Nutraceutical Ingredients Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Nutraceutical Ingredients Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

The global nutraceutical ingredients market is projected to register a CAGR of 7.1% over the next five years.

The high progression of the nutraceuticals segment, like the probiotic segment, can be considered the reason for volatile lifestyle and eating practices, rising consciousness about the physical fitness benefits of probiotics over digestive health, and increasing utilization of probiotics in animal feed for the nutrition of animals. With a high number of COVID-19 cases in major countries like the United States, China, Canada, India, Germany, the United Kingdom, and others, the requirement for nutraceutical ingredients remained high due to their functional benefits, and it was supposed to remain high on demand in the upcoming years as well. The dietary supplement was popular over other nutraceutical ingredients during COVID-19 due to its functional benefits.

Innovation and new product development are likely to drive the demand for nutraceutical products such as power gummies, which are chewable dietary supplements that offer various health benefits. Nutraceutical ingredients are derived from animal, plant, microbial, and synthetic sources and provide health benefits, adding the primary nutritional value and functional benefits to various applications such as food, beverages, dietary supplements, animal nutrition, and personal care products.

Nutraceutical ingredients are useful in the pharmaceutical industry because of their medical benefits in treating or curing diseases and promoting better health. According to the World Health Organization, cardiovascular diseases are the leading cause of death globally, taking an estimated 17.9 million lives each year. Thus, the rising healthcare costs and benefits of preventive healthcare solutions have encouraged consumers to take their health into their own hands by equipping themselves with health information and making well-informed purchasing decisions on nutraceutical ingredients.

Consumers are more concerned about improving their health than paying huge medical bills for treatment, so most people are inclined toward nutraceutical ingredient products. Nutraceuticals are becoming more important around the world, and the average consumer is starting to eat them every day.Also, more people are becoming less active, which could lead to digestive problems like constipation, bloating, and indigestion.Customers are mostly requesting digestive health supplements to address these medical problems. According to the analysis of the Organization for Economic Co-operation and Development (OECD), the percentage of health expenditure spent on overweight and related conditions is predicted to account for 14% of health expenditure in the United States from 2020 to 2050. Nowadays, amendments to the products are made as per the current trend in the market. Thus, technology and innovation enable giant producers to manufacture functional and nutraceutical foods aimed at both general and specific health problems. The spread of COVID-19 worldwide inspires people to be inclined toward nutraceutical-based products that will boost their immune systems and keep them fit and healthy. However, adopting precautionary healthcare measures is considerably increasing product sales in every region. Functional beverages are one of the fastest-growing segments, and developing markets have growth potential for these beverages. Within the functional beverage segment, enhanced water and ready-to-drink beverages are seeing increased consumer demand.

Moreover, the growing working population and hectic lifestyle have adversely affected lifestyle-related diseases. Thus, the rising healthcare costs and benefits of preventive healthcare solutions have encouraged consumers to take their health into their own hands, equipping themselves with health information and taking well-informed purchasing decisions on nutraceuticals.

The Asia-Pacific region dominates the market, with the largest share and the highest growth rate projected in the forecast period. In Asia-Pacific, Japan holds the major share in the nutraceutical ingredients market, followed by China and India. Increased working hours and a sedentary lifestyle are factors impacting consumers' overall health and well-being, leading to metabolic stress. Thus, consumers turned to nutraceuticals for self-managed therapy. Customers are looking for nutritional solutions as they become more conscious of the significance of gut health. The economy is projected to improve in some regions with an increase in disposable income in the coming years. This would boost the market, as people tend to spend a good amount of their income on health-related aspects.

In Japan, foods or nutraceuticals with gastrointestinal tract improvement-related health claims are the most prevalent. After cholesterol reduction, triglyceride reduction is the second-most prevalent claim. According to the World Bank, the healthcare expenditure of Japan accounted for 10.74% of the GDP in 2020, making it one of the top countries in health expenditure. As a result of the increase in health-care spending, these ingredients have seen great success in the Japanese market.

Additionally, the functional beverage segment in the nutraceuticals ingredient market is expected to have a steady growth rate during the forecast period as the enhancement in the adoption of health and fitness drink commodities among consumers is high on demand, particularly in the regions of China, Japan, India, and Malaysia. The population growth rate in the Oceania nations, such as Australia and New Zealand, is not very high. Nutraceutical products are highly consumed by athletes and sportspeople, and the sports and energy segment in Asia-Pacific is projected to have the fastest-growing segment with the increasing consciousness of the organic benefits and the acquisition of supplements made up of nutraceutical ingredients.

The global nutraceutical ingredients market is moderately competitive, with a few major players like Archer Daniels Midland Co., Cargill Inc., Ajinomoto Co., Nutraceutix, Inc., and Ingredion Incorporated. With increased industry regulation worldwide, new product launches, mergers, and acquisitions have also increased, which are the primary causes of acquiring a vast market share. The manufacturers are concentrating on enhancing their product quality to obtain a competitive edge over other players in the market. Advanced distribution network and manufacturing expertise give the manufacturers an upper edge to expand their range of products worldwide.

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