Nutraceutical Ingredients Market Size, Share & Trends Report

Nutraceutical Ingredients Market Size, Share & Trends Analysis Report By Application, By Product, By Region, And Segment Forecasts, 2020 To 2027

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The global nutraceutical ingredients market is expected to grow at a significant rate owing to the increasing consumer demand for nutraceutical products such as probiotics, prebiotics, and vitamins. Nutraceuticals ingredients are extracted from animal, plant, microbial and help in providing extra nutritional value to food products. They are gluten-free and do not contain artificial colors and flavors, which makes them a healthy alternative to conventional products. 

The demand for natural nutraceutical ingredients such as cranberry, garlic, ginkgo biloba, and ginseng extracts; glucosamine; and chondroitin has increased with the rising popularity of homeopathic remedies, preventive medicines, and self-treatment. Along with traditional ingredients such as vitamins, minerals, and proteins, companies have started including some new ingredients in nutraceutical products such as plant sterols, polyphenols, probiotics, and fatty acids.

The demand for these products is likely to grow as they can help in curing baldness, aging, obesity, and diabetes. For instance, the brand Ojamin, a fruit and herb sugar-free tonic, was developed through modern scientific research and herbs to aid diabetic patients. Functional foods are used in households and restaurants directly or indirectly on a daily basis. For instance, in restaurants, the use of cranberry beads in desserts or cocktails in the process of spherification is only possible with the help of nutraceutical ingredients.

Working-class individuals miss out too many nutritional benefits owing to their busy lifestyles, which can be solved by nutraceutical products. They are easy to carry and can be consumed on the go, thereby offering a suitable match for the demands of the working class. Nutraceutical product companies use online retail stores as a mode of distribution owing to the convenience factor. Ease of product availability through online retail platforms is expected to propel the demand for nutraceutical products, thereby positively impacting the nutraceutical ingredients market growth.

The phenomena of pill fatigue have become common in kids and adults, which can be cured through the consumption of nutraceutical products. The manufacturers are continuously engaged in innovation to come up with nutraceutical products that have different flavors, providing enhanced nutritional value to their target customers. Many nutraceutical ingredient companies fix their products” prices according to the number of ingredients it contains. High R&D costs associated with product innovation act as a barrier to the industry players. 

The industry faces challenges in emerging economies owing to the lack of consumer awareness. However, the players are rigorously investing in advertising to overcome this challenge. The industry is also facing the problem of counterfeit products which hamper the reputation of a brand and reduces the customer base of the company, thereby impacting the industry performance.

The nutraceuticals ingredients market can be segmented into type, application, form, and region. Based on the type of ingredients, the market can be divided into prebiotic, probiotics, vitamins, minerals, protein, OMEGA 3 structured lipids, phytochemicals, plant extracts, and fibers & specialty carbohydrates. Probiotics have several health benefits such as they help to reduce the severity of eczemas, prevent diarrhea, and improve heart health. On the basis of health benefits, the market can be classified into heart health, bone health, immunity, nutrition, and gut health. Nutraceutical ingredients such as prebiotics help in increasing bone density, keeping weight under control, and even strengthening the immune system.

Based on the application, it can be segmented into food (snacks, dairy, bakery, and confectionery), beverages (energy drinks, juices, etc.), personal care, animal nutrition, dietary supplements. The demand for enhancing water, ready to drink beverages, and forfeited juices has been growing significantly. For instance, PepsiCo had launched a hydrotonic drink named 7UP Revive in March 2016, containing nutraceuticals ingredients such as vitamins and electrolytes to make consumers feel rehydrated and refresh. 

The market for dietary supplements has expanded with the increased intake of protein by fitness enthusiasts and athletes. The nutraceutical ingredients market is commercially available in two forms namely, dry and liquid. The dry form of nutraceutical products is preferred by the customers over the liquid form on account of several factors such as easy handling, transportation, high stability, and good shelf-life. 

The end-users in this market are the food and beverage industries, the pharmaceutical industry, animal feed, and the personal care industry. Health benefits such as improved gut health and the immune system of animals have led to an increase in the growth of the animal feed segment. The food and beverage industry is expected to dominate the market as most of the human nutrition products include nutraceutical ingredients.

The growing demand for nutraceutical products owing to their anti-aging properties has led North America to become a prominent region in the market. The Asia Pacific has seen significant growth in the previous few years owing to the presence of major pharmaceuticals and food & beverage manufacturers. Increasing consumer spending on the health and wellness products owing to changing lifestyles and rising disposable income is likely to be a key factor driving industry growth in economies such as Middle East & Africa and Asia Pacific. 

The concept of “beauty from within” is trending among the millennials wherein consumers are convinced to take nutraceutical products in the form of pills every day to avoid wrinkles, age spots, and grey hairs. The demand for customized products has led to the development of innovative products. Manufacturers have started developing applications that track consumer behavior helping them in improving their products. For instance, an app named Metabolaid was developed to track food consumption patterns of individuals to help them lose weight.

The major players in the nutraceutical ingredients market are Kraft Heinz Company, GlaxoSmithKline, Amway, Abbott, Kellogg’s, Danone, Cargill Inc., Nestle, Archer Daniels Midland, DSM, BASF, PepsiCo, General Mills, Aker Biomarine, Procter & Gamble, Johnson & Johnson, etc. In January 2017, a new technical application laboratory was opened by BASF for its nutrition and health business named “Nutrition Lab” to improve Singapore’s R&D capabilities. In 2019, Medtate, a healthcare company, announced that it is planning to launch a new product named FemVita, especially for women, in the next five years, which will be formulated with nutraceutical ingredients such as probiotics and vitamins that will aid in improving hair, nails, teeth, skin, and immune system.

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