increase the efficiency of nutrient utilization as they are also a key alternative to antimicrobials in feed.

Market Dynamics

DRIVER: Growth in the demand for fortified food owing to the increasing health consciousness amongst consumers

According to a survey conducted by the International Food Information Council (IFIC), in 2009, 87% and in 2011, 89% of the consumers in the US agreed that certain foods have health benefits beyond their basic nutrition. This shows the consumers’ increasing interest in learning more about functional and fortified food products. In 2013, according to the Business Development Bank of Canada, “health concerns are rising, and health awareness is growing among Canadian consumers and will continue to accelerate as the population ages, with 25% of the population over the age of 65 by 2031.” According to a study conducted by the United Nations Department of Economic and Social Affairs, in 2013, the rise in the aging population, coupled with increasing incidences of chronic diseases, has led to changes in eating patterns. Consumers’ concerns regarding nutrient inadequacy tend to be general in nature, rather than concern on a specific health condition or nutrient/component in their diet. Among the consumers who are concerned with nutrient inadequacy in food products, only 16% were concerned with the inadequacy of one or more specific nutrients without regard to general nutrient inadequacy. Most consumers are concerned about general health issues resulting from nutrient insufficiency, rather than one specific health problem.

RESTRAINT: Higher costs of fortified products dissuading large-scale usage and adoption

Nutraceutical ingredients find a wide variety of applications, such as functional food & beverages, animal nutrition, pharmaceuticals, and personal care products. However, the inclusion of nutraceutical ingredients in food & beverage products, feed products, pharmaceuticals, and personal care products results in an increase in the prices of these end products. This, in turn, leads to lower adoption of such products, thereby stunting market growth. Over the past few years, there has been an increase in the demand for healthy alternatives of consumables as consumers have become increasingly conscious about the correct diet. Nutraceutical ingredients, when added to any kind of food & beverage product, result in the formation of functional food & beverages, which, in some way, impart a health benefit.

OPPORTUNITY: Product-based and technological innovations in the nutraceutical ingredients industry

Personalized healthcare technologies are being rapidly adopted by various nutraceutical ingredient manufacturers to formulate better-suited and customized end products for consumers. Consumer product companies are now increasingly collecting data to enable a proper analysis of purchasing behavior and lifestyle to provide consumers with tailored options in accordance with their purchasing patterns. For instance, in 2013, Tesco announced its intention to use its Clubcard information to be able to track various chronic illnesses that consumers pay heed to, for the provision of tailored solutions to promote healthier eating habits. This information not only aids consumer companies to come up with personalized dietary advice but also establish significant partnerships with different pharmaceutical companies to help personalize over-the-counter supplements. Apart from the study of consumer purchasing patterns, the personalization of nutraceutical products is also amplified by genomics by enabling treatments that are closely linked to an individual’s genetic profile. Epigenetics and nutrigenomics have identified that every individual has different nutritional requirements, and they respond to food in different ways.

CHALLENGE: Consumer skepticism associated with nutraceutical products

Along with a growing consumer awareness about better dietary choices and increasing health awareness, there also remains an underlying consumer skepticism associated with the adoption of nutraceutical products. While this skepticism stems from multiple factors, the two major reasons hindering consumer adoption of nutraceutical products are their unsubstantiated health claims and synthetic sourcing. Health claims act as a major marketing and selling points for most nutraceutical ingredient manufacturers; however, when such claims do not result in successful fruition, consumer skepticism toward these products increases. For instance, in 2010, Danone withdrew claims that Actimel and Activia boost the immune system and aid digestive health after doubts were raised regarding the same, by the European Food Safety Authority (EFSA) and the UK Advertising Standards Authority. As a result, manufacturers of such nutraceutical products remain highly stunted in the manner in which they are able to reach consumers, thereby hindering product adoption.

The key players in the nutraceutical ingredients market include Associated British Foods (Uk), Arla Foods (Denmark), DSM (Netherlands), Ingredion Incorporated (US), Tate & Lyle PLC (UK), Ajinomoto Co., Inc. (Japan), Tate & Lyle (Ireland), Chr. Hansen (Denmark), Kyowa Hakko Kirin Group (Japan), Glanbia plc (Ireland), Fonterra Co-operative Group Ltd. (New Zealand), Cargill (US), ADM (US), DuPont (US), BASF (Germany) are the players that hold a significant share in the nutraceutical ingredients market.

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Asia Pacific is projected to be the fastest growing market for the forecast period

The Asia Pacific nutraceutical ingredients market is completely driven by India, which accounted for nearly 31.5% of the market share in 2019. The country is also projected to be the fastest-growing country in the region for nutraceutical ingredients due to changing lifestyles and dietary patterns and growing awareness about nutrition. Further, rising hospitalization cost is also driving the consumer demands for supplements and other nutrients such as vitamins and minerals, to maintain their health. Consumers in the country are now willing to spend an additional amount for fortified products, which has increasingly helped manufacturers of nutraceutical ingredients to find a substantial market opportunity.

The report "Nutraceutical Ingredients Market by Type (Probiotics, Proteins, Amino Acids, Phytochemicals & Plant Extracts, Fibers & Specialty Carbohydrates), Application (Food, Beverages, Animal Nutrition, Dietary Supplements), Form, and Region - Global Forecast to 2025" is estimated to be valued at USD 162.1 billion in 2020 and is projected to reach USD 227.5 billion by 2025, at a CAGR of 7.0%. The growth of the nutraceutical ingredients market is driven by the growth in the demand for fortified food owing to the increasing health consciousness amongst consumers.

The dietary segment is projected to be the fastest-growing segment during the forecast period

The dietary supplemet segment is projected to be the fastest-growing, by application, during the forecast period. Dietary supplements offer general health benefits such as improvement in the balance of the gut microflora, improvement of intestinal functions such as bulking and regularity, increased calcium absorption & improvement in bone density, enhancement of immune function, reduction in the release of toxins that can lead to fatty liver and other diseases, reduced risk of cardiovascular diseases, control of blood sugar, possible reduction of risk of obesity & metabolic syndrome, and improvement in abdominal pain, bloating, and constipation.

Make an Inquiry:
https://www.marketsandmarkets.com/Enquiry_Before_BuyingNew.asp?id=1319

The prebiotic segment is estimated to be the largest in 2020

The nutraceutical ingredients market, by type, is estimated to be dominated by the prebiotic segment. Prebiotic ingredients are also exploited as low-calorie fat replacer as they can help reduce obesity and diabetes. The rising health awareness among the global population has a major influence on the demand for prebiotic ingredients. Prebiotics witness a wide range of applications such as fortification in food and beverage products. In feed application, prebiotics are used to protect livestock health and increase the efficiency of nutrient utilization as they are also a key alternative to antimicrobials in feed.

Market Dynamics

DRIVER: Growth in the demand for fortified food owing to the increasing health consciousness amongst consumers
According to a survey conducted by the International Food Information Council (IFIC), in 2009, 87% and in 2011, 89% of the consumers in the US agreed that certain foods have health benefits beyond their basic nutrition. This shows the consumers’ increasing interest in learning more about functional and fortified food products. In 2013, according to the Business Development Bank of Canada, “health concerns are rising, and health awareness is growing among Canadian consumers and will continue to accelerate as the population ages, with 25% of the population over the age of 65 by 2031.” According to a study conducted by the United Nations Department of Economic and Social Affairs, in 2013, the rise in the aging population, coupled with increasing incidences of chronic diseases, has led to changes in eating patterns. Consumers’ concerns regarding nutrient inadequacy tend to be general in nature, rather than concern on a specific health condition or nutrient/component in their diet. Among the consumers who are concerned with nutrient inadequacy in food products, only 16% were concerned with the inadequacy of one or more specific nutrients without regard to general nutrient inadequacy. Most consumers are concerned about general health issues resulting from nutrient insufficiency, rather than one specific health problem.

RESTRAINT: Higher costs of fortified products dissuading large-scale usage and adoption
Nutraceutical ingredients find a wide variety of applications, such as functional food & beverages, animal nutrition, pharmaceuticals, and personal care products. However, the inclusion of nutraceutical ingredients in food & beverage products, feed products, pharmaceuticals, and personal care products results in an increase in the prices of these end products. This, in turn, leads to lower adoption of such products, thereby stunting market growth. Over the past few years, there has been an increase in the demand for healthy alternatives of consumables as consumers have become increasingly conscious about the correct diet. Nutraceutical ingredients, when added to any kind of food & beverage product, result in the formation of functional food & beverages, which, in some way, impart a health benefit.

OPPORTUNITY: Product-based and technological innovations in the nutraceutical ingredients industry
Personalized healthcare technologies are being rapidly adopted by various nutraceutical ingredient manufacturers to formulate better-suited and customized end products for consumers. Consumer product companies are now increasingly collecting data to enable a proper analysis of purchasing behavior and lifestyle to provide consumers with tailored options in accordance with their purchasing patterns. For instance, in 2013, Tesco announced its intention to use its Clubcard information to be able to track various chronic illnesses that consumers pay heed to, for the provision of tailored solutions to promote healthier eating habits. This information not only aids consumer companies to come up with personalized dietary advice but also establish significant partnerships with different pharmaceutical companies to help personalize over-the-counter supplements. Apart from the study of consumer purchasing patterns, the personalization of nutraceutical products is also amplified by genomics by enabling treatments that are closely linked to an individual’s genetic profile. Epigenetics and nutrigenomics have identified that every individual has different nutritional requirements, and they respond to food in different ways.

CHALLENGE: Consumer skepticism associated with nutraceutical products
Along with a growing consumer awareness about better dietary choices and increasing health awareness, there also remains an underlying consumer skepticism associated with the adoption of nutraceutical products. While this skepticism stems from multiple factors, the two major reasons hindering consumer adoption of nutraceutical products are their unsubstantiated health claims and synthetic sourcing. Health claims act as a major marketing and selling points for most nutraceutical ingredient manufacturers; however, when such claims do not result in successful fruition, consumer skepticism toward these products increases. For instance, in 2010, Danone withdrew claims that Actimel and Activia boost the immune system and aid digestive health after doubts were raised regarding the same, by the European Food Safety Authority (EFSA) and the UK Advertising Standards Authority. As a result, manufacturers of such nutraceutical products remain highly stunted in the manner in which they are able to reach consumers, thereby hindering product adoption.

The key players in the nutraceutical ingredients market include Associated British Foods (Uk), Arla Foods (Denmark), DSM (Netherlands), Ingredion Incorporated (US), Tate & Lyle PLC (UK), Ajinomoto Co., Inc. (Japan), Tate & Lyle (Ireland), Chr. Hansen (Denmark), Kyowa Hakko Kirin Group (Japan), Glanbia plc (Ireland), Fonterra Co-operative Group Ltd. (New Zealand), Cargill (US), ADM (US), DuPont (US), BASF (Germany) are the players that hold a significant share in the nutraceutical ingredients market.

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Asia Pacific is projected to be the fastest growing market for the forecast period

The Asia Pacific nutraceutical ingredients market is completely driven by India, which accounted for nearly 31.5% of the market share in 2019. The country is also projected to be the fastest-growing country in the region for nutraceutical ingredients due to changing lifestyles and dietary patterns and growing awareness about nutrition. Further, rising hospitalization cost is also driving the consumer demands for supplements and other nutrients such as vitamins and minerals, to maintain their health. Consumers in the country are now willing to spend an additional amount for fortified products, which has increasingly helped manufacturers of nutraceutical ingredients to find a substantial market opportunity.

The nutraceutical ingredients market is estimated to be valued at USD 162.1 billion in 2020 and is projected to reach USD 227.5 billion by 2025, at a CAGR of 7.0% from 2020 to 2025. The growth of the market is driven by factors such as growth in the demand for fortified food owing to the increasing health consciousness amongst consumers. Key drivers for the market’s growth include increasing incidences of chronic diseases worldwide and mandates on food fortification by government organizations.

Market Dynamics

DRIVER: Growth in the demand for fortified food owing to the increasing health consciousness amongst consumers

According to a survey conducted by the International Food Information Council (IFIC), in 2009, 87% and in 2011, 89% of the consumers in the US agreed that certain foods have health benefits beyond their basic nutrition. This shows the consumers’ increasing interest in learning more about functional and fortified food products. In 2013, according to the Business Development Bank of Canada, “health concerns are rising, and health awareness is growing among Canadian consumers and will continue to accelerate as the population ages, with 25% of the population over the age of 65 by 2031.” According to a study conducted by the United Nations Department of Economic and Social Affairs, in 2013, the rise in the aging population, coupled with increasing incidences of chronic diseases, has led to changes in eating patterns.

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Consumers’ concerns regarding nutrient inadequacy tend to be general in nature, rather than concern on a specific health condition or nutrient/component in their diet. Among the consumers who are concerned with nutrient inadequacy in food products, only 16% were concerned with the inadequacy of one or more specific nutrients without regard to general nutrient inadequacy. Most consumers are concerned about general health issues resulting from nutrient insufficiency, rather than one specific health problem. For nearly all the nutrients or food components surveyed, at least 6 in 10 consumers believed they get enough to meet their needs. Omega-3 fatty acids are the exception, as only 50% of consumers believed they get enough omega-3s to meet their needs

RESTRAINT: Higher costs of fortified products dissuading large-scale usage and adoption

Nutraceutical ingredients find a wide variety of applications, such as functional food & beverages, animal nutrition, pharmaceuticals, and personal care products. However, the inclusion of nutraceutical ingredients in food & beverage products, feed products, pharmaceuticals, and personal care products results in an increase in the prices of these end products. This, in turn, leads to lower adoption of such products, thereby stunting market growth. Over the past few years, there has been an increase in the demand for healthy alternatives of consumables as consumers have become increasingly conscious about the correct diet. Nutraceutical ingredients, when added to any kind of food & beverage product, result in the formation of functional food & beverages, which, in some way, impart a health benefit.

OPPORTUNITY: Product-based and technological innovations in the nutraceutical ingredients industry

Personalized healthcare technologies are being rapidly adopted by various nutraceutical ingredient manufacturers to formulate better-suited and customized end products for consumers. Consumer product companies are now increasingly collecting data to enable a proper analysis of purchasing behavior and lifestyle to provide consumers with tailored options in accordance with their purchasing patterns. For instance, in 2013, Tesco announced its intention to use its Clubcard information to be able to track various chronic illnesses that consumers pay heed to, for the provision of tailored solutions to promote healthier eating habits. This information not only aids consumer companies to come up with personalized dietary advice but also establish significant partnerships with different pharmaceutical companies to help personalize over-the-counter supplements. Apart from the study of consumer purchasing patterns, the personalization of nutraceutical products is also amplified by genomics by enabling treatments that are closely linked to an individual’s genetic profile. Epigenetics and nutrigenomics have identified that every individual has different nutritional requirements, and they respond to food in different ways. This provides a huge market opportunity for nutraceutical end-product manufacturers, whereby, linking a diet to a genome not only results in boosting health, but also reduces the chance of developing adverse health conditions, such as cardiovascular diseases, obesity, diabetes, or inflammatory bowel diseases. Such corroborated usage of technology with a dietary design is further expected to present unforeseen market growth opportunities for nutraceutical ingredient manufacturers.

CHALLENGE: Consumer skepticism associated with nutraceutical products

Along with a growing consumer awareness about better dietary choices and increasing health awareness, there also remains an underlying consumer skepticism associated with the adoption of nutraceutical products. While this skepticism stems from multiple factors, the two major reasons hindering consumer adoption of nutraceutical products are their unsubstantiated health claims and synthetic sourcing. Health claims act as a major marketing and selling points for most nutraceutical ingredient manufacturers; however, when such claims do not result in successful fruition, consumer skepticism toward these products increases. For instance, in 2010, Danone withdrew claims that Actimel and Activia boost the immune system and aid digestive health after doubts were raised regarding the same, by the European Food Safety Authority (EFSA) and the UK Advertising Standards Authority. As a result, manufacturers of such nutraceutical products remain highly stunted in the manner in which they are able to reach consumers, thereby hindering product adoption

The key players in the nutraceutical ingredients market include Associated British Foods (Uk), Arla Foods (Denmark), DSM (Netherlands), Ingredion Incorporated (US), Tate & Lyle PLC (UK), Ajinomoto Co., Inc. (Japan), Tate & Lyle (Ireland), Chr. Hansen (Denmark), Kyowa Hakko Kirin Group (Japan), Glanbia plc (Ireland), Fonterra Co-operative Group Ltd. (New Zealand), Cargill (US), ADM (US), DuPont (US), BASF (Germany) are the players that hold a significant share in the nutraceutical ingredients market.

Associated British Foods (UK) is a major player in the nutraceutical ingredients market. Associated British Foods was previously known as Food Investments Ltd. and changed its name in 1982. The company is engaged in the processing and manufacturing of food, ingredients, and retailing. It operates through five business segments, namely, sugar, agriculture, retail, grocery, and ingredients. The ingredients segment manufactures bakers’ yeast, bakery ingredients, and yeast extracts. The company offers nutraceutical ingredients through the ingredients segment.

The organization operates through its subsidiaries, such as AB Agri (UK), AB Mauri (UK), ABF Vista (UK), ABF Ingredients (UK), ABITEC Corporation (US), SPI Pharma (US), and Ohly (Germany). Among all subsidiaries of the company, ABF Ingredients (UK), ABITEC Corporation, and Ohly (Germany) holds significant market positions in the Americas, Europe, and Asia. SPI Pharma (US), is one of the prominent suppliers to the pharmaceutical, nutraceutical, and animal health products worldwide.

DSM is a global science-based company operating in the health, nutrition, and materials business. The company operates through five segments—nutrition, materials, innovation center, corporate activities, and partnerships. Its nutrition segment includes DSM Nutritional Products and DSM Food Specialties. The nutrition and food specialty segment of the company caters to different end-use application industries, such as food, feed, nutraceutical, infant nutrition, personal care, and pharmaceutical.

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The company offers nutritional supplements, such as vitamins, carotenoids, nutritional lipids, omega acids, premixes, and astaxanthin for both human and animal nutrition. These products are developed under its DSM Nutritional Products business. The company offers its nutraceutical ingredient products for the dietary supplements and food & beverage industry.

DSM offers feed additives through its animal nutrition & health division, which falls under the DSM Nutrition Products business. It offers a wide range of products that include carotenoids, eubiotics, vitamins, and feed enzymes for various animal species, such as aquaculture, poultry, ruminants, swine, and companion animals. The company operates in more than 40 countries with over 100 commercial production facilities.