Nutraceutical Ingredients Market Is Estimated To Witness High Growth Owing To Rising Health Awareness And Increasing Demand For Functional Foods
The Nutraceutical Ingredients Market is estimated to be valued at USD 212.43 Billion in 2024, exhibiting a CAGR of 7.1% over the forecast period (2024-2031). The demand for nutraceutical ingredients is growing significantly owing to rising awareness about the importance of maintaining a healthy lifestyle. Furthermore, the increasing demand for functional foods and dietary supplements containing nutraceuticals is also driving the market growth.
Rising health awareness
There is a growing awareness among consumers about the importance of maintaining good health through balanced nutrition. This is increasing the demand for nutraceutical ingredients which provide health benefits above basic nutrition. The COVID-19 pandemic has further accelerated this trend as people are more focused on boosting immunity through dietary changes.
Growing demand for functional foods
The functional food industry is witnessing strong growth globally due to increasing preference for food products fortified with nutraceuticals. Various ingredients such as omega-3, plant extracts, vitamins, and prebiotics are being added to food and beverage products to enhance their nutritional value. This is creating robust demand for nutraceutical ingredients from functional food manufacturers.
Rising health awareness and preventive healthcare
There is a growing awareness among people about the importance of maintaining good health and preventing diseases. More people are realizing that a healthy diet and lifestyle plays a key role in disease prevention. As a result, there is increased demand for nutraceutical ingredients which provide various health benefits. Customers want products that are able to promote overall well-being and reduce the risk of chronic conditions like heart disease, diabetes, cancer, etc. The nutraceutical ingredients market enables manufacturers to develop supplements, functional foods, and beverages catering to this increased focus on preventive healthcare.
Growing Geriatric Population
The aging population globally is leading to a rise in age-related health issues like arthritis, Alzheimer's, osteoporosis, etc. Older adults are more inclined to use nutraceutical products for supporting brain, bone, and joint health. As life expectancy increases, the proportion of elderly population is projected to grow significantly in the coming decades. This substantial geriatric demographic will propel the demand for ingredients that can potentially enhance quality of life and alleviate symptoms of age-related diseases. The nutraceutical ingredients industry offers a wide assortment of items targeting the specific healthcare requirements of the senior population.
Stringent Regulatory Framework
Regulatory policies for nutraceutical ingredients and products vary greatly across different countries and regions. Obtaining clearances and approvals especially for new innovative ingredients often involves a rigorous, lengthy and expensive procedure. Regulatory hurdles pose challenges for industry players in terms of additional costs for clinical trials and documentation work. Moreover, frequent changes in guidelines also require adapted formulations. The complex regulatory environment acts as a major restraint in this market.
Consumer Skepticism about Product Efficacy
While the preventive health trend is influencing consumer purchase decisions, there still exists a certain level of skepticism regarding the actual health benefit claims made on nutraceutical supplement labels. Customers have doubts if ingredients and products deliver promised results. This lack of confidence arises due to insufficient substantiating research and sometimes false or exaggerated promotional campaigns. It discourages some potential buyers and limits the mass adoption of certain products or ingredients. Establishing authenticity of efficacy claims remains crucial to overcome such market restraint.
Emergence of New Delivery Systems
Advanced techniques and innovative formulations are expanding opportunities for nutraceutical ingredient manufacturers and product developers. Novel delivery mechanisms like encapsulation, nano-encapsulation,3D printing, and timed-release systems allow for better bioavailability, targeted release, and multi-nutrient combinations. These modernized delivery approaches enhance absorption of ingredients in the body while maintaining stability. They also facilitate the incorporation of ingredients into varied product categories beyond capsules and tablets. The availability of cutting-edge delivery technologies presents valuable opportunities for expansion into new markets.
Growth in Online Retailing
The increasing use of e-commerce platforms for healthcare and wellness product purchases has opened up a major market channel. Consumers find it convenient to research and buy nutraceutical supplements online at highly competitive prices. Furthermore, the digital medium allows for the direct marketing of specialized or niche ingredients. It helps smaller companies reach a wider customer network globally. The burgeoning online retailing scenario offers an opportune arena to launch new ingredient and supplement brands while expanding existing businesses. E-retailing options facilitate access to a vast virtual consumer base.
Link - https://www.coherentmarketinsights.com/market-insight/nutraceutical-ingredients-market-1080
Key Developments
- In May 2024, Evonik, a leading specialty chemicals company, presented its latest nutraceutical innovations at the Vitafoods Europe 2024 trade show.
- In March 2022, Tate & Lyle, a British-headquartered global supplier of food and beverage ingredients, acquired Quantum Hi-Tech Biological, a prebiotic dietary fiber business based in China, for a value of US$ 237 million.
- In February 2022, ABF Ingredients (ABFI), a global leader in specialty ingredients, acquired Fytexia Group, a developer of active ingredients for various dietary supplements.
- In November 2020, Ingredion, a U.S.-based multinational ingredient provider, acquired Verdient Foods Inc., a producer of pulse-based protein concentrates and flour from peas and lentils.
Key Players
BASF S.E., BioNeutra Global Corporation, Botaneco Inc., Cargill Inc., Ceapro Inc., DowDuPont Inc., GrainFrac Inc., Ingredion Incorporated, InovoBiologic Inc., Jamieson Laboratories Ltd., Koninklijke DSM N.V., Lallemand Inc., Radient Technologies Inc., and SunOpta Inc.
