CAGR: 7.5%Current Market Size: USD 170 BillionFastest Growing Region: North America
Largest Market: APACProjection Time: 2023-2030Base Year: 2022
The global nutraceutical ingredients market is expected to grow from USD 170 billion in 2022 to USD 303.1 billion by 2030, at a CAGR of 7.5% during the Projection period 2023-2030. The rising awareness regarding health drives the growth of the nutraceutical ingredients market.
Nutraceutical ingredients are useful in the pharmaceutical sector because of their medical benefits in treating or curing diseases and promoting better health. Adults and children alike have experienced pill tiredness, which can be managed and avoided by using nutraceutical supplements. However, some large manufacturers are always active in innovation to bring forward a few nutraceutical items with flavor varieties that provide consumers with increased nutritional elements. In addition, the demand for plant extract nutraceutical substances such as ginkgo Biloba, garlic and cranberry, and ginseng extracts such as chondroitin and glucosamine has increased, as has the popularity of homoeopathy and self-treatment. Nutraceutical items such as power gummies, which are chewable nutritional supplements with a variety of health advantages, are anticipated to be driven by innovation and new product development. Nutraceutical ingredients are derived from animal, plant, microbial, and synthetic sources and provide health benefits by adding primary nutritional value and functional benefits to a wide range of applications including food, beverages, dietary supplements, animal nutrition, and personal care products.
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Market Dynamics:
Drivers:
The rising prevalence of chronic diseases such as diabetes, obesity, high blood pressure, and cardiovascular disease, as well as diabetes and respiratory disease fatalities, fuel the market's expansion. This has raised consumer knowledge about the need of eating a healthy diet. It is undeniable that there is a strong correlation between food and health. And when the eating pattern changes, health begins to improve. As a result, customers are looking for solutions that deliver the ideal balance of flavor and nutrition. This raises the demand for nutraceutical ingredients, which are healthier alternatives with specific functions.
Restraints:
Nutraceutical ingredients are difficult to come by and are employed in a variety of applications, including animal nutrition, pharmaceuticals, functional food and drinks, and personal care items. The incorporation of nutraceutical substances in pharmaceuticals, feed products, food & beverage goods, and personal care items, however, raises the price of the finished products. The increasing expense of the final products stifles industry expansion because most people avoid purchasing expensive food products in favor of natural ones.
Opportunities:
To create personalized and more suitable end products for consumers, most nutraceutical ingredient manufacturers are implementing personalized healthcare technology. Furthermore, consumer product firms are progressively collecting data for proper analysis of consumers' lives and purchasing behavior in order to provide customized solutions based on their needs and requirements. Using cutting-edge technologies to research consumer behavior towards food and lifestyle is likely to provide market growth potential throughout the Projection period.
Challenges:
Despite better food choices and more health awareness, people remain cautious about adopting nutraceutical goods. Aside from that, many consumers are aware of their production practices, such as synthetic sourcing and unfounded health claims, which prevent them from using these items. This is projected to impede market growth throughout the Projection period. Furthermore, manufacturers' different health claims for marketing and selling objectives do not bear fruit, leading to customer distrust of these goods, posing a challenge to the market's growth.
Segmentation Analysis:
The global nutraceutical ingredients market has been segmented based on product type, application, form, and region.
By Product Type
The product type segment is proteins, fibers & specialty carbohydrates, phytochemicals & plant extracts, amino acids, and probiotics. The probiotics segment led the largest share of the nutraceutical ingredients market with a market share of around 30.45% in 2022. Probiotic compounds with a variety of health advantages and nutritional applications are becoming more popular among consumers. Furthermore, they have a good impact on human health. As a result, probiotics are rapidly used in a variety of applications, including beverages, functional food, dietary supplements, and animal nutrition.
By Application
The application segment is food, dietary supplements, beverages, and animal nutrition. The dietary supplements segment led the largest share of the nutraceutical ingredients market with a market share of around 38.56% in 2022. The popularity of dietary supplements has grown due to the numerous health benefits they provide, such as increased calcium absorption and bone density improvement, blood sugar control, improvement of gut microflora balance, improvement of intestinal functions such as regularity and bulking, reduction in the release of toxins that can cause fatty liver and other diseases, decreased risk of cardiovascular diseases, and the possibility of weight loss.
By Form
The form segment is dry and liquid. The dry segment led the largest share of the nutraceutical ingredients market with a market share of around 60.78% in 2022. The majority of nutraceutical ingredients, including vitamins, proteins, amino acids, prebiotic and probiotic premixes, and some minerals like folic acid and zinc, are available in dry form. These nutraceutical ingredients are derived in dry form from various sources. The acerola plant, for example, yields vitamin C, whereas the hemp plant yields amino acids and fiber. Furthermore, the dry form of nutraceutical ingredients contributes to the preservation of the color and flavor of food and beverage items and is simple to handle and store. Dried nutraceutical ingredients are provided in capsule or tablet form for dietary supplements.
Global Nutraceutical Ingredients Market - Sales Analysis.
The sale of the nutraceutical ingredients market expanded at a CAGR of `6.2% from 2016 to 2022.
The rising demand for dietary supplements and functional foods is likely to be a major driving force in the market during the Projection period. A positive view towards medical nutrition, as seen by its expanding use in the treatment of cardiovascular illnesses and malnutrition, is anticipated to fuel the expansion of dietary supplements. Rising healthcare costs, combined with an aging global population, are expected to aid the expansion of the global functional food business over the Projection period. Consumers' attitudes regarding functional foods are very positive, owing to the additional health and wellness benefits provided by these products. The growing senior population, increased healthcare expenditures, food innovation, changing lifestyles, and expectations of higher prices have all contributed to overall growth.
The increased importance of preventative health care among consumers has resulted in an increase in demand for dietary supplements in the United States during the last several years. Consumers choose multivitamins, which offer the human body critical nutrients. Multivitamins are becoming an essential element of consumers' lifestyles in the United States, and this trend has accelerated during the COVID-19 pandemic.
Thus, owing to the aforementioned factors, the global nutraceutical ingredients market is expected to grow at a CAGR of 7.5% during the Projection period from 2023 to 2030.
By Regional Analysis:
The regions analyzed for the nutraceutical ingredients market include North America, Europe, South America, Asia Pacific, the Middle East, and Africa. Asia Pacific region dominated the nutraceutical ingredients market and held a 39.9% share of the market revenue in 2022.
Global Nutraceutical Ingredients Market - Country Analysis:
Germany's nutraceutical ingredients market size was valued at USD 21.08 billion in 2022 and is expected to reach USD 37.8 billion by 2030, at a CAGR of 7.6% from 2023 to 2030. Owing to the increasing requirement to boost nutritional value in food & beverages. Furthermore, the region's expanding need for functional food ingredients is likely to drive market expansion.
China’s nutraceutical ingredients market size was valued at USD 31.4 billion in 2022 and is expected to reach USD 57.26 billion by 2030, at a CAGR of 7.8% from 2023 to 2030. Consumers' growing health concerns and increased knowledge of nutraceuticals are projected to be the primary drivers of the region's market. Furthermore, an aging population, shifting healthcare expenditure patterns, and changing lifestyles have aided the expansion of the Asia Pacific nutraceutical business.
India's nutraceutical ingredients market size was valued at USD 24.18 billion in 2022 and is expected to reach USD 43.7 billion by 2030, at a CAGR of 7.7% from 2023 to 2030. Rising nutritional enrichment awareness in India is projected to keep the market growing. Furthermore, the expansion of the retail sector in emerging nations such as India, as a result of regulatory incentives to encourage investment, is likely to boost buyer accessibility over the Projection period.
Key Industry Players Analysis:
To increase their market position in the global nutraceutical ingredients market business, top companies focus on tactics such as adopting new technology, mergers & acquisitions, product developments, collaborations, partnerships, joint ventures, etc.
Latest Development:
Report Metrics
Report Attribute |
Details |
Study Period |
2022-2030 |
Base year |
2022 |
CAGR (%) |
7.5% |
Market Size |
170 billion in 2022 |
Projection period |
2023-2030 |
Projection unit |
Value (USD) |
Segments covered |
By Product Type, By Application, By Form, and By Region. |
Report Scope |
Revenue Projection, competitive landscape, company ranking, growth factors, and trends |
Companies covered |
Cargill, Incorporated, General Mills, Archer Daniels Midland Company, DuPont, Danone, Nestle S.A., Amway Corporation, Royal DSM N.V., Bactolac Pharmaceuticals, Inc., Innophos, and WR Grace. |
By Product Type |
|
By Application |
|
By Form |
|
Regional scope |
|
Scope of the Report
Global Nutraceutical Ingredients Market By Product Type:
Global Nutraceutical Ingredients Market By Application:
Global Nutraceutical Ingredients Market By Form:
Global Nutraceutical Ingredients Market By Region:
Global nutraceutical ingredients market is expected to reach USD 303.1 billion by 2030.
The nutraceutical ingredients market is projected to have a CAGR of 7.5%.
Based on the product type, the nutraceutical ingredients market is segmented into proteins, fibers & specialty carbohydrates, phytochemicals & plant extracts, amino acids, and probiotics.
The rising prevalence of chronic diseases such as diabetes, obesity, high blood pressure, and cardiovascular disease, as well as diabetes and respiratory disease fatalities, fuel the market's expansion.
Based on the application, the global nutraceutical ingredients market has been segmented into food, dietary supplements, beverages, and animal nutrition.
Leading market players active in the global nutraceutical ingredients market are Cargill, Incorporated, General Mills, Archer Daniels Midland Company, DuPont, Danone, Nestle S.A., Amway Corporation, Royal DSM N.V., Bactolac Pharmaceuticals, Inc., Innophos, WR Grace among others.
Political Factors- Nutraceutical ingredients. should closely examine demonstrations by pressure organisations, social/environmental activists, and labour unions because such protests play a crucial role in policymaking. Close collaboration with such organisations may improve the nutraceutical ingredients market's ability to collaborate with the community and achieve long-term company goals. Furthermore, a well-developed governance system with a democratic political atmosphere improves the business environment for international organisations such as the Nutraceutical ingredients market.
Economic Factors- A country's economic development has a direct impact on organisational performance. Growing economies provide the Nutraceutical ingredients market with numerous prospects for expansion. Similarly, it is critical to comprehend the industry lifecycle stage. Entering mature industries can be more difficult owing to market saturation than entering businesses in the growth stage. Furthermore, the amount of money invested by the host country government on essential infrastructure development has an impact on the nutraceutical ingredients market commercial performance. A well-developed infrastructure improves the business environment and increases the gold industry's growth potential in the relevant country.
Social Factors- Changes in demographic patterns like ageing population, migration trends and socio-economic variables have essential importance for multinational corporate organisations like the Nutraceutical ingredients market. The Nutraceutical ingredients market can choose the proper market segment/segments with strong development potential by studying demographic data. Migration has an impact on company and marketing tactics. It is critical for the Nutraceutical ingredients market to grasp the general public's attitude about migration since this can influence enterprises' ability to bring international management to the host country.
Technological Factors-Nutraceutical ingredients market must analyse rivals' investments on a micro and macro level in order to understand how new technologies effect the firm's value chain and current cost structure. Research and development activities are critical in an environment characterised by creative disruption. In such a climate, Nutraceutical ingredients markets should invest in disruptive technologies to maximise earnings and reinvest profits in future disruptive innovations. The impact of technology on the costs that most companies in the industry face has the ability to boost or decrease the ensuing earnings significantly.
Environmental Factors- Green/eco-friendly items are becoming increasingly popular. The Nutraceutical ingredients market can seize the opportunity by implementing green business practices in order to gain the trust of stakeholders. The regulatory organizations' emphasis on maintaining environmental compliance is changing product innovation goals. The Nutraceutical ingredients market must prioritize and emphasize marketing their products' eco-friendliness over traditional value propositions. nutraceutical ingredients markets excessive resource depletion may elicit a negative response from the media, environmental protection groups, customers, and the general public. The Nutraceutical ingredients market must research the specific environmental regulations of the country under consideration in order to understand which resources (such as water, electricity, and so on) are considered rare or endangered, and whose excessive consumption can cause problems for the country.
Legal Factors- Employee/labor health and safety laws must be followed by the Nutraceutical ingredients market, as certain nations have rigorous restrictions to ensure labor safety. nutraceutical ingredients market's ethical and moral obligation is to provide a safe working environment for its employees. Similarly, anti-discrimination regulations (such as equal employment opportunity) must be carefully addressed when designing human resource strategies, as discriminatory claims against employers undermine the organizational image and affect the ability of businesses to attract and retain talent. Because of consumers' privacy and security concerns, data protection has become a significant problem. To protect customer data, the Nutraceutical ingredients market must research data protection rules.
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