Nutraceutical Ingredients Market Analysis | 2024-2030

Market Insights

“The nutraceutical ingredients market was estimated at USD 190.2 billion in 2023 and is likely to grow at a CAGR of 6.75% during 2024-2030 to reach USD 301.44 billion in 2030”.

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Market Dynamics

Introduction

Nutraceutical ingredient is a crucial protein found in the connective tissues of animals and humans, making up a significant portion of our skin, bones, tendons, ligaments, and cartilage. It provides structural support, elasticity, and strength to various parts of the body. Collagen is widely used in various industries, primarily in the food and beverage, pharmaceuticals, cosmetics, and healthcare sectors.

Market Drivers

In recent years, international awareness of lifestyle-related diseases has raised consumer awareness of healthy food, thus, the market for nutritious products has been boosted. An aging society, increased life expectancy, and a growing number of people suffering from chronic diseases have changed eating habits. Fortified foods are now among the fastest-growing categories in health and wellness, after naturally healthy and organic products.

Food fortification is the process of adding nutrients like proteins, minerals, and vitamins to food and beverages to make them more nutritious. The market for fortified foods is booming and it is supported by major organizations such as the WHO and FAO as a key strategy against global malnutrition. The mandatory fortification policies in many developing and emerging countries have even more enhanced the market growth.

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Challenges

In the last twenty years, natural-source products such as nutraceuticals and dietary supplements have been more popular because of their health benefits. Nutraceuticals provide advantages beyond basic nutrition and hence they play a vital role in improving the diet and preventing or treating diseases. Nevertheless, the questions on the effectiveness and safety of CBD are still there because the industry is not regulated and controlled which, therefore, causes skepticism and the problem of counterfeit and unapproved products.

The market growth for nutraceutical products is limited by consumers who prefer natural over synthetic formulations. A 2018 Trust Transparency Center survey showed that most Americans want to buy natural dietary supplements, with 83% of the respondents supporting the labeling of synthetic supplements. Only 8.15% would purchase synthetically labeled supplements, thus making the manufacturers who usually use cheaper synthetic ingredients more restricted. The consumer preference for natural products restricts the options for manufacturers that depend on synthetic sources.

Recent Product Development:

• In June 2022, DSM acquired Prodap, enhancing its animal nutrition expertise and services, particularly its Verax animal management system and Sustell sustainability services. This acquisition also strengthens DSM's market presence in Brazil.
• In May 2022, Tate & Lyle completed its acquisition of Nutriati, a company that specializes in chickpea protein and flour, with whom they had a distribution agreement in 2021. This merger consists of Nutriati's assets, intellectual property, and some liabilities, thus, increasing Tate & Lyle's ingredient portfolio.
• In November 2020, Ingredion finalized the acquisition of the remaining stake in Verdient Foods Inc., enabling the company to boost sales growth, expand manufacturing capacity, and collaborate with customers to meet the growing demand for plant-based protein.

Segments' Analysis

By Type

“Probiotic is expected to remain the dominant type in the market during the forecast period”.

• Probiotics are usually taken to put the gut microbiome in good balance with the gut's health.
• However, there is much more to their benefits in improving gut microbiome health, recovering from illness or treatment, and strengthening immune function.
• It's in these multi-dimensional benefits that probiotics are becoming one of the most popular supplements for anyone looking to improve their overall health.

By Application Type

“Food is expected to remain the dominant and fastest-growing product in the market during the forecast period”.

• Over the last decade, there was an escalation in junk food consumption triggered by factors of delicious taste, pleasing texture, and comfortable mouthfeel.
•  Nevertheless, the healthier choices consumers are making have prompted food manufacturers to look towards innovation and invent products that are healthier as well.
• Nowadays consumers are more aware of a balanced diet and healthier foods, which created a growing demand for functional foods. This has not only created new channels for nutraceutical ingredient manufacturers but also unexplored avenues that can be exploited for growth in the market.

By Form Type

“Dry form is expected to remain the dominant and faster-growing form in the market during the forecast period”.

• The manufacturers are in favor of the dry nutraceutical ingredients since they are more stable, easy to handle and store, and can be used for different products.
• Storage and handling are the major reasons for the demand for dry ingredients because liquid ingredients are generally less stable than their dry counterparts.

Regional Insights

“Asia-Pacific is expected to remain the largest market for nutraceutical ingredients during the forecast period”.

• The APAC region is poised for a sizeable increase in the demand for nutraceutical ingredients fueled by the growing customer interest in sectors such as food, drinks, dietary supplements, personal care products, and animal feed.
• This is the expansion that arises from the growth of the region's population.

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Key Players

The market is highly fragmented with the presence of over 50 players across the region. Most of the major players compete in some of the governing factors including price, service offerings, regional presence, etc. The following are the key players in the nutraceutical ingredients market.

Here is the list of the Top Players (Alphabetically Arranged)

• ADM (US)
• Ajinomoto Co., Inc. (Japan)
• Arla Foods Ingredients Group P/S (Denmark)
• Associated British Foods Plc (UK)
• BASF SE (Germany)
• Cargill Incorporated (US)
• CHR Hansen Holdings A/S. (Denmark)
• DSM (Netherlands)
• Fonterra Co. Operative Group Limited (New Zealand)
• Glanbia Plc (Ireland)
• Ingredion (US)
• International Flavors & Fragrances, Inc. (US)
• Kerry Groups (Ireland)
• Kyowa Hakko Bio Co., Ltd. (Japan)
• Tate & Lyle (UK)

Note: The above list does not necessarily include all the top players in the market.

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Research Methodology

• This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s Nutraceutical Ingredients market realities and future market possibilities for the forecast period.
• The report segments and analyzes the market in the most detailed manner to provide a panoramic view of the market.
• The vital data/information provided in the report can play a crucial role for market participants as well as investors in the identification of the low-hanging fruits available in the market as well as to formulate growth strategies to expedite their growth process.
• This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools.
• More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data.
• We conducted more than 15 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Report Features

This report provides market intelligence in the most comprehensive way. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

The nutraceutical ingredients market is segmented into the following categories.

By Type

• Probiotics, Proteins
• Amino Acids
• Phytochemicals & Plant Extracts
• Fibers & Specialty Carbohydrates

By Form Type

• Dry
• Liquid

By Application Type

• Food
• Beverages
• Animal Nutrition
• Dietary Supplements

By Region

• North America (Country Analysis: the USA, Canada, and Mexico)
• Europe (Country Analysis: Germany, France, the UK, Russia, Spain, and Rest of Europe)
• Asia-Pacific (Country Analysis: China, Japan, India, South Korea, and Rest of Asia-Pacific)
• Rest of the World (Sub-Region Analysis: Latin America, the Middle East, and Others)

Report Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview Research offers custom research services across sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com