Nutraceutical Ingredients Market Insights: Key Drivers, Trends, Leading Players, Recent Developments, and Competitive Landscape

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 global nutraceutical ingredients market [https://www.prnewswire.com/news-releases/nutraceutical-ingredients-market-worth-136-1-billion-by-2029--exclusive-report-by-marketsandmarkets-302209617.html], valued at USD 105.15 billion in 2024, is projected to reach USD 136.13 billion by 2029, growing at a CAGR of 5.3%. This market is undergoing significant transformation driven by rising health awareness and the increasing consumer demand for functional foods and beverages that support overall well-being.

According to the Global Alliance for Improved Nutrition (GAIN), food fortification represents a "no regrets" investment. Their August 2022 report highlights its low cost, widespread benefits, and substantial return on investment-yielding an average of USD 27 in economic returns for every dollar invested through improved health and productivity. This underscores both the economic and public health value of incorporating nutraceutical ingredients [https://www.globenewswire.com/news-release/2025/02/14/3026647/0/en/Global-Nutraceutical-Ingredients-Market-on-the-Rise.html] into everyday food products.

The rising prevalence of chronic diseases and persistent malnutrition across the globe further fuels demand. For instance, in India, chronic malnutrition remains a major public health challenge. A 2023 report by The Times of India revealed that 38.4% of children under five suffer from stunted growth-a key indicator of long-term malnutrition. Deficiencies in essential micronutrients such as iron, vitamin A, and iodine remain widespread, highlighting the urgent need for fortified and functional foods. Additionally, the growing use of nutraceuticals in animal nutrition to enhance livestock health and productivity continues to support market expansion.

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Proteins Lead by Type in Nutraceutical Ingredients Market Share [https://www.whatech.com/og/markets-research/food-beverage/881810-exploring-the-nutraceutical-ingredients-market-projected-growth-outlined-by-trends-drivers-and-future-outlook.html]

Proteins hold the largest share of the nutraceutical ingredients market due to their critical role in muscle development, tissue repair, enzyme production, and immune function. Their high nutritional value makes them widely used across various applications including dietary supplements, food and beverages, and animal feed.

A December 2021 report by Glanbia PLC highlighted soy and dairy as the leading contributors to global food fortification due to their cost-effectiveness, availability, and complete amino acid profiles. Their versatility makes them suitable for products ranging from sports nutrition to infant formulas. Meanwhile, plant-based proteins such as pea and wheat are gaining traction, driven by the demand for non-GMO, allergen-free, and sustainable alternatives.

Consumer preferences-especially in North America and Europe-are increasingly favoring plant-based diets and flexitarian lifestyles, which has fueled the demand for protein-enriched products. These proteins also play a prominent role in specialized nutrition, such as fast-absorbing dairy proteins in sports nutrition and baby formulas. Technological advancements in protein fortification are further enabling manufacturers to meet the demand for functional foods and personalized nutrition.

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Dry Form Dominates in Format and is the Fastest Growing Segment

Dry-form nutraceutical ingredients currently hold the largest market share and are experiencing the fastest growth among formats. Their extended shelf life and greater stability make them ideal for preserving the potency of sensitive bioactive compounds like vitamins, minerals, and botanical extracts.

In addition to enhanced stability, dry ingredients offer logistical advantages-they are easier to store, transport, and handle compared to liquid forms. This makes them an attractive option for manufacturers seeking operational efficiency and minimal waste.

Dry ingredients also allow for diverse applications, from capsules and tablets to powdered drink mixes, aligning with consumer preferences for convenient and easy-to-use functional products. These forms integrate well into various food products without significantly altering taste or texture, enhancing consumer acceptance and adherence.

Asia-Pacific Leads the Global Nutraceutical Ingredients Market

The Asia-Pacific region holds the largest share of the nutraceutical ingredients market, driven by rising health awareness, increasing disposable incomes, and rapid urbanization in countries such as China, India, and Japan. These socio-economic trends have led to greater demand for preventive healthcare measures and functional nutrition.

However, challenges persist. According to the FAO's Asia and the Pacific Regional Overview of Food Security and Nutrition 2023, the affordability of a healthy diet remains a critical issue. Data from the UN and FAO shows that the average cost of a healthy diet in the region rose by 5.3% (adjusted for purchasing power parity), leaving 232.8 million people unable to afford it. Southern Asia, in particular, faces severe undernourishment, with over 313.6 million people affected. This accounts for 85% of the region's undernourished population and reflects the urgent need for accessible and affordable nutraceutical solutions.

Top 10 Companies in Nutraceutical Ingredients Market [https://www.marketsandmarkets.com/ResearchInsight/nutraceutical-ingredient-market.asp]

* 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)

Recent Developments of Nutraceutical Ingredients Industry [https://www.marketsandmarkets.com/PressReleases/nutraceutical-ingredient.asp]

In February 2025, Ajinomoto Co., Inc. sponsors LabCentral, supporting biotech startups focused on amino acids and protein sciences. This strategic partnership boosts innovation in nutraceutical ingredients, particularly in amino acid-based products. The collaboration positions Ajinomoto to influence advancements in health and wellness applications.

In February 2025, ADM (US) has entered a strategic distribution agreement with Asahi Group Foods Corporation (Japan) for Lactobacillus gasseri CP2305, a clinically backed postbiotic. This strengthens ADM's health and wellness portfolio, expanding its global footprint in functional ingredients for stress, mood, and sleep support.

In November 2023, Ingredion and Lantmannen have formed a strategic partnership to develop sustainably sourced, high-quality pea protein isolates. This collaboration, with a 100 million investment in a new plant, enhances Ingredion's market reach and innovation capabilities, providing an advantage in the growing nutraceutical ingredients market by offering plant-based protein solutions.

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