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Nutraceutical Ingredients Market worth $136.1 billion by 2029 - Exclusive Report by MarketsandMarkets

CHICAGO, July 30, 2024 /PRNewswire/ -- The global nutraceutical ingredients market, valued at USD 105.2 billion in 2024, showcases a remarkable growth projection, anticipated to escalate to USD 136.1 billion by 2029, indicating a robust compound annual growth rate (CAGR) of 5.3% from 2024 to 2029 according to a report published by MarketsandMarkets.

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Growing awareness and emphasis on preventive healthcare among consumers have contributed hugely to the demand for dietary supplements and functional foods fortified with nutraceutical ingredients. Additionally, scientific research is also playing an extremely important role as numerous studies have pointed out possible health benefits of nutraceutical ingredients and attributed them to disease prevention and management. An extensive review conducted in 2021, for example, combined the results of seven different studies involving 491 adults in India. In these studies, the effects of six to eight weeks of ashwagandha extracts on stress and anxiety were compared to placebos. Additional studies involving 250 adults in the US and India confirmed the significant reduction in stress and anxiety reported by participants who received ashwagandha. Moreover, ashwagandha extracts made from its leaves that contain substances like triethylene glycol have been linked to improved sleep in mice. This effect is assumed to be brought about by altering the brain's GABA receptors, which control the activity of nerve cells linked to both relaxation and stress. Such studies not only validates traditional claims but also builds up consumer confidence and acceptance of these nutraceutical ingredients.

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Social media's influence has also helped raise people's interest in and knowledge of these ingredients. Social media platforms such as Youtube and Instagram facilitate the rapid sharing of personal testimonials and health trends, which shapes consumer preference. Celebrities and influencers often flaunt products containing nutraceutical ingredients, further boosting the popularity of these ingredients. Furthermore, regulatory support and improvements in extraction technologies have made the production process more accessible and affordable for manufacturing companies.

The growing popularity of the "beauty from within" trend has driven substantial growth in the nutraceutical ingredients market.

Nutraceutical ingredients are being consumed in much greater quantities than just basic sustenance due to the shift towards holistic health practices. Consumers now seek products offering comprehensive health benefits that enhance both internal well-being and external appearance. The nutraceutical company Lightbody (US) CEO Kylen Ribeiro stated in Wholefoods Magazine that the market for nutri-beauty supplements has expanded dramatically, rising by 57% in 2019 and expected to reach a valuation of USD 53.4 billion in 2022.

A significant trend driving this growth is "beauty from within," highlighting the link between diet and physical aesthetics. Rich in bioactive compounds, such as omega fatty acids, proteins, and vitamins, nutraceutical ingredients thus have a very significant role in enhancing hair strength, elasticity of skin, and radiance. Hair loss conditions are said to affect 6.5 million men and 8 million women in the UK, according to The National Health Service (NHS). This data suggests that the issue is in fact quite common, and represents a large market opportunity for products addressing hair health concerns, including nutraceutical ingredients.

Rising cases of lifestyle diseases and increasing awareness about the importance of nutrition drive demand for nutraceutical ingredients globally. The products range from ashwagandha extracts and beetroot extracts to fortified beverages and snacks enriched with various nutraceutical ingredients such as omega-3 fatty acids and probiotics.

The carotenoids segment within the type is estimated to grow at the highest CAGR in the nutraceutical ingredients market during the forecast period.

Carotenoids act as potent antioxidants, protecting cells from oxidative stress and thereby supporting overall health. Carotenoids such as lutein, astaxanthin, and lycopene are increasingly sought after due to their diverse health benefits and applications in both human and animal nutrition. They are essential for maintaining the health of the skin, the eyes, and the cardiovascular system (e.g., lycopene for lowering the risk of heart disease, lutein and zeaxanthin for macular health, astaxanthin for UV protection and anti-aging benefits).

Moreover, carotenoids such as astaxanthin have shown promising results in enhancing productivity in livestock. For instance, according to a National Library of Medicine report from 2022, astaxanthin supplementation increased milk yield in buffaloes and mitigated heat stress in various livestock, including hens and heifers. Thus, the demand for carotenoids is bolstered by their integration into dietary supplements aimed at improving human health and nutritional fortification in food and feed products.

The food segment within the applications is estimated to dominate the nutraceutical ingredients market.

Since more people are becoming aware of the positive impacts of these nutraceutical ingredients to their physical and mental well-being, consumer preferences are shifting more and more in favour of functional foods enhanced with nutraceutical ingredients. An article published in November 2023 in Food Navigator Asia claims that the idea of "punk nutrition" in China is a prime example of this trend, where consumers are willing to spend money on health-supporting products even in the face of stressful work environments. This includes splurging on nutrient-dense foods like probiotic or prebiotic biscuits and seasonal drinks with extra health benefits. This market segment is very competitive, which encourages innovation in the direction of products with distinctive value propositions and shelf presence.

Moreover, the food segment benefits from its widespread appeal and integration into daily diets, making it accessible to a broader consumer base compared to other applications. Manufacturers are tapping into this trend by creating innovative food products tailored to specific health needs, such as boosting immunity, improving digestion, and promoting cardiovascular health. By focusing strategically on food fortification, manufacturers are not only satisfying consumer demand for convenient health solutions but also setting their products apart and increasing their market competitiveness.

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Europe is estimated to grow at a significant CAGR in the nutraceutical ingredients market during the forecast period.

Increased public and private spending on preventive care indicates that Europeans are becoming more aware of the importance of preventive healthcare. For instance, the European Commission reports that spending on preventive care increased to 6.0% of all health spending in the EU in 2021 from 2.9% in 2019, indicating a shift in emphasis towards proactive health maintenance.

Probiotics are a well-known category of nutraceutical ingredients that are widely recognised and used throughout Europe, according to the International Probiotics Association Europe. There is a high level of awareness as even among those who do not take probiotics, 56% are familiar with the term. One of the factors driving this adoption is the belief, held by consumers and often reinforced by the advice of medical experts, that probiotics improve general health and well-being. Significant portions of the populations in Germany, Spain, and Italy have indicated that they regularly consume probiotic foods and supplements, indicating a sizable market base.

According to a 2022 consumer survey by the International Probiotics Association Europe, 41% of Italians, 38% of Germans, and 44% of Spanish people are active consumers of either probiotic foods or supplements. This trend is indicative of a broader trend in Europe towards using nutraceutical ingredients to support overall health and well-being.

The key players in this market include Cargill, Incorporated (US), ADM (US), International Flavors & Fragrances Inc. (US), BASF SE (Germany), Arla Foods amba (Denmark), Associated British Foods plc (UK), dsm-firmenich (Switzerland), Ingredion (US), Tate & Lyle (UK), Ajinomoto Co., Inc. (Japan), and Chr. Hansen A/S (Denmark).

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Browse Adjacent Reports @ Food and Beverage Market Research Reports & Consulting

Related Reports:

Dietary Supplements Market by Type (Botanicals, Vitamins, Minerals, Amino Acids, Enzymes, Probiotics), Function, Mode of Application, Target Consumer, Distribution Channel (Pharmacy, Supermarket/Hypermarket, Online) and Region - Global Forecast to 2028

Protein Ingredients Market Size, Share, Growth Analysis, Industry Trends Report by Source (Animal, Plant, Insect, and Microbial), Form (Dry and Liquid), Application (Food & Beverages, Feed, Cosmetics & Personal Care Products, and Pharmaceuticals), and Region - Global Forecast to 2028

Health Ingredients Market by Type (Vitamins, Minerals, Probiotics starter culture, Prebiotics, Nutritional Lipids, Functional Carbohydrates, Plant and Fruit Extracts, Enzymes, Proteins), Application, Source, Function and Region - Global Forecast to 2027

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MarketsandMarkets is a blue ocean alternative in growth consulting and program management, leveraging a man-machine offering to drive supernormal growth for progressive organizations in the B2B space. We have the widest lens on emerging technologies, making us proficient in co-creating supernormal growth for clients.

Earlier this year, we made a formal transformation into one of America's best management consulting firms as per a survey conducted by Forbes.

The B2B economy is witnessing the emergence of $25 trillion of new revenue streams that are substituting existing revenue streams in this decade alone. We work with clients on growth programs, helping them monetize this $25 trillion opportunity through our service lines - TAM Expansion, Go-to-Market (GTM) Strategy to Execution, Market Share Gain, Account Enablement, and Thought Leadership Marketing.

Built on the 'GIVE Growth' principle, we work with several Forbes Global 2000 B2B companies - helping them stay relevant in a disruptive ecosystem. Our insights and strategies are molded by our industry experts, cutting-edge AI-powered Market Intelligence Cloud, and years of research. The KnowledgeStore (our Market Intelligence Cloud) integrates our research, facilitates an analysis of interconnections through a set of applications, helping clients look at the entire ecosystem and understand the revenue shifts happening in their industry.

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