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.