Nutraceutical Ingredients Market Growth Drivers, Industry Overview, Opportunities, Emerging Trends, Leading Players, Recent Development, and Forecast - 2029

Nutraceutical Ingredients Market by Type (Proteins, Amino Acids, and Probiotics), Application (Food, Beverages, Animal Nutrition, Dietary Supplements, Food For Special Medical Purposes (FSMP)), Form, Function, & Region - Global Forecast to 2029
The [https://www.prnewswire.com/news-releases/nutraceutical-ingredients-market-worth-136-1-billion-by-2029--exclusive-report-by-marketsandmarkets-302209617.html] is poised for substantial growth, with an expected valuation of USD 136.1 billion by 2029, up from USD 105.2 billion in 2024, reflecting a compound annual growth rate (CAGR) of 5.3%. Factors driving this growth include changing dietary preferences due to urbanization and fast-paced lifestyles. According to an April 2024 report by the Food Institute, the "snackification" trend is gaining momentum, particularly in urban areas where longer commutes and heavier workloads make convenient, on-the-go food options more appealing. Approximately 67% of consumers now prefer smaller, more frequent meals, further fueling this shift toward convenience.

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Artificial Intelligence (AI) is also transforming the nutraceutical ingredients market by accelerating the discovery and production of bioactive compounds, enhancing R&D efforts. For example, in April 2023, ADM (US) partnered with Brightseed (US) to leverage AI for decoding gut microbiome interactions, using Brightseed's AI platform, Forager, to develop advanced synbiotic products. This illustrates AI's role in advancing probiotics and prebiotics for precision health solutions.

Nutraceutical Ingredients Market Opportunities [https://www.marketsandmarketsblog.com/the-future-of-wellness-analyzing-the-nutraceutical-ingredients-industry.html]: Nutraceuticals as Alternatives to Pharmaceuticals

The growing preference for natural, preventive healthcare solutions over synthetic drugs presents significant opportunities within the nutraceutical ingredients market. Vitamins, minerals, herbal extracts, and probiotics are widely regarded as safer alternatives with fewer side effects, enhancing their appeal. As chronic disease rates rise and the global population ages, there is increasing demand for health-promoting products, particularly for conditions such as cardiovascular diseases, diabetes, and gastrointestinal disorders. By 2030, the World Health Organization estimates that one in six people globally will be 60 or older, further driving the demand for nutraceuticals as alternatives to pharmaceuticals.

Regulatory support from bodies like the FDA and EFSA has also played a crucial role in promoting nutraceutical products, particularly regarding health claims, which encourages companies to innovate and expand their product offerings. Additionally, technological advancements such as microencapsulation and nanotechnology have improved the bioavailability and effectiveness of nutraceutical ingredients, helping them compete with traditional pharmaceuticals.

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Proteins, by Type, Accounted for the Largest Share in the Nutraceutical Ingredients Market

Proteins play a critical role in human health, supporting muscle-building, tissue repair, enzyme production, and immune function. As a result, they are extensively incorporated into food and beverage products, dietary supplements, and animal feed. According to a December 2021 article by Glanbia PLC, Ireland, soy and dairy proteins continue to lead in global fortification volumes due to their cost-effectiveness and nutritional completeness. The demand for plant-based proteins like pea and wheat is also rising, driven by the increasing preference for non-GMO and allergen-free options.

Consumer trends emphasizing sustainability, ethics, and dietary diversity are driving the adoption of plant-based proteins in North America and Europe. These proteins have become key components in products like sports nutrition and infant formulas due to their quick absorption and muscle-building properties. Technological advancements in protein fortification further enable manufacturers to meet varying consumer needs, supporting the growth of functional foods and personalized nutrition solutions.

Dry Form Ingredients Dominate and Show the Fastest Growth

Dry forms of nutraceutical ingredients offer key advantages, including stability and extended shelf life, which are crucial for preserving the potency and efficacy of sensitive bioactive compounds like vitamins, minerals, and botanical extracts. Additionally, dry ingredients are easier to handle, store, and transport, reducing logistical complexities and costs. These properties make them particularly attractive for manufacturers seeking operational efficiency and waste reduction.

Dry forms are widely used across various product formats such as capsules, tablets, and powdered beverages, catering to diverse consumer preferences for convenience and ease of use. For instance, powders and granules can be seamlessly incorporated into beverages, baked goods, and other food products, ensuring minimal disruption to texture or taste, which helps maintain consumer acceptance.

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Asia Pacific: The Fastest-Growing Region for Nutraceutical Ingredients

The Asia Pacific region is experiencing rapid growth in the nutraceutical ingredients market, driven by increasing health consciousness and rising disposable incomes in countries like China, India, and Japan. Urbanization has led to changes in lifestyles, promoting preventive healthcare measures and boosting demand for functional foods and dietary supplements.

According to the FAO, in the "Asia and the Pacific Regional Overview of Food Security and Nutrition 2023 - Statistics and Trends," rising food costs are exacerbating malnutrition, with 232.8 million people unable to afford a nutritious diet. The region continues to face severe food insecurity, particularly in Southern Asia, where over 809 million people experience moderate to severe food insecurity. This highlights the growing need for affordable, health-promoting nutraceutical solutions.

Top Nutraceutical Ingredients Companies [https://www.marketsandmarkets.com/ResearchInsight/nutraceutical-ingredient-market.asp]:

The nutraceutical ingredients manufacturers 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).

Cargill, Incorporated (US)

Cargill, Incorporated manufactures specialty food and feed ingredients, and other industrial products, for use in various applications. The company operates through four business segments: animal nutrition & protein, food ingredients & applications, origination & processing, and industrial & financial services. Under its food ingredients & applications and animal nutrition & protein businesses, it manufactures various nutraceutical ingredients. These ingredients, which include proteins, omega-3 fatty acids, fiber, and prebiotics, assist food and beverage manufacturers, feed manufacturers, food service companies, and other retailers. Cargill, Incorporated operates in around 70 countries and sells in almost 125 countries, across all the geographies such as North America, Latin America, Asia Pacific, Europe, the Middle East, and Africa.

ADM (US)

ADM caters to multiple business segments such as food & beverage ingredients, industrial ingredients, biofuels, feed & feed ingredients, and naturally derived alternatives to industrial chemicals. The company has four major operating segments such Ag services & oilseeds, carbohydrate solutions, nutrition, and others. Its nutrition segment manufactures, sells, and distributes a variety of nutraceutical ingredients-derived from natural sources. ADM has a strong geographic presence globally, with over 62 different innovation centers, 327 processing plants, 520 crop procurement facilities, and distribution in close to 200 other countries in Europe, Asia Pacific, Africa, South America, and North America.

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