Nutraceutical Ingredients Market Size, Share & Industry Analysis, By Ingredient Type (Protein and Amino acids, Vitamins and Minerals, Botanical Extracts, Carbohydrates {Dietary Fiber, Polysaccharides and Oligosaccharides, and Sugar alcohol}, Probiotics, and Others), By Form (Powder, Liquid and Others), By Application (Dietary Supplements, Functional Food, and Functional Beverages), and Regional Forecast, 2024-2032

The global nutraceutical ingredients market size was valued at USD 82.07 billion in 2023. The market is projected to grow from USD 87.76 billion in 2024 to USD 161.82 billion by 2032, exhibiting a CAGR of 7.95% during the forecast period. Asia Pacific dominated the nutraceutical ingredients market with a market share of 40.14% in 2023.

Nutraceuticals refer to products of plant or animal origin that provide basic human nutrition and promote general well-being. These products can be categorized into dietary supplements, functional food, and functional beverages. They play a crucial role in boosting immune response to various diseases and also help to reduce mental stress and obesity. However, the lack of uniformity on the efficacy of various nutraceutical ingredients, specifically botanical extracts, prevents the regulatory bodies from framing specific regulations regarding their usage and adoption in new product formulations.

Several nutraceuticals and dietary supplements are used to regulate body weight. These products help to amplify the calorie burn and suppress appetite. Common ingredients used for manufacturing weight loss nutraceuticals include beta-glucans, caffeine, herbs, ginseng, calcium, green coffee and green tea, Guar gum, probiotics, and others. Dietary and lifestyle changes are prompting consumers to adopt other methods, such as dietary supplement consumption to address weight problems. As per the World Health Organization, around 24% of the world will become obese by 2030. Thus, to address obesity-related health risks, consumers are opting to purchase weight loss nutraceuticals, which in turn is fueling the demand.

The demand for dietary supplements and nutraceuticals increased significantly during the COVID-19 pandemic. Apart from the available pharmaceuticals, consumers also wanted products that could boost their immunity and improve general well-being. Nutraceuticals are perceived to possess immunity-boosting properties, so the demand for nutraceutical ingredients increased significantly during the period.

Nutraceutical Ingredients Market Trends

Growing Partnerships Between Ingredient Manufacturers to Support New Product Development

Consumer demand plays a pivotal role in shaping market trends and product development. There is an increasing demand for prebiotics, probiotics, and a combination of these two to form synbiotics. Hence, nutraceutical manufacturers are partnering with leading probiotic ingredient specialists to create new product formulations. For instance, Clasado Biosciences partnered with Probi AB to create new synbiotics that can be used to manufacture nutraceuticals with higher efficacy.   

Nutraceutical Ingredients Market Growth Factors

Growing Demand for Clean-Label Natural Ingredient-Based Products to Support Market Growth

Nutraceutical demand is expanding rapidly among consumers globally. The demand for clean-label natural ingredients that support holistic health and multifunctional benefits is growing among manufacturers and consumers. Products must be delivered in a convenient and novel format to ensure their efficacy remains unaffected. This is driving the need for investment in the research and development sector of the nutraceuticals market.

Health concerns among consumers are growing rapidly across the globe. Obesity, overconsumption of processed food, changing lifestyle patterns, and their negative impact on human health are the main causes of concern among all age groups. Increased consumer awareness about health drives demand for healthy natural ingredients. This escalation in the demand for wellness needs among consumers is the major factor supporting nutraceutical ingredients market growth.

Increasing Popularity of Nutraceuticals Among Athletes and Health-Conscious Consumers to Fuel Market Expansion

The demand for nutraceuticals and dietary supplements is steadily increasing among athletes and habitually active consumers. Products, such as protein supplements, are used to obtain muscle growth and achieve overall performance enhancement. Apart from professional sports, the products are also becoming popular among recreational sportspeople and lifestyle consumers. Thus, the use of nutraceutical ingredients, such as proteins and amino acids, for manufacturing nutraceuticals specifically targeted for sports has grown rapidly over the last few years.

RESTRAINING FACTORS

Lack of Product Quality Management and Improper Labeling of Products Act as Major Factors Hindering Market Growth

Some manufacturers may mislabel the ingredient information of products, which can mislead consumers and lead to poor acceptance among consumers. The lack of a strong quality check system to ensure high ingredient quality can affect product safety and may deter consumers from purchasing such products. For instance, a study was conducted by clinical researchers associated with Rajagiri Hospital in India to determine the quality of protein and herbal supplements sold in the Indian market. The study published in the “Medicine” journal found that around 70% of the 36 researched supplements contained inaccurate protein information on their labels. Some of the products contained fungal aflatoxins and pesticide residue. Moreover, the herbal and protein-based supplements that are sold in the country also contain toxic botanicals that are harmful to the body. Such factors impede the adoption of nutraceutical ingredients based products among consumers.

Nutraceutical Ingredients Market Segmentation Analysis

By Ingredient Type Analysis

Protein and Amino Acids Segment Leads due to Growing Demand for Protein Supplements Globally

Based on ingredient type, the market can be segmented into protein and amino acids, vitamins and minerals, botanical extracts, probiotics, carbohydrates, and others.

The protein and amino acids segment accounts for the highest nutraceutical ingredients market share due to growing consumer demand for protein-based supplements and functional foods and beverages. As proteins and amino acids are essential for muscle and overall body growth, the demand is expected to continue in the future as well.

The probiotics segment holds the second position in the market due to the growing popularity of functional foods, such as yogurt, kefir, tempeh, and others. They help to fight off infections and also help to boost the immune system against infections.

Carbohydrates are yet another major ingredient type used in functional food and beverage formulations as well as dietary supplement formations. The use of carbohydrates, such as polysaccharides and oligosaccharides, dietary fiber, and others, provides energy and regulates the blood sugar levels of consumers.

Botanical extracts are one of the essential ingredients used for the manufacturing of dietary supplements. Herbs, such as ginseng, black cohosh, Echinacea, garlic, ginkgo, saw palmetto, and others, are commonly used for manufacturing herbal products. The use of all these active ingredients is expected to increase in the future.

By Form Analysis

Powder is the Most Preferred Form Owing to its Diverse Applications and Better Stability

Based on form, the market is segmented into powder, liquid, and others. Among these, the powder segment accounts for the largest market share. Products are available in powder format and are widely used or manufactured as they help to devise the final products in a shape that makes it easier for consumers to satisfy their daily dietary requirements.  They can be stored and transported easily and can be used in a wide range of functional foods, beverages, and dietary supplements. Other prominent forms of these ingredients are liquids, gels, and others.

Liquid segment is another major form in which nutraceutical ingredient manufacturers market their products. Ingredients mainly vitamins, minerals, botanical extracts, amino acids and others are available in liquid form that has higher bioavailability and can be easily integrated in food, beverages and supplements compared to powder or solid counterparts. However, such products have shorter shelf life compared to powder form of products.

There is also a growing need to develop an innovative delivery format to enhance final product stability and bioavailability and support targeted release. Shapes of products used for the production of nutraceuticals vary widely depending on the efficacy and convenience of the consumers. New formats are being developed by manufacturers to support consumer convenience.

By Application Analysis

Functional Beverages Hold Leading Position Due to Growing Consumer Demand for Healthy & Low-Calorie Beverages

Based on application, the market can be segmented into dietary supplements, functional food, and functional beverages. Among these, the functional beverages segment accounts for the largest market share due to the growing demand for low-calorie, sugar-free beverages. These beverages support healthy digestion and weight management goals.

Functional food is another leading category of application for nutraceutical ingredients. The demand for functional food is booming, especially among young and health-conscious consumers, which is supporting the segment growth. These products also help to reduce the risk of disease and are consumed as a part of regular diets.

The popularity of dietary supplements is also growing due to consumers' increased demand for health and immunity-boosting products. Apart from traditional medication, the demand for natural and traditional medicines is becoming more mainstream. Thus, the demand for botanicals and herbs for the production of such supplements is also growing. Consumers' needs are evolving, and there is a growing demand for products that help to reduce stress and support physical health and overall well-being. As the COVID-19 pandemic has subdued, consumers continue to pay significant attention to their immunity and overall well-being, supporting segment growth.

REGIONAL INSIGHTS

The market is segmented into North America, Europe, Asia Pacific, South America, and the Middle East & Africa.

Asia Pacific was valued at USD 32.94 billion in 2023, hence, it is a major market for nutraceutical ingredients. Herbs and spices have been traditionally used for manufacturing Chinese and Ayurvedic medicines; hence, the region is one of the leading producers of herbs globally. It is also a leading exporter of herbal ingredients and exports its products to several North American and European countries. Specific regulations have not been developed to regulate the growth of the nutraceutical ingredients market. However, in India, the government is working on introducing stricter regulatory guidelines to address the challenges and regulate the nutraceuticals market. For instance, in February 2024, the government established a panel to bring the nutraceuticals segment under the control of the apex drug regulator, the Central Drugs Standard Control Organization (CDSCO), instead of the Food Safety and Standards Authority (FSSAI).

The U.S. is one of the leading consumers of functional foods, beverages, and dietary supplements in North America. As per the U.S. Department of Agriculture’s Supplemental Nutrition Assistance Program (SNAP), in 2022, around two-thirds of Americans stated that they intend to consume healthy food products. Consumers highly prefer foods and beverages fortified with vitamins and minerals. Among beverages, consumers highly seek products that support gut health, boost immunity, and provide energy. These factors are the major reasons behind the market growth in the region.  

The demand for nutraceutical ingredients in Europe is also growing due to the rapid popularity of functional food and beverages in the region. Changing dietary patterns, including the adoption of keto and vegan diets, is playing a major role in impacting the nutraceutical ingredients market’s growth. Products supporting cardiovascular health, reducing obesity, diabetes, and other conditions are being used to manufacture dietary supplements and functional foods. Europe is one of the most promising export markets for the suppliers of raw nutraceutical ingredients.     

The markets of South America and the Middle East & Africa are growing slower than other regions. However, the demand for food, beverages, and supplements is growing due to rising disposable income, increased spending in health care and dietary supplements, and growing investment by private companies in manufacturing nutraceutical products.  

KEY INDUSTRY PLAYERS

Key Industry Players Investing in Advanced Technology to Improve Product Quality

The market is semi-fragmented, with several local manufacturing companies and international market players competing with each other for higher market shares. Some of the prominent market players are Cargill Incorporated, BASF SE, ADM, and others. As the market is evolving, nutraceutical ingredient suppliers are trying to achieve a competitive advantage by integrating technology into their manufacturing process to add value to their final products. For instance, Nutriventia, an India-based company, uses its proprietary technology to add nature-like excipients that help upgrade nutraceuticals' performance. Manufacturers are also trying to build consumer confidence in their products by backing their performance against any disease through scientific research that validates the claims and supports their efficacy.

LIST OF TOP NUTRACEUTICAL INGREDIENTS COMPANIES:

• Herbalife (U.S.)


• Cargill, Incorporated, (U.S.)


• Royal DSM N.V. (Netherlands)


• BASF SE (Germany)


• Evonik Industries AG (Germany)


• DuPont de Nemours, Inc. (U.S.)


• Glanbia plc  (Ireland)


• AMCO Proteins (U.S.)


• Roquette Frères (France)


• Döhler (Germany)

KEY INDUSTRY DEVELOPMENTS:

• April 2024: Nektium, a Spanish company, launched a new botanical extract named Vanizem, which is sourced from Aframomum melegueta spice. The product is marketed for boosting the mood and alleviating stress.


• February 2024: PLT Health Solutions launched botanical ingredients called Strengthera Muscle Maintenance + Vitality, formulated to support health and physical function.


• December 2023: Blendhub and Swedish company ColoPlus AB collaborated to develop and commercialize patented nutraceutical-based food products. These products are based on the bioactive properties of bovine colostrum and natural nutrition.


• October 2023: Roquette, a leader in the manufacture of branded specialty nutraceutical ingredients, launched new excipients, which are composed of pregelatinized starch to improve drug delivery in pharmaceuticals and nutraceuticals. The product range includes LYCATAB CT-LM partially pregelatinized starch, MICROCEL 103 SD, and MICROCEL 113 SD, which provide stabilizing and moisture-protective benefits to consumers.


• July 2023: Cargill introduced a new plant-based nutraceutical ingredient named “Go!Drop,” which mimics animal-based fats and helps improve plant-based formulations' nutritional profiles.

REPORT COVERAGE

The report includes quantitative and qualitative insights into the market. This market intelligence report also offers a detailed regional analysis of the market size, statistics, trends, regional forecast, and market rate for all possible segments. Moreover, this report provides various key insights on the market, an overview of related markets, competitive landscape, recent industry developments such as mergers & acquisitions, and regulatory scenario in critical countries.

Report Scope & Segmentation