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The nutraceutical ingredients market size is forecast to increase by USD 9.1 billion at a CAGR of 3.6% between 2023 and 2028. The market is experiencing significant expansion, driven by various significant factors. Firstly, the recognition of nutraceuticals' health benefits fuels market growth. These ingredients, derived from foods, provide additional health advantages beyond basic nutritional needs. Secondly, the increasing trend towards plant-based diets bolsters market demand. As consumers prioritize healthier lifestyle choices, the demand for nutraceutical ingredients sourced from plants continues to rise. Lastly, the aging population is another significant factor. With an increasing number of elderly individuals, there is a growing need for nutraceuticals to support healthy aging and manage age-related health conditions. These factors collectively contribute to the dynamic growth of the market.
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The market research report provides comprehensive data (region-wise segment analysis), with market growth and trends forecasts and estimates in "USD billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.
The market share growth by the functional food and beverage segment will be significant during the forecast period. These ingredients used in a variety of functional foods and beverages typically include ingredients that are consumed as part of the normal diet. These dietary supplement ingredients contain certain biologically active ingredients that offer the potential to improve health and reduce disease risk. Some functional foods and beverages, such as milk, contain certain minerals, vitamins, fatty acids, and fiber.
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The functional food and beverage segment was valued at USD 25.10 billion in 2018. Nutraceutical ingredients, including phytochemicals, antioxidants, probiotics, and flavonoids, offer diverse health benefits and are increasingly used in functional foods and beverages. For instance, phytonutrients found in plant-based foods provide detoxification and immune system support. With a rise in health conditions, changing consumer lifestyles, and increasing prevalence of cardiovascular disease, cancer, and diabetes, consumers are opting for healthier choices. This trend is driving the incorporation of beverage products, leading to the growth of this market segment during the forecast period.
The global market is experiencing increased popularity of dry forms due to their longer shelf lives, convenience in storage and transportation, and growing demand. Dry-form ingredients, particularly powders and tablets, are expected to be highly sought after between 2023 and 2027, driven by the rising demand for convenient and user-friendly nutraceutical products. The APAC region, fueled by the growing demand in economies like China and India, is projected to have the largest market. These trends and preferences are anticipated to drive the growth of the market focused on dry-form ingredients during the forecast period.
APAC is estimated to contribute 26% to the growth of the global market during the projection period. Technavio's analysts have provided extensive insight into the market forecasting, detailing the regional trends and drivers influencing the market's trajectory throughout the projection period.
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The market is driven by the rising consumer health consciousness and the need for preventive methods against lifestyle-related diseases. With micronutrient shortages prevalent, fortified food products are gaining popularity among consumers. Innovations such as 3D printing are revolutionizing the industry, while the Internet of Things (IoT) enhances trust transparency in nutraceuticals. From functional benefits to digestive health improvements, nutraceutical ingredients cater to various sectors including animal nutrition and personal care products, offering primary nutritional value and contributing to overall physical fitness.
Our researchers analyzed the market research and growth data with 2023 as the base year, along with the key market growth analysis, trends, and challenges. A holistic analysis of drivers, trends, and challenges will help companies refine their marketing strategies to gain a competitive advantage.
The health benefits of nutraceutical ingredients are notably driving the market growth. Nutraceutical ingredients primarily include nutraceuticals and functional food ingredients that provide a variety of additional health benefits in addition to basic nutritional needs. Nutraceutical ingredients have different properties that benefit the human body in different ways. Rising health concerns and growing awareness of food safety among people around the world have increased the demand for dietary supplement ingredients. Dietary supplement ingredients help address many of the major health issues facing people today. For example, nutraceutical ingredients such as antioxidants, fiber, omega-3 fatty acids, vitamins, and minerals help prevent cardiovascular disease. Polyphenols prevent and control the possibility of arterial disease. Lipoic acid is an antioxidant used to treat diabetic neuropathy. Docosahexaenoic acid regulates insulin resistance and is also important for neuro visual development. A mixture of glucomannan, chitosan, fenugreek, and vitamin C as a dietary supplement helps with weight loss. Nutraceutical ingredients are also effective in relieving joint pain, intestinal problems, hormonal imbalances, vision problems, and more.
With the prevalence of chronic disease, people are becoming more conscious about their diet. This has led people to increasingly choose food and beverage products that offer the right combination of nutritional value and taste. Growing awareness has increased the demand for these ingredients around the world. This is expected to drive the growth of the market during the forecast period.
Focus on personalized nutrition is a key trend influencing market growth. Growing consumer propensity towards personalized nutrition is expected to boost the growth of the market during the forecast period. This approach involves the analysis of variables such as genes, lifestyle, and health goals to develop personalized diets and supplements that meet each individual's specific needs. Effervescent tablets are emerging as a favored delivery form within this trend, offering convenient and efficient means to deliver personalized nutrition solutions.
Market participants are investing in research and development to produce effervescent tablets that can be customized to each customer's specific nutritional requirements. These tablets dissolve quickly in water, making them suitable for delivering a variety of nutrients, vitamins, and supplements tailored to individual health goals. This innovation in delivery systems is set to drive the growth of the market during the forecast period, making personalized nutrition more accessible and appealing to a broader consumer base.
Stringent regulations pertaining to food safety is the major challenge that affects the growth of the market. The nutraceutical industry encompasses functional foods and dietary supplements, which utilize nutraceutical ingredients to prevent lifestyle-related diseases and address micronutrient shortages. Stringent regulations govern the nutraceutical ingredient market to ensure consumer safety, with various government bodies imposing and monitoring safety standards for ingredients used in food products. Compliance with these regulations poses challenges for manufacturers, requiring adherence to quality control measures and maintaining regulatory compliance.
Nutraceutical ingredients are incorporated into fortified food products to enhance their nutritional value and promote consumer health consciousness. The global nutraceutical ingredient market is subject to rigorous safety regulations, ensuring the production and consumption of these ingredients do not pose health risks. Hence, the above factors will impede the growth of the market during the forecast period.
Companies are implementing various market growth and forecasting strategies by analyzing factors such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product or service launches, to enhance their presence in the market.
Natrol LLC- The company offers melatonin health supplements which help to mitigate sleep disorders in children.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market 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., and 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 market 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.
The market addresses the rising concern over lifestyle-related diseases by offering preventive methods and medical benefits. With a focus on digestive health supplements and functional beverages, the industry caters to the average consumer seeking precautionary healthcare measures. Innovations in dry nutraceutical ingredients and trust transparency ensure consumer trust. From cholesterol reduction to gut health improvement, nutraceutical ingredient products target various health issues, benefiting individuals with digestive problems, overweight, and metabolic stress. Athletes and the working population find support for physical fitness benefits in nutraceuticals amidst hectic and sedentary lifestyles.
Nutraceutical industry plays a pivotal role in combating lifestyle related diseases by providing preventive healthcare solutions. Backed by innovation and supported by organizations like the World Health Organization, it addresses the rising concerns over cardiovascular diseases and associated healthcare costs and medical bills. Nutraceuticals target common issues such as constipation, bloating, and indigestion, while also bolstering immune systems and promoting gastrointestinal tract improvement. With a focus on triglyceride reduction and support for sportspeople seeking sports and energy, these products offer organic benefits tailored to individuals with hectic or sedentary lifestyle. The market extends its impact beyond humans, contributing to advancements in animal feed formulations.
Market Scope |
|
Report Coverage |
Details |
Page number |
177 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 3.6% |
Market growth 2024-2028 |
USD 9.1 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.4 |
Regional analysis |
APAC, Europe, North America, South America, and Middle East and Africa |
Performing market contribution |
APAC at 26% |
Key countries |
US, China, Germany, Japan, and France |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
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 dynamics |
Parent market analysis, Market Forecasting, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the market forecast period. |
Customization purview |
If our market forecast report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Form Factor
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Opportunity/Restraints
11 Competitive Landscape
12 Competitive Analysis
13 Appendix
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