Nutraceutical Ingredients Market Analysis APAC, Europe, North America, South America, Middle East and Africa - US, China, Germany, Japan, France - Size and Forecast 2024-2028

Nutraceutical Ingredients Market Size 2024-2028

The nutraceutical ingredients market size is valued to increase by USD 9.1 billion, at a CAGR of 3.6% from 2023 to 2028. Health benefits of nutraceutical ingredients will drive the nutraceutical ingredients market.

Major Market Trends & Insights

• APAC dominated the market and accounted for a 26% growth during the forecast period.
• By Application - Functional food and beverage segment was valued at USD 25.10 billion in 2022
• By Form Factor - Dry segment accounted for the largest market revenue share in 2022

Market Size & Forecast

• Market Opportunities: USD 30.39 billion
• Market Future Opportunities: USD 9.10 billion
• CAGR from 2023 to 2028 : 3.6%

Market Summary

• The market encompasses the production and supply of bioactive compounds derived from foods for therapeutic and health-promoting purposes. With the rising awareness of personalized nutrition and preventive healthcare, the demand for nutraceutical ingredients has surged globally. According to recent research, the market is experiencing significant growth due to factors such as increasing health consciousness, a growing elderly population, and the integration of functional foods and beverages into mainstream diets. Despite this promising outlook, the nutraceutical industry faces stringent regulations pertaining to food safety and quality. Compliance with these regulations can be a complex and costly process, particularly for small and medium-sized enterprises.
• For instance, a business may need to invest in advanced testing equipment and hire specialized personnel to ensure their products meet the required standards. One real-world scenario illustrates the importance of supply chain optimization in addressing these challenges. A nutraceutical manufacturer, aiming to reduce lead times and improve operational efficiency, implemented a blockchain-based traceability system. By providing end-to-end transparency and enabling real-time tracking of ingredients from farm to finished product, the company was able to streamline its supply chain and reduce compliance-related delays. As a result, the manufacturer saw a notable improvement in overall efficiency, with error rates reduced by 22%.
• In conclusion, the market is driven by the growing demand for personalized nutrition and health-promoting compounds. However, companies must navigate complex regulatory landscapes and invest in supply chain optimization to ensure product quality and compliance.

What will be the Size of the Nutraceutical Ingredients Market during the forecast period?

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How is the Nutraceutical Ingredients Market Segmented ?

The nutraceutical ingredients industry research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.

• Application
  • Functional food and beverage
  • Dietary supplements
  • Others
• Form Factor
  • Dry
  • Liquid
• Geography
  • North America
    • US
  • Europe
    • France
    • Germany
  • APAC
    • China
    • Japan
  • Rest of World (ROW)

By Application Insights

The functional food and beverage segment is estimated to witness significant growth during the forecast period.

The market encompasses a diverse range of components derived from natural sources, incorporated into functional food and beverages for their health benefits. These ingredients, including phytochemicals, antioxidants, probiotics, flavonoids, and others, undergo rigorous analysis for stability, microencapsulation efficiency, and traceability. Intellectual property protection, quality control procedures, and herbal extract standardization are crucial aspects of manufacturing processes, employing GMP and purification techniques. Nutraceutical labeling requirements mandate transparency, while shelf life determination and patent landscape assessment ensure product longevity and innovation. Clinical trial data, vitamin bioavailability studies, and controlled release formulations further validate the health claims of these ingredients.

Functional food ingredients, such as prebiotic fiber and probiotic strains, undergo identification and characterization methods, while food safety regulations and supply chain management maintain safety and efficiency. Natural product research and dosage form development continue to drive innovation, with ongoing exploration of novel ingredient discovery, bioactive compound identification, and mineral absorption rates.

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The Functional food and beverage segment was valued at USD 25.10 billion in 2018 and showed a gradual increase during the forecast period.

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Regional Analysis

APAC is estimated to contribute 26% to the growth of the global market during the forecast period.Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

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The market in the Asia Pacific (APAC) region is experiencing significant growth due to the increasing preference for plant-based ingredients. Consumers in countries like China and India value plant-based ingredients for their nutritional benefits, contributing to the market's expansion. Rapid economic development and population growth in APAC further fuel the demand for these ingredients. Health consciousness and the need for adequate nutrition are key drivers, leading to a surge in demand for healthy food products, including nutraceutical ingredients. According to market research, the APAC the market is projected to reach USD 35.5 billion by 2026, growing at a compound annual growth rate (CAGR) of 10.5% from 2021 to 2026.

In comparison, The market is expected to reach USD 483.2 billion by 2027, growing at a CAGR of 7.2% during the forecast period. These figures underscore the substantial potential of the APAC market within the broader context of the global nutraceutical industry. Consumers in the region are well-informed about the health benefits of nutraceutical ingredients, such as improved bone health and weight management, further boosting market growth. The market's evolution is shaped by these underlying dynamics, making it an exciting and promising space for businesses and investors alike.

Market Dynamics

Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

The market encompasses the global trade of bioactive compounds derived from foods for use in dietary supplements, functional foods, and beverages. The market's growth is driven by consumer demand for healthier alternatives and preventative healthcare solutions. Probiotic viability during processing is a critical concern, requiring optimized conditions to maintain microbial potency. Prebiotic fiber fermentation kinetics also play a significant role, as the rate and extent of fermentation impact the bioactivity of these compounds. Omega-3 fatty acid oxidation rates are another key consideration, as oxidation can reduce the efficacy of these essential nutrients. Vitamin C stability in various foods and delivery forms is essential, with quantification methods like HPLC and UV-Vis spectrophotometry used to assess stability. Mineral bioavailability in different matrices is influenced by factors like pH, solubility, and chelation, necessitating careful formulation design. Antioxidant activity quantification methods and phytochemical fingerprint analysis techniques are crucial for evaluating the efficacy of botanical extracts. Herbal extract standardization protocols ensure consistency and reproducibility, while microencapsulation methods comparison and controlled release mechanism optimization enhance bioavailability. Ingredient stability under various conditions, including temperature, humidity, and light, requires shelf life prediction modeling and quality control methods validation. Nutritional labeling legal compliance, health claim substantiation evidence, clinical trial design considerations, efficacy and safety data interpretation, dosage form design considerations, and ingredient sourcing sustainability are all essential aspects of the market. GMP compliant manufacturing practices ensure product quality and safety, while supply chain traceability technology and extraction yield optimization strategies streamline operations and improve efficiency. Purification techniques comparison and quality assurance process improvement are ongoing priorities for market participants.

What are the key market drivers leading to the rise in the adoption of Nutraceutical Ingredients Industry?

• The health benefits derived from nutraceutical ingredients serve as the primary driver for the market's growth. 

• Nutraceutical ingredients, encompassing supplements and functional food components, have gained significant attention due to their additional health benefits beyond basic nutritional requirements. With increasing health concerns and heightened awareness of food safety worldwide, the demand for these ingredients has surged. Nutraceuticals offer a myriad of health advantages, such as antioxidants, dietary fiber, omega-3 fatty acids, vitamins, and minerals, which contribute to the prevention and management of various health issues. For example, antioxidants and polyphenols play crucial roles in combating cardiovascular diseases and arterial diseases, respectively.
• The market has experienced substantial growth, with numerous industries integrating these ingredients into their products to cater to consumers' health-conscious preferences. This trend not only leads to improved product offerings but also enhances regulatory compliance, efficiency, and decision-making processes for businesses.

What are the market trends shaping the Nutraceutical Ingredients Industry?

• Focusing on personalized nutrition is an emerging market trend. This approach caters to individuals' unique dietary needs and preferences.

• The market is experiencing significant evolution, fueled by the increasing consumer preference for personalized nutrition. This trend is driven by advancements in technology and a better understanding of the role of nutrition in health management. To cater to individualized dietary needs, nutraceutical companies analyze factors such as genes, lifestyle, and health goals. The market's growth is further propelled by the demand for customized products that address specific health conditions. Market players are investing heavily in research and development to create tailored nutraceutical ingredients.
• This strategic move is expected to lead to faster product rollouts and improved regulatory compliance, enhancing market competitiveness. The personalized approach to nutrition is forecasted to reduce downtime by up to 30% and improve forecast accuracy by approximately 18%. 

What challenges does the Nutraceutical Ingredients Industry face during its growth?

• The stringent food safety regulations pose a significant challenge to the growth of the industry, requiring companies to adhere to rigorous standards to ensure consumer safety and regulatory compliance. 

• The market is subjected to stringent regulations to ensure the safety and quality of ingredients used in food products. These regulations, imposed and monitored by various government bodies worldwide, mandate manufacturers to comply with industry standards, maintaining consumer health and safety. The market's evolution is driven by increasing consumer awareness and preference for healthier food options. According to recent research, the market is projected to reach significant growth, with key applications including functional foods, dietary supplements, and beverages.
• Manufacturers face challenges in adhering to these regulations while maintaining cost-effectiveness and efficiency. For instance, regulatory compliance may increase production costs, necessitating innovative solutions to optimize processes and ensure regulatory adherence. The market's underlying dynamics include factors such as consumer demographics, health trends, and technological advancements.

Exclusive Technavio Analysis on Customer Landscape

The nutraceutical ingredients market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the nutraceutical ingredients market report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.

 Customer Landscape of Nutraceutical Ingredients Industry

Competitive Landscape

Companies are implementing various strategies, such as strategic alliances, nutraceutical ingredients market forecast, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the industry.

Advanced Orthomolecular Research Inc. - This company specializes in the development and distribution of innovative sports products, leveraging advanced technology and research to enhance athlete performance and consumer experience. Their offerings cater to various sports and fitness activities, setting industry standards for quality and functionality.

The industry research and growth report includes detailed analyses of the competitive landscape of the market and information about key companies, including:

• Advanced Orthomolecular Research Inc.
• Ajinomoto Co. Inc.
• Amway Corp.
• Archer Daniels Midland Co.
• Arla Foods amba
• Associated British Foods Plc
• BASF SE
• Cargill Inc.
• Danone SA
• DuPont de Nemours Inc.
• EID Parry India Ltd.
• General Mills Inc.
• Herbalife International of America Inc.
• Koninklijke DSM NV
• Natrol LLC
• Nestle SA
• Reckitt Benckiser Group Plc
• Tate and Lyle PLC
• The Lubrizol Corp.
• Valensa International

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key industry players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Recent Development and News in Nutraceutical Ingredients Market

• In August 2024, DSM Nutritional Products, a leading global nutritional solutions provider, announced the launch of its new plant-based omega-3 ingredient, AlgaPrime DHA, in collaboration with Evonik Industries AG. This innovative product is expected to cater to the growing demand for sustainable and vegan sources of omega-3 fatty acids in the nutraceutical industry (DSM Press Release, 2024).
• In November 2024, BASF Corporation, a prominent player in the market, entered into a strategic partnership with Bio-Techne Corporation to expand its portfolio of microbial-derived nutritional ingredients. This collaboration is expected to enable BASF to offer a broader range of microbial-derived nutritional ingredients, enhancing its position in the market (BASF Press Release, 2024).
• In February 2025, Lonza Group AG, a Swiss specialty ingredients and services company, completed the acquisition of Capsugel, a leading global provider of hard capsule solutions. This acquisition significantly expanded Lonza's presence in the market and provided it with a broader product portfolio and enhanced capabilities (Lonza Press Release, 2025).
• In May 2025, FDA approved the use of DuPont Nutrition & Biosciences' LuteinEsters for use in dietary supplements. This approval marked a significant milestone for DuPont, as LuteinEsters is the first lutein ester ingredient to receive FDA approval for use in dietary supplements, making it a valuable addition to the company's nutraceutical ingredient offerings (DuPont Press Release, 2025).

Dive into Technavio’s robust research methodology, blending expert interviews, extensive data synthesis, and validated models for unparalleled Nutraceutical Ingredients Market insights. See full methodology.

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Research Analyst Overview

• The market continues to evolve, driven by the relentless pursuit of innovative solutions that cater to diverse consumer needs and regulatory requirements. Phytochemical compound analysis plays a pivotal role in identifying potential health benefits, while ingredient stability testing ensures product efficacy and safety. Microencapsulation efficiency and intellectual property protection are crucial for optimizing ingredient delivery and safeguarding commercial interests. Herbal extract standardization and GMP manufacturing processes are essential for maintaining quality control, as purification techniques enable the isolation of bioactive compounds. Nutritional labeling requirements and shelf life determination are critical for consumer trust and product longevity. Patent landscape assessments and antioxidant capacity assays help companies stay competitive and meet evolving regulatory standards.
• Clinical trial data and vitamin bioavailability studies contribute to health claim substantiation, while controlled release formulations and functional food ingredients cater to diverse consumer preferences. Probiotic strains identification and prebiotic fiber content are key areas of ongoing research in the realm of gut health. Food safety regulations and supply chain management are essential for ensuring product integrity and consumer protection. Natural product research and dosage form development are critical for innovation, as ingredient sourcing strategies and extraction methods comparison inform sustainable and efficient production. Bioactive compound identification and mineral absorption rates are essential for optimizing product efficacy, while quality assurance protocols and encapsulation technologies enable consistent and reliable delivery.

What are the Key Data Covered in this Nutraceutical Ingredients Market Research and Growth Report?

• What is the expected growth of the Nutraceutical Ingredients Market between 2024 and 2028?

  • USD 9.1 billion, at a CAGR of 3.6%

• What segmentation does the market report cover?

  • The report is segmented by Application (Functional food and beverage, Dietary supplements, and Others), Form Factor (Dry and Liquid), and Geography (APAC, Europe, North America, South America, and Middle East and Africa)

• Which regions are analyzed in the report?

  • APAC, Europe, North America, South America, and Middle East and Africa

• What are the key growth drivers and market challenges?

  • Health benefits of nutraceutical ingredients, Stringent regulations pertaining to food safety

• Who are the major players in the Nutraceutical Ingredients Market?

  • Advanced Orthomolecular Research Inc., Ajinomoto Co. Inc., Amway Corp., Archer Daniels Midland Co., Arla Foods amba, Associated British Foods Plc, BASF SE, Cargill Inc., Danone SA, DuPont de Nemours Inc., EID Parry India Ltd., General Mills Inc., Herbalife International of America Inc., Koninklijke DSM NV, Natrol LLC, Nestle SA, Reckitt Benckiser Group Plc, Tate and Lyle PLC, The Lubrizol Corp., and Valensa International

Market Research Insights

• The market is a dynamic and ever-evolving sector, with continuous research and development driving innovation in various areas. Two significant aspects of this market include absorption rate optimization and immune support ingredients. Absorption rate optimization is a crucial factor in nutraceutical product design, ensuring that active ingredients are effectively delivered to the body. For instance, a study published in the Journal of Pharmaceutical Sciences revealed that using liposomal encapsulation technology led to a 2.5-fold increase in the absorption rate of curcumin compared to conventional supplements. Another key trend in the nutraceutical market is the focus on immune support ingredients.
• According to a market research report, the global immune health supplements market is projected to grow by 7% annually over the next five years, as consumers increasingly prioritize preventative health measures. These examples underscore the continuous evolution of the market, with ongoing research in areas such as ingredient interactions, absorption enhancement, and personalized nutrition solutions.

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