Nutraceutical Ingredients Market: Overview
The market size for nutraceutical ingredients was USD 164.2 billion in 2021, and it is projected to grow at a CAGR of 6.7 percent during the forecast period. The primary increasing consumer demand for nutraceuticals such as probiotics, prebiotics, and vitamins is predicted to drive growth in the global nutraceutical ingredients market. The nutrients found in nutraceuticals are obtained from plants, animals, and microorganisms and provide food with extra nutritional value. Unlike conventional products, these products are gluten-free and contain no artificial colors or flavors.
Due to the rising popularity of homeopathic remedies, preventive medicines, and self-treatment, the demand for nutraceuticals has increased, including cranberry, garlic, ginseng, and ginkgo biloba extracts. Aside from traditional ingredients like vitamins, minerals, and proteins, nutraceutical products have also incorporated plant sterols, polyphenols, probiotics, and fatty acids. For example, in March 2016, PepsiCo launched 7UP Revive, a hydrotonic drink containing nutraceuticals such as vitamins and electrolytes to rehydrate and refresh consumers. In addition, a variety of functional foods can be found in household and restaurant kitchens daily, either directly or indirectly. Restaurants, for example, can use nutraceutical ingredients to specify cranberries in desserts or cocktails
In March 2022, Tate & Lyle acquired Quantum Hi-Tech Biological, a prebiotic dietary fiber business in China, from ChemPartner Pharmatech for USD 237 million. Strategic global acquisitions would strengthen China and Asia's dietary fiber markets. Chronic ailments including obesity, diabetes, high blood pressure, and cardiovascular diseases have increased dramatically. As a result, people are becoming more conscious of what they eat. Health and diet go hand-in-hand, and people are choosing healthier options. For instance, in February 2022, Fytexia Group, a subsidiary of Associated British Foods, was acquired by ABF Ingredients, a company that develops active ingredients for dietary supplements. It was intended to expand the nutritional, pharmaceutical, and food product portfolio of ABFI.
Nutraceutical Ingredients Market: COVID-19 Impact
In response to the COVID-19 outbreak, immune-boosting supplements like vitamins became more popular. The COVID-19 pandemic had already infected more than 230 million people by October 2021. During the pandemic, preventative healthcare and prophylactic measures have become increasingly prominent, thereby increasing consumer consumption of health supplements to strengthen their immune response to novel coronaviruses causing COVID-19, which has been advantageous to market growth. The nutraceutical market is experiencing a positive impact mainly due to the key role of various ingredients in immune system health. For instance, the benefits of probiotics, in particular, were hailed as an effective supplementary method for tackling the virus. For instance, probiotic products have been selling well in Japan under the COVID-19 outbreak. According to Yakult Honsha, year-on-year sales of Yakult branded probiotic products increased by 11.5% in March and 10.3% in April 2020. Also, Probi and Danone SA shoot for growth in probiotic markets amid COVID-19 disruptions.
Nutraceutical Ingredients Market: Drivers
Rise of Chronic Disease to Drive Market Growth
Globally, the chronic disease burden is increasing rapidly. A report by the WHO predicts that chronic diseases will account for nearly three-quarters of all deaths worldwide by 2020, with 71% of deaths caused by ischemic heart disease (IHD), 75% by stroke, and 70% by diabetes. Obesity, diabetes, blood pressure, and cardiovascular disease plague a significant portion of the global population. Due to this, people have become more aware of the patterns they follow when it comes to eating. There is a strong connection between diet and health, and people make healthier food choices. Additionally, consumers seek options that combine nutrition with taste. Fortified food ingredients offer specific functionalities and healthier alternatives in response to this pressing need. In other words, the whole health and wellness movement increases the demand for nutraceuticals. According to the Nutraceutical Business Review, online searches for gut health increased at an astounding rate of 669% between 2014 and 2019. Moreover, in 2019, the Kerry Group surveyed more than 11,000 health-conscious consumers in 14 countries for digestive and immune health, which showed that globally, the fourth-most popular reason for purchasing healthy lifestyle products is promoting digestive health.
Consumers' Concern for Inclining Towards Healthy Lifestyle is Driving Market Growth
Since most consumers are more concerned with improving their health than paying high medical bills, they are inclined to purchase nutraceutical ingredient products. Consumers are becoming increasingly aware of nutraceuticals and incorporating them into their daily diets. As per the current market trends, the products are updated accordingly. Consequently, giant producers can manufacture functional and nutraceutical foods that address general and specific health issues. With Covid-19 spreading throughout the world, people are increasingly inclined to consume nutraceuticals that boost their immune systems and keep them in good health. Every region, however, has seen a significant increase in product sales due to preventive healthcare measures. One of the fastest-growing segments in the beverage industry is functional beverages, which have growth potential in developing markets.
Nutraceutical Ingredients Market: Restraints
Fortified Products are Expensive, Deterring large Scale Adoption to Hamper Market Growth
Among the many applications of nutraceuticals are functional food & beverages, animal nutrition, pharmaceuticals, and personal care products. Nutraceutical ingredients are now being incorporated into a wide variety of products, including food, feed, pharmaceuticals, and personal care. Although this results in a higher price for these products, it is a beneficial addition. Consequently, such products are less likely to be adopted, stunting market growth. For example, probiotic-infused bottled water is more expensive than traditional bottled water. While these probiotic-infused bottled water products offer health benefits, such as improved digestion and immunity, consumers are unlikely to replace their traditional bottled water consumption entirely with these products. Thus, fortified products' high prices significantly hinder the growth of the nutraceutical ingredients market during the forecast period.
Nutraceutical Ingredients Market: Segment Overview
Probiotics will Dominate Market as they are Essential Ingredient for Overall Human Health
Probiotics are expected to be the largest segment during the forecast period. Since probiotics positively affect overall human health, they are becoming essential ingredients for health & nutritional products. This makes probiotic ingredients extremely popular across various applications, such as functional foods, beverages, dietary supplements, and animal nutrition products. In addition, This segment is experiencing high growth due to changing lifestyles and eating habits, increasing awareness of probiotic benefits beyond digestion, and increasing the use of probiotics in animal feed. The demand for probiotics is also driven by increasing health issues such as diarrhea, digestive disorders, and an aging population.
Further, the ban on the use of antibiotics in Europe and the U.S. has created a high demand for natural growth promoters. The Farm Animal Investment Risk and Return Initiative (FAIRR) focuses on protecting public health and creating long-term value. This initiative also is engaged in convincing 20 global food companies to limit the use of antibiotics in global supply chains. This can be achieved by establishing an antibiotics policy to phase out routine, prophylactic use across all supply chains, specifying clear targets and timelines for implementation, and increasing transparency by reporting on implementation and data verification.
Due to its Various health Benefits, Dietary Supplement Category Dominated the Market
In the forecast period, the dietary supplement segment held the largest market share, and it is anticipated that it will continue to rule the market during the forecast period. There are a number of health benefits that dietary supplements offer, which is why the segment is growing. Such as improvement in. Balance of gut microflora, improved intestinal functions, increased calcium absorption, improvement of bone density, enhancement of immune function, reduction of the release of toxins that can contribute to fatty liver disease and other conditions, reduction of coronary heart disease risk, control of blood sugar, possible reduction of obesity and metabolic syndrome risk, and improvement in abdominal pain, bloating, and constipation.
Nutraceutical Ingredients Market: Regional Landscape
Asia Pacific to Dominate Market due to Changing Lifestyles and Eating Habits in the Consumers
Over the forecast period, it is anticipated that the Asia Pacific market will account for the largest revenue share. The demand for nutraceutical ingredients in the country is likely to increase as lifestyles, dietary patterns, and nutrition awareness change. Moreover, consumers increasingly consume supplements, vitamins, and minerals to maintain their health. There is now a substantial market opportunity for manufacturers of nutraceutical ingredients because consumers are willing to pay more for fortified products. Major pharmaceutical companies and food and beverage manufacturers have also contributed to the recent growth. A steady growth rate is predicted for the functional beverage segment of the nutraceuticals ingredient market throughout the forecast period, mainly in China, Japan, India, and Malaysia, where the adoption of health and fitness drink commodities among consumers is high demand.
The North American market is expected to grow rapidly during the forecast period. Market growth in the region is expected to be driven by increasing consumer demand for functional foods and dietary supplements. Market growth is expected to be supported during the forecast period by increased R&D investments made by various manufacturers of food and beverages. The major factors influencing the growth of this market include the rising digestive health products market, the growing supplements market, and the increasing demand for probiotics. According to Agriculture and Agri-Food Canada, North America is the major contributor to the global digestive health products market, which is expected to reach USD 17.2 billion by 2022 from USD 14.9 billion in 2018.
Global Nutraceutical Ingredients Market: Competitive Landscape
In 2022, in its latest integrated food & beverage functional structure, DSM Group, a global science-based company, combines three parts of the company's nutrition business: hydrocolloids, food specialties, and a few portions of nutritional commodities according to the market's current demand. Moreover, in 2021, in order to increase sales and profits, ArchiMed acquired SUANFARMA, a company that manufactures and distributes active ingredients for nutraceuticals and pharmaceuticals.
Few of the players in the nutraceutical ingredients market include- Associated British Foods, Arla Foods, Dsm, Ingredion, Tate & Lyle, Ajinomoto, Chr. Hanse, Kyowa Hakko Kirin Group, Glanbia Plc, Fonterra Co-Operative Group Limited, Cargill, Adm, Dupont, Basf Se, Kerry Group, Amway, Johnson & Johnson Services, Inc., Nestlé, Danone, Balchem Corporation, Sydler India Pvt. Ltd., Probi, Barrington Chemical Corporation, Divi's Laboratories Ltd, Bi Nutraceuticals.
Global Nutraceutical Ingredients Market is Segmented as Below:
By Health Benefits
Key Elements Included In The Study: Global Nutraceutical Ingredients Market
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