Nutraceutical Ingredients Market- Trends and Forecast till 2025


North America has witnessed to be the second largest nutraceutical ingredients market in 2016. U.S. is expected to be the major market in this region over the forecast period.

Nutraceutical ingredients are substances that aid in adding nutritive value to the diet. Nutraceutical ingredients are used in various end-use industries such as food & beverages, pharmaceuticals, personal care, and animal feed.

Major driving factor for growth of the global nutraceutical ingredients market is increasing awareness about healthy diet, which includes vitamins, proteins, minerals, fibers and others. Also, rise in usage of nutraceutical ingredients in pharmaceutical drugs owing to its properties such as anti-aging, prevention in chronic diseases, cancer and health improvement have further driven the market growth of nutraceutical ingredients. A healthy diet and lifestyle can help prevent cancer. Nutraceutical ingredient namely phytochemicals have antioxidant activities and helps in prevention of cancer. According to World Cancer Report, the cancer rate is anticipated to increase by 50% that is up to 15 million cases in 2020. However, high cost of these ingredients is anticipated to hamper growth of the nutraceutical ingredients market.

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Among product ingredients, fibers & specialty carbohydrates was the dominant segment in the global nutraceutical ingredients market in 2016. Omega fatty 3 acid segment is expected to witness significant growth rate over the forecast period. This is attributed to increasing product launches that are rich in omega-3 & fibers. For instance, in 2011, the Kashi Company launched Kashi waffles, 7 Grain Waffles and Blueberry Waffles that are rich in omega-3 and fibers. In 2012, Abbott’s Company’s Zoneperfect brand introduced a line of nutritive bars named Perfectly Simple. These bars have ingredients such as vitamins, proteins, minerals, and others.

By application, functional beverages accounted for the largest market segment in the nutraceutical ingredients market in 2016 with a revenue of US$ 10.51 billion. This is owing to the burgeoning growth in consumption of energy drinks & enhanced drinks, majorly by millennials, globally. According to National Centre for Complementary and Integrative Health, males consume most of the energy drinks between age of 18 and 34. . Functional beverages contain probiotics as nutraceutical ingredients and consumption of these aids in improving gut health, immune system, etc.

Among form, dry form was the dominant segment in the market in 2016 and is expected to retain its dominance over the forecast period. This form has gained popularity owing to its easy storage, handling, and transportation.

In terms of revenue, Asia Pacific was the largest market in 2016 with a market share of 36.19%. It is also projected to exhibit the fastest growth with a CAGR of 7.59% over the forecast period. This is owing to rise in healthcare spending. According to EU Business Avenues in South East Asia, the healthcare spending in ASEAN countries was estimated to be around US$ 110.78 billion in 2014. Emerging countries such as China and India are expected to be the key markets for nutraceutical ingredients as these are major consumers of functional food and beverages. Moreover, increasing geriatric population in Asia Pacific region is one of the major drivers for growth of this market. According to Economic and Social Commission for Asia Pacific (ESCAP), the total number of elderly people is expected to double in 2050, which will be about 1.3 billion from 547 million in 2016. Japan is the largest consumer of nutraceutical ingredients owing to its wide usage in herbal medicine for maintaining health and treating diseases, further driving the overall growth of the market in Asia Pacific. According to EU-Japan Centre for Industrial Cooperation, Japan is anticipated to have 54.8% market share of the Asia-Pacific nutraceutical ingredients market in 2017.

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North America has witnessed to be the second largest market of the nutraceutical ingredients in 2016. U.S. is expected to be the major market in this region over the forecast period. This growth is attributed to increasing use of dietary supplements owing to rising awareness regarding health benefits of consumption of these supplements as it provides nutrients mainly minerals and vitamins. According to U.S. Pharmacopeia Convection, dietary supplements are used by 80% of adults in the U.S.

Major players operating in the global nutraceutical ingredients market include BASF SE, E.I. du Pont de Nemours and Company, Cargill Inc., Archer Daniels Midland Company, DSM Nutritional Products, Ingredion Incorporated, Tate & Lyle Plc, Ajinomoto Co. Inc., and FMC Corporation.

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